At the Huntington Beach Charter Review Commission meeting on January 21, 2009, the prevailing wage was discussed. City Council chambers were filled to capacity as nearly 275 business owners and residents came to speak in favor of keeping a prevailing wage requirement in the city charter. A charter city differs from a general law city because the charter city has adopted their own "city constitution" - the city charter - and does not have to follow all the state laws and regulations that flow down to cities.
Download HBPrevailingWage The documents presented to the Charter Review Commission. Included in the packet - Prevailing Wage Laws are Good for America, Effects of Prevailing Wage Laws, Construction Apprenticeship Programs Career Training for the California Recovery, Prevailing Wage and Government Contracting Costs, Vista prevailing wage case information.
The prevailing wage is the basic hourly rate paid on public works projects to a majority of workers in a particular craft. Public works projects use tax dollars to build and maintain buildings and infrastructure used by the public. Quality workmanship is key to both on-time delivery and long term safety of the structures. Paying the prevailing wage allows highly skilled local craftspeople to be hired, which allows the local tax dollars to turn into paychecks in the area shops, restaurants, movie theaters, car lots, and more.
The owner of All Area Plumbing reminded the Commission that paying the prevailing wage allows his company to hire experienced personnel, which leads to high quality, on-time work. He cautioned that removing the structured business format provided by the prevailing wage requirement would lead to a race to the bottom bidding war where installation times will become longer because of reworks.
Robert Douglas, a local electrical contractor, gave his very clear perspective on the issue. "A company needs the most qualified and skilled workers to remain competitive." He added that paying the prevailing wage brings "skills and proven performance which allow me to remain competitive. Paying the lowest wages possible does not do this."
Connie Boardman, a former Mayor of Huntington Beach, discussed how tax dollars circulate in the community because the City pays the prevailing wage. "The workers can contribute back to the city's economy thru sales tax," said Connie. One of the owners of Commercial Interior Resources echoed that sentiment and stated "prevailing wages build sustainable communities." Rodney Larson, a Huntington Beach resident and a business agent for Plumbers Local 582, echoed Connie's comments and added, "I can dine out and spend money in the city because I have a prevailing wage job."The role of construction jobs providing for a middle class lifestyle came up many times. Daniel Lozano of Helmets to Hardhats stated that he "has referred over 33,000 people into apprenticeship programs. Southern California is one third of the referrals. " Helmets to Hardhats helps veterans transition from the military to careers in the construction trades.
"I see people enjoying a good life in Huntington Beach. This life is only possible with good wages," said Jim Moreno, a Huntington Beach resident and a Trustee of the Coast Community College District. Another 48 year Huntington Beach resident also attributed the growth of the community to the good wages paid and reminded people that "the lowest bidder won't take care of pensions and health care and apprenticeships." A member of Ironworkers Local 433 explained how he recently had a three level spinal fusion which put him out of work. The Ironworkers took care of him with disability pay and medical benefits. "I can take care of my daughters, still," he added.
Some of the newer members of the Ironworkers Locals 416 and 433 talked about their economic success. One young man, about 20 years old, said his friend was living in another state and was quite happy working on Carl's Jr. because he was paid enough to live on. He pointed out that he was working as an ironworker and able to live in his own apartment by the beach in Huntington Beach.
One of the local real estate agents summed up the issue very well. "Let's keep our jobs here. Let's keep a decent wage and pay taxes where we live and work." He supports the prevailing wage on city projects because a decent wage is paid and that encourages local people to take the jobs.
When the prevailing wage is not required, there can be a race to the bottom for wages, benefits, and working conditions. The quality and safety of the structures can also be lost in this race to the bottom. Journeymen craftspeople spend four to five years, the length of a college education, learning how to perfect their trade. They are able to check their work to insure the long term safety of the project. When workers who are not trained journeymen are used on construction projects, the long term durability and safety of the project may be compromised.
During this meeting, the Charter Review Commission did not vote but only heard testimony. The next step for the Charter Review Commission is to make a recommendation to the City Council on the issue of the prevailing wage. That action is expected to occur later in 2010.
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