Rolling Cyber Debate: Answers to Question 3

Welcome to our online gubernatorial debate.

Each week through the May 22 primary, we'll be asking all 10 candidates for governor a question that is submitted by readers. We'll post their answers before noon each Friday. If you'd like to submit a question, please send me an email or leave it in the comment section below. Please provide your first name and hometown.

We'll announce next week's question on Monday. Click here to see previous installments of our rolling cyber debate.

- John Stamper

QUESTION

Kentucky construction projects that have a value greater than $250,000 require prevailing wages be paid on the project labor. On some projects, certain trades are paid $44.00 per hour and higher. Explain why you support or oppose prevailing wage rates for state-funded projects.
                        
                    -- Sam from Northeast Kentucky

DEMOCRATS RESPOND

STEVE BESHEAR:

Sam,

Thank you for your question.

Sam, I support prevailing wage requirements.

The fact is, prevailing wage requirements are nothing new, having been a part of Kentucky law since 1940. Fair analysis of existing prevailing wage laws show they keep state government from undercutting local businesses, increase productivity, and add to the health of the local economy.

In addition, prevailing wage laws ensure that skilled workers are compensated for their work and are not undercut by unskilled workers, which can lower quality and safety.  Nothing is more expensive than having to do the job twice.  Prevailing wages also prevent unscrupulous contractors who win contracts by paying their employees less and not providing benefits.

Steve Beshear

GATEWOOD GALBRAITH:

Kentucky's prevailing wage provides the state with better workers, reduced injuries, greater minority employment, and increased health benefits to both union and non-union workers.  These conclusions are not mine but Dr. Phillips of the University of Utah in his report on prevailing wages in Kentucky.  I applaud the unions' tireless effort in fighting Governor Fletcher's attempt last year to kill prevailing wages. "Operation High Road" was a success.

In 1994 Jerry Hammond, one of the best friends labor ever had in Kentucky, agreed to run with me as Lt. Governor. Jerry was Executive Secretary of the Building and Construction Trades Council.  He was the man responsible for forcing Toyota to use Ten Million Hours of union labor in the construction of their Georgetown plant.  It remains the only time Toyota has ever conceded to union labor.  He passed last year and I sorely miss his political counsel now but I know that he would never give up and neither will I.  It is time that Kentucky has a Governor who represents workers, both union and non-union. Tell all the Brothers and Sisters, WE CAN WIN THIS ONE.  Together we can take back the Democratic Party and our state.

OTIS HENSLEY:

No response.

STEVE HENRY:

No response.

BRUCE LUNSFORD:

I support the prevailing wage law becuase is provides for the building of safe construction projects. It assures the safety of both the workers and the public. The law protects the public from shoddy construction by those who undercut local wages. The prevailing wage law is an investment in skilled labor, which is essential to the safe construction of public buildings. The prevailing wage law is also an incentive for individuals to pursue apprenticeships and jobs in high-skilled construction work. High skilled construction workers should be paid a fair wage for the work they do, and not be undercut by those who would cut corners. Studies show that labor costs account for less than 30% of total construction costs, so the prevailing wage law has a minimal effect on total construction costs. I also believe it is important to have competitive bids for public construction contracts. We should encourage fair competition whenever possible. We need to strike a balance between paying a fair wage and ensuring the construction of safe public buildings.

JONATHAN MILLER:

Kentucky’s existing laws on prevailing wage have been in effect since 1940 and must be preserved to encourage investment in apprenticeship and training programs while preventing low wage, less qualified contractors from undercutting local wage laws.

Our state’s commitment to paying the average, prevailing wage rate for its construction projects in each county or Senate district is in our own self interest as workers earning the prevailing wage are also consumers and taxpayers. Contractors bidding on public construction projects should compete on a basis of who can best train and best manage rather than who can find the cheapest workers, either local or imported from another state or country.

JODY RICHARDS:

I support prevailing wage in its current form because, one, it ensures that the work will be of top-notch quality and, two, it makes it less likely that an out-of-state company will unfairly compete for jobs that should go to Kentuckians.

The prevailing wage has been the law in Kentucky for decades, and has been used for federal projects even longer. It has proven its worth, in my opinion.

As we saw in last year’s legislative session, prevailing wage has strong, bipartisan support in the legislature.  Prevailing wage is an investment in our infrastructure, and in the craftsmanship of our citizens.  As Governor, I will oppose any efforts to change it.

REPUBLICANS RESPOND

ERNIE FLETCHER:

Taxpayers deserve to know that their dollars are being spent wisely and stretched as far as we can take them. That is not the case with the current prevailing wage law, which is both arbitrary and unfair. It is an artificial cost driver in state construction projects, and takes available dollars away from other worthwhile programs or projects. That is why I have called for and support its repeal.

During my first term we have undertaken the most ambitious infrastructure program in the history of the commonwealth. It is estimated that without prevailing wage we would have 6 to 12 percent more to spend on school construction projects. That funding would certainly be welcome to help us build needed facilities in areas of rapid growth like Boone County and around Ft. Knox, and replace schools in most urgent need of an upgrade.

Every day my administration is searching for innovative solutions to make government more efficient and respectful of our tax dollars. I will continue those efforts in my next term.

BILLY HARPER:

ANNE NORTHUP:

The time has come for Kentucky to re-examine our laws relating to prevailing wage on state-funded projects. Without question, our state laws requiring prevailing wages cause more taxpayer funds to be spent on public construction than if we were able to simply use market wages for labor.

According to the Kentucky Department of Education, prevailing wage regulations have increased the costs of school construction by nearly 11%. When our Commonwealth needs to either build new or renovate many existing school facilities, it is absurd to spend 11% more than what the labor market dictates.

Jeff and I support changing the law so that public works projects in our administration pay laborers what they deserve. Therefore, Kentucky will prosper by receiving more construction for the same cost.

While the current administration and I support the same position, the law will not change without effective leadership. Last year, Fletcher raised the issue in the State of the Commonwealth and then did little to convince voters of the taxpayer benefits resulting from enacting this change, which is hard to believe considering all the other bargaining that was going on with respect to bills and appropriations, including $1.7 billion of bonded projects.

Comments

[Bob]

Attacks on the prevailing wage laws are attacks on the unions. Why didn't any of the Democratic candidates besides Gatewood stand up for the unions in their response? Are they afraid to draw attention to their lack of support for the unions after the unions have supported them for all these years?

As each day goes by, I feel more and more like Fletcher and Northup are just half-assing this primary. I guess the Republican Party has accepted they're going to lose in the fall. At least we have a studmuffin like Billy Harper to keep us entertained!

I didn't see Jeff Hoover walk through a thousand union members with the Governor on his way to championing the repeal of prevailing wage.

Anne Northup is really a man.

I have a question. Where does any construction worker make better than 40.00 dollars a hour? If this is the wage being paid please post information on where to get a application.

Unskilled workers are not making $40.00 but skilled workers such as welders, electricians, plumbers and others that have had extensive vocational training. People against the prevailing wage law don't like blue collar workers being able to make enough to be considered middle class.

How fitting that Henry didn't respond. Blowing off a question of such importance is tantamount to being Anne Northup.

3:19 (or should I say Brett Hall?), maybe that's because you didn't pay attention to Frankfort politics before 2003. Jeff Hoover brought up the issue of suspending prevailing wage on school construction years ago! In fact, he happens to be the first legislator I remember going on record to that fact.

[Chris Derry]

Why should construction workers receive an above-market wage one month on a prevailing wage project but receive market wages on a private project the following month? Is it logical to assume that a carpenter will deliver higher quality work one month and substandard work the next if he's paid more?

It is now common knowledge that Kentucky's prevailing wage law cost taxpayers $100 million more last year than if those public projects had been constructed with fair market wages.

Are Kentucky taxpayers really getting a legitimate bang for the extra bucks they are forced to pay for prevailing wage projects?

What does the unskilled worker make? I am a Carpenter in Lexington, what would I make? I sure do not make any where near 40.00 per hour. Try 17.00 on for size.

Considering how much taxpayers are being ripped off paying salraies for so many totally incompetent, poorly educated, completely inept and unbelievably lazy Fletcher appointees, paying skilled labor to build safe schools for our kids is a bargain.

[Jack]

$40.00 is a misnomer. The skilled tradesman is not receiving that in wages, but the cost of the labor in terms of contracted hourly costs is $40.00. Other factors taken into consideration are, safety oversight, insurance, training, apprenticeship programs and equipment required for both safety and quality. The price is rather small in terms of overall safe and quality construction. When we let unskilled craftsmen and perform these tasks we not only trade good paying jobs for qualified individuals, but we trade safety and quality. Who would you rather have building your childrens schools? Who would you rather have building your office building? Who would you rather have building your highways and bridges?

[Conservative]

Somehow these building get built, these houses get built in the private sector without Prevailing wage. But as always it is for the safety of the children, it is about saving lives and saving the children, this is the only argument the libs can use. I do not see buildings or houses caving in that were built without prevailing wage contractors. When I was in college I worked for a rubber roofing company. The owner of the company had hired a set crew of roofing professionals and then he would hire football players for the summer. He paid us 15.00 per hour which we thought was amazing. My point is that we could put on 4 new building roofs to every one prevailing wage crew. We did not take brakes, we took 15 minutes for lunch, we put lights on the building and worked nights, we would show up to work at 6 am and work until 8 or 9 pm. We loved it. We were paid 1/3 of the prevailing wage guys and got a lot more done without any problems. This was over 20 years ago and most of the roofs we did then are still dry. I guess I can take credit for saving the children. We did some school roofs.