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Republicans Urge Suspension of Davis-Bacon Wage Act for Katrina Recovery Jim Meyers, NewsMax.comMembers of the House Republican Study Committee (RSC) have called for President Bush to temporarily suspend the Davis-Bacon Act in order to expedite the reconstruction of the Gulf Coast. The Davis-Bacon Act, signed into law in 1931 during the Depression to raise pay rates for workers on government projects, stipulates that workers on all federally financed construction jobs must receive no less than the locally prevailing wages paid on similar projects. Story Continues Below "We must ensure that a catastrophe of nature does not become a catastrophe of debt for our children and grandchildren," said Rep. Mike Pence (Ind.), chairman of the RSC. "We must look for ways to pay for this enormous undertaking and suspending the prevailing wage requirements of the Davis-Bacon Act during the initial reconstruction effort is a good place to start." The president can suspend the Davis-Bacon Act's requirements in the event of a national emergency. President Nixon suspended it to curb the upward spiral in construction wages during an inflationary period, and President George H.W. Bush suspended the Act after Hurricane Andrew. GOP Reps. Tom Feeney (Fla.), Marilyn Musgrave (Colo.) and Jeff Flake (Ariz.) sent a letter to President Bush, co-signed by 32 House conservatives, calling for the suspension of Davis-Bacon. The letter reads in part: "With the recent devastation of New Orleans and Mississippi caused by Hurricane Katrina, there is no doubt that the United States is in a state of national emergency ... "As you know, the Davis-Bacon Act of 1931 mandates that a prevailing wage be paid on all federally financed or assisted construction. Additionally, the Act requires that wage information be provided to contractors ten days before bidding on projects begins. "The Government Accountability Office has reported that there is often a delay of two weeks between the time when Department of Labor issues rates and local officials receive them. Meanwhile, construction projects cannot begin until the new rates are received. "Furthermore, Davis-Bacon regulations effectively discriminate against contractor employment of non-union and lower-skilled workers and can even raise total construction costs by up to 38 percent. "It is evident that decisive government action is needed now to protect the public interest during the extended rebuilding period ahead … "Faced with the massive rebuilding challenges ahead, we respectfully urge you to make a presidential proclamation to suspend Davis-Bacon until our country is once again whole."
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