Monday, April 10, 2006
Union Pandering Finally Went Too Far? Maybe
In a remarkably swift action, the Governor has set aside a recent ruling from the Department of Labor and Industry that had overturned a decades-long practice of not requiring prevailing wages to be paid on road maintenance projects. Responding to outrage from municipal officials whose entire maintenance programs were being thrown into disarray because of the additional 20 to 30 percent costs they were facing under the Department’s ruling, the Governor decided wisely to put the Department’s decision on hold while it undergoes a thorough review. Maybe in the meantime, the Legislature will act to make sure there is never again any question about paying prevailing wages on maintenance projects. Otherwise, there is the possibility the Governor’s review will uphold the Department’s ruling.
Up until the Governor’s action on the prevailing wage decision, the Administration was fully engaged in giving unions whatever they want. For example, transit workers have been exempted from having to participate in lowering the extravagant operating costs in Pittsburgh and Philadelphia by having highway money diverted to cover salaries and benefits. Pittsburgh’s firefighters were able to obtain a five-year contract against massive evidence that the needed reductions in staffing, working hours and compensation had not yet been achieved. The Act 47 team, following Administration’s wishes, did not object to the granting of a five-year contract, something that should never happen in a distressed City.
Since then teachers have threatened to strike during the school year and obtained essentially all they were asking for. The belief among public sector labor seems to be that as long as taxpayers have a dime and are not yet in full rebellion, keep making demands.
Thus, in this environment, it cannot be considered a total shock that the Pennsylvania Department of Labor and Industry issued a ruling that reclassified road “maintenance” to be construction so that prevailing wages must be paid for the work. According to newspaper accounts this ruling would have added $200 million a year to road maintenance. And since municipal and county taxpayers fund much of the work, the extra 20 to 30 percent higher cost would have meant higher taxes or less roadwork or both.
Defending the decision, the Department says that it was only enforcing the law as it is written. Still, at the very least, a ruling of this magnitude with its far-reaching consequences should have been brought in advance to the attention of parties that would be affected as well as the Legislature.
Obviously, the Governor got it right in his quick action to put a hold on the ruling. Nonetheless, much more needs to be done to loosen the union stranglehold on Pennsylvania’s economy, especially that of the public sector unions. While it might be politically advantageous to pander to unions, the constant bowing and scraping does not help repair the state’s terrible image among companies thinking about a start up or relocation. Where unions are strong, public sector unions will be even stronger and more demanding. In those communities, the per capita cost of government will rise, inefficiencies will abound while taxpayers, including businesses, are ill served.
Sadly, however, as long as Commonwealth officials run around the state handing out large taxpayer funded checks to selected “economic development” projects, the illusion of progress will be enough to keep the public from demanding a better strategy.
Up until the Governor’s action on the prevailing wage decision, the Administration was fully engaged in giving unions whatever they want. For example, transit workers have been exempted from having to participate in lowering the extravagant operating costs in Pittsburgh and Philadelphia by having highway money diverted to cover salaries and benefits. Pittsburgh’s firefighters were able to obtain a five-year contract against massive evidence that the needed reductions in staffing, working hours and compensation had not yet been achieved. The Act 47 team, following Administration’s wishes, did not object to the granting of a five-year contract, something that should never happen in a distressed City.
Since then teachers have threatened to strike during the school year and obtained essentially all they were asking for. The belief among public sector labor seems to be that as long as taxpayers have a dime and are not yet in full rebellion, keep making demands.
Thus, in this environment, it cannot be considered a total shock that the Pennsylvania Department of Labor and Industry issued a ruling that reclassified road “maintenance” to be construction so that prevailing wages must be paid for the work. According to newspaper accounts this ruling would have added $200 million a year to road maintenance. And since municipal and county taxpayers fund much of the work, the extra 20 to 30 percent higher cost would have meant higher taxes or less roadwork or both.
Defending the decision, the Department says that it was only enforcing the law as it is written. Still, at the very least, a ruling of this magnitude with its far-reaching consequences should have been brought in advance to the attention of parties that would be affected as well as the Legislature.
Obviously, the Governor got it right in his quick action to put a hold on the ruling. Nonetheless, much more needs to be done to loosen the union stranglehold on Pennsylvania’s economy, especially that of the public sector unions. While it might be politically advantageous to pander to unions, the constant bowing and scraping does not help repair the state’s terrible image among companies thinking about a start up or relocation. Where unions are strong, public sector unions will be even stronger and more demanding. In those communities, the per capita cost of government will rise, inefficiencies will abound while taxpayers, including businesses, are ill served.
Sadly, however, as long as Commonwealth officials run around the state handing out large taxpayer funded checks to selected “economic development” projects, the illusion of progress will be enough to keep the public from demanding a better strategy.
