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WV Contractors Say “Don’t Repeal the Prevailing Wage”

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Monday, December 22, 2014   

CHARLESTON, W.Va. – Many of the state's construction contractors say repealing West Virginia's Prevailing Wage law is a terrible idea.

The new Republican leadership at the legislature says it wants to do away with the law, which mandates that construction workers on public projects make the going rate for their specialty in a given area.

Kim Carfagna, president and CEO of Jarvis, Downing & Emch, says for decades the prevailing wage has been key to his company’s ability to maintain a high-quality workforce.

He says without it, low-cost, out-of-state contractors will try to under bid local companies.

"You're bringing in out-of-state contractors that will undercut our projects,” he maintains. “The safety issue comes into it, the quality issue comes into it."

The proposal is expected to come up during the legislative session, which starts next month.

The incoming Senate president says without the prevailing wage, the state could build five schools for what it now costs to build three.

Several studies say that is simply impossible.

One 2004 survey of thousands of school projects found the prevailing wage made a tiny difference in the cost of new construction, in part because wages are only about a third of the bottom line.

The study also found that repealing the wage encourages under-biding by small, inexperienced firms with poor safety records.

Glenn Jeffries, president of Cornerstone Interiors, says that can mean less employee training, safety education and drug testing.

"Bring in low-pay workers, no quality of work, no skill level,” he maintains. “I hate to put a construction worker out there, five stories up walking out on a beam, and the person behind him is under the influence of some kind of a drug."

An average of about 13 percent of construction workers nation wide have positive results on random drug tests.

The rate for West Virginia public project workers is less than a quarter of that.

Carfagna says people assume contractors would like to get rid of the wage rule, but he says it's actually a terrible idea. He says he doesn't understand why the lawmakers would want to do it.

"Loss of wage to our own people, and that wage going out of state,” he points out. “I just can't understand how any legislator can explain that to his constituents."




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