Senate Republican leaders have
worked with key Democrats to craft a compromise on reforming the state’s
prevailing wage law.
Under prevailing wage, the state
Division of Labor determines hourly pay for workers on state construction
projects. Union leaders say the prevailing wage is an accurate representation
of the market and helps prevent out-of-state contractors from low-bidding jobs.
Opponents claim prevailing wage rates are artificially high, driving up
taxpayer costs for public projects.
Under the compromise reached
Wednesday, the task of determining the prevailing wage would be turned over to
the state’s Workforce Development office, which would consult with economists
at West Virginia University
and Marshall to
determine the formula for appropriate pay. That formula would still need to be
approved by the Legislature’s Joint Committee on Government and Finance.
The proposal recommends state
projects under $500,000 would not be subject to prevailing wage.
Republicans have recently met with
labor leaders in search of a compromise, instead of following through on a plan
to eliminate prevailing wage. When talks broke down, leadership reached out to
several key Democrats. Reportedly, at least three Democrats support the deal.
The proposal is expected to come up for third reading with right
to amend in the Senate on Thursday.