Prevailing wage could change

A proposal to change the prevailing wages for construction projects outside the seven-county Twin Cities metropolitan area is headed for the House floor, but even some of its supporters doubt its chances of becoming law this year.

Rep. Peggy Scott (R-Andover) sponsors  HF1476 that would modify the formula used to calculate the wages that contractors must pay their workers for building projects funded in whole or in part by the state. This is known as the “prevailing wage.”

Under the proposed changes, the method of calculating the prevailing wage would switch from the “mode,” or the wage paid to the largest number of workers, to the “mean,” or average wage. The prevailing hours of labor would also change to accommodate four 10-hour workdays instead of five eight-hour days. The latter change would apply to the entire state.

The House Ways and Means Committee voted 17-14 to approve the bill April 16 and send it to the House floor. In March, committee members had voted 14-13 to table the bill.

Supporters argue the bill would lower construction costs and help small businesses compete for state contracts. Opponents say the bill will drive down wages for workers.

Rep. Steve Gottwalt (R-St. Cloud) said Minnesota’s method of calculating prevailing wages is different from most other states. He said opponents had mischaracterized the bill as a repeal of the prevailing wage law.

“We are not repealing prevailing wage in this bill, we’re reforming it,” Gottwalt said.

Rep. Tom Rukavina (DFL-Virginia) said it doesn’t matter what other states do, and that Minnesota’s prevailing wage calculations are “the right way to do it.”

All DFL committee members and two Republicans — Rep. Larry Howes (R-Walker) and Rep. Steve Smith (R-Mound) — voted against the measure. Rep. Jim Abeler (R-Anoka) said he was only supporting it because he’s confident that it won’t become law in its current form. He said the two sides need to work out a compromise on the issue.

Sen. John Pederson (R-St. Cloud) sponsors the companion,  SF1199, which the Senate passed 37-29 on April 18.