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News & Analysis | REG•WATCH Blog | Press Room
Thursday, September 08, 2005
Bush Suspends Minimum Pay for Contract Workers
The White House announced that it is suspending its obligations under the Davis-Bacon Act to require a fair minimum wage for contractors working on the reconstruction and recovery efforts in the aftermath of Hurricane Katrina.
The Davis-Bacon Act prohibits the federal government from undercutting prevailing wages in the construction industry in areas where the federal government is contracting for work. The administration is required to ensure that its contracts establish minimum wages for workers that comport with the prevailing wage of the area. The White House invoked the act's exemption for national emergencies.
The irony here is that the devastation of Hurricane Katrina was compounded by poverty and low wages -- factors that kept many from evacuating in time. Now the Bush administration is empowering itself to pay substandard wages for the reconstruction effort.
Posted by Robert Shull
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