New Orleans reconstruction question regarding the wage law Bush wanted to waive

[NewJeffCT]

I remember not long after Bush abandoned New Orleans, one provision in his proposal in rebuilding New Orleans was to seek a waiver of the law that required contractors to pay the local prevailing wages for construction work. The big controversy was that people were afraid they'd import workers from Mexico for 99 cents an hour, or even use it to drive down wages on local workers to minimum wage levels from their original more 'living wage' levels.

I'm a bit foggy this morning, but did that waiver ever go into effect, or was it voted down?

And, what was the law they wanted to waive?

Thanks

[Joanne98]

1. He wanted to wave the Davis-Bacon Act!

http://www.ombwatch.org/article/articleview/3098/1/219?TopicID=1
Minimum Wage for Government Contractors
Just as Katrina's aftermath shone the national spotlight on the vast poverty and inequity in the Gulf region, the White House responded, ironically, by repealing a 70-year-old minimum wage standard. Claiming a need to lower the cost of reconstruction, the White House announced Sept. 8 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 in Alabama, Florida, Louisiana and Mississippi.

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.

Secrecy News, a publication of the Federation of American Scientists, noted that a Congressional Research Service report indicates Bush's waiver of Davis-Bacon may be illegal. The National Emergencies Act of 1976 renders several statutory authorities dormant, unless specific procedural formalities are enacted by the president. Since the president did not formally declare a national emergency in accordance with that act, the Davis-Bacon waiver may be illegal.

The president's action came one day after 35 Republican members of Congress led by Reps. Jeff Flake (R-AZ), Tom Feeney (R-FL) and Marilyn Musgrave (R-CO) requested Bush to temporarily suspend the Davis-Bacon Act for the Hurricane Katrina recovery effort.

Companies such as Halliburton's Kellogg Brown & Root that are given federal contracts to rebuild in the Gulf region are under no obligation to pass the savings from reduced labor costs onto taxpayers. There is nothing to prevent these contractors from cutting workers' wages and boosting their own profits, while passing no savings onto taxpayers. The Center for American Progress noted that prevailing wages in the Gulf Coast are not likely to make people rich. "A laborer in New Orleans would receive $10.40 per hour in wages and fringe benefits," according to the Center.

Representatives in Congress who oppose Bush's waiver have already moved to undo it legislatively. Rep. George Miller☼ has introduced a bill, H.R. 3763, that will require the re-application of Davis-Bacon wage requirements to the areas affect by Hurricane Katrina. The Campaign for America's Future has launched a letter-writing campaign to support the Miller legislation.

[NewJeffCT]

4. did the waiver go into effect, though?

the link below indicates there was a move in Congress to get rid of the exemption, but not if it passed.

[babylonsister]

2. Here are some links that might help you:

http://www.ombwatch.org/article/articleview/3098/1/219?TopicID=1

http://www.house.gov/list/press/nc01_butterfield/09232005butterfieldconcernedaboutlossofworkersrights.html

[Joanne98]

3. WP saz he backed down but I would still check it out.

Prevailing Wages to Be Paid Again On Gulf Coast
Rule Was Waived for Post-Katrina Work

By Griff Witte
Washington Post Staff Writer
Thursday, October 27, 2005; Page A01

The White House yesterday reversed course and reinstated a key wage protection for workers involved in Hurricane Katrina reconstruction, bowing to pressure from moderate House Republicans who argued that Gulf Coast residents were being left out of the recovery and that the region was becoming a magnet for illegal immigrants.

The Bush administration decided in the days after the hurricane to waive a provision of the Davis-Bacon Act that guarantees construction workers the prevailing local wage when they are paid with federal money. The administration said the waiver on hurricane-related work would save the government money and speed recovery efforts.
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102601706.html

U know how sneaky the BFEE is.