The Republican-controlled Indiana General Assembly recently passed legislation to repeal that state’s common construction wage law, efforts are underway in Wisconsin to repeal that state’s prevailing wage law, and Republican Illinois Governor Bruce Rauner has made repealing our state’s prevailing wage law a major priority of his right-wing corporate agenda. Prevailing wage laws require construction and other types of workers on taxpayer-funded projects to be paid the prevailing wage in the area in which the work is being done.
While Republicans and conservatives claim that repealing prevailing wage laws would save taxpayers money, Iowa, which neighbors both Illinois and Wisconsin, has proven that to be absolutely false. In Iowa, a state that does not have a state-level prevailing wage law, the per lane-mile cost of maintaining state-maintained roads was $5,732 in 2012. In Wisconsin, which currently has a state-level prevailing wage law, the per lane-mile costs of maintain state-maintained roads was $4,341, or $1,391 less expensive per lane-mile than Iowa, in 2012.
Prevailing wage laws do nothing more than drive down the wages of workers on road construction and other publicly-funded projects and allow construction companies to pad their profits at the expense of workers and taxpayers. Driving down the wages of workers, whether it be construction workers and other types of workers, also hurts the overall economy, because workers whose wages drop have less money to spend on goods and services, which results in businesses not being able to make as much money selling goods and services.