Davis Bacon Protection
The federal prevailing wage law is known as the Davis Bacon Act and many states have prevailing wage laws of their own. These laws are the single most important tool we have for protecting ironworker wages. Under Davis Bacon and similar prevailing wage laws, contractors are required to pay fair wages on construction projects that receive government funding. Prevailing wage laws ensure that taxpayer money is used to fund safe, quality work and isn’t used to take advantage of workers.
Prevailing wage laws provide a level playing field for union contractors. Without these laws, governments award construction contracts to exploitative companies who save money by underpaying workers and skimping on safety. This race to the bottom drives down industry standards across the country and devastates ironworker wages.
Anti-union interest groups spend millions of dollars every year spreading misinformation and working behind the scenes to repeal prevailing wage protections. Rather than pay workers a living wage, these contractors prefer to use their profits to influence our political system to pass laws that hurt working families—like repealing prevailing wage. As a result, several states have repealed their prevailing wage laws over the past decade.
These attacks have led to a decline in construction wages and construction wages adjusted for inflation are now lower than they were in 1970. Construction workers in states without prevailing wage laws make 21% less on state-funded projects. In Indiana, for instance, construction wages have fallen by 8.5% since the state repealed its prevailing wage law in 2015.
Every year, anti-union members of Congress try to repeal or weaken the Davis Bacon Act. Our defense is a group of pro-building trades Republicans who vote with us on this issue. Without their support, federal prevailing wage would have been dismantled years ago. As Union Ironworkers we must support those elected officials who support working families by voting to protect Davis Bacon on public projects.
Read more about important Davis Bacon legislation here:
First Major Davis Bacon Senate Vote in 10 Years Preserves Prevailing Wage
Infrastructure Investment
President Biden signed the bipartisan Infrastructure Investment and Jobs Act into U.S. law in November 2021. This law includes trillions of dollars to fix, replace, upgrade and expand U.S. roads, bridges, ports, drinking and wastewater systems, energy grid and more. Strong worker protections – including Davis Bacon wages and a crackdown on employers who break the rules – throughout the entire bill means our union's high-road contractors will have a strong shot at securing the market and organizing workers in emerging industries like wind and solar energy.
Investing in a healthy network of roads and bridges, public transportation and utility systems is vital to a growing economy and ensuring our communities' safety. This investment also means many thousands of new jobs for ironworkers. Not only does this bill create good jobs in communities across the United States, but it protects our families and our future by ensuring our infrastructure can keep people, goods and services moving safely.
Building and maintaining the U.S. roads, bridges, schools and other public resources is one of the government's most essential functions. After years of neglect and unfulfilled promises to address the our crumbling, outdated infrastructure, the Infrastructure Investment and Jobs Act couldn't have come at a more perfect time to help Union Ironworkers get to work rebuilding our economy.
Protecting Ironworker Pensions
Although most union multiemployer pension funds are in good shape, there are thousands of workers in severely trouble plans – in some cases in such bad shape that retirees have had to take significant cuts to their benefits. We fought hard to elect people to Congress who would help protect our pensions, and in January of 2021 we won. Pension relief was the top priority we told our friends before the election, and it was the first thing they delivered once they were in power. This Congress passed the American Rescue Plan, which included billions in pension relief, as their first major legislation and President Biden signed it right away.
The Iron Workers Local 17 pension, whose retirees had taken cuts of up to 40%, won almost $50 million in aid to restore members’ benefits. Other Iron Workers plans are applying for the support, too, and we’re sure there’s more good news to come.
“To come home and tell your wife we’re taking a forty-something percent cut in our income is more than uncomfortable. It’s devastating,” according to Bill DeVito, political coordinator of Local 17, “We hear about these banks and big corporations getting huge tax breaks or collecting a bailout when they get into trouble, but a blue-collar guy like me catching a break like this? It’s pretty incredible. It’s not something you hear about happening every day.”
Besides the influx of funds, our Union worked with the administration to make sure the new rule for the rescue package helps troubled plans far into the future by improving plans’ abilities to stay funded after the rescue money runs out. These additional steps help to safeguard the pensions of hardworking Ironworkers across the country from tough economic times. The American Rescue Plan will help pensioners to live the retirements they earned – both today and for many years to come.
Read more about Pension Protection legislation here: