Department of Labor

In Philly, VP Harris details new labor rules for federal construction projects

The changes, which update the Davis-Bacon Act of 1931, could give higher wages to construction workers

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Vice President Kamala Harris, on Tuesday, visited Philadelphia to announce changes to labor rules that could give higher wages to construction workers on federal projects.

At the headquarters of labor union DC 21, in Northeast Philly, Harris detailed the Labor Department's first update in decades to the Davis-Bacon Act of 1931, a law that requires the payment of prevailing local wages on public works.

"When union wages go up, everybody's wages go up," she said.

The new rule is something of a return to the past in that it will use the definition of prevailing wage that the Labor Department previously used from 1935 to 1983, likely raising the hourly earnings of contractors and subcontractors.

More than a million construction workers with jobs on roughly $200 billion worth of federally supported projects will benefit, the Democratic vice president's office said in an emailed statement.

The new rule “will mean thousands of extra dollars per year in workers’ pockets to help put a down payment on a home, save for retirement, or simply have more breathing room,” the statement said.

While workers would earn more money, critics such as the Associated Builders and Contractors say the new rule will make construction projects more expensive for taxpayers.

In a responce to Harris' visit, Republican National Committee spokesperson, Tachel Lee called the vice president's statements "out of touch."

"Incredibly out of touch, Kamala Harris and Joe Biden continue to tout ‘Bidenomics,’ as if their economic disaster is good news for Pennsylvanians. The Biden-Harris agenda has delivered soaring prices, higher debt, and falling real wages for working families across the nation," said Lee in prepared statement.

Copyright AP - Associated Press
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