As the third anniversary of the Bipartisan Infrastructure Law approaches, and with it approximately $1.7 billion earmarked for 90 construction projects in Utah, it’s time to address challenges that if ignored, could dramatically diminish the historic opportunities it and other federal investments are bringing to the state and their potential to truly improve the lives of Utahns.
First, according to a 2023 Outlook survey conducted by the Associated General Contractors of America Association, 87% of Utah contractors are facing workforce staffing issues, higher than the national average of 80%. This is alarming on its face, but even more so when you add in the nearly 100 construction projects on Utah’s horizon that require approximately 150,000 new qualified workers.
Adding to the challenge of fewer workers for far more jobs is the growing misunderstanding of what a prevailing wage law is and does. The result of our grandparents’ generation’s good sense, prevailing wage law (or Little Davis Bacon, as it was known here) protected Utah contractors and construction workers from being undercut by large, out-of-state corporations. The prevailing wage law said plainly: When the people of Utah’s tax dollars are building a road, bridge or state funded project then the people of Utah — our workers, our businesses — should benefit.
Prevailing wage is determined by surveying wage/fringe benefits across each county and those surveyed results become the prevailing rate (area standard). Unfortunately, because prevailing wage is no longer the law of the land, these state specific surveys aren’t being conducted. Still, contractors from each community know what must be paid as an area standard to attract and retain employees. The only way to pay less is by Utah taxpayers subsidizing contractors through taxpayer funded benefits like Medicaid and food stamps or contractors bringing workers in from out of state who are paid less than the area standard.
And that’s exactly what’s happening. Just look at the onboarding of new hires across the state, which now includes training on how to access government benefits like Medicaid, CHIP (Children’s Health Insurance Program) and food stamps. This practice shifts the burden of providing a family-sustaining wage from the employer to the taxpayer. And as for contractors looking across state lines for workers, all you need to do is pull into the parking lots of construction job sites across Utah and see for yourself that there are as many license plates from Texas as there are from Utah. That would make sense if you’re in Amarillo, but not if you’re in Provo.
Last, opponents of a prevailing wage law are weaponizing misinformation, originally arguing that without a state prevailing wage, costs of construction projects could be reduced by up to 25%. The last 40 years — and an abundance of recent data — has proven this statistic to be false. One of the most significant ways to reduce costs on a construction project is through employees wages and benefits. But shifting these costs to taxpayers through welfare programs only moves money from one pocket to another.
Prevailing wage keeps money where it belongs, in the pockets of Utah’s workers and taxpayers. Here’s how: Prevailing wage laws guarantee that much-needed benefits for workers aren’t subsidized by the community, state and folks like you and me, but provided for by the contractor. A prevailing wage also increases the availability of, and participation in, skilled trades training programs. One analysis found that states with prevailing wage laws have 65% more enrolled apprentices and 60% more graduating apprentices per hour of construction work (apprenticeships lead to new qualified workers). They also lead to increased worker productivity, safety and availability. In part thanks to the greater availability of training, construction workers in prevailing wage states are between 14% and 33% more productive.
Additionally, firms paying prevailing wages were 14% less likely to experience difficulty filling skilled-worker positions in 2022, giving credence to the argument that prevailing wage laws reduce wage volatility and make it easier to attract and retain workers. They also put money into the pockets of contractors: Local contractors have 10% more market share in prevailing wage jurisdictions. Last but not least — just as the Boomers intended — they benefit Utah taxpayers.
Growing local, as opposed to out-of-state, contractor firms increases the tax base and research shows no increase to construction costs or decreased bid competition rates in prevailing wage states.
Without a strong prevailing wage law in Utah, protections for workers and their communities are unenforceable and too easily undermined. There is nothing to stop contractors from hiring outside workers undercutting wages, benefits and working conditions and shifting costs to taxpayers. Codifying prevailing wage as the law of the land will reduce outsourcing, protect Utah workers, and help build a strong — and desperately needed — Utah workforce today, tomorrow and for years to come.
(Brandon Dew) Brandon Dew is the district representative of Operating Engineers Local 3.
Brandon Dew is the district representative of Operating Engineers Local 3, a steering committee member of United Today, Stronger Tomorrow — Utah and a proud Utahn.
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