Service Contract Act
Why Do Government Employees Need A Union?
In today's pro-business economic climate, workers more than ever
need to join together and form a union. As corporations seem motivated
more and more by the bottom line many good, loyal workers are beginning to
suffer and only through working as a group and forming a union can they
survive with a measure of dignity and pride.
The IBEW has long represented workers in the Government Sector or
workers who are employed by Federal Government contractors. Not only do
IBEW rperesented employees have generally higher wages wages and better
benefits, additionally have the full force of nearly 700,000 other IBEW
Members behind them to help enforce meaningful Grievance & Dispute
procedures.
For employees of contractors performing services for the US Government
they have the advantage of the provisions of the "Service Contract
Act.
SERVICE CONTRACT ACT: BASIC QUESTIONS AND ANSWERS
Q: What is the Service Contract Act?
A: The Service Contract Act of 1965, as amended, provides labor
standards for certain persons employed by Federal Contractors to furnish
services to Federal agencies.
Q: How are wages determined under the Service
Contract Act?
A: For UNREPRESENTED employees, minimum wages are
determined by the US Department of Labor by doing periodic wage surveys in
the locality in which the Service Contract employees work. Then,
they issue a document which is called, 'Wage Determination.'
For REPRESENTED employees who
engage in collective bargaining, the wages and benefits negotiated, as a
result of 'arms length negotiations,' replace and serve as the minimum
prevailing wage for that particular service contract.
Q: How are fringe benefits determined under the
Service Contract Act?
A: For UNREPRESENTED employees, the same wage
determination lists minimum fringe benefits. The Dept. of Labor has
established two rates: a Low Rate and a High Rate. The Low Rate is rising
and the High Rate is fixed. The Low is currently, $1.63 per hour; and the
High Rate is fixed at $2.56 per hour.
But, for REPRESENTED employees,
fringe benefits negotiated as a result of 'arms length negotiations' shall
become the minimum fringe benefits for that particular Service Contract.
Your IBEW Contract controls.
Q: What happens when a new Service Contractor takes over the Service
Contract on which I am working?
A: Under the Service Contract Act, a new Service Contractor is not
required to hire any of the existing Service Contract employees. For UNREPRESENTED
employees, the new Service Contractor who has won the bid away from the
current Service Contractor, only has the obligation to pay the minimum
rates established by the Department of Labor's wage determination. And,
they can work with less people, for less hours, lower classifications!
Remember, the contract is many times 'let to the lowest bidder.'
For REPRESENTED employees, section
4C of the Service Contract Act, provides that no contractor who succeeds a
previous Contractor, will pay any service employee under such contract
less than the wages and fringe benefits (including accrued wages and
fringe benefits) provided for in the collective bargaining agreement.
Normally, when a service contract is being re-bid, the competing
Contractors will contact the Union representative and attempt to reach an
agreement on the conversion and indicate so in their bid
insuring that labor peace prevails. With a skilled workforce like yours,
virtually all Contractors will agree to honor the terms and conditions of
the collective bargaining agreement.
Q: Will my employer suffer a loss in profits if
they pay more than the Department of Labor's determined rates, because of
my Collective Bargaining Agreement?
A: When your employer pays UNREPRESENTED employees
wages and benefits which are higher than provided for in the Department of
Labor's wage determination, those increases will affect profits. However,
wages and benefits negotiated for REPRESENTED employees are
passed through to the customer, usually the federal government, once a
year: normally this is effective October 1, of each year.
Q: Well, isn't this unfair to the Government?
A: NO! The are two reasons why; first if the negotiated wages and
benefits are at valiance the affected Government Agency can challenge. The
second reason is Government believes 'Collective bargaining at arms
length' is the very best way to determine wages and benefits. The
Government has confidence that private sector contractors and their
employees who engage in collective bargaining will reach the very best
rate.
That's why the Service Contract Act recognizes and honors rates and
benefits negotiated at 'arms length' through collective bargaining. The
U.S. Government knows that the Service Contract Act has saved billions of
dollars for tax payers and still delivers quality services to the
customer.
Q. How can my fellow workers and I gain the
advantage of IBEW Union Representation?
The first step in gaining IBEW union representation is to contact an
IBEW Organizer to talk about the particulars of your situation. To contact
an IBEW Organizer through e-mail click
here .
Full text of the Service Contract Act:
Click
here to read the Act as defined in the U.S.
Code.
