Bush Suspends Davis-Bacon in
Katrina-Stricken Areas
September 12, 2005
Claiming that the costs to rebuild areas destroyed by Hurricane Katrina would be too high if prevailing wage laws remain in effect, President Bush issued an executive order, on September 8, setting aside the Davis-Bacon Act in Alabama, Florida, Louisiana and Mississippi.
The Davis-Bacon law provides for federal contractors to pay workers wages equivalent to the prevailing rates on new construction of buildings, roads, bridges and other infrastructure. The act was passed during the Great Depression to restrain employers from taking advantage of poor economic conditions to drive the wages of construction workers down.
Bush's action was immediately denounced by Democratic Senate leaders. Senator George Miller, D-Cal., said, "The administration is using the devastation of Hurricane Katrina to cut the wages of people desperately trying to rebuild their lives and their communities."
"President Bush should immediately realize the colossal mistake he has made in signing this order and rescind it and ensure that America puts its people back to work in the wake of Katrina at wages that will get them and their families back on their feet," added Miller.
President Edwin D. Hill thanked Congressman Miller, Congresswoman Nancy Pelosi and other political leaders who spoke in opposition to Bush's executive order.
"One of the key missions of government is to prevent private business interests from exploiting domestic emergencies at the expense of consumers and workers," said President Hill.
"The IBEW will join with our friends, far and wide, to prevent President Bush from reversing this mission in the midst of Katerina's unimaginable human suffering," he added.
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