Governor S Council on Apprenticeship & Training

PREVAILING WAGE ADVISORY COMMITTEE

Wednesday, September 16, 2015 Department of Labor Annex Wilmington, Delaware 10:00 a.m.

Committee Attendees Staff Attendees Secretary of Labor, John McMahon Jr. Francis Chudzik Senator Robert Marshall Oliver Cleary Senator Colin Bonini Representative Ruth Briggs-King Representative Michael Mulrooney James Maravelias Stan Sykora

Minutes

Introductions: Secretary McMahon called the meeting to order at approximately 10:20 a.m. Secretary McMahon asked Committee to introduce themselves.

Minutes: None. Initial Meeting

Old Business: None

New Business: Prevailing Wage Survey Improvements: Secretary McMahon pointed out to the Committee the changes in the statute regarding the Prevailing Wage Survey. The Committee had discussion on what is the goal of the Committee in regards to the Prevailing Wage Survey. Secretary McMahon indicated that the Department would be amenable to consider any improvements to the survey. There was discussion regarding the Prevailing Wage Advisory Council which was sunset this legislative session and there previous duties and Secretary McMahon explained why it was sunset. Secretary McMahon indicated that any consensus reached by this committee would be presented to the Legislature for modification of the statute. Senator Robert Marshall gave his opinion on the betterment of prevailing wage for the workers in Delaware. .

Senator Bonini asked if someone could give him the history of prevailing wage. Mr. Cleary gave a brief summary of the prevailing wage law. The committee discussed the prevailing wage law and that the prevailing wage rates are good for the workers in Delaware. Senator Bonini asked is there a federal prevailing wage rate on certain things. Secretary McMahon explained how the U.S Department of Labor determines prevailing wage rates. Mr. Chudzik stated that the USDOL uses Delaware Highway rates for their prevailing wage rates. Senator Bonini questioned the basis for the difference between federal prevailing wage rates and state prevailing wage rates. Mr. Chudzik explained it depends on who funds the project. Mr. Maravelias stated that the department of labor last surveyed for federal rates in 2004 and again just surveyed last year for Delaware. Mr. Maravelias stated that the federal government attaches it to the CBA.

Senator Bonini asked if the federal government blends the rate or use a “50 plus” rule. Mr. Maravelias said they do what Delaware does. Mr. Chudzik explained the USDOL uses a criteria of data to determine what the rate is by collecting and analyzing certified payrolls and collective bargaining agreements. The committee discussed what if any increases are there in the prevailing wage rate when the USDOL surveys so infrequently. Senator McMahon indicated that the feds used the CBA rate in the past.

Mr. Sykora asked what other states such as New Jersey, Maryland and Pennsylvania are doing regarding the prevailing wage survey. Mr. Maravelias stated they are turning to CBAs. Secretary McMahon asked for the committee to find out what Maryland does regarding the prevailing wage survey. The committee discussed the prevailing wage statute from the past and the present. Mr. Chudzik explained how certain classification prevailed 4 out of 5 years will not be surveyed going forward. The Department will accept their CBA as the prevailing wage rate. The committee also discussed the interpretation of the statute of the definition “will prevail in the future.” The committee agreed that the meaning of the new statutory language was ambiguous. Representative Briggs King stated that the language they were working on had the right concept and there would be some sense of equity if you had a CBA and you prevailed 4 out of the 5 years. Mr. Sykora asked if the committee could come up with an easier and more efficient survey process to get workers high efficient rates. Mr. Maravelias spoke about the nominal savings on exempting CTF projects from prevailing wage. Mr. Sykora suggested the idea of a simpler way of conducting the survey. He also suggested sending advance notices to companies to inform them that the department is planning a survey. Mr. Sykora went on to say that only a small percentage of employers cared about the prevailing wage survey. He then suggested rewarding companies who participate in the prevailing wage surveys. Representative Briggs King suggests that companies incorporate the prevailing wage survey with their other corporate obligations. Senator Bonini asked what the word “prevail” means in the context of the prevailing wage survey. Mr. Chudzik explained this to the committee. The committee discussed the classification of workers and how they are paid. Representative Briggs King suggested that an additional column be added to the form for hourly fringe benefits. The Committee had a discussion regarding how the hourly prevailing wage rate includes the fringe benefits paid by the employer. Secretary McMahon indicated he wanted to get a legal interpretation of what the 4 year period means to the department. Representative Briggs King question the timeline of the survey and its practicality. Secretary McMahon said the timeline has not cause a lot problems. He also discussed when would be the best day, time and location for the next meeting.

Public Comments and Issues: None

Miscellaneous: None

Adjourn: Meeting adjourned at 11:25a.m.