Controversial common construction wage bill signed by Pence into law

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Published: Thursday, 07 May 2015 15:19

INDIANAPOLIS – Gov. Mike Pence signed a bill into law Wednesday that eliminates the state’s common wage system – a move supporters say will make public projects cheaper and critics complain will depress pay for construction workers.

The change means market forces will determine the pay for workers on projects worth $350,000 or more.

“By repealing the common construction wage, our state is putting hard-working taxpayers first, lessening the burden on cash-strapped local governments and schools, and opening doors of opportunity for small businesses across our state,” Pence said.

The law eliminates a system that let local boards – with union and non-union representation – set the floor for the wages paid on projects.

Supporters said the bill should open projects to more competition from union and non-union companies and could reduce the cost of those projects by as much as 20 percent. But critics said it won’t save taxpayers’ money and will reduce wages at a time when Indiana’s per capita income is already trailing the rest of the nation.

“The signing of this valueless law will do nothing to help,” said Rep. David Niezgodski, D-South Bend. “It will hurt. It is a slap in the face to not only our hard-working men and women, but Hoosier business owners and taxpayers as well.”

Labor leaders say the bill is the latest in a string of moves by Republicans to reduce the power of unions. Previously, the GOP-controlled General Assembly voted to make Indiana a right-to-work state, meaning companies can’t require workers to pay fees to unions they don’t join. The legislature also voted to restrict the issues for which  teachers unions can bargain.

Article writer Erika Brock is a reporter for TheStatehouseFile.com, a news website powered by Franklin College journalism students.