What Is in the Stimulus Bill for the Unions?

The stimulus bill proivdes jobs for union laborers.

The American Recovery and Reinvestment Act of 2009 is a bill designed to stimulate jobs. Among the groups that benefit are organized labor. Provisions of the bill and executive orders relating to it give labor unions advantages in federal contracts.

Prevailing Wage

Prevaling wage rules give workers better take home pay.

The stimulus bill invests billions of dollars in federal construction projects. The Transportation Department has invoked and expanded the scope of the Davis-Beacon Act of 1931. The Davis-Beacon act requires employers to pay workers the same rate as laborers on similar projects in the area, as determined by the Department of Labor. This makes union wages more competitive than non-union labor.

Project Labor Agreements

Project labor agreements favor union workers.

President Barack Obama signed Executive Order 13502, which promotes the use of project labor agreements on federal projects of over $25 million. Project labor agreements can require the use of union labor or the payment of union wages and dues collection. Project labor agreements require that unions meet deadlines and not strike for the duration of the contract.

Buy American Provision

Permanent steel and iron components must be American made.

Section 1605 of the stimulus bill applies the Federal Highway Administration's Buy American provision be applied to the projects funded by the bill. The Buy American provision requires the use of domestic sources of steel and iron that are permanent piece of federal highway projects. This helps domestic manufacturers of steel, many of which are union-represented.

References

• The Washington Independent: Labor Wins 'Prevailing Wages' in Stimulus
• American Bar Association: Stimulus Bill Provides Risk and Reward for Contractors
• Federal Highway Administration: American Recovery and Reinvestment Act of 2009
• Federal Highway Administration: Construction Program Guide