Stormy weather
August 30, 2009 - 9:00 pm
Say what you want about organized labor in modern America, at least the unions are always there for the little guy who's just looking for honest work.
Take Nevada Senate Bill 152.
Dubbed the "green jobs" bill because its sponsor, state Senate Majority Leader Steven Horsford, D-Las Vegas, hoped to see as many as 3,000 unemployed workers receive training for weatherization and other renewable energy jobs that might crop up in the future, the program was signed into law by Republican Gov. Jim Gibbons.
As a sop to organized labor -- Mr. Horsford is not only a good Democrat, after all, but in his day job oversees the Culinary Training Academy, which has something to do with the Culinary and Bartenders unions -- the bill specified half the workers hired to do stimulus-funded weatherization work must have completed union or management apprenticeship programs (the kind offered by Nevada Partners, the other outfit Mr. Horsford runs).
Weatherization supposedly includes installing new appliances to reduce energy consumption, though everyone knows it mostly has to do with retrofitting insulation, stapling up plastic sheeting, stuff like that. You don't have to be a rocket scientist. Perfect entry-level work for those who have not yet developed the skills to command high wages. "The lowest rung on the ladder," etc.
Dianne Cornwall, director of the state Department of Business and Industry, said last week the state expects to receive about $40 million in federal funds for weatherization, and some of that money was targeted to pay the apprenticeship-trained workers.
And then the AFL-CIO weighed in.
Contending the Nevada Housing Division was trying to sidestep a prevailing wage requirement, the Nevada AFL-CIO on Monday went into Clark County District Court and asked for a restraining order to block spending $10 million in federal stimulus money on the home weatherization program for low-income families.
The AFL-CIO contended the Housing Division was not complying with a new state law that requires contractors doing stimulus-funded weatherization work to pay prevailing wage, offer health insurance and hire half the workers from a training program that has not yet begun.
"Prevailing wage" is determined by the state labor commissioner. Because the wages are based on forms submitted almost entirely by unions, it tends to be considerably higher than the wages which actually prevail for a given job in the private sector. Instead, they're often close to the union wage in a given area.
But if contractors are required to pay a high enough wage to get a skilled worker, why would they offer that job to someone inexperienced and/or unemployed?
Ms. Cornwall of the state Department of Business and Industry said last week she can't understand why the union would want to block the $10 million in weatherization projects. The state risks losing the money if it's not spent, she says.
Not to worry. Having received a Wednesday letter from Democratic state Attorney General Catherine Cortez Masto, assuring them that the Housing Division and its subcontractors will offer health insurance coverage, pay the higher "prevailing" wage, etc., the union backed off, having successfully executed its shakedown.
Taxpayers are thus assured the hiring of each worker will be more expensive. Additionally, the chances are also increased that the work will be unavailable to actual low-income "starter" workers.
But to the unions, keeping wages high for everyone is far more important than putting unemployed people to work.
Especially if anyone plans to hire some of those folks outside the union hall.