[Congressional Record Volume 141, Number 8 (Friday, January 13, 1995)]
[House]
[Page H235]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


               LEGISLATION TO REPEAL THE DAVIS-BACON ACT

  (Mr. BALLENGER asked and was given permission to address the House 
for 1 minute.)
  Mr. BALLENGER. Mr. Speaker, I am joined today by many of my 
colleagues in the introduction of legislation to repeal the Davis-Bacon 
Act. In one way or another, the act is expensive, inflationary, 
unnecessary, restrictive, and generally harmful to the structure and 
development of the construction industry. The act adds billions of 
dollars to Federal construction costs and the American taxpayers are 
picking up the tab.
  Enacted during the throes of the Depression, the Davis-Bacon Act 
requires contractors on Federally funded construction to pay the 
prevailing wage. Now, more than 60 statutes incorporate the Davis-Bacon 
wage requirements by reference. In some instances, coverage of the 
Davis-Bacon Act has been further extended to situations in which the 
Federal Government merely has an interest through ownership 
participation, funds guaranty, or cases where the Federal Government 
contributes a minimal amount to a State or local project.
  The rationale for special wage protection was never very persuasive 
but Davis-Bacon has remained in place since 1931, giving some 
construction workers a bonus at the bargaining table at the taxpayer's 
expense. For example, electricians working in Philadelphia on a Davis-
Bacon project are paid $37.97 an hour compared with electricians on a 
private contract who are paid an average of $15.76 an hour.
  The Congressional Budget Office estimates that the Davis-Bacon Act 
raises Federal construction costs nearly $1 billion a year. Repeal of 
the act would allow the Federal Government to fund more construction 
projects with the money which is being spent, or to get the planned 
construction done for less money.
  Finally, the Davis-Bacon Act is demonstrably unnecessary. Despite 
claims by labor leaders that workers would be victimized and exploited 
without Davis-Bacon, unionized construction firms do compete 
effectively in many private markets where Davis-Bacon does not apply. 
The Fair Labor Standards Act, which was enacted 7 years after the 
enactment of Davis-Bacon, establishes a minimum wage and overtime rate 
of 1\1/2\ times the hourly rate for employees working more than 40 
hours in a week.
  By repealing the Davis-Bacon Act, the taxpayers will be saved an 
estimated $3.1 billion in construction costs and bureaucratic overhead 
over the next 5 years. Sixty-three years of artificially high 
construction costs are enough. I urge my colleagues to join me in 
supporting repeal of the Davis-Bacon Act.


                          ____________________