As a working electrician, prevailing wage is important to the electrical trade through wages, benefits and a better standard of working & living.
Prevailing Wage Helps Us All
What is Prevailing Wage?
Prevailing wage was originated by two Republican senators from New York.The law was enacted to prevent local wage standards from being undercut by low bidders as a cost-cutting technique.
As stated by the Minnesota Department of Labor & Industry, Minnesota’s prevailing wage law requires that employees working on state-funded construction projects of other projects covered by law be paid wage rates comparable to wages paid for similar work in the area where the project is located.
The current Minnesota prevailing wage for electricians in Blue Earth, Faribault, Freeborn, Mower, Olmsted, Steele, Wabasha, Winona counties is:
$29.11 on the check + $13.83 in fringe benefits = $42.94
(for more information about electricians (classification 407) rates, visit the Minnesota Department of Labor & Industry website: http://www.doli.state.mn.us/pw_rates.html)
The Minnesota Prevailing Wage Law states that you must be paid the prevailing wage rate, as stated above, on projects that receive state funding.
Examples: Government buildings, state roadways, state funded school projects, State Universities.
Prevailing wage (Davis-Bacon Act) has benefited American taxpayers. Dr. John Dunlop--Secretary of Labor under President Ford—has concluded that any additional costs incurred by paying prevailing wages have been offset by better quality, productivity, timeliness, and reliability…to be built to the highest specifications by the most qualified, well-trained workers available--and the Davis-Bacon Act ensures that will happen.Source: Mr. Becerra—Congressional Record
Prevailing wage is an important protection for many Minnesota working families.
A higher prevailing wage means that more money goes back into the employee's community.
How are the rates set?
State law requires that each rate be based off the largest number of workers making the same amount reported in the statewide survey.The calculation used is the most frequently occurring wage rate.If there is an equal number of workers with differing hourly wage rates, the rules state that the highest rate paid becomes the prevailing wage.
Chart 1.1
Electrical Shop
Number of Employees
Wage
Union Shop
7
$27.06
Non-Union Shop A
4
$25.75
Non-Union Shop B
2
$23.50
Non-Union Shop C
3
$20.00
Chart 1.1 illustrates, if a union shop of 7 electricians is making $27.06; non-union shop A with four electricians, is making $25.75; non-union shop B with two electricians, is making $23.50; and non-union shop C with three electricians, is making $20.00, then the prevailing wage (most common wage) would be $27.06.This means that all workers on a prevailing wage job in this area should receive $27.06 per hour according to the prevailing wage law.Prevailing wage doesn't set the wage rate, it reflects existing community standards.
Who sets the rates?
In most cases, the Union does!The reason that you make a great wage while working on prevailing wage projects is because local Unions report the most common wage & benefit packages, in turn, allowing everyone, union shop or merit shop, to make an excellent livable wage that they deserve.
Prevailing Wage Guidelines
The prime contractor must assure that all persons working on a particular project must be classified and paid properly.This applies to: owners, partners, apprentices, salaried workers, working supervisors, approved trainees & foremen.Workers must be paid at the classification wage rate.
State law requires that workers be paid the rate for the same or similar trade or occupation regardless of the skill level.
Apprentice’s may work on prevailing wage project and be paid at the rate specified in their apprenticeship agreement.They must be registered in an indentured state or federal apprenticeship program.
All wage decisions from the contract of the project must be displayed on the project poster board along with the other required and completed poster provided by the project engineer.
Everyone performing work on a project must be listed on a certified pay roll.They must be submitted as specified in the contract provisions.
Overtime must be paid after 8 hours/day and 40 hours/week at a rate:Base wage x 1.5 + fringe rate = overtime
Agency inspectors, federal investigators and labor compliance investigators will periodically interview and inspect projects to ensure that this in enforced properly.
For complete information regarding Minnesota prevailing wage refer to your project manager or the Mn/DOT labor compliance unit. www.dot.state.mn.us/const/main/labor.html
Lets Just Say...
Electrical contractors & the IBEW decide that themarket share is decreasing due to lower non-union rates and chooses to lower the union wages by $4 per hour.What this does is lower the integrity of the electrical market as a whole.The Union is responsible for setting the prevailing wage.If the union lowers their wages by $4 an hour, what will happen to the non-union electrical wages?The non-union shops rates will also see the same $4 per hour drop (see chart 1.2).The Union is responsible for setting the prevailing wage and keeping your wages at a competitive rate.A competitive wage provides a stable and highly productive workforce.Prevailing wage is good for everyone by providing standards and economic stability that benefits us all.
For more information on prevailing wage contact us or go to the Minnesota
