(Michael Chamberlain/Nevada Business Coalition) – Over a hundred construction workers, part of a group known as the Building Jobs Coalition, descended on Carson City Wednesday to lobby the Legislature to increase your taxes in order to provide jobs for them. Not just any old jobs, either, but ones that would pay them 2-3 times what similar workers in the private sector are paid.
It is important to understand exactly what they are talking about. While a typical non-union, private sector construction worker may currently be making between $15-20/hour, many of these workers would be receiving annual pay packages exceeding $100,000. They are asking that you reach into your pocket so that you can provide them with jobs that pay far in excess of what the typical Nevadan makes.
The chart below shows what workers in some common construction crafts are paid on an annual basis on prevailing wage projects in Nevada’s three largest counties, where the vast majority of the work would take place. The calculations are based upon a 40-hour workweek for 52 weeks with no overtime. Overtime pay would make the wages even higher. Keep in mind, in every case, the compensation listed below is for the regular workman, or journeyman, not for foreman or supervisory positions, which pay even more.
Carson City | Clark | Washoe | |
Carpenter | $79,152 | $99,858 | $79,152 |
Concrete1 | $70,176 | $94,411 | $70,176 |
Electrician2 | $103,591 | $114,872 | $103,591 |
Laborer3 | $62,873 | $87,598 | $62,873 |
HVAC4 | $111,302 | $114,709 | $111,302 |
Painter | $66,790 | $95,146 | $66,790 |
Plumber | $92,208 | $115,301 | $92,208 |
Make no mistake, these pay rates are minimums that are not negotiable. Contractors are required by law to pay workers in each of these classifications at least the amounts shown above on all projects of more than $100,000.
Even as non-union private sector construction wages have fallen dramatically as a consequence of the collapse of the industry, prevailing wage rates have not. In fact, rates for many classifications continued to increase through the teeth of the recession due to the fact that they were heavily influenced by union collective bargaining agreements negotiated during the heart of the boom. And unless the manner in which they are calculated is changed, most are unlikely to decline significantly for years.
This plea for tax increases to fund more public works construction amounts to little more than a request for a bailout of trade unions that have priced themselves out of the market. It would increase the burden on other families and businesses in Nevada to support exorbitant pay packages for construction workers.
With the state being forced to pinch pennies it makes absolutely no sense to overpay for things we do not need. Massive public works spending does not stimulate the economy. Japan has engaged in two decades of such folly without success and our own federal stimulus program failed to achieve its objectives. It would be just as prudent to raise taxes so the state could purchase every Nevadan a pair of Zappos shoes, and pay 3 times the list price for each pair.
The state of Nevada cannot afford to raise taxes on struggling workers and firms in other industries to provide jobs at inflated wages for construction workers. We need to return some fiscal sanity and responsibility to Carson City.
1– Official classification = Cement Mason
2– Wireman
3– Group 1 laborer, whose duties include construction debris cleanup.
4– Official classification = Mechanical Insulator
(Michael Chamberlain is the Executive Director of the Nevada Business Coalition.)
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