Vice President Kamala Harris will announce a new rule on Tuesday aimed at strengthening union requirements for projects funded by the federal government. This move comes as the Biden administration seeks to address concerns among organized labor regarding the push for clean energy. The rule, which will be unveiled by Harris during a trip to Philadelphia, represents one of the most assertive actions taken by the administration thus far to ensure that workers receive a greater share of new federal investments in semiconductors, infrastructure, and clean energy.
The new rule will restore the old definition of the “prevailing wage,” which was eliminated by President Ronald Reagan. According to administration officials, this change will impact pay standards on federal construction projects. Under the updated rule, employers will be required to pay construction workers wages that are equivalent to at least 30 percent of workers in a given trade and locality.
This decision follows months of debate among experts on how best to implement union requirements for federal funds. Concerns from some unions have overshadowed the boom in clean energy investment and production, as funding from President Biden’s Inflation Reduction Act has primarily flowed into red states. Private developers of renewable energy projects have sought lower labor costs in areas with nonunion workforces. The United Auto Workers, for example, has raised concerns about relatively low pay for workers at a new battery factory and is pushing for union workers to benefit from the electric vehicle era.
The new rule, which updates the 1931 Davis-Bacon Act, aims to ensure that labor unions play a prominent role in the projects resulting from the federal spending surge. However, Republican lawmakers have opposed such requirements, arguing that they increase project costs. Even some liberal economists have expressed concerns about potential negative impacts on the administration’s other goals.
Despite the controversy, the new rule is being viewed as a victory for organized labor. North America’s Building Trades Unions and the United Association, which represents plumbers and welders, among others, have commended the administration’s efforts. Mark McManus, the general president of the United Association, called Biden’s decision a “historic step.”
The pending rule has already faced opposition, as the Associated Builders and Contractors could potentially file a lawsuit to block it. However, the Biden administration is determined to prioritize union support and demonstrate its commitment to ensuring that jobs created by federal investments are well-paying.
The administration has approved three major bills that provide trillions in new federal funding for various purposes, including creating a domestic semiconductor industry, repairing infrastructure, and transitioning to clean energy. While these laws have generated new jobs, some economists argue that union requirements may undermine the original intent of the legislation. Critics suggest that the government should focus on lowering infrastructure costs and streamlining processes instead of burdening projects with additional costs and regulations.
As the Biden administration seeks the endorsement of the United Auto Workers for his re-election bid, it is eager to show that it is taking steps to benefit its members through new federal investments. The new rule is seen as an essential move in securing union support and ensuring that as many jobs as possible are unionized.
In conclusion, Vice President Harris will announce a new rule aimed at bolstering union requirements for projects funded by federal funds. This action is part of the Biden administration’s efforts to address concerns from organized labor regarding clean energy initiatives. The rule will restore the old definition of the “prevailing wage” and require employers to pay construction workers wages equivalent to at least 30 percent of workers in a given trade and locality. While the rule has faced opposition, it is being hailed as a win for organized labor. The Biden administration is committed to ensuring that jobs resulting from federal investments are well-paying and is eager to demonstrate this commitment to unions and workers.
Original Story at www.washingtonpost.com – 2023-08-08 15:07:37
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