This is not quite true. Prevailing wages are the wages that "prevail" in a given geographic. The government usually bases this on the local union rates. Why? Because the union is organized and can make a good case that it represents the majority of the work for that classification being performed in that locale. Considering for the moment that on average only some 15-25% of American workers belong to a union, this is likely to be, well, a bit of a stretch. Now if local contractors get together and through a trade group can show that they've got, say, 5,000 men working vs. say, 500 for the union, and they volunteer their hourly pay scales, then they can make a case that the contractor's average wage rate should be the prevailing wage. I am not aware of any case where that has happened, but it's a big country.
well, here we are, at an ugly point. for an awful lot of years, there was a symbiotic, dysfunctional
relationship between "organized" and "disorganized" labor, or whatever terms you wish to use.
and organized labors wage was always used as the prevailing wage. disorganized labor, for want
of a better phrase, ran a percentage under that, and was always in an undercutting position, but
the organized, or prevailing wage set the stage for everyone.
the organized wage carried the disorganized wage upward with it.
as organized labor lost its primacy in the marketplace, and disorganized labor became the dominant
force, the disorganized labor rate began to hold down the organized rate, and without an organized
rate to undercut, both began to spiral in a holding pattern, while the cost of living slowly ate everyone's
lunch.
when i started this work, my first pay scale was $12.06, in 1977. four years later, in 1981, it was $28.50.
it made it to $31 and change in 1983, and remained stalled there for 25 years. slowly creeping up towards
$40 an hour. $9 an hour in 32 years, versus $16 an hour increase in four years.
so the pivot point was about 1983 in this part of the country.
and now what you now have is organized labor that has been driven from that venue, and is now undercutting
disorganized labor, on a free agent basis, with excellent craft skills, and quickly learned business skills,
while disorganized labor, which is now making unhappy snarky sounds, as they are the new prevailing wage, and
are being hoist on their own petard. thirty years of having their nemesis assure them of a good bidding environment
is now gone like the morning mist.
what goes around, comes around, and just arrived. and it's not done yet.
this is neither a screed for organized or disorganized labor, just as objective an analysis as
i can make based on my observations.
but it does explain the race to the bottom for sparkies reasonably well.
and the new bottom feeder, in this section of the country, is undocumented workers, undercutting everyone.
no license, no insurance, ESL, and they are now setting rates.
can lights for $40 each? saddle up, sweet peas, we are all in this together, like it or not. Como No?