Jefferson City —This week, State Sen. Dave Schatz, R-Sullivan, released a report that is a culmination of months of research and studies into Missouri’s Prevailing Wage Law. The report suggests that substantial savings can be generated for Missouri’s political subdivisions, especially for smaller projects that are common for local governments and colleges.
“Currently, prevailing wages are typically twice as much as county average wages,” said Schatz. “By lowering the threshold and adopting county average wages as the minimum wage on projects, we expect to find savings as much as 10 percent. This savings would give local governments more flexibility and save taxpayer dollars.”
The report also includes firsthand accounts from local contractors on how much the cost of a public works project is attributed to labor.
“Not only have we found ways to find savings, but if we eliminate the current reporting requirements and move to a simpler model, we could increase competition in Missouri’s $2 billion public works market,” said Schatz.
The report was presented to the Senate Interim Committee on Labor Reform this week. The committee is tasked with looking at Missouri’s Prevailing Wage Law as well as public sector unions. You can view the full report at https://www.senate.mo.gov/17web/wp-content/uploads/2017/08/Prevailing-Wage-Data-Interim-Cmte-on-Labor-Reform1.pdf.