Iowa legislative panel backs prevailing wage bill

(AP) — Contractors on some public construction projects would have to pay workers a set wage under a bill approved Monday by a House committee, but the proposal would let cities, counties and school opt out of the effort.

The topic, known as the prevailing wage, is a top priority of organized labor and sparked a bitter fight in last year's session, when lawmakers narrowly defeated a measure. The proposal remains controversial, although supporters said the exemptions they've carved out should make it more popular.

"It sure eliminates a lot of arguments from the nay-sayers," said Rep. Rick Olson, D-Des Moines, who heads the House Labor Committee and is one of the measure's main backers.

A subcommittee approved the measure Monday morning, then the full Labor Committee passed it in the afternoon. The vote was 9-8 with Rep. Geri Huser, D-Altoona, joining seven Republicans who opposed the measure.

Opponents have claimed passage of a prevailing wage measure would raise the costs of public projects by requiring higher wages. Backers respond that such a measure would ensure employees get a living wage and prevent out-of-state contractors from hiring low-wage workers who could drive down pay for everyone.

Democrats control the House by a 56-44 margin, but last year's prevailing wage bill fell a single vote short as a group of largely rural Democrats joined with Republicans to oppose the measure.

House Speaker Pat Murphy, D-Dubuque, kept the House in session for an entire weekend while supporters searched for the extra vote, which never materialized.

Olson said he's made major concessions this year to give the measure a better chance of passing.

Cities, counties and school districts could opt out of the requirement by adopting a resolution or ordinance. Only the state, Board of Regents and the network of community colleges would be required to abide by the requirement, Olson said.

In addition, the prevailing wage would be required only on projects costing more than $100,000.

Despite those concessions, business groups didn't drop their opposition.

"State government mandating this extra cost is really unfair to taxpayers," said John Gilliland, of the Association of Business and Industry.

Labor groups rejected that argument but said they supported the concessions so they could get a bill approved.

"Sometimes you've got to walk before you run," said Ken Sagar, head of the Iowa Federation of Labor.

Despite its approval in the House Labor Committee, Rep. Lance Horbach, R-Tama, said he doubted it would clear the full House.

"When it comes to the full House, he (Olson) doesn't have the votes," said Horbach, a leading critic of the effort.