we. 2 Our Message.. pate I KORC« Common Construction Wage Builds Strong INDIANA*KENTUCK OHIO Communities ‘What is the Common Construction Wage? ‘The Common Construction Wage (CCW) is the wage paid to construction workers on Indiana's publically financed projects. * It is established based on the most commonly paid construction wage in the county in which the project is located and applies to public works projects over $350.000. + The Indiana General Assembly created the CCW in the 1930s in response to out-of-state contractors undercutting Hoosier contractors ~ after passage of the policy projects were then bid based on productivity and quality of work, supporting skilled Hoosier workers and not a low-wage out-of-state workforce. ¢ _Ithas enjoyed decades of bi-partisan support as a successful policy that keeps communities strong by attracting locally experienced and trained construction workers who deliver skill and productivity. Common Construction Wage is the Best Deal for Tax Payers © Projects built with CCW protects the taxpayers’ investment without increasing the cost of projects. ‘High skilled workers finish projects on time and build a quality product meant to last — leaving tax payers with no cost overruns and lower maintenance costs over time. © Companies with low-wage contracts often hire low skilled workers. This means more errors and slower productivity ~ projects go over time and budget leaving tax payers to foot the bill for poorer quality roads. bridges, and buildings that just don’t last. * Typical workers not paid the Common Construction Wage are eligible for thousands of dollars in public assistance, which costs taxpayers for additional enrollees in cash assistance, food stamps, and Medicaid while hurting Hoosiers’ quality of life Common Construction Wage Builds Local Middle Class Jobs * Projects paying the CCW attract quality. local experienced construction workers who deliver high-quality work on time and on budget — projects are bid on productivity and quality of work and not the lowest out-of state wages. ‘* Projects paying the common construction wage directly support local apprenticeship programs that provide training opportunities to Hoosiers, serving as an escalator to the middle class. * In fact, from 2008-2010 Indiana was ranked #1 in terms of the number of OJT programs and apprenticeships in the nation — repealing CCW would devastate these programs and remove an effective, privately funded training program that prepares Hoosiers for successful middle class careers." Common Construction Wage Drives Economic Development * Studies show that for every dollar spent on a CCW project $1.50 in economic activity is generated in the community.* ‘* That's money spent at local businesses such as restaurants. shopping malls, and grocery stores spurring additional job creation that keeps Hoosier communities and businesses strong. + Families supported by CCW incomes are often homeowners who contribute to the state and local tax bases for the State of Indiana - This creates enhanced revenue for the state, builds general funds and lessens the need to balance budgets through layofts and cuts to services for residents. Suggested Reading: + Kentucky's Prevailing Wage Law, wir. 9s» + Aweakened State. seshResponding to Arguments... Argument - Common construction wage increases the costs of projects and what taxpayers have to spend. Answer - © Actually, produetivit g force behind the cost of construction. More productive workers earning the common construction wage finish projects on time and on budget. saving taxpayers costly delays and errors, * This was proven when Ohio exempted school construction from their prevailing wage law. A comparison shows that Ohio's costs were higher than Indiana’s for urban, rural. and suburban schools. ‘* Typical workers not paid the Common Construction Wage are eligible for thousands of dollars in public assistance, which costs taxpayers for additional enrollees in TANF. food stamps, and Medicaid — a tax increase on everyone else.” Argument - Repealing the common construction wage will reduce construction costs by up to 20%, Answer — ‘* Direct construction labor and fringe benefits accounted for only 26% of total construction costs in Indiana according to the Census of Construction. To save 20% by cutting wages overall would require paying workers well below the federal minimum wage at an illegal rate if at all. * Labor isn’t even the largest portion of construction spending. Materials and supplies make up 44% of construction costs. Argument - Repealing the common construction wage will not decrease training/apprenticeship programs. Answer - + Repealing CCW would devastate these programs and remove an effective, privately funded training program that prepares Hoosiers for successful middle class careers, * This puts taxpayers on the hook for making up for the 42 million private dollars the trades spend on apprenticeship programs each year ~ a tax increase for repealing CCW. * States without prevailing laws only have half the percentage of apprentices compared to the overall construction workforce as states that have CCW laws.” * This an effort by a D.C.-based lobbyist that is interested only in profit, not training Hoosiers for middle class jobs ~ They've invested under $2 million/year on training while common construction wage jobs support $42 million/year in training. These lobbyists don’t speak for us or Indiana's highly skilled. dedicated workforce. Argument- Common construction wage hurts competition. Answer - * Common construction wage contributes to more “constructive competition” in the construction sector— competition based on skills, productivity, and quality rather than paying low wages to inexperienced and out-of-state workers. **Indiana policy makers should focus on ways to strengthen Hoosier communities, NOT acting as big government taking money directly out of my pocket to give to big business.** BAM W6 pet pages * nup //anvw lot thos wou labor mages/ PWN