SMALL BUSINESS STATEMENT ON REPEALING PREVAILING WAGE IN WISCONSIN
MADISON (April 1, 2015) Today
the National Federation of Independent Business (NFIB) spoke on behalf of the
nearly 12,000 small Main Street businesses located throughout Wisconsin.
“I thank our friends at
Associated Builders & Contractors for commissioning a study that needed to
be done and commend the Wisconsin Taxpayers Alliance for their non-partisan,
neutral approach in producing an evaluation of a law that needs to go.” Said
Bill G. Smith, NFIB Wisconsin State Director, “We are grateful to
Representative Rob Hutton and Senator Leah Vukmir for their leadership and
introduction of legislation that we hope will repeal the archaic Prevailing
Wage Law of Wisconsin.”
The state’s current prevailing
wage law acts as a super minimum wage where government sets wages often much
higher than local construction wages determined by fair competition in the free
market. Proponents have argued prevailing wage serves to keep workplaces safe,
wages competitive, and competition fair, however small business in Wisconsin
knows otherwise and was in Madison today to explain that in the real world,
those claims are completely baseless.
“At a time when the legislature
will need to maximize every tax dollar they collect, we are pleased
Representative Hutton and Senator Vukmir have introduced this legislation that
will save tax dollars, and end a practice that often shuts out small and
minority contractors from participating in the bidding process for local projects.”
Continued Smith, “Not only does the Wisconsin Taxpayer Alliance study clearly
indicate that we are often paying 45% above the market average as a direct
result of prevailing wage laws, but the state’s formula for wages causes
dramatic swings in hourly wages, vast inconsistencies between counties, and
economic uncertainties for local businesses and local officials.”
Supporters ironically noted that
there is overwhelming nonpartisan support of the buy local movement for local
small businesses who provide jobs and grow communities and contrasted that with
the complexities of the prevailing wage law. The reality of prevailing wage for
the local businesses that everyone claims to universally support is that
artificially high wage rates discourage and often completely shut out small and
minority businesses from submitting a bid for local taxpayer financed projects.
“Eighteen states have repealed
their prevailing wage laws to help local governments manage their budgets, and
Wisconsin’s small business owners are urging the Legislature to do the same.”
According to Smith, “By allowing the free market to operate without
interference from an archaic prevailing wage law, the study by the Wisconsin
Taxpayers Alliance shows taxpayers will save hundreds of millions of dollars,
while at the same time giving local small business owners and their employees
greater opportunities to compete for public construction projects.”
In conclusion, Smith encouraged
legislators to support AB 32 and SB 49 and empower their local small business
community by repealing prevailing wage in Wisconsin.
