Dayton Daily News education reporter Scott Elliott writes about schools, kids, teaching and learning.
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Tuesday, April 22, 2008
Shook: Prevailing wage might increase bidders
Dayton schools’ new construction manager has rejected an argument against paying union wages on school projects and responded that higher wages might increase the number of bidders in a letter to contractors.
And school board President Yvonne Isaacs said that argument could persuade the board to take a second look at the idea of requiring union wages on its projects.
The letter was written by Vincent Corrado, the chief executive officer of Shook Construction, one of two companies now leading Dayton’s 10-year, $627 million school construction program. His letter was in response to a March 24 letter from Kathleen Somers, President of Associated Builders and Contractors, Inc., of the Ohio Valley, a non-union contractors group.
In November, that group launched a radio campaign on six stations to focus public attention on the board, which it said was considering requiring that contractors pay “prevailing wage” pay rates offered by unions. The group wanted the board to leave in place current bidding criteri allowing contractors to set their own wages. At the time, Isaacs said the district had no plans to change course.
Sommers and Corrado met in March and afterward Somers’ letter argued that the district risked a big hike in construction costs if it required union wages and that such a move would discourage bidders who could potentially save the district money.
In his answer, Corrado argued that wages are only a small part of construction costs for a project and that requiring better wages could make the district’s projects more attractive to union-affiliated local companies, who might still make a low bid.
Corrado said he was not advocating for the board to make a change. “It’s not our decision,” he said. “We’re trying to give them as much information as possible.”
Isaacs said the board has not had any formal discussions about prevailing wage, but that it was open to considering it.
“We are very diligent about staying on budget,” she said. “But we are interested in finding ways to utilize more local workforce, including minorities and disadvantaged businesses and people. If there is a way we can increase that, we’re all about doing it.”
Isaacs said the board would consider proposals from unions that don’t raise construction costs but increase local participation.
“The board is concerned about the fact that outside companies are taking these dollars and leaving the city,” she said.
There is no timeline for discussing a change in policy, she said. Somers could not be reached for comment.
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