No More Local Control Over Wages, Benefits in Construction Projects

Legislation headed to Gov. Bill Haslam’s desk would prohibit local municipalities from requiring private employers to adopt prevailing wages for employers — thus nullifying a 16-year-old Nashville law that guarantees these rates for contracted workers on city construction projects, reports The Tennessean.
The Republican-backed bill (HB501), sponsored by Rep. Glen Casada, R-Franklin, and Sen. Brian Kelsey, R-Germantown, cleared the Senate by a 24-6 vote Thursday, largely along party lines, with all nay votes coming from the chamber’s handful of Democrats.
Conservative Sen. Douglas Henry of Nashville was the lone Democratic senator to vote for the Republican-backed legislation, while newly elected Sen. Steve Dickerson, R-Nashville, voted present.
A spokesman for the Republican governor said Haslam would review the legislation like he does all bills. Past statements from Haslam have indicated skepticism of so-called “living wage” ordinances but also deference to local governments on whether to adopt them.
…”Living wages are about fairness and stability,” Metro Councilwoman Megan Barry said, adding: “By taking away yet another tool that Metro government has, the legislature is making it more difficult for the building and construction trades to earn a living.”
In addition to targeting wages, the bill would prevent local governments from requiring companies to ensure health insurance benefits and leave policies that are different from state policy. Metro’s ordinance does not require that.

See also the Commercial Appeal story. An excerpt:
City officials and Memphis Democratic legislators said the bill is another example of Republicans, from the suburbs and elsewhere, targeting Memphis and to a lesser degree Nashville. The legislature last year overturned a Nashville local ordinance that forbade city contractors from discriminating against employees who are gay, despite the business community’s support for the local law.
“This is another pre-emption bill. If you think a community is smart enough to decide whether they want wine in grocery stores then I think you ought to consider them smart enough to set their wages and contracts,” said Senate Democratic Leader Jim Kyle of Memphis, alluding to a separate bill to allow wine sales in grocery stores if approved by local referendums.

Leave a Reply