The Associate Builders and Contractors of Ohio (ABC) have released their annual Labor Day statement. In it, Bryan Williams, former state representative and current ABC director of government affairs, calls to task Governor Strickland and his handpicked executive director of the Ohio Schools Facilities Commission, Richard Murray for their heavy-handed approach to the school construction projects.
In 1997, Ohio’s prevailing wage law was amended to forbid local schools from paying prevailing wage on school construction projects. According to a study by Ohio’s Legislative Services Commission, that move saved taxpayers $487.9 million dollars in the first five years after the law was changed. In 1999 the law was amended to add municipal and county hospitals to the list of entities that would not be forced to pay prevailing wage. They could, however decide to do so voluntarily if they chose to locally.
Strickland, under pressure from his union masters, fired Murray’s predecessor (and fellow Democrat) Michael Shoemaker. Under Murray’s leadership, the commission adopted a policy that permitted local schools to choose whether they wanted to have a local project labor agreement (PLA). Subsequent to adopting that policy, Murray has, according to Williams, focused his energy on imposing PLAs on those districts that seek state funding for their school construction projects. Such agreements require any contractor bidding on the work to hire a large percentage of their laborers from the local union hall, in effect eliminating bids by the 85% of local contractors who are non-union, and raising costs an estimated 18%-20%. By compelling local communities to adopt local project labor agreements, Murray is skirting the prevailing wage law the legislature passed.
As a creature of the legislature, the OSFC has no authorization to do override the will of the legislature. ABC has two lawsuits underway challenging the OSFC’s outrageous moves under Murray.
While it is ultimately far more important that we know what’s going on within our schools while they’re in session, the way school construction is being manipulated by the governor and his friends in organized labor is appalling. It’s a painful lesson in crass politics, and is reminiscent of what transpired this past year with the boondoggle otherwise known as the president’s “Stimulus Plan.”