John Irons's Blog


Economic News, Data and Analysis

Rebuilding on the Cheap

It’s not just New Orleans’ homes and buildings that will have to be rebuilt — the economy will have to be rebuilt as well.
Do we relly want to start off by lowering wages? Don’t workers in New Orleans deserve to be treated fairly?

Bush allows Katrina contractors to pay below prevailing wage – Sep. 11, 2005
Bush lifts wage rules for Katrina
President signs executive order allowing contractors to pay below prevailing wage in affected areas.
September 11, 2005: 11:59 AM EDT
WASHINGTON (Reuters) – President Bush issued an executive order Thursday allowing federal contractors rebuilding in the aftermath of Hurricane Katrina to pay below the prevailing wage.
In a notice to Congress, Bush said the hurricane had caused “a national emergency” that permits him to take such action under the 1931 Davis-Bacon Act in ravaged areas of Alabama, Florida, Louisiana and Mississippi.
The Davis-Bacon law requires federal contractors to pay workers at least the prevailing wages in the area where the work is conducted. It applies to federally funded construction projects such as highways and bridges.
Bush’s executive order suspends the requirements of the Davis-Bacon law for designated areas hit by the storm.


Filed under: Economy

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