If you do any kind of public works construction you may be aware that the classification of Fence Erector (Chain-link) was removed from the Wage Rate Schedule 476 issued Sept 19, 2011. The classification was removed because our federal counterparts under the Davis-Bacon Law had removed the classification on their General Wage Decision for Hawaii and Hawaii law says Hawaii rates can't be lower than the federal rate. (See Section 104-2(b)(2), HRS). The problem is the application of the removal from the federal and State wage schedules had different effects.
In the federal environment each construction project has only one wage rate schedule for the duration of the project, so federally-funded jobs previously bid and awarded were not effected. This is not so with the State and county public work projects covered by the Hawaii little "Davis-Bacon", Chapter 104, HRS. Hawaii law requires contractors to keep pace with any changes in the wage schedules over the duration of the project. (See Section 104-2(c), HRS) This small difference made a big impact.
When the federal government changed the classification of work formerly done as FENCE-ERECTOR (Chain-link Fence) to LABORER II, the State was obligated by law to "not be lower than the federal rate."(See Section 104-2(b)(2), HRS). Wage Rate Schedule 476, issued on September 19, 2011, reflected this requirement by removing the classification of FENCE ERECTOR (Chain-Link) and requiring contractors to pay those employees as a LABORER II. This represented a 110% increase for contractors who had open jobs for FENCE ERECTORS (Chain-Link) increasing the rate from $20.87 per hour to $43.61 per hour. This dramatically impacted several ongoing public works and contractors.
On December 23, 2011, the USDOL rescinded their previous wage decision on FENCE ERECTOR (Chain-Link) and reinstated the classification. Hawaii followed suit by issuing an interim wage rate schedule WRS #477, effective as of December 26, 2011, reinstating the classification and rate of $20.87 for FENCE ERECTORS (Chain-Link).
In a closing note you will notice the WRS #477 also lists the Classification of PAINTER. When preparing an interim wage rate schedule outside the regular issue in February and September, all classifications are notified and any other reductions in rates in effect at the time are included.
The re-issuing of the FENCE ERECTOR (Chain-Link) classification puts the prevailing area practice back in control and in compliance with Hawaii law. A great way to end the year! Have a Happy and Healthy 2012!
Friday, December 30, 2011
2 comments:
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