Posted on 02/26/2010 5:07:36 AM PST by reaganaut1
The Obama administration is planning to use the government’s enormous buying power to prod private companies to improve wages and benefits for millions of workers, according to White House officials and several interest groups briefed on the plan.
By altering how it awards $500 billion in contracts each year, the government would disqualify more companies with labor, environmental or other violations and give an edge to companies that offer better levels of pay, health coverage, pensions and other benefits, the officials said.
Because nearly one in four workers is employed by companies that have contracts with the federal government, administration officials see the plan as a way to shape social policy and lift more families into the middle class. It would affect contracts like those awarded to make Army uniforms, clean federal buildings and mow lawns at military bases.
Although the details are still being worked out, the outline of the plan is drawing fierce opposition from business groups and Republican lawmakers. They see it as a gift to organized labor and say it would drive up costs for the government in the face of a $1.3 trillion budget deficit.
“I’m suspicious of what the end goals are,” said Ben Brubeck, director of labor and federal procurement for Associated Builders and Contractors, which represents 25,000 construction-related companies. “It’s pretty clear the agenda is to give big labor an advantage in federal contracts.”
Critics also said the policy would put small businesses, many of which do not provide rich benefits, at a disadvantage. Furthermore, government officials would find it difficult to evaluate bidders using the new criteria and to determine whether one company’s compensation package should give it an edge, said Alan L. Chvotkin, executive vice president of the Professional Services Council, a coalition of 340 government contractors.
(Excerpt) Read more at nytimes.com ...
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Two of Mr. Obama’s allies — John Podesta, the Clinton administration chief of staff who headed the president’s transition team, and Andy Stern, president of the Service Employees International Union — have repeatedly pressed the president to use procurement policy to push up wages and benefits.
He’s spreading the wealth around.
So how’s that hopey changey thing working for ya? /sarc
Sounds like we are going back to the 1800’s where government contracts were political prizes given to the cronies and supporters of the party in power.
The administration believes that giving companies a small tax break to hire unemployed people would boost jobs.
If they really believe that, than they must also believe that forcing companies to pay people MORE money and MORE benefits will cost jobs.
Get back to me when they shut the borders, enforce existing immigration law, and let market forces then price labor fairly.
Until then , Obamunism is on a collision path with a reality that may be very unpleasant.
You just explained the idiocy of the Obama administration economic policy in one sentence.
Great job.
Sounds just like what Herbert Hoover and FDR did, policies which led to the Great Depression.
Does this mean gov’t won’t be getting us the best deal for the money?
Wouldn’t this just be another gov’t subsidy?
President Obama will look into the camera while doing his best Richard Nixon imitation and state with a straight face:
” I’m not a socialist”
I am not a crook
I did not have sexual relations with that woman.
You forgot—Read My Lips...NO new taxes.
But, has the Pay Czar approve higher wages, when we can get the job done cheaper? What am I missing? Obama logic apparently.
Weren’t sticky wages (i.e. artificially high wages, not subject to market forces) one of the causes of high and prolonged unemployment during the Depression?
Yes.
It’s not a lever, it’s a balance.
Put more weight on one end, you need to take more from other people.
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