Posted on 02/13/2014 3:22:00 AM PST by Libloather
**SNIP**
The order will go into effect Jan. 1, 2015, and each new federal contract thereafter will have to comply with the new wage requirement. With that in mind, Mr. Perez said the number of contractors benefiting will rise over time.
“Some will benefit year one. More will benefit year two. Even more will benefit year three,” he said, but added more calculations are necessary to determine how many workers will be affected.
Also, the labor secretary insisted the order won’t bust budgets even though some federal contractors will be taking home bigger paychecks.
(Excerpt) Read more at washingtontimes.com ...
two groups pay for it. The Taxpayers and the workers who had their pay raised.
And the workers will be fewer in number because the employers wont be able to afford that many of them.
Obamacare is and never was about providing healthcare to 30 million uninsured. It is about the government having a greater and bigger role in our daily lives.
“Also, the labor secretary insisted the order won’t bust budgets”
Right up there with...”the check is in the mail”, “I love you” and ...”I promise
Fewer workers and ...fewer contractors who can take on government work.
Since the White House clearly doesn’t know how federal contracts work, a short explanation will show that we are once again being fed a sack of lies.
Most federal service contracts, especially those that might involve minimum wage workers are awarded on the basis of what is called LPTA - Low Price, Technically Acceptable. Since budgets are going to remain the same, when Agency A needs to renew their custodial contract, they will have the same amount of money that was available the last time the contract was awarded. With wages going up, the only way Agency A can pay for custodial help is if someone bids fewer people for the new contract. LPTA procedures will favor the company that bids the fewest people, especially people that fit into this lowest labor category. The winning bidder will probably hire most of the incumbent work force, but since he bid fewer workers, some will be told that they no longer have a job.
That’s how the real world works.
In days gone by I was a federal contractor and was required to pay the prevailing wage to employees working on the contract. The bid document specified the wages and they were used to estimate costs.
The prevailing wages were always union rates even though the only union workers in the area were those working on the Federal contracts.
There were no, that is 0, rated wages at the minimum wage level
Who pays for that? Why, we do, silly! Bids will come in higher to cover the additional cost to the contractor.
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