The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1938-05-12
Contractors on WPA Work Pay Less
Than Prevailing Wage Rate

cedure of WPA, certain practices de-
veloped during the past year which
proved to be extremely damaging to
the labor standards in the building and
construction industry.
"Among these was the question of
maintenance of prevailing rates of
pay for building mechanics and la
borers on construction work and the
procedure involved in the determina-
tion of such rates. Thus or projects
on which sponsors reserved a share
of direct participation, no control of
any kind was exercised by WPA, and
no requirement of WPA wage stand
ards for labor contracted by the spon-
Sor.
"The result of this was that in many
regions and localities the WPA al
lowed the sponsor to pay considerably
less than the prevailing wage as de-
termined by WPA itself and in some
States this made possible the payment
of wages actually lower than those re-
quired under the State wage laws.
Unskilled Workers Given Skilled
Mechanics Jobs
"In addition there have developed
serious abuses in the classification of
workers employed on projects. Be-
cause of loose standards and require
ments the procedure followed on many
projects failed to insure sufficient
skill and training on the part of the
worker to qualify him for the proper
performance of the job.
"The result of this was that in a
large number of instances unskilled
workers in unskilled classifcations
were required to perform the work of
skilled mechanics while in many
skilled occupations workers were
classified downward to place them in
semi-skilled and unskilled wage brack-
cts.
Hopkins Orders Substandard Labor
Conditions Ended
Representatives of the Building
Trades Department, keenly aware of
the destructive effect of these prac-
tices upon the labor standards estab-
lished in the industry, discussed this
problem with Works Progress Admin
istrator Hopkins in series of con-
ferences last week.
Gas a result of these conferences,
Mr.. Hopkins pledged the Works Prog
ress Administration to correct these
practices and rectify these abuses by
means of new administrative regula-
tions. According to Mr.. Hopkins these
regulations will provide that on all
projects where sponsors have made
contributions, the prevailing rates es-
tablished by WPA shall be paid.
"The payment of prevailing rates
will also be required on all con-
struction operations undertaken by
other departments and agencies of the
Federal government using WPA
funds.
"It was also agreed to establish an
effective procedure for the determina-
ton Of prevailing wages in the locality
in which the project is undertaken and
to provide satisfactory method for
proper classification and determina-
ton of qualifications of those employ
ed on projects at various trades.
$3.50, 100000 For WPA and Billion
Dollar Loan Fund
"In connection with the pending ap-
preparation, it is also proposed that
$3.50, 100000 be made available to the
Public Works Administration and that
in addition the PWA be granted au-
thority to loan up to 81 900, 900, 900 to
states and municipalities for needed
and permanent public improvements
which can be begun this year.
"The Building and Construction
Trades Department strongly supports
this proposal in the belief that care
fully planned public works projects
built under the PWA procedure, well
tested in experience, will develop a
major permanent contribution to oul
national wealth.
at is important, however, that un.
der the suggested limitations whereby
no loans are to be made on projects
that cannot be started within six
months of the date of the appropria.
ton or completed within a year ano
half, the Federal government does
not relax it's vigilance in passing up.
on the usefulness and desirability OF
the project.
In this connection, we wish to re.
iterate our view, which has been re.
peatedly made a matter of public
record, that a permanent administra
tive agency be established within the
Federal government for the purpose
of careful planning and preparation
of public works projects whereby thu
plans could be developed we'll in ad
vance of the actual initiation of tn,
project"