The Phoenix City Council has greenlit a prevailing wage ordinance for city-funded construction projects over $4 million, making waves as the first city in Arizona to enforce such a rule. According to a report by BNN Breaking, the ordinance secured a 6-3 vote, amidst an atmosphere brimming with legal disputes and the threat of potential lawsuits.
This wage ordinance defines the city's commitment to pay construction workers on significant projects a prevailing wage – a rate comparable to similar local industry jobs. Despite its trailblazing status, the controversial measure has already attracted heavy criticism and vows of legal challenges from construction groups. Mayor Kate Gallego supported the ordinance, expressing in a statement obtained by the Business Journal, "After months of hard work and a process that included stakeholder meetings with both labor unions and contractors, I am proud that we have advanced a policy that will benefit those who are building the Phoenix of the future."
Although the ordinance is expected to support local construction workers by ensuring fair compensation, particular projects, specifically those under a recent $500 million city bond will be exempt from the new stipulations. The city staff's research spotted a report by the Beacon Hill Institute suggesting that prevailing wage laws such as the long-standing Davis-Bacon Act, may inflate construction costs by a significant margin.
Pushback from industry representatives was swift, with the Arizona Chapter of the Associated General Contractors of America Inc. taking a hard stance.
Workers' groups like Arizona Carpenters Local Union 1912 have applauded the ordinance, with the union issuing a statement supporting the new measure and thanking the Council for championing wages and apprenticeship training. In the legal tug-of-war and amidst multifaceted opposition, it remains to be seen how the ordinance will fare when it takes effect on July 1st.
