Sure. Shoot!

Well, we want a good building but we wanta’ get the best buy for the buck. You know how it is? But only a couple of us were around when we built the last one, so we’re tryin’ to learn . . .

From other guys’ mistakes?

No reason to be embarrassed. Better to learn before -- rather than after. Can tell you that! What’s the prob?

It’s your guys' throats!

Just what I said. Construction’s a cutthroat business. What you pay for ain’t necessarily what you get. ‘Cept, way I see it, Prevailing Wage is the only thing that keeps ‘em boys honest. Know what I mean?

Ya wanna know the truth?

Nope.

Wish I was but . . . Remember what happened in Flushing in ’98?

So. When I talked to one of the board members I know around there and asked him, "Didn’t the state check it out? He said, ‘No. They didn’t." Turns out they couldn’t. School districts are exempt from the state’s occupational safety inspection code! Crazy?

Well, that’s what they said at the time. But that was before the next election. Much less last year’s. You heard anything about it since then?

Me neither. Checked it out though. Would you believe . . . it still hasn’t been enacted! So, like I say, the best insurance – only assurance if you ask me – for makin’ sure the job’s done right, on time and on budget,– is keepin’ that prevailing wage on the books.

Miracles can happen! But, if you ask me, without the prevailing wage in effect, you ‘re liable as not to end up spendin’ more – maybe much more!

Much more? Give me that again.

Well, first of all, you’re likely to end up payin’ more for the initial construction – low bid or no! Believe me. There’s always ‘specials,’ and "unexpecteds,’ and, well, the list just always seems a lot longer when it’s a non-union general contractor.

Then, down the road, I’d bet good money you’ll pay a heck of a lot more in maintenance and repair – maybe big time.

Answered your own question on that one. If you could get "the same" for less . . ..

First off, without the prevailing wage it’s not likely you’ll get the "same thing" and, second, I doubt it’ll be "for less." Certainly not overall!

That’s right! I’m sayin’ no!

Listen, first off you get what you pay for. Who’s the better teacher? First year person out of college or one with 5 or 6 years experience?

Construction work isn’t any different. That’s why they call ‘em "skilled trades!" It’s somethin’ ya gotta learn! Which means somewhere you’re gonna make mistakes.

Listen, let me ask you, when you hire the architect to design this new school, you gonna hire the cheapest architect?

Better on someone else’s school building than yours. Electricians – hell takes ‘em 5 years just to get through their apprenticeship program! You want someone wirin’ your school who’s a helper?

OK. But you’re gonna have to pay good money to get someone with that kind of knowledge and experience. Right?

But you’re gonna tell the ‘em to design it usin’ the cheapest materials right?

Oh! So, you’re also willin’ to spend extra money to buy the best materials! ‘Saves money in the long run’ and so on.

But now you’re tellin’ me that, when it comes to puttin' the whole thing together, the high-priced design and the best materials, you’re gonna go with whoever’s willin’ to do it the cheapest! Is that what you’re sayin?

Listen. I’m sure there are helpers that can be hired to wire your building for $15 per hour instead of $25. You won’t know. The lights ‘ll go on. And if more fuses blow, well . . . it happens. And the fire you have 5 years later when you overload a circuit – probably never will be traced back to having someone not knowing exactly how to do the job the best way.

One thing I know. You get what you pay for. If you want good work done, your best bet by far is to pay good workers a fair wage to do it. Simple as that. Anything else, you take your chances – and, somehow, I don’t think you guys really want to put your kids at risk. Do you?

But . . . isn’t it gonna be a lot more expensive? Heck, I know prevailing wages are higher than what you’d have to pay the guys around here. That and benefits, etc. I mean, bottom line, it’s gonna cost us more. NO?

You want to know the truth?

Nope.

Seemed strange to me too – except we’ve always found it to be the case with all our building projects. Somehow, the bids by the qualified contractors were usually pretty darn close. Didn’t much look at what they were payin’ in wages cause they all had to pay the prevailing wage.

Then, a few years back, some federal judge suspended Michigan’s Prevailing Wage Act. Said it conflicted with a federal law.

Yep. Good timing – or so we thought. But, well, we got the bids and, like usual, they were all pretty much about the same. Except, now it didn’t make sense to me since some of the contractors were non-union! Just like you said, I figured that the non-union guys must have been payin’ much lower wages. . . .but their bids sure weren’t any much lower – couple were even higher!.

So, before we approved the bids, we interviewed all the bidders. Asked ‘em whether they were payin’ prevailing wages even though the law was suspended. Non-union ones said ‘No.’ Said they could get good workers for less, so they did.

Then we asked ‘em how much they were payin’ the carpenters and electricians just to compare – but they wouldn’t say exactly. Said their descriptions weren’t the same – even though they’d always been able to match ‘em up when the prevailing wage was in effect!

Anyway, that’s what they said. But they did emphasize that they were sure we’d be paying significantly less than what we woulda’ paid if they had to pay prevailing wage rates.

. . . Now, how they could say that after just admitting they weren’t able to match job descriptions or rates of pay, I’m not sure – and I decided not to ask . . . Truly amazing!

Finished their interviews by again assuring us that their bids were certainly much lower than the union contractors. ‘Cept they weren’t any much lower at all! Pretty close. Just like always. Made me suspicious, very suspicious.

Well, long story short, we contracted with the union general contractor we usually used. Then, one afternoon I was out watching ‘em work and their general foreman was there so I asked him, "How come?

Yeah. How come? Lower wages but nearly the same overall bids and final costs that are usually more?"

He said, "They know what we’ve gotta pay because our contracts are out there – and, when the prevailing wage is in effect, it’s even easier since we’ve got to submit our pay rates to the state in order for them to determine the prevailing wage rate.

Then he adds, "You know, it could have been a survey of everyone, union and non-union – but it’s not -- because the non-unions wouldn’t agree to tell the state their rates. Won’t. That’s why now, the state just uses the organized sector’s rates. So, now, on top of the fact that the non-union contractors don’t have to reveal their rates, and they know ours . . . Would you believe they’re bitchin’ because "the state only uses collectively bargained rates!"

Sure, the big non-union companies estimate what it’ll cost them to do the job . . . .but then they’ll submit their bids by figuring what we have to bid in order to pay our rates . . . and then they ‘’ bid just under!"

It hadn’t sunk in at that point, so I persisted and asked again, "But, they’re payin' maybe 25% less and no benefits. How come they’re bids are almost the same as your?"

And he answered my question with a question and it all made perfect sense.

Did to me.

He answered me by asking, "Is the non-union contractor in business to save you money or to make money for himself.

If I’ve got a choice, between leavin’ the money in your pocket or walking away with it in mine, which one am I gonna choose? Is that about it?

But . . . can’t be that way all the time though. Is it?

Wouldn’t think so. But it sure looks that way to me.

Prof did a study of the prevailing wage right here in Michigan. Looked at, of all things, the costs of building schools – before, during, and after the suspension. So he had costs with prevailing wage before, then without it, and finally with it back in during the last couple of years.

Couldn’t believe it! He looked at a hundred plus schools and his average costs were higher when prevailing wage was suspended! He was nice and said the difference wasn’t enough to make a point of it but, hey, I saw it and it was higher!

Sure. It’s here in the Super’s office. I’ll fax over a copy right now.

[see copy of Phillips’ overhead from presentation/report]

Thought it would. Anything else?

Depends. You want the cheapest or the best?

Nice thing with prevailing wage. You get both! Best job and it doesn’t cost any more. Plus your costs down the road for maintenance and repair are gonna be far less.

So don’t let that legislator fool ya. A bunch of non-union contractors or their PACs are puttin’ big bucks in his campaign warchest to beat the drums for repeal.

Tell ‘em you might consider it . . . right after the Legislature changes the law so that school buildings come under the state’s inspection codes and the state starts inspecting ‘em regularly!

Hey! Perfect! And I bet I know where a lot of the money those non-union contractors guys use to fill those warchests comes from . . . a bunch of schools districts in other states without the prevailing wage!

Hey, perfect score. Glad to see you folks over there are quick learners.

Helps to have a good teacher! Thanks!