Abramson stands up to union extortion....oh my!

Good for him!!!

"Prevailing wage" (or Davis-Bacon) laws inflate wages-- to the "prevailing" union standards-- for state and federal building projects. (Unions often seek to extend prevailing wage legislation to locally-financed projects as well.) Unions love them because they tend to price out their non-union competition.

They increase the cost of such projects to taxpayers, but since the costs are subtle and spread out over the population, people rarely notice. But it adds up to billions of dollars per year, redistributed from taxpayers and given to union workers. (Check out the extortion comments by Joe Wise toward the end.)

The origins of Davis-Bacon (during "the New Deal") were explicitly racist-- one more reason for most people to dislike them. The proposed ordinance required 20% minority participation. This is necessary because Davis-Bacon would otherwise drive minority participation from 20% to nil (as it has done in the past).

From Dan Klepal in the C-J...

Mayor Jerry Abramson vetoed a controversial construction-wage ordinance yesterday, saying it would put Louisville at a competitive disadvantage with other cities.

The union-backed ordinance would have set minimum wages for construction workers on projects that receive at least $500,000 in city tax dollars.

It was only the third time in his 20 years as mayor that Abramson has used his veto power.

A two-thirds vote of the Metro Council -- 18 of the 26 members -- is required to override a veto. That seems unlikely in this case because the ordinance was approved last week on a contentious 16-10 vote.

In a letter to the council announcing the veto, Abramson said the ordinance would create "obstacles to job creation and economic investment" and would "put Louisville at a serious disadvantage with competitor cities in attracting private-sector jobs and economic development."

"As leaders, I believe now is the time to focus our energies on creating jobs, not obstacles to job creation," the letter said....

[Supporters] say the so-called prevailing wage provision wouldn't drive up the cost of projects, but instead would take a small bite from the profit margin of large companies bidding on such work.

Are they ignorant of Econ 101 or deceitful?

And then, this beauty to close things out:

Joe Wise, secretary/treasurer of the Greater Louisville Building and Construction Trades Council, promised his members would remember Abramson's action come election time....