SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 554 words

HEADLINE: TESTIMONY July 21, 1999 CHARLIE NORWOOD VICE CHAIRMAN HOUSE EDUCATION AND THE WORKFORCE OVERSIGHT AND INVESTIGATIONS JOB OPPORUNITTIES IN CONSTRUCTION

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The Honorable Charlie Norwood Subcommittee on Oversight and Investigations Hearing on the Effect of Davis-Bacon Helper Rules on Job Opportunities in Construction Wednesday, July 21, 1999 2:00 p.m.; 2175 Rayburn HOB Today, the Subcommittee on Oversight and Investigations will hear testimony on the effect that Davis-Bacon Act helper regulations have on job opportunities in the construction industry. We will examine how the regulation of a class of workers known as helpers prevents many less-skilled or unemployed laborers from earning a good living by working on federal construction projects. The controversy over the use of helpers in the construction industry is not a new one; it has in fact been going on for about 20 years. I look forward to the testimony from our panel of witnesses and I appreciate their willingness to testify before us today. On April 9, the Department of Labor proposed new regulations regarding the use of helpers on federal construction projects governed by the Davis-Bacon Act. However, the proposed regulation appears to be designed not to facilitate the use of helpers, but rather to continue to prohibit their use. I believe that helper regulations should reflect current industry practices, be responsive to the needs of the construction industry, and most importantly, provide access to valuable entry-level jobs for low- skilled workers. Yet, these bureaucratic government regulations have created obstacles to job opportunity, rather than providing jobs for workers in need. Without an accurate classification of helpers, all workers must be paid the high journey- level or apprentice wage on federal projects. This often precludes workers who are not already skilled in construction from being hired, even when they would be asked to perform only simple tasks such as carrying materials and cleaning-up a worksite. Making helper jobs available to less-skilled workers will attract workers to the construction industry, which has a shortage of skilled workers. The construction industry estimates that allowing for the use of helpers would create 250,000 jobs annually. Rather than imposing barriers for new entrants into the industry, we should look for ways to maximize access to these valuable on-the-job training opportunities. One of our witnesses today, Mr. Charles Nichols, a general contractor from Georgia, will explain the problems that he encountered when one of his subcontractors attempted to hire unemployed workers as helpers for a construction project. Unfortunately, these non-skilled workers were denied an opportunity to earn as much as $13.00 per hour because a helper job classification is not recognized. Mr. Nichols has learned first-hand how the Department of Labor's refusal to remove obstacles has denied job opportunities for helpers. The result has been that many welfare-to-work applicants have been prevented from working on federal construction projects and gaining both the good income and valuable job experience that such employment would provide. I feel certain that the panel before us today will be able to offer some thoughtful insight into this situation. Again, I look forward to the testimony from all of our witnesses and I appreciate your willingness to be here with us today. I now recognize Mr. Roemer for an opening statement.

LOAD-DATE: July 26, 1999