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Preference for Higher Wages


scott42208

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What do you all think about the recent news that Contractors that pay higher wages will receive a preference for contract award? How do you think this will be implemented? It seems counter-intuitive that the Administration claims to be a proponent of lowering procurement costs and now wants to give preference to companies that pay higher wages...

Here is a link to one of the articles.

http://www.federaltimes.com/article/201003...302/1055/AGENCY

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This says it all:

Allen said he sees the proposal as a reward to unions that supported President Obama's candidacy and administration. Unions' contract wages are often higher than nonunion wages, he said.

Unions demand and get higher wages from their employers. But that puts them at a disadvantage when competing against non-union sources. This propsed action eliminates the disadvantage. The Administration is pro-Union. It's that simple.

It seems counter-intuitive that the Administration claims to be a proponent of lowering procurement costs and now wants to give preference to companies that pay higher wages...

Counter-intutitive until it's time to pay back for votes.

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