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California Bill Pits Unions Against Housing Advocates

LOS ANGELES-Gov. Gray Davis must decide whether to approve measure to raise pay for construction workers on affordable-housing projects. Two of his biggest constituencies-labor unions and housing advocates-are at odds over the proposal.

By David W. Myers | Updated on October 12, 2001

LOS ANGELES-Democratic Gov. Gray Davis must decide by this weekend whether to sign a controversial “living wage” law that is championed by pro-Davis construction trade unions but hotly opposed by affordable-housing advocates who helped the governor get elected.

Currently, California law requires contractors to pay their non-union construction workers union-level wages only if their project involves direct subsidies from the government–such as an outright grant or zero-interest loan. But the new bill would broaden the law to include projects that merely involve rental subsidies, property-tax deferrals or even waivers that allow the builder to avoid a few hundred dollars in permit fees.

The bill was pushed through the state Legislature by powerful construction trade unions, who say the measure will ensure that union members get their fair share of work. And even if a contractor chooses against using unionized help, trade officials say, the law would benefit all of a project’s workers by ensuring that they get union-level wages.

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