KATRINA CONTRACTS Bush OKs reinstating wage protection rules

The Davis-Bacon Act was designed to protect workers from being underpaid.
WASHINGTON (AP) -- The Bush administration will reinstate rules requiring that companies awarded federal contracts for Hurricane Katrina pay prevailing wages, usually an amount close to the pay scales in local union contracts.
The White House promised to restore the 74-year-old Davis-Bacon prevailing wage protection Nov. 8, following a meeting between chief of staff Andrew Card and a caucus of pro-labor Republicans.
Democrats and the moderate Republican group both claimed their pressure caused President Bush to reconsider his open-ended suspension of Davis-Bacon starting Sept. 8 in hurricane-affected areas.
Letter to president
The Republican group originally sent a letter to the White House in September arguing that suspension of the wage law only leads to shoddy workmanship, reduces federal oversight and allows workers outside the region to undercut the local market.
Rep. Steven LaTourette, R-Ohio, who founded the pro-labor caucus with Rep. Frank LoBiondo of New Jersey earlier this year, said the Bush administration was not receptive to the initial letter. But the White House eventually acknowledged the suspension of the wage law was not saving the government money on billions of dollars in Katrina contracts, he said.
LaTourette said the Republican group suggested Nov. 8 as a reinstatement date because it was 60 days from the original suspension. He said he hoped companies wouldn't abuse the remaining days to underpay workers.
The administration contended the Davis-Bacon suspension would reduce rebuilding costs and thus benefit local residents by stretching financial resources, but unions and other critics said it would result in lower pay for workers. Unlike the three previous suspensions of Davis-Bacon since 1931, Bush left the suspension open-ended.