Liz and I traveled this past Labor Day weekend. We drove from Crystal Lake, Illinois to a golf resort in Manistee, Michigan.
Traffic was bad in the Chicago area as expected, but exceptionally slow traffic continued all the way through Indiana, and even into Michigan, all along I-94 until we reached Michigan 31.
M-31 breaks off from I-94 roughly at St. Joseph. It was several hours of driving hell starting out, and continued late into the evening, near midnight.
I bring this up because I stumbled on a MarketWatch article Hate your commute now? Just wait 5 years
Here is slide number 5 of 13.
Indianapolis to Chicago, I-65
Labor Day traffic on Interstate 65 from Indianapolis to Chicago is 49% higher than average at its peak. Unless a major transportation project is undertaken in the next five years, commuters will experience this level of congestion on the average day by the year 2033.
I-65 intersects I-94 near Gary Indiana. I-80 and I-90 merge in close by. It is one hell of a congestion. My experience previously was things start getting better near the Indiana-Illinois border.
That didn’t happen this Labor Day trip.
Obviously states are strapped for cash, but there were three or four sections of highway under repair in Indiana and a couple more in Michigan.
One of the problems is prevailing wage laws such as Davis-Bacon drive up .cost of repairs. Unions and prevailing wage laws massively drive up construction costs.
Even FDR was against the notion of public unions.
Davis-Bacon Background
I have discussed Davis-Bacon on many occasions. Inquiring minds
interested in a background on the original purpose of the act should
read My Thoughts on the Davis-Bacon Act.
“… while the sponsors and supporters of the Act also intended it to
disadvantage immigrant workers of other races, these thinly veiled
references make it clear that the Act was primarily intended to
discriminate against blacks.“
The Davis-Bacon Act as amended, requires that each contract over $2,000
to which the United States or the District of Columbia is a party for
the construction, alteration, or repair of public buildings or public
works shall contain a clause setting forth the minimum wages to be paid
to various classes of laborers and mechanics employed under the
contract. Under the provisions of the Act, contractors or their
subcontractors are to pay workers employed directly upon the site of the
work no less than the locally prevailing wages and fringe benefits paid
on projects of a similar character. The Davis-Bacon Act directs the
Secretary of Labor to determine such local prevailing wage rates.
There are 117 classifications of jobs for which some set of bureaucrats
must determine “prevailing wages”. Here is a partial list:
ASBE = International Association of Heat and Frost Insulators and Asbestos Workers
BOIL = International Brotherhood of Boiler Makers, Iron Shipbuilders, Blacksmiths, Forgers and Helpers
BRXX = International Union of Bricklayers, and Allied Craftsmen
(bricklayers, cement masons, stone masons, tile, marble and terrazzo workers)
CARP = United Brotherhood of Carpenters and Joiners of America
ELEC = International Brotherhood of Electrical Workers
(electricians, communication systems installers, and other low voltage specialty workers)
ELEV = International Union of Elevator Constructors
ENGI = International Union of Operating Engineers
(operators of various types of power equipment)
IRON = International Association of Bridge, Structural and Ornamental Iron Workers
LABO = Laborers’ International Union of North America
PAIN = International Brotherhood of Painters and Allied Trades
(painters, drywall finishers, glaziers, soft floor layers)
PLUM = Operative Plasterers’ and Cement Masons’ International Association of the United States and Canada
PLAS
= United Association of Journeymen and Apprentices of the Plumbing and
Pipe Fitting Industry of the United States and Canada
ROOF = United Union of Roofers, Waterproofers and Allied Workers
SHEE = Sheet Metal Workers International Association
TEAM = International Brotherhood of Teamsters
Even FDR Understood the Problem
Public
unions get into bed with management and politicians and work out sweet
deals for themselves at taxpayer expense. No one looks out for the
taxpayer. Even FDR understood the problem.
Message From FDR
Inquiring minds are reading snips from a Letter from FDR Regarding Collective Bargaining of Public Unions written August 16, 1937.
All
Government employees should realize that the process of collective
bargaining, as usually understood, cannot be transplanted into the
public service. It has its distinct and insurmountable limitations when
applied to public personnel management.The very nature and
purposes of Government make it impossible for administrative officials
to represent fully or to bind the employer in mutual discussions with
Government employee organizations.Particularly, I want to
emphasize my conviction that militant tactics have no place in the
functions of any organization of Government employees.A strike
of public employees manifests nothing less than an intent on their part
to prevent or obstruct the operations of Government until their
demands are satisfied. Such action, looking toward the paralysis of
Government by those who have sworn to support it, is unthinkable and
intolerable.
Time to Scrap Davis-Bacon, End Public Union Collective Bargaining
Before
any project can be economically viable, labor costs must be addressed,
and that is exactly why we need to scrap Davis-Bacon and all prevailing
wage laws. We also need to eliminate collective bargaining of public
unions.
Unless
and until we do that, we will dramatically overpay for infrastructure
projects and taxpayers will pay through the nose for them.
Government
should strive to provide the most services at the least cost. Public
unions strive to provide the fewest services at the most cost. Is it any
wonder cities and states are broke?
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com