Obamas Announce Plans to Improve Impact of Construction Jobs
Michelle & Barack have each announced initiatives affecting construction workers
The White House has latched on to the construction industry as a way to continue lifting the country out of the recession. Construction jobs are in fact on the rise, and the fact that they cannot be outsourced means that efforts made to improve and protect the construction workforce could have long-term repercussions in the economy. Both the President and the First Lady have each made headlines in recent weeks with very different initiatives related to the construction industry.
Federal Construction Wage Increase
President Obama recently signed an executive order that will control the minimum wage for federal construction and service industry projects for years to come. The first increase will take effect in projects whose contracts are finalized on or after January 1, 2015, establishing a new minimum wage of $10.10. Annual increases to keep up with inflation have been built into the executive order.
According to Brian Turmail, spokesman for the Associated General Contractors of America, this executive order will have a limited impact. He points out that most contractors working on federal construction projects are already required to pay their employees more than $10.10 per hour under the Davis-Bacon Act. The Vice President of Government Affairs at Associated Builders and Contractors concurs, noting that all of his federal contractor members already pay high wages.
For context, a 20-city survey conducted by the Engineering News-Record found that the average union laborers’ hourly pay, including fringe benefits, was over three times the newly established federal minimum wage. In September 2013, the average hourly wage for building construction was $33.88 and the average for highway construction was $39.57.
Joining Forces Initiative
The First Lady’s Joining Forces Initiative seems poised to offer a broader and more immediate benefit. With a coalition of construction associations and firms behind her, Michelle Obama announced a plan to hire 100,000 US military veterans between now and 2018. So far at least 100 different firms have pledged their support to the initiative.
Michelle Obama said that veterans have “the attitude and experience needed to thrive in construction jobs.” This sentiment was echoed by a former Marine captain who said that veterans make ideal employees because they work hard to “accomplish whatever mission is put before them.”
As the US tries to extricate itself from conflicts, bring more veterans home, and perhaps reduce military spending, it makes sense to help the men and women who have served their country in the military to find rewarding civilian jobs. According to the Bureau of Labor Statistics, jobs in the construction sector will grow by at least 2.6 percent each year through at least 2022, making construction an excellent place to look for opportunities for veterans.
