Wednesday was a difficult day for The American Independent News Network, which is the larger entity that operates The Iowa Independent. Our chief executive and founder announced two of our sister sites would close and their content would be moved to The American Independent.
A recently introduced bill could have far-reaching impact on the U.S. sugar industry, including American Crystal Sugar, a farmer-owned cooperative that locked out 1,300 Midwest workers on Aug. 1.
The chairman for Herman Cain’s Iowa effort says the campaign “relied more on the word of farmers than Washington regulators” in deciding to run an ad containing claims the Environmental Protection Agency says are false.
The Iowa Senate will remain under the control of a slim 26-25 Democratic majority when it reconvenes in January 2012.
With the Iowa House finally starting debate on a bill that would set minimum pay and benefit standards for workers of public projects, the true cost of the legislation remains elusive.
House File 333, otherwise known as the prevailing wage bill, would require that companies that contract for public projects pay workers wages and benefits comparable to private projects in the area. Opponents point to studies that show an increased cost to the taxpayer. Supporters point to different studies that show little, if any, additional cost to prevailing wage, and in the end, they say, it’s about fair treatment of workers.
The nonpartisan Legislative Services Agency’s fiscal services division collected predictions from local government officials about the impact of the legislation. Officials predicted potential increases labor costs between 10 and 40 percent. Rural areas would see the largest increase.
The bill will also cost the state General Fund an estimated $524,000 this fiscal year and $1.2 million next fiscal year and subsequent years, according to the agency’s report.
However, a report released last July by the Economic Policy Institute, a Washington, D.C., advocacy group for workers, reviewed multiple studies and concluded there was little evidence of increased costs due to prevailing wage laws.
Labor costs typically make up about 25 percent of a public project’s costs. Even if wages rise by 10 percent, the impact would be no more than a 2.5 percent total increase, the institute said.
“Thus, even if there is an increase in contract costs it is likely to be small — to the point of being undetectable,” the report said.
The institute also argues that improved productivity can offset higher wages, as better-skilled workers attracted by the higher wage might complete the job in less time, or firms looking to reduce their higher labor costs might utilize labor-saving technologies.
Thirty-two states and the District of Columbia already have prevailing wage laws on the books. Nine other states passed prevailing wage laws but later repealed them.
Follow Jason Hancock on Twitter
Do you know where to vote on Election Day? Do you know what to bring with you? Get comprehensive voter information for your state here.
Sign up for our email newsletter