Home > Bush signs executive order Cancelling Minimum Wage in Katrina zone

Bush signs executive order Cancelling Minimum Wage in Katrina zone

by Open-Publishing - Monday 12 September 2005
10 comments

Governments Catastrophes USA

President signs executive order allowing contractors to pay below prevailing wage in affected areas.

WASHINGTON (Reuters) - President Bush issued an executive order Thursday allowing federal contractors rebuilding in the aftermath of Hurricane Katrina to pay below the prevailing wage.

In a notice to Congress, Bush said the hurricane had caused "a national emergency" that permits him to take such action under the 1931 Davis-Bacon Act in ravaged areas of Alabama, Florida, Louisiana and Mississippi.

The Davis-Bacon law requires federal contractors to pay workers at least the prevailing wages in the area where the work is conducted. It applies to federally funded construction projects such as highways and bridges.

Bush’s executive order suspends the requirements of the Davis-Bacon law for designated areas hit by the storm.

Bush’s action came as the federal government moved to provide billions of dollars in aid, and drew rebukes from two of organized labor’s biggest friends in Congress, Rep. George Miller of California and Sen. Edward Kennedy of Massachusetts, both Democrats.

"The administration is using the devastation of Hurricane Katrina to cut the wages of people desperately trying to rebuild their lives and their communities," Miller said.

"President Bush should immediately realize the colossal mistake he has made in signing this order and rescind it and ensure that America puts its people back to work in the wake of Katrina at wages that will get them and their families back on their feet," Miller said.

"I regret the president’s decision," said Kennedy.

"One of the things the American people are very concerned about is shabby work and that certainly is true about the families whose houses are going to be rebuilt and buildings that are going to be restored," Kennedy said.

http://money.cnn.com/2005/09/08/new...

Forum posts

  • This does not stop contractors from gouging people, or continuing to make excessive profits while the workers get table scraps.

  • It’s fine with me if the work is shabby, because the people building houses will not be building their own house, they will be building houses that they cannot afford to live in. A new, affluent New Orleans district will emerge off the backs of those who lost everything. And this administration will not be able to simply cover up this political and economic heresy.

  • im not surprised...especialy since after pushing that $$$ relief bill through congress so fast...with his "buddies" again getting no bid contracts...heh heh..Haliburton anyone?...cheep creeps not even paying minimum wage...SLAVE LABOR!!

    IMPEACH BUSH and his Sally Hemmings "Condi" with her thousand dollar shoes....

    Shannon

  • Of course Bush says nothing went wrong and everything is going right. Things are going exactly as he wished and prayed.

    His buddies are going to be able to steal additional billions without effective resistance or challenge. Minimum wage for the Katrina zone (and then for the rest of the country) will go down instead of up. Lots of Democrats died which reduces the number in the opposition party. America is going to go more into debt, making the country much weaker. And the military will be even more over-extended, making America more vulnerable to attack and demise.

    It is all part of his plan. His goal is to sabotage this country with chaos, unimaginable debt, endless wars, environmental disasters, increased poverty and vulnerability.

    Do you really believe anyone could be so out of touch with reality? Do you really believe his grotesque mistakes are not intentional? Do you really believe his compliment to Brownie was based on a realistic assessment of the situation rather than on his wicked plans?

    Just look at the ’diplomat’ he sent to the UN to reform it and realize that Bush’s goal is to destroy, destroy, destroy.

    Please wake up and see the obvious. I don’t think the man is retarded, I think he has evil intent!

  • I agree that President Bush’s executive order was another error of judgment and just another "kick in the teeth" to the already devastated people. Whether or not the construction workers are from the local area or not, allowing contractors to pay below the prevailing wage will encourage hiring unskilled labor to complete the rebuilding and result in substandard work. Would President Bush be willing to work for less in light of the devastation?

    • Bush to America’s workers...let them eat dirt.

    • I have been checking the news on TV to see if this information is being brought before the public and there is nothing. I also check my email,I am in touch with a lot of political web sites, and not one of them has addressed this issue. There are no petitions to sign and pass on to my friends.I even went so far as to send an email to moveon.org. Nothing! What’s going on?

  • Yet another example of the contempt Bush has for the poor. His actions belie his words of concern and compassion. He caters to his fat-cat supporters and allows them to gouge the public for millions and takes a living wage away from those who are truly in desparate need. AndieP

  • If Bush thinks this is a way to minimize corruption from contractors, he’s totally wrong. Contractors are going to end up hiring illegal aliens to do the job. It’s better if Bush also appointed someone to look at the federal contracts concerning any work with the Katrina disaster and have them check out the claims to make sure they’re legitimiate. Sixty billion dollars is a lot of money and there is no shortage of people waiting to take advantage of it.

  • Who is the bigger threat to America, Al Qaeda or Halliburton?