Wicks “Deal” Needs Rethinking

Current version fatally flawed and worse than status quo

ALBANY, NY (10/18/2007)(readMedia)-- The General Building Contractors of New York State (GBC) urged today that the Governor, Assembly and Senate rethink proposed amendments to the controversial Wicks Law. The GBC is an association of general contractors and construction managers constructing the vast majority of New York’s public building construction covered by the Wicks Law. Approximately 75% of our membership is union contractors.

“The proposed amendments to the Wicks Law are fatally flawed,” said Jeff Zogg, Executive Director of the GBC. “What started out as a relatively modest dollar threshold increase in discussions early in 2007, turned into a bill dominated by extraneous labor and other provisions that will only drive away competition for public work and drive up costs. This current version is clearly worse than the status quo. Taxpayers will only pay, not save,” Zogg added.

The proposed amendments contain anti-competitive Project Labor Agreement (PLA) and apprenticeship language that will, when coupled with the Governor’s proposed restrictions on the creation of new programs, and new entrants, significantly reduce the number of contractors and subcontractors who will be able to bid on public construction work. These restrictions will be particularly harmful to small minority- and women-owned businesses in New York State. Other provisions, unrelated to the Wicks Law, are also troubling.

Proponents of this legislation argue that there will be cost savings for local governments. Those savings are illusory. Our members live with these issues every day. Our experience convinces us that whatever savings may be generated from revisions of the Wicks Law will be lost because of the extraneous, non-Wicks provisions of this legislation.

We urge the Senate not to pass this legislation. Instead, the Senate, Assembly and the Governor should go back to the bargaining table and develop a simpler proposal focused on true Wicks contracting issues and not burdened with extraneous, counterproductive, costly and anti-competitive measures.

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