Two proposals in Gov. Bruce Rauner’s Illinois Turnaround plan were opposed by the Ottawa City Council on Tuesday.
Proposals for right-to-work zones and the local repeal of the Illinois Prevailing Wage Act "would create a ‘race to the bottom’ that would reduce the pay of our community’s workforce and, therefore, harm the local businesses dependent upon local customers," according to "A Resolution to Protect the Middle Class," unanimously passed by the council.
The wage act says workers paid with public funds must receive wages no less than the area’s prevailing local hourly rate, which are annually set by local government resolutions.
"Prevailing wage is set locally and boosts local job growth," Jim Lockhart, a business representative for Illinois Brotherhood of Electrical Workers Local 176, told council members. "The wage discourages out-of-state companies from undercutting the local wage and benefit base.
"Job growth is spurred through the middle class. If (people) have money in their pockets it will get reinvested in the small businesses in our area."
Lockhart said a study by the University of Illinois and Michigan State University showed repeal of the wage law "would likely cost the state money, result in job losses and reduce construction sector efficiency."
Some municipalities supporting Rauner’s call have passed “Supporting Local Government Empowerment” resolutions.
“The city of Ottawa is not interested in doing that,” said Mayor Robert Eschbach. He said other local trade unions have asked city officials to oppose those changes.
Illinois Attorney General Lisa Madigan has issued formal opinions saying Rauner’s proposed right-to-work zones and allowing local governments to opt out of the prevailing wage act are illegal. Madigan said federal labor law requires right-to-work laws be enacted on a statewide basis.
Provisions of the Ottawa resolution include:
- "Passage of a local 'right-to-work' ordinance would undoubtedly generate legal challenge that our government would have to fruitlessly defend at a significant cost to our taxpayers."
- "Prevailing wage laws create a level playing field for local construction contractors by forcing out-of-state contractors to bid on projects based on the skill and efficiency of their workplace, not how far they can drive down wages and benefits."
- "By benefiting local contractors, prevailing wage laws greatly increase the likelihood that construction workers from our community will be employed on the projects that their tax dollars and those of our other taxpayers fund."
Copies of the resolution are to be delivered to Rauner and Democratic and Republican leaders in the Illinois House and Senate.
Other provisions of Rauner’s Turnaround plan include pension reform, term limits and freezing property taxes for two years.