(The Center Square) – A budget hearing on Tuesday in the state Capitol highlighted an ongoing labor wage rate concern that has some worried about Pennsylvania’s ability to bring broadband to underserved areas of the state.
House Appropriations Committee Minority Chair Jim Struzzi, R-Indiana, said the state has been sitting on $1.16 billion “and my concern is, without making this change, that money could do significantly less.”
Several House Republicans questioned Labor and Industry Secretary Nancy Walker about whether her department would change how broadband and fiber-optic cable workers are classified within Pennsylvania’s prevailing wage rates for the construction industry. The prevailing wage rate is defined as the average wage paid to similarly employed workers in a specific occupation in the area of intended employment. All employers must pay, at a minimum, the prevailing wage to workers on public construction projects that cost more than $25,000.
At issue is that fiber-optic cable workers are currently classified as electric line workers, also known as electric linemen, for prevailing wage purposes. A fiber-optic cable worker can earn approximately $55 per hour in the private sector, while electric linemen can be paid hourly prevailing wage rates exceeding $90 due in part to the potential danger of working with high-voltage lines installed on poles. Broadband workers typically have other responsibilities.
“We set wage rates based on the data and information we’ve been given … we don’t just arbitrarily set them,” said Walker.
“Based on data that comes in, based on collective bargaining agreements, based on wage and benefit information, based on classification and job work that’s being done, we can make an appropriate determination,” she explained.
“But you can make changes?” Struzzi asked Walker.
“If the data indicates a change is appropriate, yes,” Walker responded.
Walker said the problem from the department’s perspective is that, up to now, there has been a lack of data or information provided to the Department of Labor and Industry.
“We are starting to get information in now. I have not seen the details of it. It will be carefully assessed and evaluated by the department, and if a rate and/or a classification change is appropriate, we will absolutely make it,” she said.
During the hearing, she also noted that more clarity could be provided on this matter as the Pennsylvania Prevailing Wage Appeals Board, which reviews appeals and grievances related to prevailing wages, is considering a rate appeal.
“There is a case now that is pending on a wage rate that was determined for Warren County – that’s in the middle of the process and is now in front of the board – and that decision will be rendered in a timely manner,” said Walker, later adding that a decision might come in the next few months.
Struzzi pointed out the case mentioned by Walker was precipitated by the department, nearly two years ago, rejecting a request to classify fiber-optic cables workers separately from electric linemen for prevailing wage purposes.
“I think we all want to make sure that people are paid the appropriate wage for their skill levels and the work they are doing, but I think you can take a more proactive approach because we would like to see these dollars rolled out to help our communities, to help our residents, to help our businesses and industries further expand broadband access,” said Struzzi of Walker and the department.
