A lawmaker's long reach
POSTED: Monday, September 07, 2009
WASHINGTON » Thousands of miles from his Hawaii congressional district, Democratic Rep. Neil Abercrombie has discovered a lifeline for his state's struggling construction industry—and a potential boost in his campaign for governor.
His idea: Legislate high wages for a massive construction project in the federal territory of Guam, restrict the ability of foreigners to get those jobs and hope Hawaii people, although 3,800 miles away, will flock there for the work.
The cost to U.S. taxpayers if he gets his proposal through Congress: $10 billion by one official estimate, doubling the price tag of the project.
At issue are thousands of jobs building houses, dormitories, offices, warehouses, roads and utilities for 17,000 Marines and family members who will be relocating from Japan in the coming years.
Abercrombie's effort is raising concerns in Guam and at the Pentagon, but are sure to please many of his constituents, particularly the labor unions that have heavily financed his re-election campaigns over his 18 years Congress. It's an example of how one lawmaker looking out for his home state can be an expensive proposition for the U.S. treasury.
His critics say Abercrombie is trying to win the 2010 race for governor at Guam's expense. They're worried that ramped-up wages—tripling pay for bricklayers, for example—would lead to a roller-coaster economy with high inflation and a plummet once construction ends in 2014. They also worry the relocation might be scuttled altogether if he gets his way.
“;He is obviously playing to the major portion of his constituency, labor union members, in order to win that election,”; said John Robertson, a director with the Guam Contractors Association.
Abercrombie's response? “;Duh.”;
“;Of course I'm playing to working people. The building trades and working people have been the foundation of my political career for 36 years,”; he said. “;If I didn't do this, people would say, 'what's wrong with him?'”;
Right now, most of the labor is expected to come from Asia, particularly the Philippines, which is much closer to Guam. Hawaii is about as close to Kansas as it is Guam.
Abercrombie wants to limit the number of foreigners who can be hired for the project, then set minimum wages at the rates used for federal construction projects in Hawaii, in order to entice American workers.
The result: Electricians would get about $39 an hour at minimum, instead of $14. Bricklayers would get at least $35 an hour instead of nearly $12.
Abercrombie asserts his proposal would focus taxpayer dollars on U.S. citizens and raise living standards on the island of 171,000 people.
Labor unions have been Abercrombie's biggest backers over the years, according to the Center for Responsive Politics, a watchdog group. Since 1989, donations from union-affiliated political action committees to Abercrombie's congressional races include: the Laborers' International Union, $101,000; the United Brotherhood of Carpenters and Joiners of America, $90,000; the International Brotherhood of Electrical Workers, $81,960; and the Sheet Metal Workers International Association, $68,500.
In all, the watchdog group counts $586,000 in donations from building trade unions over his career. Nearly one out of every $3 he's raised during his House career came from labor.
Contractors who rely on union workers aren't guaranteed they'll get work through Abercrombie's bill, but they are often best positioned to deal with the paperwork and regulations that come with working on large federal construction projects.
The project, to be paid for by the U.S. and Japan, now is estimated to cost $10 billion. The nonpartisan Congressional Budget Office said the changes sought by Abercrombie, in legislation that passed the House, would cost the U.S. $10.2 billion more.
In the end, contractors will hire the best workers they can get for the wages they're required to offer, said Dale Belman, a professor who specializes in labor relations at Michigan State University. The use of Hawaii's prevailing wage is bound to attract highly skilled workers from the U.S., but not necessarily union members, he said.
Randy Perreira, president of the Hawaii state chapter of the AFL-CIO, said construction workers in Hawaii will take a close look at the jobs.
“;We've got so many people on the bench here in Hawaii, it's just outrageous,”; Perreira said. “;They won't go for the jobs at the wage rate that's present on Guam currently, but for the prevailing Hawaiian wage, a lot of them would.”;
Abercrombie's amendments were part of House legislation setting defense priorities for the coming years. It remains to be seen if the Senate will go along. Negotiators will meet in coming weeks to try to forge a single bill that can pass both chambers.
Guam, about three times the area of the District of Columbia, already serves as a major military installation. It's an ideal staging area from which to send ships, planes and troops to Asia.
Currently, officials project that about 80 percent of the labor force will come from Asian countries. Guam contractors would recruit workers from Hawaii and the mainland to fill management, engineering and administrative tasks.
They wonder whether construction workers from Hawaii would really venture to Guam or stay long.
Officials worry about a lack of housing and schools if Americans fill the majority of the jobs. Asian workers would live in camps; Americans are more likely to bring their families, requiring housing that's unavailable.
Mary Torre, president of the Guam Hotel and Restaurant Association, said she's worried that many businesses would lose workers to the construction project. Employers would have to increase wages and charge customers more.
Matt Rector, a senator on the island as well as the head of the local affiliate of the AFL-CIO, said workers there welcome what Abercrombie's trying to do because of the island's dismal economy.
The cost of living there is high because so many products have to be shipped to such a low-volume destination, yet wages are below the national average and people have difficulty finding decent-paying jobs. The unemployment rate is about 11.4 percent.
“;The way it's set up right now, all this money will funnel out almost immediately into foreign countries' economies,”; Rector said. “;That doesn't make sense by any stretch of the imagination.”;