StarBulletin.com

Let 'local workers' bill die its deserved death


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POSTED: Wednesday, April 28, 2010

The city has been able to attract lower-than-expected bids on initial contracts to begin construction of the rail transit project, but that could change because of contract constraints being considered by the Legislature. Legislators should allow Gov. Linda Lingle's veto of the “;local jobs for local workers”; measure to stand — or prepare to explain later why rising costs for rail and other public works projects will require increased tax revenue.

The bill would require that state and county public works contracts be given to companies with 80 percent of their project workforce to be residents. It defines a resident as “;a person who is physically present in the state at the time the person claims to have established the person's domicile in the state and shows the person's intent is to make Hawaii the person's primary residence.”;

That could well be enough to discourage a company from seeking a contract because of the possible restraints. In opposing the bill, Honolulu city officials call it “;an administrative nightmare,”; and the General Contractors Association of Hawaii, consisting of 570 contractors and subcontractors, regards compliance “;difficult if not impossible.”;

The recession has resulted in high unemployment figures in Hawaii and across the country, but imposing protectionist constraints is more likely to exacerbate the problem.

“;While the bill has been touted as a job creation measure,”; Lingle pointed out, “;the end result would likely discourage job creation by increasing project costs to taxpayers, as well as increasing the likelihood of project delays due to additional grounds for protests by contractors who are not selected.”;

The city has estimated that construction of the rail line between Kapolei and Ala Moana will generate more than 10,000 jobs a year for nine years. That is likely to play a large factor in Hawaii's recovery from the recession, but the constraints on the hiring of out-of-state workers could create a major problem with large cost increases.

Yes, there must be equal pay for equal work, and yes, many Hawaii workers are idling. But locking out legitimate competition is not the American way.

The bill raises questions about compliance with a person's right as U.S. citizen to employment, regardless of state lines. While several states have similar restrictions discriminating against outsiders to work under public works contracts by requiring lids on the percentage of out-of-staters, Lingle wrote in her veto message that “;courts are divided as to the validity”; of those state laws. Legislators may not have done their legal homework, Lingle suggested, possibly “;subjecting the state to protracted and costly litigation.”;

The bill passed unanimously in the House and only the Senate's two Republicans voted against it. That's a lot of union pressure being exerted in this election year.

Indeed, Hawaii labor unions are lined up in support as bill co-sponsor Sen. Robert Bunda slaps at governments elsewhere “;for allowing foreign laborers to flood their labor pools.”; Lawmakers' insistence that inserting xenophobia into the islands' labor force would be good for Hawaii's economy is shortsighted, and wrong-minded.