Proposed Bill Would Give “Preferential Points” to Federal Contractors for Good Labor Practices – Could Lead to Tug O’ War with Incoming “Pro-Contractor” Congress

As Congress reconvenes it will consider a new bill that would direct federal agencies to give preferential points in the bidding process to federal government contractors based on their labor practices. The bill, proposed by Rep. Eleanor Holmes Norton (D-D.C.), would give points to companies that pay their employees a living wage with benefits and those that permit workers to unionize without passing on additional costs to the federal government. According to Norton, these preferential points will help level the playing field and encourage private contractors and concessionaires to treat their workforce with the “dignity they deserve.”

If Norton’s previous bill is any indication, Norton’s newest endeavor will likely be very controversial. In July, she introduced the Restore Opportunity Strengthen, and Improve the Economy (ROSIE) Act which incentivizes federal government contractors to support collective bargaining, pay living wages and benefits, stop wage theft, and avoid paying CEO’s excessive salaries. The bill was immediately met with resistance, and to date has yet to move in the House. While President Obama has put components of the ROSIE Act into an Executive Order, Rep. Holmes Norton has continued to press the president to issue an executive order that includes the entire ROSIE Act.

Norton’s newly proposed bill and ROSIE Act aren’t the only developments when it comes to federal contracting labor issues. Champions for federal contracting employees scored a major victory last month when President Obama issued an Executive Order increasing the federal contracting minimum wage to $10.10 per hour effective January 1, 2015. However, these pro-employee measures may soon be met with more resistance. At a post-election gathering, former Virginia GOP congressman Tom Davis commented that the new Republican-controlled Congress will be more “pro-contractor.” While Davis noted that getting appropriations pushed through will be an uphill battle, the Republican party is inherently more market-oriented and permissive on defense spending, even if less so to spending overall. While Americans always expect some amount of gridlock in Congress, it is likely that federal government contracting issues will only add to the proverbial tug o’ war.

Image Courtesy of Flickr (licensed) by Doug Brown