It appears, at least for this year, state labor unions will not agree to help some of the agencies their own members depend on for support when they are in times of crisis.

The idea of adjusting certain prevailing wage conditions, which some say adds as much as a 30 percent increase to state and government-funded building and capital projects, is apparently stalled in statehouse discussions even though some lawmakers say alternatives on the table could reward state laborers with even more jobs and higher earnings in the long run.

First Selectman Pat Llodra told the Legislative Council May 6 that a failure to either raise thresholds triggering prevailing wage standards for two key town projects or to waive the standard for certain nonprofits like Newtown Hook & Ladder and the Parent Connection, likely means both agencies will face significantly higher building costs as each develops new headquarters to better serve and protect the community.

“There are still some bills in the hopper that may get debated on the house floor with an up or down vote, but things are up in the air regarding prevailing wage,” Mrs Llodra said during her report to the council Wednesday evening.

The first selectman said that Hook & Ladder could be facing a gap in their new building budget of as much as a half-million dollars as a result.

“Now they know their real costs because they are obligated to pay prevailing wage,” Mrs Llodra said, “even though their own resources are going to build their facility.”

The town even sought a legal opinion on the issue on behalf of the local volunteer fire company, she said. But case law — specifically a 2009 case involving a Weston volunteer fire company headquarters — stipulated projects involving public service agencies are subject to the standard, after an inquiry was made to the state Labor Department.

“We also have a grant to rehab one of the [Fairfield Hills] duplexes for use by the Parent Connection,” Mrs Llodra said. “Again, there’s no consideration that they are a [nonprofit], that they serve a public need.”

Prevailing Wage Implications

This is not a new issue for Newtown officials. Recently, Councilman Ryan Knapp joined State Representative J.P. Sredzinski testifying at a public hearing in support of state prevailing wage reform.

According to Rep Sredzinski, the proposed Act Increasing the Threshold Amounts Requiring Public Works Projects to Abide by the Prevailing Wage Laws (HB-6650), would provide immediate local tax relief and assist to facilitate public works projects by increasing the current threshold amounts to $1 million that determine when public works projects must abide by prevailing wage laws.

Prevailing wage is a higher, state-regulated cost applied to construction or remodeling efforts of any public building, such as schools and town halls. Under this law, the cost of construction increases by nearly a third of what the original estimated cost would be. As an example, a project estimated to cost taxpayers $1 million will end up costing $1.3 million because of prevailing wages, according to Rep Sredzinski.

Currently, under the Connecticut General Statues, prevailing wage legislation applies to each contract for the construction, remodeling, refinishing, refurbishing, rehabilitation, alteration, or repair of any public works project by the state or its agents, or by any political subdivision of the state.

State Senator Tony Hwang has been working with colleagues and leaders of state labor unions trying to negotiate agreements he believes has great potential to increase the number of more sizable projects subject to prevailing wage. Those larger projects, he said, would result in a higher corresponding number of jobs for state union workers and the wages coming to them for their work.

“One of the two bills we are looking at would increase the prevailing wage threshold [on qualifying projects] from $2 million to $4 million,” Senator Hwang told The Bee this week.

Include Private Projects

The second proposal, Sen Hwang explained, would subject private sector projects receiving public money from programs like Governor Dannel P. Malloy’s “First Five” initiative and from agencies like the state Department of Economic and Community Development (DECD), to prevailing wage standards.

“If a private company takes state money, there may be some sensitivity [among lawmakers] that they should be subject to that,” Sen Hwang said. “But raising the threshold seems to be a sticking point. My argument has been that [unions] would get bigger jobs, and it would incentivize communities to initiate more public projects.”

That could potentially put more union members to work, he said, likely offsetting and even creating greater financial advantages for more union workers.

Sen Hwang is also concerned about nonprofits like Hook & Ladder and the Parent Connection.

“These are volunteer agencies that serve everyone in our communities, and that for the most part or in total, raise all their own funds,” he said. “Hook & Ladder, for instance, is taking $1.5 million in taxpayer money. Increasing the prevailing wage threshold could take a big burden off them.”

The senator said much progress has been made, considering the proposals to adjust prevailing wages have moved out of the committee phase negotiations for the first time.

“But I am pushing for more meetings,” he said. “Negotiations up to now have been respectful, but we need to determine where we’re at. It’s been about a month and we don’t have a final resolution.”

Sen Hwang said he would like to perhaps see elements of both proposals combined, incorporating elements from each that would result in a bill maximizing benefits to all parties involved.

“This is a move long past due for communities and agencies like the ones in Newtown that are facing serious financial pressures,” he added.

Mrs Llodra told the council this week that she, too, will be keeping a close eye on developments, but she did not seem as hopeful as her senate colleague.

“I’m hopeful, but word on the street is it’s unlikely to happen,” she said. “But we’ll keep pushing for it.”