NCJ Number
66713
Date Published
1978
Length
53 pages
Annotation
RESULTS AND RECOMMENDATIONS ARE REPORTED FROM A STUDY OF 'WAGE BUSTING,' THE PRACTICE OF LOWERING EMPLOYEE WAGES IN AN EFFORT TO BECOME LOW-BIDDER ON A GOVERNMENT SERVICE CONTRACT, IN THE CAPE CANAVERAL AREA.
Abstract
ALL EMPLOYEES WORKING ON FEDERAL SERVICE CONTRACTS ARE PROTECTED FROM 'WAGE BUSTING' UNDER THE SERVICE CONTRACT ACT OF 1965, WITH THE EXCEPTION OF EXECUTIVE, ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES. LEGISLATION INTRODUCED IN THE 95TH CONGRESS WOULD ALSO INCLUDE PROFESSIONAL EMPLOYEES UNDER THE ACT. SPECIAL PROCUREMENT PROCEDURES USED BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND THE AIR FORCE HELPED PREVENT 'WAGE BUSTING' OF EMPLOYEES NOT COVERED BY THE ACT DURING THE RECOMPETITION OF SEVERAL MAJOR SERVICE CONTRACTS IN THE CAPE CANAVERAL, FLA., AREA IN 1977. THE PROCEDURES INCLUDED CRITERIA FOR THE AGENCIES' EVALUATION OF THE OFFERORS' TOTAL PLANS FOR COMPENSATION, WITH PROVISION FOR REJECTING ANY OFFER BELIEVED TO BE NONRESPONSIVE BECAUSE OF THE LOW WAGES PROPOSED. IN REVIEWING THE WAGES AND FRINGE BENEFITS OF 881 OF 1,034 EMPLOYEES NOT COVERED BY THE SERVICE CONTRACT ACT, THE GENERAL ACCOUNTING OFFICE FOUND NO CASES OF 'WAGE BUSTING' ON TWO OF THREE CONTRACTS AND ONLY TWO CASES UNDER A THIRD CONTRACT. THESE PROCUREMENT PROCEDURES DEMONSTRATE THAT AN APPROPRIATE PROCUREMENT POLICY IS AN ALTERNATIVE TO THE PROPOSED LEGISLATION OF THE 95TH CONGRESS. THE ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY SHOULD ESTABLISH A GOVERNMENT-WIDE POLICY TO DISCOURAGE 'WAGE BUSTING' OF PROFESSIONAL EMPLOYEES NOT COVERED BY THE ACT AND REQUIRE FEDERAL AGENCIES TO INCLUDE APPROPRIATE IMPLEMENTING LANGUAGE IN THEIR PROCEDURE REGULATIONS AND SERVICE CONTRACTS. THE APPENDIXES CONTAIN LETTERS OF AGENCY RESPONSES TO THE STUDY AND RECOMMENDATIONS. (AUTHOR ABSTRACT MODIFIED)