Gurney, Hon. Edward J., a U.S. Senator from the State of Florida_ Grunewald, Richard J., Assistant Secretary for Employment Standards, Department of Labor; Alfred Albert, Deputy Solicitor, Department of Labor; and Warren Landis, Assistant Administrator, Fair Labor McGahey, James C., president International Union of the United Plant Guard Workers of America, Detroit, Mich., accompanied by Jack Curran, legislative director, Laborers International Union of North America; Francis O'Connell, international executive council member, director of the Legislative Department, Transport Workers Union of America, AFL-CIO; Frank Waldner, airline coordinator, International O'Connell, Francis, legislative director, Transport Workers Union of Lee, Robert E., president, National Aerospace Services Association, accompanied by Ramsay Potts, legal counsel; C. R. McGehee, general manager, Field Operations and Support Division, Boeing Co.; and Dan R. Bannister, vice president of operations, Dynalectron Corp...... Keegan, Richard, Deputy Under Secretary for Procurement, Department of the Air Force, accompanied by James Micklish, industrial labor rela- tions adviser, and Bert Z. Goodman, Assistant General Counsel.. McCurdy, Richard, Associate Administrator for Organization and Man- agement, National Aeronautics and Space Administration, accompanied by George J. Vecchietti, Director of Procurement, and John Whitney, 54 39 Chamber of Commerce of the United States of America, prepared state- Communications Workers of America_ Fosco, Peter, general president, Laborers' International Union of North Grunewald, Richard J., Assistant Secretary for Employment Standards, Gurney, Hon. Edward J., a U.S. Senator from the State of Florida__ McCurdy, Richard, Associate Administrator for Organization and Manage- Prepared statement. O'Connell, Francis, legislative director, Transport Workers Union of Pillard, Charles, president, International Brotherhood of Electrical Page 104 23 25 32 59 Wilson, Henry T., legislative director, Federal-Public Service Division, 45 ADDITIONAL INFORMATION Articles, publications, etc.: National Aerospace Services Association corporate membership------ Lee, Robert E., president, National Services Association, Washington, Bannister, Dan R., vice president-operations, Dynalectron Bateman, Robert E., vice president, Washington operations, Taft, Hon. Robert A., Jr., a U.S. Senator from the State of Ohio, from Williams, Hon. Harrison Á., Jr., a U.S. Senator from the State of New Curran, Joseph, chairman, AFL-CIO Maritime Committee, 72 75 74 90 125 Fitzsimmons, Frank E., general president, International Brother 125 Stevens, Hon. Ted, a U.S. Senator from the State of Alaska, Sep- hood of Teamsters, Chauffeurs, Warehousemen & Helpers of 117 112 SERVICE CONTRACT ACT AMENDMENTS, 1972 WEDNESDAY, AUGUST 16, 1972 U.S. SENATE, SUBCOMMITTEE ON LABOR OF THE COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D.C. The subcommittee met at 10:10 a.m., in room 4232, New Senate Office Building, Senator Harrison A. Williams, Jr., chairman, presiding. Present: Senators Williams, and Taft. Committee staff present: Gerald Feder, counsel, Donald Elisburg, associate counsel, and Eugene Mittelman, minority counsel. The CHAIRMAN. The subcommittee will come to order. This morning the Subcommittee on Labor will begin its hearing with testimony on S. 3827, a bill introduced by Senator Gurney and myself, on July 2, and the companion House bill, H.R. 15376, passed by the House of Representatives last week by a vote of 274 to 101. Congress enacted the Service Contracts Act in 1965 to insure that workers under Government service contracts are paid prevailing wages for their labors, and to prevent cutthroat bidding on Government contracts at the expense of the worker. Our colleagues in the House held 8 days of hearings last year on the inadequacies and the implementation of the act. Those hearings led to development of the bills before us today. At this point, I will place both bills in the record. (The bills referred to follow:) (1) 92D CONGRESS 2D SESSION S. 3827 IN THE SENATE OF THE UNITED STATES JULY 21, 1972 Mr. GURNEY (for himself and Mr. WILLIAMS) introduced the following bill; which was read twice and referred to the Committee on Labor and Public Welfare A BILL To amend the Service Contract Act of 1965 to revise the method of computing wage rates under such Act, and for other purposes. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That (a) section 2 (a) (1) of the Service Contract Act of 4 1965 is amended by striking out all after "locality,” and in5 serting in lieu thereof the following: "or, where a collective6 bargaining agreement covers any such service employees, in 7 accordance with the rates for such employees provided for 8 in such agreement, including, if the Secretary so elects, pro9 spective wage increases provided for in such agreement as a 10 result of arm's-length negotiations. In no case shall such 2 1 wages be lower than the minimum specified in subsection 2 (b)". 3 4 (b) Section 2 (a) (2) of such Act is amended by striking out the period after "locality" and inserting in lieu 5 thereof the following: ", or, where a collective-bargaining 6 agreement covers any such service employees, to be provided 7 for in such agreement, including, if the Secretary so elects, 8 prospective fringe benefit increases provided for in such 9 agreement as a result of arm's-length negotiations." 10 SEC. 2. Section 2 (a) of such Act is amended by adding 11 at the end thereof the following new paragraph: 12 23 13 14 15 16 17 18 "(5) A statement of the rates that would be paid by the Federal agency to the various classes of service employees if section 5341 of title 5, United States Code, were applicable to them. The Secretary shall give due consideration to such rates in making the wage and fringe benefit determinations specified in this section." SEC. 3. (a) Section 4 (b) of such Act is amended by 19 striking out all after "Act" and inserting in lieu thereof the 20 following: " (other than section 10), but only in special cir21 cumstances where he determines that such limitation, varia22 tion, tolerance, or exemption is necessary and proper in the 23 public interest or to avoid the serious impairment of govern24 ment business, and is in accord with the remedial purpose 25 of this Act to protect prevailing labor standards." |