Wage requirement bill hits buzz saw 

Posted: 7:00 pm Thu, March 18, 2010
By Nicholas Sohr
Daily Record Business Writer

ANNAPOLIS — The sponsor of a bill that would impose employee wage and benefits requirements on many businesses that get state money calls the legislation “a work in progress,” but that didn’t stop business groups from blasting the measure Thursday.

The bill, HB 1317, would apply to businesses that get more than $250,000 from the state for capital projects, economic development, community development, job growth or retention. It would set wages at the higher of either the federal prevailing wage, the state prevailing wage, or 130 percent of the minimum wage.

The bill also would require that employers enter into collective bargaining agreements with labor unions. Contractors  would be required to hire through union hiring halls.

“Why does the state of Maryland spend the hard-earned tax dollars of its citizens subsidizing companies that pay poverty wages to their workers?” asked bill sponsor Del. Cheryl D. Glenn, D-Baltimore City. “Inflation has risen steadily while incomes have remained stagnant, which forced Americans to rely more on credit.”

She and other supporters argued that raising wages for working Marylanders would ease the burden on assistance programs for low-income families.

Glenn told the House Economic Matters Committee that she didn’t want a vote on the bill this session but hopes it will be a “conversation starter” from which to begin working with business interests to reach common ground.

Rion Dennis, of Progressive Maryland, an advocacy group that specializes in social and workplace issues, compared the process to the work done on living-wage requirements now attached to state contracts.

Common ground, however, appears to be quite a ways off.

“It’s just hard to imagine any version of this bill being good for the state’s economic well-being,” said Ronald W. Wineholt, a lobbyist for the Maryland Chamber of Commerce.

Wineholt said the bill would make state economic development funds “worthless.” Representatives of other business groups said the legislation would hamper Maryland companies’ ability to compete in an open market.

“I think this bill is an exercise in wishful thinking,” said Champe C. McCulloch, president of the state branch of the Associated General Contractors of America. “I don’t think you can legislate that everyone will achieve whatever income level that they want to.”