Oregon construction unions and nonprofit housing developers will co-sponsor legislation in 2007 to better clarify — or even exempt — the prevailing wage law on certain housing projects.

The Oregon State Building and Construction Trades Council, the Pacific Northwest Regional Council of Carpenters, the Community Development Network and the Association of Oregon Community Development Organizations announced their legislative plan and a memorandum of understanding they signed at a Portland Development Commission (PDC) work session Oct. 18. The federal and state law requires that government-financed construction projects pay workers the “prevailing wage.” The state prevailing wage is the average wage for a given craft in a specific geographic area. Surveys, primarily on commercial projects, are taken annually by the Oregon Employment Division and wage standards are set by the Oregon Bureau of Labor and Industries.

Oregon has adopted federal wage rates on state-financed residential projects, “but there are a lot of gray areas,” acknowledged Bob Shiprack, executive secretary of the Oregon State Building and Construction Trades Council, a federation of construction unions.

For example, some low-income housing projects have common bathrooms and/or kitchens. Under federal law, that type of structure falls under commercial prevailing wage rates.

“But it’s not so much a money issue as it is a certainty issue,” Shiprack continued. “Because their funding comes from so many sources, nonprofit housing developers have to know to the dime what rates apply before a project ever begins.”

Martha McLennan, president of the board of directors of the Community Development Network, said the joint proposal “will give affordable housing developers the certainty they need to build these critically important projects in our communities.”

The Network is an association of nonprofit development organizations in Multnomah County. Some of its members include the Catholic Charities-Caritas Housing Initiatives, Central City Concern, Downtown Community Housing Inc., HOST Development Inc., Human Solutions Inc. and Portland Habitat for Humanity.

“This should take the housing argument off the table,” said Shiprack, referring to a lingering debate between BOLI, PDC, developers, construction unions, contractors — both union and nonunion — and other public entities who have been trying for several years to establish wage guidelines on mixed-use projects (projects that co-mingle housing and commercial units, using both tax dollars and private money).

One of the biggest arguments PDC uses against it is that the prevailing wage law hampers affordable housing development.

“We get so tired of hearing that argument,” said Cherry Harris, a business representative of Operating Engineers Local 701, a participant in the meetings with the Community Development Network. “Labor and housing folks were both feeling a little bit used,” she said.

All of the parties signed a memorandum of understanding pledging to promote fair labor standards for construction workers on projects built by the nonprofit housing organizations; create job opportunities for union contractors; and secure funding for affordable housing at the local, state and national level.”

The community development organizations will help compile wage and benefit surveys of contractors on their projects in order to better identify substandard labor practices. In the meantime, construction unions said they will explore ways to invest more pension funds in housing projects, better promote their apprenticeship programs in low-income areas and volunteer their labor skills on housing projects.

“This is a natural partnership because we are both working toward the same basic goal: improving economic opportunity for Oregonians,” said Shiprack. “The community development groups support our work creating more family-wage jobs, and we certainly support their work to provide housing opportunity for working families earning low wages, as well as the elderly, the disabled and others. We hope we can find a similar resolution for commercial projects.”

PDC is conducting public work sessions to determine whether or not it should set its own wage and benefit standards on mixed-use projects.

At the Oct. 18 work session, Shiprack and the nonunion Associated Building and Contractors spokesman Shawn Miller agreed that any solution to the mixed-use development debate likely will have to come from the Legislature by revamping state prevailing wage statute.

“Right now, PDC can take the lead to help solve it,” Shiprack said.

During testimony before PDC commissioners, apprentices, journeymen and women, a contractor and several union officials praised the virtues of prevailing wage projects. Even the nonunion contractors testifying against prevailing wages, when asked by commissioners, said that their employees “are extremely happy” when they work on prevailing wage jobs.

Shiprack shared results from a recent survey his council conducted showing that 67 percent of Portlanders think PDC should require contractors to pay the prevailing wage on all projects.

“Citizens’ number one issue is to make PDC more accountable,” he told commissioners.

John Mohlis, executive secretary-treasurer of the Columbia-Pacific Building Trades Council, distributed a flier showing union pension fund investments of more than $83 million in the central city, and more than $22 million on the South Waterfront Development since 2002.

In Multnomah, Washington and Clackamas counties, building trades union pension funds have invested more than $256 million.

“We’re helping build this community, and our investments are getting decent returns,” Mohlis said. “And we’re doing it paying higher wages and benefits than the prevailed rates call for.”

Moreover, Mohlis continued, every dollar paid to local construction workers is spent directly on goods and services in their communities. New workers are recruited and paid to get training in their chosen craft, and unions are leaders in volunteering to work on projects for nonprofit organizations.

“Prevailing wage laws create a level playing field for all contractors. The most productive and profitable will step forward,” Mohlis said. “It’s not a race to which contractor can get away with paying the lowest wages and providing the fewest benefits.”

During public testimony, several women and minorities from union crafts and Oregon Tradeswomen Inc. presented testimony supporting prevailing wage laws. Most said they learned their crafts while working on prevailing wage jobs in Portland.

Nichole Craine, a fifth-term Carpenter apprentice and mother of six, said her training helped her and her family become more self-sufficient.

“I now have a skill and career that I can pass on to them,” she said.

William Carr, a journeyman member of Sheet Metal Workers Local 16, asked commissioners not to do away with prevailing wage rules.

“Working on prevailing wage projects has allowed me the opportunity to be a successful father,” he said.

A homeowner and the father of four boys, Carr said he now makes enough money so that his wife can stay home to be with their kids.

“We’re homeowners, we have health insurance, we pay our taxes, we pay our bills,” said Chris Wade, a journeyman member of Local 16 who has a degree in English.

“It’s not like anybody’s getting rich,” added Amy Fuger, also a Sheet Metal Local 16 apprentice.

Fuger said that when she finishes her apprenticeship training she will have an associate’s degree in sheet metal technology.