Shields' prevailing wage bill would cover those under city contracts
Pittsburgh City Councilman Doug Shields introduced a bill Tuesday that would require some service workers get prevailing wages for jobs funded with public money.
The bill would require the wages, benefits and time off for food service, grocery and hotel employees working under city contracts or on projects funded with public subsidies. The prevailing wage is the median pay of specific jobs — in the public and private sectors — throughout the city.
"It doesn't pay to keep people poor," Shields said. "It's counterintuitive."
Development projects of more than 100,000 square feet and grocery stores of more than 30,000 square feet that get $100,000 or more of city funding, infrastructure help or discounted land would be subject to the rule.
Developers that don't comply could face withholding of money, revocation of subsidies, three-year bans on contracts with the city, or be reported to the Allegheny County District Attorney's Office.
Rob Stephany, executive director of the Urban Redevelopment Authority, said he was "disappointed and a little frustrated" by Shields' bill.
"Everybody is for trying to get low-income families sustainable wages," Stephany said. "We're trying to rebuild the city and rebuild the neighborhoods within the city and believe that what we do has a lot of community benefit in the tax created, the goods created. We feel like requiring a prevailing wage out of the end user brings so much uncertainty to the deal structure."
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The bill would require the wages, benefits and time off for food service, grocery and hotel employees working under city contracts or on projects funded with public subsidies. The prevailing wage is the median pay of specific jobs — in the public and private sectors — throughout the city.
"It doesn't pay to keep people poor," Shields said. "It's counterintuitive."
Development projects of more than 100,000 square feet and grocery stores of more than 30,000 square feet that get $100,000 or more of city funding, infrastructure help or discounted land would be subject to the rule.
Developers that don't comply could face withholding of money, revocation of subsidies, three-year bans on contracts with the city, or be reported to the Allegheny County District Attorney's Office.
Rob Stephany, executive director of the Urban Redevelopment Authority, said he was "disappointed and a little frustrated" by Shields' bill.
"Everybody is for trying to get low-income families sustainable wages," Stephany said. "We're trying to rebuild the city and rebuild the neighborhoods within the city and believe that what we do has a lot of community benefit in the tax created, the goods created. We feel like requiring a prevailing wage out of the end user brings so much uncertainty to the deal structure."