IMPLEMENTATION OF THE WEIGHTED AVERAGE PREVAILING WAGE METHOD IN HOUSTON

MARY D. FERGUSON


DOI: 10.2190/Y7VN-P8Q2-6D8F-4F1L

Abstract

In December 1983, the Houston City Council adopted a building prevailing wage rate. Enacted into law as the rate was the Department of Labor Building Wages which essentially reflected the area union wages. However, for the first time, the department had severe opposition toward the practice of adopting the area s negotiated wage rates. The opposition formed from local open shop parties. Mayor Kathryn J. Whitmire, appointed and ad hoc City Council committee to determine the future methodology/practice regarding prevailing wages. The committee s recommendation, in 1984, was for a weighted average survey. The survey, completed in late 1985, was highly successful in both methodology and survey aspects. But because the survey did not utilize the Department of Labor s 50 percent rule and because it did not reflect union wages, a legal challenge ensued. The Houston Building Trades Council filed suit. The case progressed to appeal at the Supreme Court of Texas. In September 1986, the Supreme Court affirmed the May 1986 opinion by the First Supreme Judicial District. The Houston Plan of prevailing wage survey was found to be in compliance with Statute 5159a Vernon s Civil Statutes.

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