PHOENIX — Phoenix became the first city in Arizona to pass a prevailing wage ordinance, setting a new wage standard for workers.
The ordinance requires companies working on city-funded projects worth at least $4 million to pay their workers a prevailing wage, meaning they must match what workers in similar positions are making.
“It is important for us to pay people a living wage. Inflation isn’t getting any better, rent is incredibly expensive, and we just need to make sure we pay people what they deserve for the work that they do,” said Phoenix City Councilwoman, Betty Guardado.
In addition, the ordinance makes certified payroll mandatory, a move Councilwoman Guardado says will hold companies accountable and ensure people get paid for their work.
“If you know that you’re paying a prevailing wage, if you know that you’re hiring the skilled workforce, if you know that you’re getting your projects on time, why fight it? So, for me there is something that these companies are doing wrong and that’s the reason why they’re fighting this,” said Guardado.
David Martin President, Arizona Chapter President for the Associated General Contractors of America said there is nothing wrong with the current system.
“It’s a solution looking for a problem. They have not demonstrated a problem in anyway shape or form. There’s no anecdotal evidence there’s a problem, there isn’t a problem” Martin told ABC15. “Especially in this market today as it relates to construction jobs, our folks are paid above average.”
Martin said this could also cause a chilling effect for smaller companies, making them more hesitant to bid on contracts. He added, the AGCA is working with other organizations impacted by the ordinance with plans to file litigation in the coming weeks.
“The entire ordinance is illegal, you can’t cherry pick parts of the ordinance,” Martin said. “The entire thing is illegal, it’s in violation 34.321.”
According to state law 34.321, rates of wages in public work contracts is a statewide concern, not local or municipal.
Proponents argue a recent opinion from Arizona Attorney General Kris Mayes, citing a recent voting law gives cities the authority to set wages.
“I think the court is going to see this has been enacted since 1931. This is not something that Guardado decided that prevailing wage is important.
"This is not new,” Guardado said. “It’s nothing illegal that we’re trying to do.”
