Wisconsin laws regulating the prevailing wage survey provide for a “contract match” to a collective bargaining agreement (CBA) rate and benefit that is on file with DWD. That means employers who report a CBA rate and the correct “allowable fringe benefit” on the survey are able to set a rate for prevailing wage that provides them the “current rate” and future increases contained in the matched collective bargaining agreement. It takes only 500 work hours to set a rate. Private hours are what DWD looks at FIRST as to what sets the prevailing wage in that given area. The data reported for each classification is evaluated and the new rate is set from (1) a majority of the hours reported or if no majority exists, (2) a weighted average with the prevailing rate selected at 51%.
Example of two contractors who both set a local street prevailing wage rate and what the impact of a “contract match” would do for the CBA contractor| Work for survey period reported 6/1/08-5/31/09 | New Prev Wage Rate set for 1/1/10 | Prev Wage Rate 6/1/10 | The Difference | | CBA Contractor Reports | CBA | CBA | $3.25 per hour above rate actually reported on survey. CBA gets current rate and future increases of agreement on file! Very important for multi-year jobs! | | HBR: $30.47 | HBR: $31.47 | Gets future increase as of June 1, 2010 of $1.85 applied to the rates! | FBR: $16.60 (2008 match to H&H) | FBR: $17.35 Gets current rate of 2009 H&H contract in effect. | | Total Package: $47.07 | Total Package: $48.22 | Total Package: $50.67 | | | | | | | Non CBA Contractor Reports | Non CBA | Non CBA | Non CBA rate reported from 2008/2009 survey period stays at $30.00 thru the end of 2010 making it virtually impossible for a CBA contractor to compete since the CBA contractor must pay their contract rate regardless. | | HBR: $25.00 | HBR: $25.00 | HBR: $25.00 | | FBR: $5.00 | FBR: $5.00 | FBR: $5.00 | | Total Package: $30.00 | Total Package: $30.00 | Total Package: $30.00 |
** A contract match also protects “premium rates” as part of the prevailing wage rates. If there is no match, the premium rates also are lost in addition to the above. |