May 11, 2009

DOHERTY: SMALL BUSINESS TAKES ANOTHER ONE ON THE CHIN WITH PREVAILING WAGE BILL AMENDMENT TO EXCLUDE SMALL COMPANIES VOTED DOWN IN COMMITTEE

The Democrats in the Assembly Labor Committee sent another message to the business community that their services are not needed in New Jersey with the passage of a prevailing wage bill said committee member Assemblyman Michael Doherty, R-Warren and Hunterdon today. The legislation released from the Assembly Labor Committee will require that workers on any construction project in the state that receive financial assistance from the Board of Public Utilities (BPU) be paid the prevailing wage rate as determined by the Commissioner of Workforce Development. Assemblyman Doherty offered an amendment, which was voted down along party lines, that would have excluded smaller businesses from the bill.

“Once again, the Democrats have pandered to the pressures of organized labor by interjecting themselves into matters that should be determined in the private sector,” said Doherty. “By expanding the prevailing wage to BPU-assisted projects, all they are doing is increasing the cost of construction and currying favor with the unions. At a time when companies are fleeing New Jersey because of its anti-business reputation, that perception was reinforced with today’s committee approval.”

Doherty’s amendment to exclude smaller companies doing less than $12 million in annual revenues was an effort to support smaller enterprises that will be able to bid on projects that receive BPU incentives, such as tax exemptions, abatements, or loans.

“This bill will send a message to small business that you aren’t needed in New Jersey,” continued Doherty. “They are basically being told to stay on the interstate and look for opportunities elsewhere. The reality of this legislation is that it will further hurt the very private sector segments that are in need of the most help.”