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the contracting officer may, by written notice to the contractor, terminate his right to proceed with the work or such part of the work as to which the violation has occurred, and prosecute the work to completion by contract or otherwise, and the contractor and any sureties shall be liable to the Govern

ment for any excess costs occasioned the Government thereby. SEC. 3. (a) The Comptroller General of the United States is hereby authorized and directed to pay directly to the employees underpaid, from any accrued payments withheld under the terms of the contract, any compensation which the contracting agency has found to be due pursuant to this Act; and the Comptroller General is further authorized and directed to distribute a list to all agencies of the Government giving the names of persons or firms that the contracting agencies bave found to have breached or violated any of the representations or stipulations required to be included in a contract pursuant to this Act. Unless the head of the contracting agency otherwise recommends, no contract of the United States shall be awarded to the persons or firms appearing on this list or to any firm, corporation, partnership, or association in which such persons or firms have a substantial interest until three years have elapsed from the date of publication of the list containing the names of such persons or firms.

(b) If the accrued payments withheld under the terms of the contract are insufficient to reimburse all employees with respect to whom there has been a failure to pay the compensation required pursuant to this Act, the United States may bring an action against the contractor, subcontractor, or any sureties in any court of competent jurisdiction to recover the remaining amount of underpayments. Any sums thus recovered by the United States shall be held in a special deposit account and shall be paid, on order of the Attorney General, directly to the underpaid employee or employees. Any such sum not paid to an employee because of inability to do so within three years shall be covered into the Treasury of the United States as miscellaneous receipts.

SEC. 4. In order to assure coordination of administration and consistency of enforcement of the provisions of this Act, the Secretary of Labor shall prescribe appropriate standards, regulations, and procedures which shall be observed by the Federal agencies, and cause to be made by the Department of Labor such investigations with respect to compliance with and enforcement of the provisions of this Act as he deems desirable. The Secretary of Labor may provide reasonable limitations and may make rules and regulations allowing reasonable variations, tolerances, and exemptions to and from any or all provisions of this Act respecting minimum wages or the extent of the application of this Act to contractors.

SEC. 5. Upon a written finding by the head of the contracting agency that the inclusion in the proposal or contract of the representations or stipulations set forth in section 3 of this Act will seriously impair the conduct of Government business, the Secretary of Labor may make exceptions in specific cases or otherwise when justice or public interest will be served thereby. Upon the joint recommendation of the contracting agency and the contractor, the Secretary of Labor may modify the terms of an existing contract respecting minimum wages as he may find necessary and proper in the public interest or to prevent injustice or undue hardship.

SEC. 6. In the event of a national emergency, the President is authorized to suspend any or all of the representations and stipulations contained in section 3 of this Act. Sec. 7. As used in this Act

(a) The phrase "contract which provides for the furnishing of services, including janitorial, custodial or cleaning services, or maintenance work to a Federal agency" shall include all such contracts except

(1) contracts subject to either the Act of March 3, 1931 (46 Stat. 1494), as amended, or the Act of June 30, 1936 (49 Stat. 2036), as amended;

(2) contracts for the carriage of freight or personnel by vessel, airplane, bus, truck, express, or railway line where published tariff rates are in effect;

(3) contracts for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934 ;

(4) contracts for public utility services, including electric light and power, water, steam, and gas; and

(5) employment contracts providing for direct services to a Federal agency by an individual or individuals.

(b) "Employee" means any person engaged in a recognized trade or craft, or other skilled mechanical craft, or in unskilled, semiskilled, or skilled manual labor occupation; and in a position, including a supervisory position, having trade, craft, or laboring experience as the paramount requirement; and shall include all such persons regardless of any contractual relationship that may be alleged to exist between the contractor or subcontractor and such persons.

(c) The term “Federal agency" includes (1) the executive departments, (2) the independent establishments and agencies in the executive branch, including corporations wholly owned by the United States, (3) the Administrative Office of the United States Courts, (4) the Library of Congress, (5) the Botanic Garden, (6) the Government Printing Office, (7) the General Accounting Office, (8) the Office of the Architect of the Capitol, and (9) the municipal government of the District of Columbia.

(d) “Compensation" means wages and health, life, and accident insurance and vacation and retirement benefits (or payments equal to the cost to the Federal agency of furnishing such insurance and benefits).

(e) For the purpose of geographical definition, the “United States" shall include any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf lands as defined in the Outer Continental Shelf Lands Act (ch. 345, 67 Stat. 462), American Samoa, Guam, Wake Island, and the Canal Zone, but shall not include any other territory under the jurisdiction of the United States or any

United States base or possession within a foreign country. SEC. 8. If any provision of this Act, or the application thereof to any persons or circumstances, is held invalid, the remainder of the Act, and the ap plication of such provisions to other persons or circumstances, shall not be affected thereby.

Sec. 9. This Act shall apply to all contracts entered into pursuant to nego tiations concluded or invitations for bids issued on or after ninety days from the effective date of the Act.

Mr. O'Hara. I would like, before having our first witness, to make a brief statement in explanation of these proposals. Each of them has the same objective; that is, to provide wage protection to the employees of employers holding Government contracts providing for the performance of services. Under existing law, employees of employers working on federally financed construction contracts receive wage protection from the Davis-Bacon law. Employees of contractors holding Government production contracts receive similar wage protection on an industrywide basis from the Walsh-Healey Act. There is no protection whatsoever afforded to wage standards when a service contract, as opposed to a construction or production contract, is involved.

Briefly, H.R. 1678 would provide such protection to workers on these contracts through a Davis-Bacon type of determination of prevailing wage in the area in which the work is being done.

The difference between H.R. 1678 and H.R. 6088 is that H.R. 6088 would accomplish this objective by imposing a standard upon these contractors that would require that they pay to their employees on such contracts the wage board rates prevailing in that agency for employees of the agency in that area doing the same or similar work.

These are the only differences between the two bills, other than one jurisdictional difference. H.R. 1678 applies to contracts in excess of $10,000. H.R. 6088 applies to contracts in excess of $2,000.

The first witness today is the international president of the United Plant Guard Workers of America, Mr. James McGahey, who is accompanied by Mr. Winston Livingston, counsel of the Plant Guard Workers.

Will you gentlemen please step forward and take your places? I have the privilege of knowing both of these gentlemen since they are neighbors of mine. As a matter of fact, Mr. Livingston is a constituent, and I know them both to be very fine gentlemen, who are well versed in the matter to which they will refer.

Now, Mr. McGahey, would you please identify yourself and, Mr. Livingston, identify yourself? Then you may proceed in any manner you may wish to proceed. We have your prepared statement. You may read that statement or, if you wish, you may submit the statement for the record and summarize its contents.

STATEMENT OF JAMES C. McGAHEY, INTERNATIONAL PRESIDENT; ACCOMPANIED BY WINSTON L. LIVINGSTON, GENERAL COUNSEL, UNITED PLANT GUARD WORKERS OF AMERICA (INDEPENDENT), DETROIT, MICH.

Mr. McGahay. I am James C. McGahey, international president of the United Plant Guard Workers of America, and I would prefer to read the statement into the record, and I have a few remarks along with my statement as I am going along. Mr. O'HARA. That will be all right. Now, Mr. Livingston, will you identify yourself! Mr. LIVINGSTON. Yes. I am Winston L. Livingston. I am general counsel for the United Plant Guard Workers of America.

Mr. O'HARA. All right, Mr. McGahey, will you proceed?

Mr. McGahsy. Mr. Chairman and gentlemen of the committee, my name is James C. McGahey. I have been president of the International Union, United Plant Guard Workers of America since its formation as a labor organization in February 1948, with the exception of a 1-year period during 1954-55. Prior to the formation of our organization, I was active in representing guard employees for a number of years, having held several offices, including that of president of Plant Guard Local No. 114 in Detroit, Mich., when it was affiliated with UAW-CIO. I am proud to state that I also worked as a plant guard for a number of years.

Our organization, the United Plant Guard Workers of America, is a labor organization within the meaning of the Labor-Management Relations Act of 1947, as amended. Our membership is limited to employees performing guard functions within the meaning of section 9(b) (3) of the act. We are not affiliated with the AFL-C10 or any other labor organization because of the prohibitions contained in the act and interpretive decisions by the National Labor Relations Board.

Our membership extends from the States of Washington to Florida and from New York to California. We also have members in Hawaii and Puerto Rico as well as Canada. Our present membership numbers in excess of 10,000 working in more than 800 plants and facilities. We have collective bargaining units established in every major industrial center in the United States and have contracts with most of the major corporations, such as: General Motors Corp., Chrysler Corp., Ford Motor Co., International Harvester, United States Steel, Boeing Aircraft, North American Aviation, General Electric Co., and many others. Our membership also extends into every major industry.

We are also actively engaged in seeking and maintaining representation rights for guards at vital space projects and defense installations. Our members are employed at such defense centers and atomic

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SERVICE CONTRACTS ACT OF 1963

neighbors of mine. As a matter of fact, Mr. Livingston stituent, and I know them both to be very fine gentlemen, who versed in the matter to which they will refer.

Now, Mr. McGahey, would you please identify yourself Livingston, identify yourself? Then you may proceed in an you may wish to proceed. We have your prepared stateme may read that statement or, if you wish, you may submit ment for the record and summarize its contents.

STATEMENT OF JAMES C. McGAHEY, INTERNATIONAL PRE

ACCOMPANIED BY WINSTON L. LIVINGSTON, GENERAL C
UNITED PLANT GUARD WORKERS OF AMERICA (INDEPE
DETROIT, MICH.

6

SERVICE CONTRACTS ACT OF 1963
1b1 "Employee" means any person engaged in a recognize. In:
craft, or other skilled mechanical craft, or in unskilled, semista.
skilled manual labor occupation; and in a position, including : SE
position, having trade, craft, or laboring experience as the same
requirement: and shall include all such persons regardies 0°C
tractual relationship that may be alleged to exist between the com
or subcontractor and such persons.

(e) The term "Federal agency" includes (1) the executie
ments, (2) the independent establishments and agencies in their
brauch, inunding corporations wholly owned by the United Stat
the Administrative Obce of the United States Courts. 14) EL
wf Congress, 151 the Botanic Garden, (6) the Government Progr: 0
17The General Accounting Office, (8) the Office of the Archae
Capeucal and the municipal government of the District o: Charme

loi Compensation" means wages and health, life, and accider 2 ance and racation and retirement benefits (or payments eque cost to the Federal agency of furnishing such insurance and deert

(e) For the purpose of geographical definition, the “Unite shall include any State of the United States, the District of loc Puerto Rico, the Virgin Islands, Outer Continental Shelf lands as us in tbe Outer Continental Shelf Lands Act (ch. 345, 67 Stai. 4631 can Samoa, Guam, Wake Island, and the Canal Zone, but shal' Do. any otber territory under the jurisdiction of the United State

United States base or possession within a foreign country. SEC. &. If any provision of this Act, or the application thereof : 1 Bons or circumstances, is held invalid, the remainder of the Act. an. 1plication of such provisions to other persons or circumstances, se affected thereby.

SEC. 9. This Act sball apply to all contracts entered into pumar' 15 tiations concluded or invitations for bids issued on or after ninety day: the effectire date of the Act.

Mr. O'Hars. I would like, before having our first witness. It brief statement in explanation of these proposals. Each of toe. the same objective that is, to provide wage protection to the of employers being Gorernment contracts providing for ta! formance of sernices. Inder existing law, employees of een" working on federsi financed construction contracts receit. E protection from the Insris-Bacon law. Employees of contractCT": ing Government production contracts receive similar wam vreo on an industrywide basis from the Walsh-Healey Act. Ther protection whatsoever afforded to wage standards when a permis tract, as opposed to a construction or production contract, E ET*

Briefly, H.R. 1678 would provide such protection to workers a. contracts through a Daris-Bacon type of determination ret Wize in the area in which the work is being done.

The difference between H.R. 1678 and H.R. 6088 is tha: 1.1.

Mr. McGahey. I am James C. McGahey, international pre the United Plant Guard Workers of America, and I would read the statement into the record, and I have a few remarks al my statement as I am going along. Mr. O'HARA. That will be all right. Now, Mr. Livingston, will you identify yourself?

Mr. LIVINGSTON. Yes. I am Winston L. Livingston. I am counsel for the United Plant Guard Workers of America.

Mr. O'HARA. All right, Mr. McGahey, will you proceed?

Mr. McGAHEY. Mr. Chairman and gentlemen of the comm name is James C. McGahey. I have been president of th national Union, United Plant Guard Workers of America formation as a labor organization in February 1948, with the e of a 1-year period during 1954–55. Prior to the formation organization, I was active in representing guard employee number of years, having held several offices, including that dent of Plant Guard Local No. 114 in Detroit, Mich., wher affiliated with UAW-CIO. I am proud to state that I also as a plant guard for a number of years.

Our organization, the United Plant Guard Workers of Ame: labor organization within the meaning of the Labor-Manageme tions Act of 1947, as amended. Our membership is limited ployees performing guard functions within the meaning of secti (3) of the act. We are not affiliated with the AFI-CIO or ar labor organization because of the prohibitions contained in and interpretive decisions by the National Labor Relations Be

Our membership extends from the States of Washington to and from New York to California. We also have members in and Puerto Rico as well as Canada. Our present membership r in excess of 10,000 working in more than 800 plants and faciliti have collective bargaining units established in every major in center in the United States and have contracts with most of th corporations, such as: General Motors Corp., Chrysler Corp Motor Co., International Harvester, United States Steel, Boei craft, North American Aviation, General Electric Co., and others. Our membership also extends into every major in

We are also actively engaged in seeking and maintaining sentation rights for guards at vital space projects and defense i tions. Our members are employed at such defense centers and

rud accomplish this objective by imposing a standard una
"urumors that would require that they pay to their empore
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N]ultates of the agency in that area doing the same or simiar

ng are the only differences between the two bills, another to

ursitional difference. H.R. 1678 applies to contrucsinau 911,1 H.R. 6088 applies to contracts in excess of $2.000.

IN witness today is the international president of the is lite imamo Torkers of America, Mr. James McGaher, whiszen

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vn damer please step forward and take your pastel 1.0.1", erwing both of these gentlemen sinusta

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