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Examiner” a report entitled--------
ica (AFL-CIO) statement on behalf of -
Keller, Robert F., Acting Comptroller General of the United States,
letter to Chairman Thompson, dated May 14, 1971, information on
tracts awarded by the Federal Government to 1 year-------
McCart, John A., operations director, Government Employees Council
of the AFL-CIO, statement of_-----
Exhibit C 3.--Richard H. Anthony, director, Region 8, UPGWA,
letter to Clarence T. Lundquist, dated September 19, 1966------
Prepared statements, letters, supplemental material, etc.—Continued
O'Hara, Hon. James G., a Representative in Congress from the State
"Brief in Support of Government's Contention," a brief entitled..
Hearing Examiner," a brief entitled-------
Motor Vehicle Employees, AFL-CIO, statement of.--
Brotherhood Electrical Workers, Santa Maria, Calif., letter to Con
gressman O'Hara, dated April 5, 1971.
ents were placed on the ineligible list even through the amounts
found due in underpayments of wages were recovered-------Examples of cases arising under the Walsh-Healey Public Con
tract Act where the ineligible list section was imposed al
though the amounts of back wages found due were recovered --
Secretary of Labor, dated September 19, 1969-------
the United States, to Hon. Charles Donahue, Solicitor, Depart
ment of Labor, dated September 12, 1968_--
uary 22, 1971.-.
ruary 17, 1971.----
1971, enclosing resolution ---
islative counsel, International Brotherhood of Teamsters, Chauf
feurs, Warehousemen and Helpers of America, statement of -----U.S. Department of Labor, Branch of Wage Determination, manual
of policies and procedures for administration of the Service Con
a newspaper article entitled---
Joint Chiefs of Staff, et al. dated February 22, 1971.-.
A-76 to the heads of executive departments and establishments,
dated March 3, 1966-----
Center's Technical Support Services Contracts_--.
ation of Machinists and Aerospace Workers, AFL-CIO, Statement
TO AMEND THE SERVICE CONTRACT ACT OF 1965
TUESDAY, MARCH 30, 1971
HOUSE OF REPRESENTATIVES,
Washington, D.C. The Special Subcommittee on Labor met at 10 a.m., in room 2175, Rayburn House Office Building, Hon. Frank Thompson, Jr. (chairinan of the subcommittee) presiding.
Present: Representatives O'Hara, Hicks, and Ashbrook.
Staff members present: Hugh G. Duffy, counsel, Jeunesse M. Beaumont, subcommittee clerk; Michael J. Bernstein, minority counsel for labor.
Mr. THOMPSON. The subcommittee will be in order. Today we begin hearings on H.R. 6244 and H.R. 6245, bills to amend the Service Contract Act of 1965.
At this point in the record I will insert the text of H.R. 6244; H.R. 6245 is identical. I will also insert a staff analysis of the bill. (Text of H.R. 6244 and a summary of the bill follow :)
(H.R. 6244, 92d Cong., irst sess.] A bill to amend section 5 of the Service Contract Act of 1965 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, subsection (a) of section 5 of the Service Contract Act of 1965 (41 U.S.C. 354(a)) is amended by striking from the second sentence thereof, the words, "Unless the Secretary otherwise recommends, no" and inserting in lieu thereof, "No".
ANALYSIS OF H.R. 6244 AND H.R. 6245_AMENDMENT TO THE SERVICE CONTRACT
ACT OF 1965
The O'Hara-McNamara Service Contract Act of 1965 established minimum labor standards protections for employees working under Government service contracts. The act covers contracts for laundry and drycleaning, custodial and janitorial work, packing and crating, guard duty, food and cafeteria service, and miscellaneous housekeeping functions.
It extended to service workers protections similar to those already enjoyed by employees working under Government construction ocntracts (the DavisBacon Act) and Government supply contracts (the Walsh-Healey Act).
Under the act, employees must be paid at least the prevailing wages and fringe benefits for similar work in their locality, and must be protected from unsafe working conditions. Prevailing wage determinations are made by the Secretary of Labor, and must in no event be less than the minimum wage specified in the Fair Labor Standards Act.
The act also provides for recovery of underpayments to employees by contractors and subsequent payment to the underpaid employees. Under section 5(a), contractors violating the acť are automatically placed on an ineligible bidders list for 3 years unless the Secretary of Labor "otherwise recommends."
PURPOSE OF THE AMENDMENT The amendment is intended to remove the Secretary of Labor's discretionary authority to relieve violators from the blacklisting provisions of the act.
CHANGES IN EXISTING LAW
"Sec. 5. (a) The Comptroller General is directed to distribute a list to all agencies of the Government giving the names of persons or firms that the Federal agencies or the Secretary have found to have violated this act. Unless the Secretary 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 3 years have elapsed from the date of publication of the list containing the name of such persons or firms."
H.R. 6244 and H.R. 6245 amend section 5(a) by striking from the second sentence thereof the words, "Unless the Secretary otherwise recommends, no" and inserting in lieu thereof, "No."
Mr. THOMPSON. The hearings are going to be very broad in scope so that this committee can made a general review of the Labor Department's administration of that act since 1965. The Legislative Reorganization Act of 1970 placed great emphasis on the oversight responsibility of legislative committees, and the special Subcommittee on Labor intends during this Congress to make similar reviews of other legislation within its jurisdiction.
The Service Contract Act of 1965 was sponsored by my distinguished colleague from Michigan, Mr. O'Hara, who is not here at the moment but who is expected shortly. He has a statement which will be made part of the record immediately following mine. It applies to service employees such as guards, janitors, and restaurant workers who are working under Federal service contracts, and provides that they must be paid at least the prevailing wages and fringe benefits for similar work in their locality.
The legislation is actually a sister act to the Davis-Bacon Act, which covers employees working under Federal construction contracts, and the Walsh-Healey Act, which protects employees working under government supply contracts.
We intend to probe into whether the Department of Labor is properly administering this act, and whether as written it is doing the job we intended it to do. We had hoped that this legislation would not only protect the wages and working conditions of service employees, but help to stabilize labor-management relations in that industry, and are very disturbed by recent allegations that the act is having the opposite effect.
We have invited a number of unions, contractors, and Government officials to testify before us, and will hold as many days of hearings as is necessary to get a complete and objective picture of how the act is working.
(The statement by Mr. O'Hara follows:)
STATEMENT OF HON. JAMES G. O'HARA, A REPRESENTATIVE IN CONGRESS FROM THE
STATE OF MICHIGAN In 1965, after several efforts, the Congress succeeded in enacting Public Law 89-286, known as the McNamara-O'Hara Service Contract Act. The purpose of that enactment was a very simple and straightforward one. It was already the established public policy of the United States that the massive purchasing power of the government should not be utilized to reduce or even to freeze the level of wages in the growing number of trades involved in carrying out government contracts.