• Part of Records of the Office of the Chief of Staff (Clinton Administration), Harold Ickes, Jr.'s Files

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717 P02 JUL 26 '95 18:18 Davis Bacon 7/30 4m for first MEMORANDUM TO: Harold Ickes Jennifer O' 'Connor 9/4 ok to fill From: Maria Echaveste mE per Jan Date: July 27, 1995 Re: Davis-Bacon Reform and Repeal This is in follow-up to our conversation last week. Background Davis-Bacon Repeal - The House and the Senate are considering legislation to repeal the Davis-Bacon Act. In March the Senate Labor Committee adopted repeal legislation (Sen. Kassebaum, S. 141) -- on a party line vote. (A reform bill, similar to the Administration's bill from last Congress discussed below, was defeated on a party-line vote.) Similar legislation is pending before the full Economic and Educational Opportunities Committee in the House (H.R. 500). There is also speculation that repeal of the Davis-Bacon Act could be rolled into the reconciliation bill, although 21 majority members of the House have urged against it and the House leadership has indicated that repeal will receive a full hearing and consideration. Early attempts to engage majority Members in an effort to reform Davis- Bacon were rebuffed by those approached, at least until their full efforts to repeal the Act had played out in their entirety. Last year the Administration, in the person of Steve Kelman at OFPP, with the assistance of DOL and in the context of procurement reform, negotiated a reform bill which was introduced at the end of the session by Senator Simon. The bill increased the threshold for coverage and reduced the paperwork burden on contractors. There was a hearing in the Senate but no legislative action on the proposal. Helpers - The fiscal year 1995 Labor/HHS Appropriations bill prevents the Department of Labor from implementing the Reagan-era helper regulation. The helper regulation was the subject of extensive litigation and Congressional intervention throughout the 1980's. Congressman Bonior and Senator Harkin have been the most vocal of the supporters of prohibiting the use of helpers on Davis-Bacon projects. The helper regulation requires the DOL to recognize a helper classification of workers on Davis-Bacon job sites where helpers prevail in an area. Helpers are low-paid semi-skilled workers who assist a journeyperson. The building trades argue that the recognition of helpers will undercut laborers and apprentices and lead to low-paid, dead-end jobs for