Legislative Memo

Utility Workers Prevailing Wage Expansion (S.6265/A.8083) | 2019

June 14th, 2019

An act to amend the labor law, in relation to ensuring  that utility employees receive the prevailing wage

S.6265 (Gianaris) /A.8083 (Niou)

MEMORANDUM IN OPPOSITION

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York opposes this legislation.

This bill would make it so that utility employees working at certain properties owned or leased by privately-owned utilities that receive monopoly rights from the state are paid prevailing wage. This further expansion of prevailing wage would greatly harm the New York State economy and for the first time, expand prevailing wage requirements to private businesses. This would allow for the application of prevailing wage to almost any private entity in the future, which would be detrimental to the economy.

New York businesses already pay extremely high utility costs. This legislation would lead to further increases in utility costs, one of the largest burdens on New York employers. These added costs will do nothing to improve the quality, customer experience or safety, but will bed passed on additional costs to consumers.

New York State is already one of the most expensive and difficult business climates in the nation. This legislation will raise the costs of living and doing business in New York making our state less competitive. The State Legislature should instead be looking for ways to decrease costs for New Yorkers and businesses. This bill will make New York a harder place to do business, driving more jobs out of the state.

For these reasons Unshackle Upstate strongly opposes the enactment of this legislation.