Obama, Federal contractors, and living wages

Workers for Federal contractors at the Pentagon and several other government-owned buildings have gone on strike because of the low wages being paid. They have asked the administration for help.

President Obama has recently called called for a minimum wage increase to $10 or more per hour. Can he not, by executive order, force government contractors to pay living wages? If this is not possible with not current contacts, can he force agencies negotiating new contracts or renewing contacts to include language about a a minimum wage and perhaps decent health insurance?

2 thoughts on “Obama, Federal contractors, and living wages

  1. two more ideas:

    1. Why not look to pare down the contract work force so higher wages moght be affordable and productivity increased for increased wages paid.

    2. Why not be certain you have adequate oversight and supervision to ensure you are getting value for what you are paying? How much did the USA fritter away re the Obamacare web site development? Millions, hundreds of millions? (just one example) How much was blown on the “shovel (not) ready projects? How big of a hole is in the bottom of the bucket? Do we ever learn? Does anyone seem to care?
    3 What makes $10 per hour a “livable wage” especially in the DC area? or ever $20 an hour for that matter?
    4. Where does all the money come from? Trees?

  2. Hi Bill,

    I suppose I was thinking more along the lines of Obama says he wants a higher minimum wage. And I believe that takes an act of Congress but this may be something he can implement by himself. At least for those federal contracts in the executive branch which is most of them. He is saying he will do what he can without Congress and this is his chance to do something.

    I agree it would be a good idea to have fewer people in the contact workforce. And the idea of higher productivity in return for higher wages is a good one.

    I read somewhere if the minimum wage of 1968 ($1.60) was adjusted for inflation it would be about 10.50. So $10 does not sound unreasonable at all. I think the term living wage is used for a low wage over the minimum. Perhaps it roughly corresponds with getting a single person with no dependents over the poverty level. I’m not sure about the origin of the term but I’d agree it is not easy to live on, especially in DC or some other areas of the country.

    I would also agree there needs to be oversight of any contacts to be sure we are getting our money’s worth. Also to make sure the job is done right. The vetting of Edward Snowden and the Obamacare web site are great examples of contractors who did not do the job right. In one case security was compromised and in the other money and time were wasted and maybe personal information and health were compromised.

    I don’t know much about the contracts involved in this dispute and there are almost always at least 2 sides to every story. My point was just that here is a chance for Obama to act on what he says but, as far as I know, he is doing nothing.

    Jack

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