BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

OF THE STATE OF MONTANA

 

In the matter of the amendment of  ARM 24.17.127 pertaining to prevailing wage rates for public works projects

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NOTICE OF AMENDMENT

 

TO: All Concerned Persons

 

            1. On May 8, 2014, the Department of Labor and Industry published MAR Notice No. 24-17-284 regarding the public hearing on the amendment of the above-stated rule on page 912 of the 2014 Montana Administrative Register, Issue No. 9.

 

            2. On May 30, 2014, a public hearing was held at which time members of the public made oral and written comments and submitted documents. Additional comments were received during the comment period.

 

            3. The department has thoroughly considered the comments and testimony received from the public. The following is a summary of the public comments received and the department's responses to those comments:

 

COMMENT 1: Ron Nelson, training instructor, LIUNA #1686, supported the preliminary prevailing wage rates. The commenter also stated 4 districts are more beneficial to workers than 10, and that the preliminary rates establish a more realistic livable wage.

 

RESPONSE 1: The department acknowledges the comments.

 

COMMENT 2: Carey Hegreberg, executive director, Montana Contractors Association (MCA), thanked organized labor that worked with the MCA to pass HB 464, and stated overall all the MCA is pleased with the results. Mr. Hegreberg also stated there are some glitches with the zone pay in the federal highway rates.

 

RESPONSE 2: The department acknowledges the comments and is willing to assist the MCA, organized labor, and the federal government with any issues that may come up with the adoption of federal highway rates in Montana.

 

COMMENT 3: Seth Bergen, business agent, Iron Workers Local 762, stated the wage on the highway rates should be the same as the heavy and building rates, which is $26.50.

 

RESPONSE 3:  The department did not receive sufficient data to set a rate with survey responses, and used highest collectively bargaining agreement it received to set the rate per ARM 24.17.121(3)(c).

 

COMMENT 4: Edward Beaudette, attorney, Montana Department of Transportation, echoed Carey Hegreberg's comments and asked that the department not adopt the rules until the glitches with the federal rates are fixed, and then have the state highway rates mirror those of the federal highway rates.

 

RESPONSE 4: State prevailing wage rates apply to state funded projects, and federal prevailing wage rates apply to federally funded projects. ARM 24.17.121 explains the methodology used to set state highway prevailing wage rates, which provides for a survey and for the results from that survey be compared to the federal prevailing wage rates in effect September 1 of that year. However, the department is willing to assist the federal government with any issues that may come up with the adoption of federal highway rates in Montana.

 

COMMENT 5: Jason Crowson, director of organizing, Painters #82, is in favor of the proposed rule changes.

 

RESPONSE 5: The department acknowledges the comment.

 

COMMENT 6: Various individuals and entities submitted additional data or documents for inclusion in the rate-setting process during the comment period.

 

RESPONSE 6: The department has reviewed the information submitted. The department has incorporated the data as appropriate and has revised certain rates in line with the rate-setting standards. Revised rates are identified below in paragraphs 5 through 7.

 

            4. After consideration of the comments and additional data provided, the department has amended ARM 24.17.127 as proposed. As noted in paragraphs 5 through 7, certain rates in the publications incorporated by reference in ARM 24.17.127 have been amended.

 

            5. The following rates in the "Montana Prevailing Wage Rates for Building Construction Services 2014" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

Construction Laborers Group 1

District            Wage                          Benefit

1                      $17.18 19.08            $7.69 7.42

2                      $15.41                       $8.72 8.65

3                      $17.20 18.00            $7.04 7.17

4                      $14.21 18.00            $7.04 7.17

 

Construction Laborers Group 2

District            Wage                          Benefit

1                      $19.09 19.07            $6.59 6.69

2                      $18.32 18.48            $6.85 6.90

3                      $16.08 16.44            $5.74 6.17

4                      $17.84 18.04            $4.93 5.01

 

Construction Laborers Group 3

District            Wage                          Benefit

1                      $19.33 19.48            $7.59 7.42

2                      $18.33                        $8.72 8.65

3                      $18.20                        $7.04 7.17

4                      $18.20                        $7.04 7.17

 

Construction Laborers Group 4

District            Wage                          Benefit

1                      $18.15                       $7.69 7.62

 

Construction Equipment Operators Group 1

District            Wage                          Benefit

1                      $24.32 24.07            $11.47 11.40

2                      $24.32 24.07            $11.47 11.40

3                      $24.32 24.07            $11.47 11.40

4                      $24.32 24.07            $11.47 11.40

 

Construction Equipment Operators Group 2

District            Wage                          Benefit

1                      $24.79 25.54            $11.47 11.40

2                      $24.79 25.54            $11.47 11.40

3                      $24.79 25.54            $11.47 11.40

4                      $24.79 25.54            $11.47 11.40

 

Construction Equipment Operators Group 3

District            Wage                          Benefit

1                      $26.00 25.95            $11.47 11.40

2                      $26.00 25.95            $11.47 11.40

3                      $26.00 25.95            $11.47 11.40

4                      $26.00 25.95            $11.47 11.40

 

Construction Equipment Operators Group 4

District            Wage                          Benefit

1                      $27.00 26.95            $11.47 11.40

2                      $27.00 26.95            $11.47 11.40

3                      $27.00 26.95            $11.47 11.40

4                      $27.00 26.95            $11.47 11.40

 

Construction Equipment Operators Group 5

District            Wage                          Benefit

1                      $28.00 27.95            $11.47 11.40

2                      $28.00 27.95            $11.47 11.40

3                      $25.72 27.95            $ 8.71 11.40

4                      $28.00 27.95            $11.47 11.40

 

Construction Equipment Operators Group 6

District            Wage                          Benefit

1                      $29.00 28.95            $11.47 11.40

2                      $29.00 28.95            $11.47 11.40

3                      $26.74 28.95            $10.38 11.40

4                      $29.00 28.95            $11.47 11.40

 

Construction Equipment Operators Group 7

District            Wage                          Benefit

1                      $30.00 29.95            $11.47 11.40

2                      $30.00 29.95            $11.47 11.40

3                      $30.00 29.95            $11.47 11.40

4                      $30.00 29.95            $11.47 11.40

 

            6. The following rates in the "Montana Prevailing Wage Rates for Heavy Construction Services 2014" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

Construction Laborers Group 1

                        Wage                          Benefit

                        $20.08                        $7.96 7.89

 

Construction Laborers Group 2

                        Wage                          Benefit

                        $22.90                        $7.96 7.89

 

Construction Laborers Group 3

                        Wage                          Benefit

                        $23.04                       $7.96 7.89

 

Construction Laborers Group 4

                        Wage                          Benefit

                        $23.06 23.76            $7.96 7.89

 

Construction Equipment Operators Group 1

                        Wage                          Benefit

                        $24.32                        $11.47 11.40

 

Construction Equipment Operators Group 2

                        Wage                          Benefit

                        $24.79                       $11.47 11.40

 

Construction Equipment Operators Group 3

                        Wage                          Benefit

                        $26.00                       $11.47 11.40

 

Construction Equipment Operators Group 4

                        Wage                          Benefit

                        $27.00                       $11.47 11.40

 

Construction Equipment Operators Group 5

                        Wage                          Benefit

                        $28.00                       $11.47 11.40

 

Construction Equipment Operators Group 6

                        Wage                          Benefit

                        $29.00                        $11.47 11.40

 

Construction Equipment Operators Group 7

                        Wage                          Benefit

                        $30.00                       $11.47 11.40

 

Diver

                        Wage                          Benefit

Stand By        $31.00 36.02           $12.87 12.89

Diving            $62.00 72.04            $12.87 12.89

 

Diver Tender

Stand By        Wage                          Benefit

                        $29.60 34.02            $12.87 12.89

 

            7. The following rates in the "Montana Prevailing Wage Rates for Highway Construction Services 2014" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

Construction Laborers Group 1

                        Wage                          Benefit

                        $18.90 17.80            $8.05

 

Construction Laborers Group 2

                        Wage                          Benefit

                        $21.97 20.60            $8.05

 

Construction Laborers Group 3

                        Wage                          Benefit

                        $22.19 22.03            $8.05

 

Construction Laborers Group 4

                        Wage                          Benefit

                        $23.18 21.89            $8.05

 

Construction Equipment Operators Group 1

                        Wage                          Benefit

                        $24.32 23.71            $11.47 9.40

 

Construction Equipment Operators Group 2

                        Wage                          Benefit

                        $26.05 24.50            $11.47 9.30

 

Construction Equipment Operators Group 3

                        Wage                          Benefit

                        $26.91 25.85            $11.47 9.30

 

Construction Equipment Operators Group 4

                        Wage                          Benefit

                        $27.60 25.67            $11.47 9.30

 

Construction Equipment Operators Group 5

                        Wage                          Benefit

                        $28.94 26.67            $11.47 9.41

 

Construction Equipment Operators Group 6

                        Wage                          Benefit

                        $29.63 27.13            $11.47 9.30

 

Construction Equipment Operators Group 7

                        Wage                          Benefit

                        $30.73 29.23            $11.47 9.45

 

Construction Equipment Operators Group 1

Zone Pay:

0-30 mi. free zone

>30-60 mi. base pay + $3.50/hr. $3.05/hr.

>60 mi. base pay + $5.50/hr. $4.85/hr.

 

Construction Equipment Operators Group 2

Zone Pay:

0-30 mi. free zone

>30-60 mi. base pay + $3.50/hr. $3.05/hr.

>60 mi. base pay + $5.50/hr. $4.85/hr.

 

Construction Equipment Operators Group 3

Zone Pay:

0-30 mi. free zone

>30-60 mi. base pay + $3.50/hr. $3.05/hr.

>60 mi. base pay + $5.50/hr. $4.85/hr.

 

Construction Equipment Operators Group 4

Zone Pay:

0-30 mi. free zone

>30-60 mi. base pay + $3.50/hr. $3.05/hr.

>60 mi. base pay + $5.50/hr. $4.85/hr.

 

Construction Equipment Operators Group 5

Zone Pay:

0-30 mi. free zone

>30-60 mi. base pay + $3.50/hr. $3.05/hr.

>60 mi. base pay + $5.50/hr. $4.85/hr.

 

Construction Equipment Operators Group 6

Zone Pay:

0-30 mi. free zone

>30-60 mi. base pay + $3.50/hr. $3.05/hr.

>60 mi. base pay + $5.50/hr. $4.85/hr.

 

Construction Equipment Operators Group 7

Zone Pay:

0-30 mi. free zone

>30-60 mi. base pay + $3.50/hr. $3.05/hr.

>60 mi. base pay + $5.50/hr. $4.85/hr.

 

Painters

Travel:

0-120 mi. free zone

>120 mi. $45/day

(no rate established.)

 

Diver

                        Wage                          Benefit

Stand By        $31.00 36.02           $12.87 12.89

Diving            $62.00 72.04            $12.87 12.89

 

Diver Tender

Stand By        Wage                          Benefit

                        $29.60 34.02            $12.87 12.89

 

            8. The amendments and the rates are effective July 11, 2014.

 

 

/s/ MARK CADWALLADER           /s/ PAM BUCY

Mark Cadwallader                         Pam Bucy, Commissioner

Alternate Rule Reviewer                DEPARTMENT OF LABOR AND INDUSTRY

 

 

Certified to the Secretary of State June 30, 2014.