Opinion: Prevailing-wage mandate will not help accelerate black business and income growth

New York’s construction industry has booming in the early 21st century. The economy was strong and investment in construction projects were pouring in — both Upstate and Downstate. An increase in investments throughout the state resulted in more employment opportunities and higher wages for New York’s blue-collar construction workers — in New York City, upstate counties, and beyond. 

The construction industry’s morale was high. Then came the Great Recession. 

Between 2009 and 2010, New York state lost 2.2. million jobs — nearly 15 percent of the entire workforce (https://osc.state.ny.us/osdc/report-2-2020.pdf). The growth rate for construction and land-development loans shrank drastically; there was no way to finance projects, and developers with loans were missing payments. 

As the years went on, however, the country recovered from one of the most egregious economic calamities to date, and so too did New York State’s construction industry — Downstate, that is. 

Employment in New York state’s construction industry grew 30 percent between 2010 and 2018. However, New York City accounted for nearly half of the construction jobs added between that time. Post-recession construction employment was strong Downstate, growing by at least 35 percent in Long Island and the Orange–Rockland–Westchester area. Wages were skyrocketing, too, as those who were employed enjoyed an average salary of $82,500, and those who wanted to get in on the fun were granted ample opportunities to join the vibrant workforce, regardless of their race or demographic profile. 

The same doesn’t hold true for the post-recession, upstate construction workforce narrative — most notably in Syracuse and the surrounding areas. In fact, construction employment has not returned to the 2009 pre-recession level in 20 of the state’s 64 counties, including Onondaga County. 

Between 2010 and 2018, Syracuse’s construction job growth was 11 percent — roughly 17 percent below the national average. The reality is that Syracuse’s construction sector, which today accounts for roughly 4.9 percent of the city’s total workforce, continues to struggle. This is why the black church and faith community is coming together to organize a Black Acceleration Network across New York State to address this lack of participation in the construction industry Upstate and to facilitate other employment skills training to ensure our people have access to opportunities to accelerate their careers and household income. The Black Acceleration Networks and Centers will also address the lack of successful black businesses in our communities.

That’s why it’s curious to see lawmakers in Albany once again discussing the possibility of expanding a prevailing-wage mandate in New York’s construction industry — a proposal that was stymied in last year’s legislative session, and one that business groups fear would undermine minority workforce and economic-development projects in Syracuse. 

And that’s why the 400 Foundation, an ecumenical nonprofit fighting for economic justice in the development and construction industries, has partnered with community and faith leaders from across New York state, like myself, to stand up and speak out against the this regressive mandate.

The reality is that the prevailing wage mandate will have significant cost impacts throughout the state, and Syracuse’s construction industry will most definitely feel the ramifications. According to a 2017 Empire Center study (https://www.empirecenter.org/publications/new-data-point-up-prevailing-myth/), the prevailing-wage mandate will increase construction costs by 14 percent or more in the Syracuse metro area. This would effectively drive construction costs so high that it would bring major development projects across the city to a halt and prevent others from getting off the ground.

Expanding the prevailing-wage mandate would also incentivize the hiring of construction unionized labor force — most of which is white — at the expense of the non-unionized, racially diverse workforce. The proposal would mandate unionized contractors be awarded work for more publicly supported developments than what is currently required, in turn blocking smaller, black contractors, workers, and business owners from getting work they otherwise would. 

Supporters of the mandate mistakenly surmount that the law will strengthen the state’s blue-collar middle class and lift Upstate’s ailing construction industry. The reality, however, is that the mandate would halt the advancement of black firms and effectively block private, non-unionized construction firms — most of which are comprised of minorities — from bidding on New York construction contracts. 

To that end, the 400 Foundation and partnering faith leaders recommend that the governor consider the ramifications of this policy for Upstate, minority, non-unionized construction workers, listen closely to the voices of faith leaders who represent communities of color, and not approve the existing proposal until public hearings are held to discuss how minorities can be better served. 

Government policies should no longer spur division in Syracuse’s workforce. Instead, lawmakers should offer a comprehensive roadmap to advancing sensible legislation during the 2020 session. It’s time to say no to exclusive policies and practices and say yes to inclusive proposals and progressive mandates like black acceleration. 

Rev. Decarto Draper, Jr. is pastor of the Tucker Missionary Baptist Church at 515 Oakwood Ave. in Syracuse.