Did you know your wages could increase and it wouldn’t cost the company a thing?
HX5 Sierra Employees fall under the Service Contract Act and are entitled to the minimum wage based on a wage determination by the Department of Labor (DOL). This is based on the average rates and benefits for similar work in private industry in the same locale as the service contract.
Collective bargaining through Union representation allows workers to get above the minimum wage determination while working for an employer under the SCA.
Most SCA workers don’t realize their wages and benefits are not tied to the employer’s purse strings. If SCA workers negotiate higher wages and benefits in a union contract, the federal government can reimburse the contractor (employer). The government only reimburses contractors the minimum amounts set in area wage determinations UNLESS there is a union contract requiring higher pay. Forming a provides an incentive for your employer to give you a raise if you have a union.
The employer bids on the administration of the government contract while the government manages the wages and benefits of the contractor’s employees. By utilizing what is called”pass-through,” workers can achieve higher wages and benefits based on the law.
Will this affect my employer next time the government contract goes out for bid?
All future contracts bids include the current collective bargaining agreement. According to the DOL:
“Successor contractors performing on contracts above $2,500 for substantially the same services performed in the same locality must pay wages and fringe benefits (including accrued wages and benefits and prospective increases) at least equal to those contained in any bona fide collective bargaining agreement entered into under the predecessor contract. This requirement is self-executing and is not contingent upon incorporating a wage determination or the wage and fringe benefit terms of the predecessor contractor’s collective bargaining agreement in the successor contract. Source Department of Labor 22.1002-3 Wage determinations based on collective bargaining agreements.”
For more information about the Service Contract Act, visit the Department of Labor FAQ