Most federal contracts require contractors to use unionized workers when hiring. Opponents of this policy claim these projects are more costly when only union labor is used. Supporters worry that if our federal government encourages the use of non-union labor, many states and companies will follow its example – which would lead to a “race to the bottom” of the labor market and reduce the living standards of many working Americans. Some claim these standards have already been eroded by private companies that receive taxpayer dollars for doing work for the government.

In 2018, the federal government awarded $500 billion to corporate contractors and, through them, subcontractors for services and construction projects. Studies show that many these contracts, loans, grants and property leases are awarded to contractors whose subcontractors pay low wages and provide few benefits to their employees - even as compensation for these company’s executives soar. Critics say these companies are using taxpayer dollars to fuel our nation’s low-wage economy and increase income inequality. These companies employ at least 2 million American workers who maintain federal buildings, work in its food and vending concessions, and operate our parks, museums and much more.

Proposed Legislation: H.R.5073 - A Just Society: The Uplift Our Workers Act (116th Congress)
Prospective Sponsor: Rep. Alexandria Ocasio-Cortez (NY)

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