« BACK  |  PRINT

RS

MEMBER DIARY

Why is Harry Reid Killing Construction Jobs?

Note that the question here is why he’s out to get construction jobs per se. It’s already clear that the Senate Democrat leadership is deeply in love with measures that destroy jobs – be they tax increases, employer mandates, more stringent regulations, costlier electricity, empowerment of unions, etc.

But all those things destroy jobs on more or less an equal opportunity basis; they’re just about as likely to kill farming jobs as software jobs. But apparently the construction sector has done something that particularly peeves some Senate Democrats. Otherwise, why would they be going after construction with a vengeance?

Owners of small construction firms across the country are angry over a provision in the Senate health care bill that they say is unfair. At issue is a provision that treats construction businesses differently than other small businesses.

The Senate bill has a provision requiring businesses with over 50 employees to pay a fine of $750-per-worker fine for any employee who purchases subsidized health insurance on their own. However, the provision was amended to require construction businesses with more than five employees to pay the same fine.

The construction industry says that in these lean financial times the provision will result in many of them being forced out of business.

The amendment was inserted Wednesday morning in order to garner the necessary 60 votes to pass the bill.

Construction firms are crying foul over the provision that treats them differently from every other business with fewer than 50 employees.

By all rights, this provision ought to be killed right quick. After all, Democrats are repeating up and down that their number one priority is fixing the economy. Even if you accepted their argument that they still need to do health care first, that still wouldn’t explain a borderline vindictive attack on small construction firms.

But why would Harry Reid do that? Is he doing a favor for some union supporters, or is this being done at the behest of larger builders who are better positioned to bear the costs than smaller competitors? Or could  this be a case in which Reid has some personal vendetta against the National Association of Home Builders – the group which is apparently most directly affected?

For those wondering why I have so quickly jumped to pondering Harry Reid’s motivation – as opposed to any other Democrat’s – it’s because this change was apparently incorporated by the Reid compromise amendment. That amendment was adopted on Wednesday, in order to secure 60 votes. Thus we’re left to wonder what Reid’s motivation is.

I’m hopeful the teams at the Las Vegas Review Journal and Las Vegas Sun ask him.

COMMENTS

  • aelie

    Note that the Democrats are going after small construction firms, where employees are not likely to be unionized. Democrats only care about savings the jobs of people whose votes they can buy off. While the Democratic Party claims to be the party of the minority, they seem to have absolutely no problem crippling small businesses that hire the most of legal immigrants to this country. This is another evidence how Democrats don’t really care about the nation’s economy – they have no problem destroying small businesses that contribute majority of our nation’s economic output. Even worse, this is another clear demonstration of the hyprocrisy of the Democratic Party.

    As far as the personal side: while working as the general manager of a hotel, I have had countless contacts with entrepruniers. They put countless hours into working alongside their dozen or so employees – they actually care about their employees, even if they can’t afford to provide all those “benefits” that bigger businesses can offer. Democrats love portraying business owners in an evil light, but *most* business owners in this country are completely different than that picture. But apparently liberals don’t really give a hoot, since they already have mobilized and cheated for votes they think they need.

    Does The Democratic Party have any sense of decency left? Apparetly not. Those liberals clearly have absolutely no clue of how most business is conducted day to day across the country. But that’s not surprising: after all, their top boss in the White House has an “illustrious” resume containing zero work in privately owned enterprise.

  • jarrod21

    Although *anything* the legislative branch defies all explanation…

    If you live in a border state like I do, you know where all the day laborer hangouts are. I drive past three of ‘em every day. A great percentage of these are illegal immigrants. Construction guys pull up in their pickups, a load of ‘em jump in and then go do whatever it is they do.

    It could be to force these firms to insure illegals? I dunno. Or maybe a construction business owner in Reid’s district donated to a republican last cycle. It makes just as much sense.

  • hickorystick

    Most home building is done in multiple unit construction, whether it be a row of homes or a building with multiple units. The work is split up into specialties such as Foundation, framing, roofing, siding, drywall etc. Each part is subcontracted to a different business. Being that a substantial amount of money is borrowed, the project must be completed quickly. that requires crews of workers.
    A crew of workers ranges from a minimum of 5 workers up to 8 workers, 10 if there is a big hurry. The crew consists of a skilled lead who can speak both Spanish and English, a skilled second who speaks Spanish and is somewhat comfortable in English, one or two minimally experienced workers in the specialty, and the rest illiterate laborers. A subcontractor has between two and eight crews. The real money is made on the laborers since they are paid the least and have no where else to go if they don’t like it. The important thing is most of the labor intensive stages of construction are handled by immigrants from South of the so-called Border, and it takes a minimum of 5 workers to do the job.
    Since President Barack You Lie Obama got called out, he did his normal thing and removed into the smoke-filled back room and worked it out with the Congressional Hispanic Caucus.

    • VizBiz

      Undocumented workers won’t be paying “their share” of health care, however they will benefit.

    • Vegas_Rick
  • RedBeard
  • monstermom

    and you’ve got a solid reason why the rule was “necessary”.

    Tere are three broad categories of construction projects – residential, commercial, and government.

    Construction firms working on state or federal projects have to be unionized. If they aren’t unionized they aren’t likely to win many bids. Union rules require, among other things, medical benefits.

    Commercial and residential construction is generally non-unionized labor farmed out to subs who can and do use illegal immigrants (larger commercial jobs will be farmed out to union shops if the price is right). When times are good these non-union firms, and their employees, make lots of money. Because they make so much money, there’s little motivation to unionize.

    Times are tough now. State and federal construction are about the only projects going on right now and you’ve pretty much got to be a union shop to bid on those projects, so the union shops are reigning supreme now.

    But times won’t always be so tough. Once commercial and residential construction starts up again the few small non-unionized construction firms will begin competing with the union shops for non-government jobs, and the union shops will lose the bids because of their higher wages and benefit requirements.

    We can’t have that, no can we? But since the government can’t force private companies to use union labor, they have to find other ways to make sure the non-union shops have the same costs as the union shops so that everyone “competes on a level playing field”.

    This rule requires that every non-union construction shop, even the two fat guys who finished my basement and have 3 skinny guys working for them, will have to either provide medical benefits or pay a $750 fine.