Bush allows Katrina contractors to pay below prevailing wage - Sep. 9, 2005: "Bush lifts wage rules for Katrina | September 9, 2005: 11:43 AM EDT
... Bush said the hurricane had caused "a national emergency" that permits him to take such action under the 1931 Davis-Bacon Act in ravaged areas of Alabama, Florida, Louisiana and Mississippi.
The Davis-Bacon law requires federal contractors to pay workers at least the prevailing wages in the area where the work is conducted.
...
Bush's action came as the federal government moved to provide billions of dollars in aid, and drew rebukes from two of organized labor's biggest friends in Congress, Rep. George Miller of California and Sen. Edward Kennedy of Massachusetts, both Democrats.
"The administration is using the devastation of Hurricane Katrina to cut the wages of people desperately trying to rebuild their lives and their communities," Miller said. ...
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