6. Prevailing Wages

SCDCL proposes that the Commission require jurisdictional utilities to include in construction contracts a requirement that project employees be paid at prevailing wage rates. SCDCL does not define "prevailing wage" but materials accompanying its pleading show that the prevailing wage is generally that level of pay that would be paid on public work projects subject to Labor Code sections 1720-1815. Currently, California Labor Code Section §1771 requires that contractors pay prevailing wages to employees working on public works projects. In most instances, prevailing wage determinations reflect collectively bargained wage rates.

SBC, SCE, SDG&E/SoCalGas and PG&E object to the proposal, arguing that it is untimely and outside the scope of the proceeding. Verizon makes similar comments and opposes the adoption of a prevailing wage requirement using some of the same legal argument it offers to oppose the use of PLAs, namely, that the NLRA does not permit the state to influence or dictate the substantive terms and conditions of employment. Verizon argues that even the requirement that prevailing wages be paid to employees assigned to public works projects is the subject of a statute, providing an explicit authority the Commission does not have with regard to the provisions of the Labor Code.