Workers on certain construction projects are set to receive a pay boost next year, thanks to an ordinance passed Tuesday by the Richmond City Council.
The ordinance requires that contractors and subcontractors on city-funded projects valued at more than $250,000 pay laborers a “prevailing wage,” or the average wages and benefits paid to other workers doing similar jobs in the area.
Councilor Stephanie Lynch, who co-patroned the ordinance, said it was a start — not just for construction workers, but for all who work on projects influenced by the council.
“We will not rest until all of those laborers who work so hard to support their families, to support their households have access to a living wage and a prevailing wage,” Lynch said.
Virginia has a similar prevailing wage law on the books — part of the Virginia Public Procurement Act — for state-funded projects. Prevailing wage rates in Virginia are set by the state Commissioner of Labor and Industry, based on wage determinations made by the U.S. Secretary of Labor.
In 2020, the General Assembly amended that law to give localities the option to implement their own versions that would apply to local public work contracts. Richmond previously had no such requirement for construction projects.
Under the new law, contractors or subcontractors who pay workers below the prevailing wage rate would be held liable for the payment of wages plus interest — and disqualified from bidding on contracts until full restitution is made. Violators could also be charged with a Class I misdemeanor.
Keon Shim, organizing director for the Mid-Atlantic region of the Laborers’ International Union of North America, told VPM News that the law not only sets a new standard for workers, but allows them to access health care and other benefits.
“Now, with prevailing wages, those things are spelled out,” Shim said. ”There's also a standard now that everybody has to uphold. So it's pretty much keeping everybody accountable to make sure that people are not being underpaid.”
Members of Richmond’s LiUNA chapter were among those who spoke in favor of the ordinance Tuesday. Chris Hollins, a LiUNA representative, said many construction workers often have to look outside of Richmond for high-paying jobs.
“These are homegrown Richmonders, and they don't want to work outside of their cities. They don't want to work out in another state being a contractor. They want to work at home. They want to be proud of where they live and be able to have affordable wages,” Hollins said.
LiUNA members also asked council for help regarding ongoing labor negotiations with Diamond District contractor Gilbane Building Company.
“I am standing here for the same for prevailing wages, and also [the project labor agreement] on the Diamond District,” Tyguan Jones said. “I'm currently doing work for contracting outside in D.C. and other different states, where I didn't think that I should have to go ahead and look for that since I'm from Richmond.”
Representatives from Richmond for All and Richmond Building and Construction Trades Council also attended the meeting to support the ordinance.
After the ordinance passed, Councilor Cynthia Newbille thanked LiUNA members and other unions for their commitment to this effort.
“We stand in support, absolutely, of ensuring that there is a prevailing wage paid in and on the projects that come before the city, but also looking at ensuring that the collective bargaining efforts that we have begun continue across our city with our employees to ensure that many of you can work here, as opposed to having to travel elsewhere,” she said.
The law is set to go into effect on July 1, 2025.
