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Construction industry to push for immigration reform, higher highway spending
By Repps Hudson
ST. LOUIS POST-DISPATCH
01/17/2007

Construction contractors have a wish list for the new Congress that includes changes in laws affecting immigration and taxes, as well as allocating nearly $40 billion in federal highway spending.

"We want to stop unscrupulous contractors that are gaming the system, exploiting workers and gaining an unfair advantage" by hiring undocumented foreign workers, mostly from Latin America, said Stephen E. Sandherr, chief executive of the 32,000-member Associated General Contractors of America, based in Arlington, Va.

Sandherr, who spoke Tuesday to local AGC members to outline the national organization's agenda, said a top priority is changing immigration laws to allow a guest-worker program and to monitor more closely what employers pay workers in wages and benefits.

He said a major complaint of contractors and construction craft unions is that some contractors hire undocumented workers, underpay them, ignore laws that require them to pay benefits and then underbid
legitimate contractors.

Sandherr said the construction sector, which did $1.2 trillion worth of work nationwide in 2006 and expects a slight increase this year, needs easier entry for foreign workers to overcome a continuing labor shortage.

The contractors' lobby also wants to ensure that Congress authorizes spending $39.4 billion from the national Highway Trust Fund, paid for by federal taxes on motor fuels.

Sandherr said his organization is worried that Congress simply will pass a continuing resolution to keep spending at the present level, which is $36 billion. The difference of $3.4 billion could have a negative impact on highway construction, he said.

The contractors also want to revise a federal tax law, to go into effect in 2011, that would allow federal, state and local governments to withhold three percent of a public-works project's cost to ensure the contractor pays all taxes.

"Do you think cities want to hold onto this?" Sandherr asked. "We are afraid the contractors will never get their money back."

He said in public-works projects, which are bid competitively, the profit margin can be as low as one percent to two percent. If a customer withheld three percent of the total cost, that could wipe out any profit for the contractor.