BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 24.17.127 and 24.17.501, pertaining to prevailing wage rates for public works projects

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NOTICE OF AMENDMENT

 

TO: All Concerned Persons

 

          1. On November 10, 2016, the Department of Labor and Industry published MAR Notice No. 24-17-320 regarding the public hearing on the amendment of the above-stated rules on page 2035 of the 2016 Montana Administrative Register, Issue No. 21.

 

          2. On December 2, 2016, a public hearing was held at which time members of the public made oral and written comments and submitted documents. Additional comments were received during the comment period.

 

          3. The department has thoroughly considered the comments and testimony received from the public. The following is a summary of the public comments received and the department's response to those comments:

 

Comment 1: A commenter opposed the current zone pay structure in highway construction. The commenter stated he believes the system is "broken" in the respect that he brings his own crew from Great Falls and pays them zone pay, to travel to other large cities that are dispatch points where no zone pay is required.

 

Response 1: Zone pay was instituted to help contractors and workers defray the cost of working outside of major metropolitan areas in Montana. Contractors who work inside those areas, of course, do not realize the benefits of zone pay. Generally, though, any projects located beyond 30 and 60 miles from any metropolitan area require the payment of zone pay. The department recognizes that it may be difficult for a contractor from Great Falls to bring a crew in to work in Billings without the benefit of zone pay. But, the reverse is also true, it may be difficult for a contractor from Billings to bring a crew in to work in Great Falls. However, both contractors and workers would receive the benefit of zone pay for any project outside of either of those cities.

 

Comment 2: Various individuals and entities submitted additional data or documents for inclusion in the rate-setting process during the comment period.

 

Response 2: The department has reviewed the information submitted. The department has incorporated the data as appropriate and has revised certain rates in line with the rate-setting standards. Revised rates are identified below in paragraphs 4 and 5.

 

          4. The following rates in the "Montana Prevailing Wage Rates for Building Construction Services 2017" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

Boilermakers

Duties Include:

Construct, assemble, maintain, and repair stationary steam boilers, and boiler house auxiliaries, process vessels, pressure vessels and penstocks. 

 

Electricians: Including Building Automation Control

Districts 2 & 3

No mileage due when traveling in employer's vehicle.

The following travel allowance is applicable when traveling in employee's vehicle:

0-08 mi. free zone

>08-50 mi. federal mileage rate/mi. in excess of the free zone.

>50 mi. $64.00/day $66.00/day

 

Heating and Air Conditioning

                    Wage                     Benefit

District 1       $25.00 25.97          $12.25 12.53

District 4       $29.33 28.04         

 

Construction Laborers Group 1/Flag Person For Traffic Control

                    Wage                     Benefit

                    $20.08 21.58          $ 7.92 8.69

 

Construction Laborers Group 2

                    $23.47 24.40          $ 7.92 8.69

 

Construction Laborers Group 3

                    $24.34 24.54          $ 7.92 8.69

 

Construction Laborers Group 4

                    $25.00 25.26          $ 7.92 8.69

 

Sheet Metal Workers

                    Wage                     Benefit

District 1       $32.32 28.04

District 2       $28.29 28.04

 

          5. The following rates in the "Montana Prevailing Wage Rates for Heavy Construction Services 2017" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

 

 

Boilermakers

                    Wage                     Benefit

                    $33.50 30.25

 

Duties Include:

Construct, assemble, maintain, and repair stationary steam boilers, and boiler house auxiliaries, process vessels, pressure vessels and penstocks. Bulk storage tanks and bolted steel tanks.

 

Construction Equipment Operators Group 6

                    Wage                     Benefit

                    $30.35 30.95                   

 

Construction Equipment Operators Group 7

                    Wage                     Benefit

                    $31.35 31.95

 

Line Construction – Equipment Operators

Zone Pay

0-25 mi. free zone No Free Zone

>25 mi. $60.00/day

 

Line Construction – Groundman

Zone Pay

0-25 mi. free zone No Free Zone

>25 mi. $60.00/day

 

Line Construction - Lineman

Zone Pay

0-25 mi. free zone No Free Zone

>25 mi. $60.00/day

 

Plumbers, Pipefitters, and Steamfitters

District 4

0-70 free zone

>70 mi.

• On jobs when employees do not work consecutive days: $0.55/mi. if employer doesn't provide transportation. Not to exceed two trips.

 

• On jobs when employees work any number of consecutive days: $95.00/day $100.00/day if employer doesn't provide transportation.

 

6. The rates in the "Montana Prevailing Wage Rates for Building Construction Services 2017" publication and the "Montana Prevailing Wage Rates for Nonconstruction Services 2017" publication, incorporated by reference in the rule, have been amended as proposed.

 

/s/ Mark Cadwallader                   /s/ Pam Bucy                             

Mark Cadwallader                       Pam Bucy, Commissioner

Alternate Rule Reviewer             DEPARTMENT OF LABOR AND INDUSTRY

         

Certified to the Secretary of State December 27, 2016.