Port KC closes worker wage loophole
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Union members after the vote. Photo: Courtesy of the Greater KC Building & Construction Trades Union.
Workers are putting down picket signs after Port KC closed a loophole in its project financing that allowed developers to pay lower wages than Missouri's prevailing wage standards.
Why it matters: Construction is booming across the city, and after weeks of picketing over wages at Port KC-backed projects, union workers say the new rule is a step forward, even as they push for more.
What's inside: The rule requires Port KC contracts to mandate Missouri's minimum hourly pay for construction workers — known as the prevailing wage — on bond-financed sale-leaseback projects, closing a loophole that allowed developers to pay workers below the minimum.
- The rates vary by profession and county, with elevator constructors in Jackson County earning more than $100 per hour.
- Port KC's rule applies to logistics, industrial, data and office projects exceeding $3 million, as well as to hotels, multifamily and mixed-use projects exceeding $15 million.
- Port KC will audit worker pay and levy fines against developers for every day a worker is underpaid, multiplied by the number of underpaid workers.
Caveat: Port KC can grant exemptions on housing and hotel projects in lower-income areas and for historic buildings, as well as for any project receiving KCMO's Central City Economic Development Sales Tax.
What they're saying: Port KC president and CEO Jon Stephens called the resolution a "transformative moment" at the board meeting Monday, adding in a later statement that it ensures "projects are delivered with fair labor practices."
- "This is a real win," Mike Talboy, political director for the Greater KC Building & Construction Trades union, tells Axios. "It's a big deal for the community. It's a big deal for Kansas City's workforce."
Yes, but: The resolution doesn't address apprenticeship requirements, which the union has pushed for to ensure projects use trained, local workers through certified programs rather than lower-skilled labor.
- Port KC spokesperson Patrick Pierce says the parties are working to resolve that issue as well, but he did not provide a timeline.
- Talboy says it's something the union will keep pushing for, along with workplace safety and responsible bidder standards.
Zoom out: KC Mayor Quinton Lucas introduced an ordinance Monday that parallels the Port KC resolution, seeking to shore up prevailing wage standards across municipal projects.
The other side: Opponents of the prevailing wage rule said the mandate would increase construction costs by up to 20% and stymie development.
Talboy pointed to the U.S. Office of Apprenticeship, saying most developers see a higher return on investment when using specialized workers.
What's next: The policy goes into effect for new applications sent to Port KC starting April 1.