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92D CONGRESS 2D SESSION

H. R. 15376

IN THE HOUSE OF REPRESENTATIVES

JUNE 7, 1972

Mr. THOMPSON of New Jersey introduced the following bill; which was referred to the Committee on Education and Labor

A BILL

To amend the Service Contract Act of 1965 to revise the method of computing wage rates under such Act, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That (a) section 2 (a) (1) of the Service Contract Act of 4 1965 is amended by striking out all after "locality," and in5 serting in lieu thereof the following: "or, where a collective

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6 bargaining agreement covers any such service employees, in 7 accordance with the rates for such employees provided for 8 in such agreement, including, if the Secretary so elects, pro9 spective wage increases provided for in such agreement as a 10 result of arm's-length negotiations. In no case shall such

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1 wages be lower than the minimum specified in subsection 2 (b)".

3 (b) Section 2 (a) (2) of such Act is amended by strik4 ing out the period after "locality" and inserting in lieu 5 thereof the following: ", or, where a collective bargaining 6 agreement covers any such service employees, to be provided 7 for in such agreement, including, if the Secretary so elects, 8 prospective fringe benefit increases provided for in such 9 agreement as a result of arm's-length negotiations."

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SEC. 2. Section 2 (a) of such Act is amended by adding 11 at the end thereof the following new paragraph:

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"(5) a statement of the rates that would be paid by the Federal agency to the various classes of service. employees if section 5341 of title 5, United States Code, were applicable to them. The Secretary shall give due consideration to such rates in making the wage and fringe benefit determinations specified in this section."

SEC. 3. Section 4 of such Act is amended by adding at

19 the end thereof the following new subsections:

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"(c) Notwithstanding the provisions of subsection (b), 21 the Secretary may not allow an exemption from the wage 22 and fringe benefit determinations specified in section 2 for a 23 contract which proposes to employ twenty-five or more serv24 ice employees unless he gives written notice of his intention 25 to make such exemption to such service employees, and gives

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1 them an opportunity to participate in a hearing thereon. The

2 Secretary may allow such exemption only if he determines,

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on the record after opportunity for a hearing if requested by 4 such service employees, that—

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"(1) to issue such wage and fringe benefit determinations would seriously impair the conduct of government business, or would not be in the public interest, and "(2) such exemption is in accord with the remedial purpose of this Act to protect prevailing labor standards, 10 and specifies in detail his reasons for so concluding. All

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papers and documents made a part of the official record of 12 administrative action pursuant to the allowance of any such

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exemption shall be available for inspection by the public. 14 For purposes of this subsection, paragraph (2) of section 15 553 of title 5, United States Code, shall not apply.

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"(d) In no event shall a contractor who enters into a successor contract, or a subcontractor under such successor 18 contract, which succeeds, and furnishes substantially the

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same services with substantially the same employees as, a 20 contract specified in section two pay any service employee 21 under such successor contract less than the wages and fringe 22 benefits, including accrued wages and fringe benefits and, if 23 the Secretary so elects, any prospective increases in wages and fringe benefits provided for in a collective bargaining agreement as a result of arm's-length negotiations, to which

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1 such service employee would have been entitled if he were

2 employed under the prior contract.

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"(e) Subject to limitations in annual appropriation 4 Acts, but notwithstanding any other provision of law, con5 tracts to which this Act applies may, if authorized by the 6 Secretary, be for any term of years not exceeding five, if 7 each such contract provides for the periodic adjustment of 8 wages and fringe benefits pursuant to future determinations, 9 issued in the manner prescribed in section 2 of this Act no 10 less often than once every two years during the term of the contract, covering the various classes of service employees.' 12 SEC. 4. Section 5 (a) of such Act is amended by insert13 ing before the first comma of the second sentence the words 14 "because of unusual circumstances," and by adding at the 15 end of such section 5 (a) the following: "Where the Secre16 tary does not otherwise recommend because of unusual cir17 cumstances, he shall, not later than thirty days after a hear18 ing examiner has made a finding of a violation of this Act, 19 forward to the Comptroller General the name of the indi20 vidual or firm found to have violated the provisions of this 21 Act."

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