here is the transcript:
DOBBS: There's outrage tonight over a presidential decision today that could hurt Gulf Coast workers looking to rebuild their lives and earn a living.
President Bush has waived rules that would require federally funded contractors to pay a competitive wage to workers in the cleanup and rebuilding efforts. Critics call this an unfair giveaway to big business trying to profit from the hurricane disaster.
Lisa Sylvester has our report.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Tens of thousands of Gulf Coast residents lost everything they own to Hurricane Katrina, but critics say a new executive order signed by President Bush will push down wages, making it harder for them to rebuild their lives.
RICHARD TRUMKA, AFL-CIO: Suspension of Davis-Bacon is a shameful government-sponsored wage race to the bottom for workers. It will allow workers to be exploited at a time whenever they need their government's help the most.
SYLVESTER: The White House is lifting part of the Davis-Bacon Act, created during the Great Depression. It requires companies receiving federal contracts to pay at least the average wage for the region.
Congressional Republicans who support the waiver argue it will save time and money.
REP. MARILYN MUSGRAVE (R), COLORADO: It's imperative that we have reconstruction start as quickly as possible, and when we're appropriating over $60 billion and more to come, that we get the very best for the money that American taxpayers have invested in this reconstruction.
SYLVESTER: Davis-Bacon has been waived before, by President Roosevelt for three weeks during the New Deal transition, by President Nixon for one month in 1971 to reduce inflationary pressure, and by President George H.W. Bush after Hurricane Andrew. It was reinstated when President Clinton took office, all short-term waivers. But this order is open-ended. For construction workers in the Gulf region, it means contractors won't even have to meet the average wage of $9 an hour, adding more hurt for the poorest of the poor.
REP. GEORGE MILLER (D), CALIFORNIA: It really is an outrageous situation, that the very same people that we saw who were left behind because of their low wages -- they didn't have money to put gas in the car to get out of town; they didn't have a car; they didn't have the means to get out of town -- those very some people now have had the wage protections taken away.
(END VIDEOTAPE)
SYLVESTER: The AFL-CIO notes that three of Florida's largest counties, Miami-Dade, Broward and Monroe, are included in the president's waiver. And these counties had relatively little storm damage, but yet they're included on the list. And that will affect a number of federal contracts there -- Lou.
DOBBS: Do we know just whose idea it was? We know the president takes responsibility and signed it, which is, by any standard, highly questionable in terms of its impact on the people who have been punished so severely by Katrina. Now to rebuild it, they would have to suffer this indignity, as well?
SYLVESTER: Well, we interviewed one of the people who one of the point people on Capitol Hill. This was actually generated from Capitol Hill. A letter was sent by a number of members of Congress asking him to waive this act.
One of the members is Representative Marilyn Musgrave, who we interviewed in our piece.
DOBBS: Right.
SYLVESTER: Another Jeff Blake from Arizona, so some more questions to be asked, Lou.
DOBBS: A lot of questions, and the penalty here obviously against the very people who need the most help. Lisa Sylvester, thank you very much.
While the president is making it possible for companies to cut wages in the stricken Gulf Coast area, his administration is allowing some federal workers to spend a great deal of money.
Under the Disaster Aid Bill passed by Congress, FEMA employees working the recovery can now charge up to $250,000 on their government-issued credit cards, up sharply from the previous limit of $2,500.
Lawmakers who fought to take that provision out of that bill cite past incidents of employees charging jewelry, stereo equipment and other personal items to their government cards. That is really the issue. The Disaster Aid Bill also allows emergency workers to approve contracts worth up to $250,000 without requiring competitive bidding. That all to the good.
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