Mayor vetoes labor standards

For only the third time in 20 years Louisville Mayor Jerry Abramson used the veto pen to send back legislation he says would undermine Louisville’s efforts to rebound from the recession. In a letter sent to the legislative body Abramson wrote the city bill would put Louisville at a serious disadvantage with competitor cities and create obstacles to job growth.

“I am vetoing this ordinance because it creates obstacles to job creation and economic investment at a time when our country is suffering from the longest national economic recession since the Great Depression and our community is grappling with the highest unemployment levels in more than two decades,” he wrote.

At a press conference held earlier Abramson said the city bill would undermine efforts to create jobs and attract new development by imposing unnecessary mandates on private investments that utilize public funding. When pressed about what he specifically found as an impediment in the bill’s language, the mayor only repeated that the ordinance would put Louisville at a disadvantage, adding that in these tough economic times job creation should be the first priority for Metro government.

Sponsored by council members Jim King, D-10, and Rick Blackwell, D-12, the labor standards ordinance passed the Metro Council by a 16-10 vote last week after a seven hour meeting. It would have required any company or business that used $500,000 or more in tax dollars to pay prevailing wage, use 75 percent local contractors and workers on their project and award 20 percent of  to minority-owned businesses, and 5 percent to businesses owned by women.

“This ordinance is a priority for us and now that the mayor has expressed his concerns, we will react appropriately,” King said in a press release. “This is too important to our local workers and contractors to stop now.”

The co-sponsors say they will review the mayor’s veto before moving forward. The council needs 18 votes to override a mayoral veto, which is unlikely. Councilman Blackwell noted the last mayoral veto in 2006 resulted in a compromise on labor requirements for the downtown arena project.

“I certainly agree with the mayor’s concerns for job creation. In fact, ‘local jobs for local workers’ are at the heart of this intent of this ordinance.” says Blackwell. “When we invest local tax dollars in a project there needs to be balance between the gains for business and the gains for workers. ”

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