What Is the SCA?
The Service Contract Act (SCA) is a law that requires contractors who provide services to the federal government
to ensure certain minimum working conditions for their workers. The contractors are required to pay wages
and benefits comparable to those paid to other workers doing similar work in the area.
The Union Advantage Under the SCA
Union employees have advantages over their non-union counterparts under the SCA. For example, if employees negotiate higher wages and benefits in a union contract, the contractor can be reimbursed by the federal government. The government only reimburses contractors the minimum amounts set in area wage determinations UNLESS there is a union contract requiring higher pay. This means there is an incentive for your employer to give you a raise if you have a union; there is much less incentive for them to give you a raise if you have no union because the contractor, not the government, has to pay for it.
Economic Security When Contractors Change
Many employees working for government contractors constantly worry about what will happen when a new company gets the contract. Will wages and working conditions stay the same? Again, union employees under the SCA have a huge advantage. Under the law, the new contractor must abide by the economic terms of the union contract with the old contractor for at least a year. This means union workers keep their higher wages while bargaining a new contract.
The Service Contract Act (SCA) is a law that requires contractors who provide services to the federal government
to ensure certain minimum working conditions for their workers. The contractors are required to pay wages
and benefits comparable to those paid to other workers doing similar work in the area.
The Union Advantage Under the SCA
Union employees have advantages over their non-union counterparts under the SCA. For example, if employees negotiate higher wages and benefits in a union contract, the contractor can be reimbursed by the federal government. The government only reimburses contractors the minimum amounts set in area wage determinations UNLESS there is a union contract requiring higher pay. This means there is an incentive for your employer to give you a raise if you have a union; there is much less incentive for them to give you a raise if you have no union because the contractor, not the government, has to pay for it.
Economic Security When Contractors Change
Many employees working for government contractors constantly worry about what will happen when a new company gets the contract. Will wages and working conditions stay the same? Again, union employees under the SCA have a huge advantage. Under the law, the new contractor must abide by the economic terms of the union contract with the old contractor for at least a year. This means union workers keep their higher wages while bargaining a new contract.