Thousands of construction workers in Florida are preparing for steep pay cuts after the U.S. Department of Labor (DOL) rolled back wage protections tied to federally funded projects at Cape Canaveral. The decision, announced earlier this summer, reduces the minimum pay for several trades by as much as 40%, a move unions warn could destabilize the state’s construction industry.
According to Wage Determination No. FL20230001, the minimum hourly wage for sheet metal workers on federal projects at Cape Canaveral was previously $34.15 plus $21.78 in fringe benefits. Under the new Brevard County rate, those numbers fall to $20.09 per hour with $11.67 in benefits. Similar reductions are hitting electricians, plumbers, and other skilled trades.
“Unfortunately, this is a decision that will affect SMART members in the near future and for many years ahead,” said SMART General President Michael Coleman. “The high standards contractors previously met at Cape Canaveral have now been lowered, opening the door for companies to bid on work without paying workers what they deserve. That’s the immediate impact. And in future negotiations, local unions in the area won’t have the foundation of strong prevailing wages to stand on when bargaining for the pay and benefits that our members earn.”
For decades, Cape Canaveral and nearby sites – including Patrick Air Force Base, Kennedy Space Center, and the Malabar Radar Site – followed wage determinations that aligned with union-negotiated rates. These standards ensured competitive pay, robust health care, and pension benefits. With the new ruling, the DOL has replaced those agreements with the lower countywide rates, which unions argue have barely moved in over a decade.
The change stems from how the DOL enforces the Davis-Bacon Act. The law requires that workers on federally funded projects be paid prevailing wages, based on surveys of local pay. If union rates dominate, they typically become the standard. But if surveys reflect more non-union pay scales, lower benchmarks can be set, as now seen in Brevard County.
The shift comes as wages in the county already trail the rest of Florida. In 2024, the median hourly wage for construction trades in Brevard stood at $22.45, compared to $24.78 statewide. Union officials argue the rollback will only deepen the divide, undermining wage growth and making it harder to attract skilled workers to high-tech projects in aerospace and defense.
Collective bargaining agreements that previously governed federal work guaranteed stronger benefits and pensions. With those now in jeopardy, workers fear a race to the bottom in compensation and safety standards.
Union leaders have also pointed to Canada as a stark contrast, noting that Ottawa recently tied tax credits for clean energy projects to strict prevailing wage requirements and apprenticeship mandates. “It’s simple: Thanks to these incredibly strong standards, SMART Canada members will be put to work and Canadian families will benefit. No question,” Coleman said. “We applaud the Government of Canada for putting working families first, and we will continue to work with state and federal governments in the U.S. to win policies that benefit our members and their families.”
Unless the policy is reversed, labor leaders warn Florida’s construction workforce—and the communities they support—could suffer long-term damage, with ripple effects extending far beyond Cape Canaveral.
Originally reported by Austin Keating in ACHR News.
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