Thousands of Florida construction workers are bracing for a pay cut after the U.S. Department of Labor decided to lower the minimum wage rates for federally funded projects at Cape Canaveral and surrounding sites, a move union leaders say will weaken local standards and bargaining power.
According to the U.S. Department of Labor’s Wage Determination No. FL20230001, the minimum hourly wage for sheet metal workers on federal projects in Cape Canaveral was previously set at $34.15 plus $21.78 in fringe benefits. Under the new Brevard County rate, the minimum pay is $20.09 an hour with $11.67 in benefits – a cut of nearly 40%. Similar reductions affect electricians, plumbers, and other trades.
For decades, federal construction at Cape Canaveral Air Force Station, Patrick Air Force Base, Kennedy Space Center, and Malabar Radar Site operated under a wage determination that reflected union-negotiated rates – wages that, according to the Sheet Metal, Air, Rail and Transportation (SMART) Union, kept pay and benefits high for local workers. But earlier this summer, the Labor Department announced that, effective July 4, those standards will be replaced by the significantly lower Brevard County rate – a rate that has seen little increase in more than a decade.
“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 in a statement. “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.”
The Department of Labor sets prevailing wages under the Davis-Bacon Act using surveys of local wages paid on similar projects. If union rates dominate in a given area, those rates are adopted. But if surveys show most workers are paid less –
often due to non-union contractors – the DOL may set a lower standard, as it has now in Brevard County.
Prevailing wage laws, often called Davis-Bacon rates, set minimum pay and benefits on federal projects based on local surveys. Unions say these standards protect workers against contractors who might underbid by offering lower pay, and help maintain quality and safety on job sites.
Federal data from the Bureau of Labor Statistics shows that construction wages in Brevard County have lagged behind statewide averages for years. In 2024, the median hourly wage for all construction trades in the county was $22.45, compared to $24.78 statewide.
The Department of Labor did not respond to a request for comment by deadline.
Collective bargaining agreements previously used for federal work at Cape Canaveral – available via the U.S. Department of Labor’s CBA Database – guaranteed higher pay, full family health coverage, and defined-benefit pensions for most trades. Workers and union reps say these standards are now at risk as contractors adjust to the lower wage floor.
SMART and other unions argue that lowering the wage rates will not only hurt workers’ paychecks but could also drive down area standards – making it harder for unions to negotiate strong contracts in the future.
The decision stands in stark contrast to recent policy moves north of the border. In Canada, new investment tax credits for clean energy projects require all construction workers to be paid the prevailing wage – including full benefits and pension contributions – and mandate that 10% of hours go to registered apprentices.
“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.”
Union leaders warn that unless the U.S. reverses course, Florida’s construction workforce – and the communities they support – could be left behind.