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5. OLD BUSINESS (CONT'D A. ( Cont'd) Mr. Robinson (cont'd) .... that we remain the same with our labor standard. Mr. Wiggins stated that at this stage of the game he could not consciously authorize a $2.00 pay cut. Mr. Donaldson asked Keith how he arrived at the figure of $5.40 an hour. Mr. Crighton suggested that figure as most contractors agreed that amou t would be a fair cut without substantially affecting their earnings. Even at the $7.40 rate, the reason that the proposal was initiated was the fact that Community Development funding was getting less every year and we are constantly under pressure from the Federal Government to cut the expenses of our operation. The commission has done that in one step, by allowing us to open bid our contracts, but we can't stop at that and have to get more money into the acutual houses. Mr. Donaldson stated that he agreed with Mr. Robinson. Mr. Cira asked Keith what the breakdown was between a skilled laborer against an unskilled laborer. Mr. Crighton answered by saying we don't have a classification for a skilled laborer, if an electrician is on the job, we don't have a classification for an electrician laborer, he would be either a common laborer or an apprentice. In many instances we are involved with apprenticeship programs. Mr. Cira asked the pay rate for apprenticeships and Mr. Robinson replied normally it starts between 40% and 50% for a starting apprentice and graduates normally every six months where they get a raise of 5% or 10 %. In our particular field it graduates at 100. They start at 50 %, 60 %, 70 %, then 80 %. Mr. Cira stated that this would mean that the common laborer is making more money than the apprenticed skilled laborer. Mr. Robinson agreed. Mr. Cira indicated that he agreed with Keith's position. Mr. Robinson replied that at the same time you are losing sight of the fact that the apprentice is trying to learn something, the common laborer is not t ere for learning, he already knows what he has to do. The lower wage ate is for when he is learning. Mr. Wiggins added that the idea hat you have to contend with here is that people very often have he impression that an apprentice is another employee that is worki g at 100% capacity and that is not true at all. The whole idea f the apprenticeship is that he is there to learn a trade so, the guy who is teaching him what to do is losing his efficiency to teach the apprentice, and you have two people doing the same job. In apprenticeship training at the industrial level it is difficult to get anyone to actually work with them because they want to leave it to someone else to do as they see it as something that costs them money and don't regard it as an opportunity to make anything. It is only an opportunity to replace someone who is going to retire. Mr. Cira asked if a common laborer is earning $5.40 an hour, is he in the area of the average income for a family - -- what is the average income? Mr. Robinson replied it's up to $9,000 or $10,000. Mr. Cira indicated that by paying $5.40 an hour that guy will still make over $10,000 a year. Mr. Robinson replied only if he works all year, but he won't. Mr. W ggins added that the $7.40 rate along with the amount of work he wi 1 probably get done will give him about $10,000 a year. Mr. Nimtz asked if there was further discussion, Mr. Crighton indicated no, and Mr. R binson made a motion that we leave the labor rates as they are prese tly and continue to do business in the same manner. Mr. Donaldson suppo ted, and the motion carried.