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Prevailing Wages Can Build Good Jobs Into America’s Electric Vehicle Industry

Prevailing Wages Can Build Good Jobs Into America’s Electric Vehicle Industry

By instituting prevailing wage policies, policymakers can ensure that the jobs they subsidize in one of America's newest industries offer fair wages and benefits.

Federal and state governments are playing a leading role in supporting domestic electric vehicle (EV) production, which presents a historic opportunity to establish high standards for workers in the transformation of one of America’s strongest manufacturing sectors. Designing and implementing a new prevailing wage policy would help ensure that the high labor standards of the existing automotive industry continue in the transition to new EV jobs.

Over the next decades, sales of EVs will likely surpass those of cars and trucks powered by gas-powered engines, transforming America’s automotive industry and automotive jobs. The federal government is investing heavily in this transition, with billions of dollars of investment in the Infrastructure Investment and Jobs Act (IIJA) dedicated to supporting EVs, and President Joe Biden’s economic agenda promises to go even further. In addition, state governments are making investments of their own, offering rebates for consumers purchasing EVs and tax incentives for companies building new plants.

The above excerpt was originally published in the Center for American Progress. Click here to view the full article.

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Aurelia Glass

Policy Analyst, Inclusive Economy

David Madland

Senior Fellow; Senior Adviser, American Worker Project

Karla Walter

Senior Fellow, Inclusive Economy


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