Bowing to pressure led by a united Congressional front, joined by members of the religious community and the labor movement, President Bush announced today that he would reverse the decision he made in September to shortchange with lower wages workers in the areas affected by Hurricane Katrina.

The decision prompted by a looming congressional showdown because of the introduction of a Joint Resolution by Rep. George Miller (D-CA), the senior Democrat on the House Education and Workforce Committee, which would have forced the House to vote by early November on whether or not to allow the wage cut to stand.

"President Bush has finally acknowledged that his Gulf Coast wage cut is an insult to the talents and skills of the men and women fulfilling these contracts," U.S Rep. Nick Rahall, (D-WV) said. "I congratulate the working families of this nation and I congratulate all of those who stepped up and helped win the hard fight."

Under the Davis-Bacon Act, companies that win federal construction contracts must pay workers the prevailing wage-the wage typical for their specific job function in the local area where the work is being completed. These wage standards ensure workers a decent wage on construction projects financed with federal dollars. Bush's proclamation suspended this wage requirement indefinitely in areas affected by Katrina.

"Without the Davis-Bacon Act, government projects are awarded to the lowest bidder and laborer salaries are slashed with literally no wage floor in sight," Rahall said. "It's shameful to take advantage of those willing to put in the long hours and hard work to rebuild our cities. This proclamation threatened our long-standing labor and employment laws and the American worker deserves better."

Rahall, who was among those leaders critical of the Administration's decision, co-sponsored legislation that would undo President Bush's proclamation that cut wages for workers involved in the reconstruction of areas damaged by Hurricane Katrina.

Rahall also joined his colleagues in a letter to the President urging the immediate repeal of his decision to suspend the Davis-Bacon Act in the affected areas of Alabama, Louisiana, Mississippi and Florida, citing the disastrous consequences this action will have on the local economy and the economic prospects of area workers and their families.

"We've all seen, in startling detail, the poverty that pervades this region," Rahall said. "Waiving basic worker protection went directly against the President's own claim to do everything he can to help this area and its workers."

"I am happy that this mistake has been rectified and look forward to a rebuilding process that is fair, equitable and free of special interests," Rahall added.

Davis-Bacon Act protections are expected to be reinstated in the Gulf Coast region on November 8.