The reason for refusal is simply the prevailing wage rate. For example, I am in the business of building hot tubs, and when I need to find workers I need to pay them in accordance to the local market, but at the same time I also have to make sure that my wage is not over $20 or $25, so that I'm still within the cost efficiency of my program, and at the same time I'm still competitive.
I can't compare myself to a bread manufacturer down the road who is paying $5 less or $5 more. I can only pay what I can afford.