January 27, 2012: Volume 4, Issue 2

 
In This Issue
Bay City Repeals Prevailing Wage Ordinance
Lt. Governor Brian Calley and Attorney General Bill Schuette Confirmed for the 2012 Legislative Conference
Michigan Senate Approves DEQ Regulatory Reform
 
2012 Legislative Conference

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Bay City Repeals Prevailing Wage Ordinance
 

This week on a 5-4 vote, Bay City commissioners chose to repeal that city's prevailing wage ordinance, something no city in Michigan may have ever done, to our knowledge. A prevailing wage law mandates union scale wages on government funded construction projects, regardless of who wins the bid.

 

Commissioners at their previous meeting amended the city ordinance to make all contracts under $100,000 exempt from the prevailing wage ordinance. It was expected that commissioners would confirm that vote at last night's meeting, but things changed when the Associated Builders and Contractors Saginaw chapter dropped a lawsuit against the city it had previously filed over the prevailing wage ordinance itself.

 

The Masud Labor Law Group represented ABC of Greater Michigan, but because one of the city commissioners is a lawyer with that firm, she had to recuse herself from previous votes on the prevailing wage question. With the lawsuit being dropped last Friday, it freed up one more vote in favor of a total repeal of the ordinance.

 

About 14 other cities maintain such laws in Michigan, as does state government. Mackinac Center analysts have estimated taxpayers could save $200 million annually if the Legislature were to repeal the prevailing wage statute. Perhaps Bay City will be a catalyst for that.

 

"We are looking for opportunities for citizens to save money," said Jimmy Greene, President and CEO of ABC of Greater Michigan. "The conversation around the country is about taxpayer dollars. When you know there is money to be saved by repealing such laws, officials should be obligated to do so. This is not about union or nonunion construction shops. It's about saving taxpayer dollars."

 

In this particular debate Greene was not a lone voice. None other than The Bay City Times weighed in on the issue last Sunday, describing the city's prevailing wage law as "pure protectionism for union workers and the contractors who employ them."

 

The commission will need to have a second, confirming vote at its next meeting, but Greene said he expects the same result.

 

It seems the tide is turning in labor debates. In other labor news the Indiana State Senate passed right-to-work legislation last night 28-22, though reports out of Indiana indicate that the House version of the bill will be the one that "actually drives the issue."

 

Written by Michael D. LaFaive, Mackinac Center

Lt. Governor Brian Calley and Attorney General Bill Schuette Confirmed for the 2012 Legislative Conference

 

Lt. Governor Brian Calley and Attorney General Bill Schuette are the confirmed headliners for this important ABC event. There are also over 40 members of the Legislature who are confirmed. 

 

We have scheduled face-to-face meetings with your legislators in their Lansing offices on that date.  You are the voice of our industry and in these meetings you will have their ear and their attention.  We can't afford to waste this opportunity.  It's time for ABC members to do their part by coming to Lansing and standing up for the Merit Shop.

 

As we all know, political regulations have a major impact on our businesses. Over the past year ABC passed the most comprehensive anti-union-only PLA law in the nation.  It was these same legislator meetings last year that made a crucial difference in garnering the needed votes to eliminate PLAs in Michigan.

 

2012 is a critical election year and presents an excellent opportunity for us to repeal Prevailing Wage, repeal Personal Property taxes, and for further reduction of regulation in our state.

 

Great things happen when ABC members pull in the same direction and fight together on behalf of the free enterprise philosophy of the Merit Shop.  The best way to do this is by attending the 2012 ABC of Michigan Legislative Conference and Lobby Day. 

 

We are confident that we can count on you to help us take a stand and make a difference.

 

Register Now!

Senate Approves DEQ Regulatory Reform 

 

Legislation was approved by the Michigan Senate to reform the regulatory process within the Department of Environmental Quality (DEQ) dealing with underground storage tanks, said Sen. John Proos.

  

"Cleaning up these contaminated sites is important, but the first order of business is to ensure that department decisions are based on risk and are not actually making the problem worse by standing in the way of protecting our natural resources," said Proos.

 

SBs 528-533 have been sent to the House of Representatives for consideration

"These initiatives are about promoting both job creation and environmental protection," said Proos, R-St. Joseph. "I co-sponsored these reforms because they will eliminate unnecessary red tape and expedite the cleanup of these polluted sites. Cleaning these areas will protect Southwest Michigan's natural resources and enable the properties to be redeveloped, which could help create jobs and breathe life into struggling communities."

Senate Bills 528-533 would create a more objective dispute-resolution process and clarify that the DEQ cannot develop regulations for cleanups that are not specified under law.

"This is needed because over the last decade few of these sites have been revitalized and the department has continually changed the standards," Proos said. "The practice of constantly shifting the goalposts must end. It has caused tremendous uncertainty and costly setbacks."

The main bill, SB 528, would fully adopt a risk-based corrective action process as published in American Society for Testing and Materials standards and include timelines for DEQ review or response so that owners and operators have predictability and finality.

 
Associated Builders and Contractors of Michigan is a statewide trade association, working in partnership with four local chapters, dedicated to providing Michigan with high-quality, affordable, safe and on-time construction.  ABC of Michigan is an equal opportunity organization that opposes all discrimination in the construction industry including discrimination based on union affiliation. A leading construction industry voice with state government, ABC provides many member services including legislative advocacy, networking opportunities, member benefits, legal updates, business development and educational opportunities.