Merit Minute News Brief: April 6, 2012

April 6, 2012: Volume 4, Issue 7

In This Issue

The Free-Market vs. Labor Union Debate Over Prevailing Wages Visits Saginaw County

Reach ABC General Contractors and Subs Across the State at One Event

Office of Regulatory Reinvention (ORR) Issues Workplace Safety Recommendations

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The Free-Market vs. Labor Union Debate Over Prevailing Wages Visits Saginaw County

Jimmy E. Greene's anti-prevailing wage movement, after success in Bay City, has moved the charge to Saginaw County.

Greene of Saginaw Township threatens to sue Saginaw County if the Board of Commissioners doesn't agree to repeal its own prevailing wage policy.

The policy requires companies bidding on Saginaw County contracts in excess of $50,000 to pay the union-established "prevailing wage" to their employees.

It doesn't prohibit bids from non-union companies, but Greene said it leads to non-union companies raising their bid amounts to offset the increased labor, which is then passed along to taxpayers.

In a letter to the Saginaw County Board of Commissioners, Greene requested the board repeal its policy by Aug. 1.

The move touched a nerve with some Democratic commissioners.

"It's never going to happen here," said Commissioner Ron Sholtz, R-Marion Township, a former union janitor, assembly-line worker and forklift driver.

"It's just another step in busting the union," he added.

Greene is the president and chief executive officer for the Greater Michigan Chapter of the Associated Builders and Contractors, a private-sector contracting lobbying and advocacy and skilled-trade training organization.

Greene's organization won a similar battle when after making multiple presentation, Bay City Commission members voted 5-4 to repeal its prevailing wage ordinance in February.

"I think in Saginaw, you'll have the toughest time," Greene said. "Not so much out of the 'progressive' Democrats, but people will be inflammatory here."

Greene submitted the letter March 20 with the closing: "Please be advised that should the county refuse to repeal (the policy by Aug. 1), ABC will be filing a complaint in the Saginaw County Circuit Court seeking injunctive relief to invalidate the ordinance."

He said "most Saginaw County taxpayers should be incensed" by the policy, which unnecessarily obligates employers to pay employees a predetermined, union-set wage, generally higher than the market rate.

"We sued Bay City," Greene said. "We didn't get anywhere with Bay City initially. We went through the motions and then at that point we realized were not going to get anywhere, so the only way to have a conversation is through a lawsuit.

"You're going to have a hell of a case to say we should pay more" than the free-market rate for labor.

"I hate to be threatened," Sholtz said after the letter was read at Tuesday's committee meeting. "For him to come make a presentation is fine, but to threaten me, I'm ready to act in opposition of this basically on that last sentence."

"Who the hell is he?" questioned Michael P. O'Hare, D-Chesaning, Chair of the Saginaw County Board of Commissioners. He followed the question with a motion to leave the prevailing wage policy as is.

The motion passed 5-1.

Democrats - O'Hare, Chair Carl E. Ruth of Saginaw, Eddie F. Foxx of Bridgeport Township and Michael J. Hanley of Saginaw - supported the motion, as did Sholtz, a Republican.

Dennis H. Krafft, R-Frankenmuth, dissented.

"I think we're rushing into it based on emotion," Krafft said. "We've got time; I don't know why we're rushing into it."

County Controller Marc A. McGill said the policy rarely plays a role in contract decisions because so few county contracts are for greater than $50,000, and when they are, there is usually state of federal money involved.

The guidelines for use of state and federal funds trump county policy and require use of prevailing wages.

"The argument is, if you don't have prevailing wage, you might get something done cheaper and get more done," he said. "The other argument is, if you don't have prevailing wage then you're not going to support the local labor."

O'Hare said he's received a commitment from two local labor unions, "the steelworkers and carpenters," to pay any legal fees should Greene take this matter to court after Aug. 1.

McGill has sought a legal opinion form the county's counsel on the matter.

In his letter, Greene argues that a 2009 legal precedent "invalidates" the county policy.

Reach ABC General Contractors and Subs Across the State at One Event

This is it -- one opportunity to reach all the ABC member companies across the state at once. This is an opportunity for your company to expand its marketing and networking to Merit Shop Construction industry leaders that won't be available for another 50 years.

Please consider how you would like to showcase your company to this industry at this momentous occasion. Several levels of sponsorships are available, designed to give you some or all of the following benefits:

Unique one-on-one networking opportunities with industry leaders
New turnkey ways of communicating with ABC members
Opportunities to reach membership from all Michigan chapters at once
Unique targeted social media marketing opportunities
A B2B marketing platform
And more......

In honor of their 50th anniversary, Associated Builders and Contractors of Michigan is hosting a Gala Event October 27, 2012 to bring together current and past members from across the state to honor the legacy of our association. Attendees will include the leaders of our industry and our state including: construction company owners and staff, associate and supplier members, legislators and honored guests.

The event will consist of a cocktail hour, formal dinner, video presentation and entertainment. This is an once-in-a-lifetime event. As a regular supporter of the merit shop construction industry, you will are receiving this exclusive opportunity to sponsor at the event.

Click here for a listing of the opportunities available, detailing benefits for each. Some opportunities are limited and are sold first-come, first-served. Make sure you don't miss your chance to represent your company at this occasion. Email Mary Boardway or Sharon Novasel to select your opportunity right away!

Office of Regulatory Reinvention (ORR) Issues Workplace Safety Recommendations

On March 12, 2012, the Office of Regulatory Reinvention (ORR) released its report of the Workplace Safety Advisory Rules Committee. The report details changes to safety and health rules and makes other program recommendations. The News Release is attached and includes a link to the full report.

Rule Recommendations: In all, the ORR report recommends 624 changes to 334 separate Michigan Occupational Safety and Health Administration (MIOSHA) rules that exceed the federal standards. The recommendations contemplate the rescission of over 611 distinct MIOSHA requirements (this includes entire rules or parts of rules).

Additional Recommendations: The report also includes nine program recommendations in addition to the review of existing MIOSHA rules. The nine recommendations address the following:

Eliminate MIOSHA Standard setting commissions.
Add a definition of "Clear and Convincing need" to the MIOSH Act.
Update rules to comply with the OSHA Standards Improvement Project.
Eliminate rules regarding specific qualifications when a rule limits the use of equipment to a trained and qualified employee. Provides alternative to permits.
Work with the agricultural community to address confined space for agriculture rules that were inadvertently rescinded.
Pursue a review of state air contaminant rules once federal OSHA completes its review.
Withdraw rule requests that exceed federal standards.
Ensure all MIOSHA rule sets are included in the Michigan Administrative Code.
Review and potentially combine all diving standards into one rule that does not exceed federal OSHA.

The report, including the recommendations above, was reviewed by the Governor's Office. It was presented to the House Committee on Regulatory Reform on March 14th.

Two proposals in the report, Recommendation #1 on the MIOSHA Standards Commissions and Recommendation #2 which would add a definition of "clear and convincing need" to the MIOSH Act would require a legislative change to the MIOSH Act, P.A. 154 of 1974, as amended.

Associated Builders and Contractors of Michigan is a statewide trade association, working in partnership with three 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.