Senate Passes Bill to Protect Michigan's Fair and Open Competition Act

Associated Builders and Contractors (ABC) of Michigan commended the Michigan Senate for passing Senate Bill 1085, which protects and clarifies the Michigan Fair and Open Competition in Governmental Construction Act (PA 98 of 2011). The act, signed into law in 2011, prohibits units of government from discriminating against businesses and workers on the basis of union affiliation when awarding public construction contracts.

This bill makes technical clarifications to the existing law and protects equal opportunity for workers and taxpayers by promoting open competition whenever tax dollars are spent to build and renovate buildings, schools, universities, roads and bridges.

"Members of the Senate showed their support for protecting Michigan taxpayers by guaranteeing fiscal accountability on government contracts," says ABC of Michigan President Chris Fisher. "This legislation ensures a level playing field for public contracting by prohibiting the use of government-mandated project labor agreements when they discriminate on the basis of union affiliation."

The legislation, sponsored by Sen. John Moolenaar (R-Midland), clarifies that project labor agreements (PLAs) shall be permissible as long as they are voluntary, but not when they are mandated by a governmental entity. This results in governmental neutrality while allowing all qualified companies, union and nonunion alike, to perform construction work. The bill also clarifies that the legislature is seeking economic efficiency on behalf of taxpayers, a direct result of fair and open competition.

In early 2012 a federal district court judge made a controversial decision to suspend Michigan's PA 98 of 2011. The technical changes in Senate Bill 1085 result in added clarity to help reinstate Michigan's Fair and Open Competition in Governmental Construction Act. In addition, Attorney General Bill Schuette is appealing the ruling because other federal courts have upheld similar state and federal contracting rules, including in the Allbaugh case which is the controlling case on PLA law. With Oklahoma and Virginia enacting open competition laws in the past 30 days, a dozen other states currently are benefitting from similar contracting practices that promote the economic and efficient procurement of construction services.

The legislation now moves to the House of Representatives for final approval.

National Trade Groups Team Up to Create a Drug and Alcohol-Free Construction Industry

Five of the nation's largest construction trade associations have teamed up to form the Construction Coalition for a Drug- and Alcohol-Free Workplace (CCDAFW). The coalition's mission is to create a drug- and alcohol-free construction industry by providing companies and organizations with the resources necessary to implement drug- and alcohol-free policies into their business practices.

CCDAFW launched a nationwide effort urging construction-related firms and organizations to sign an online pledge signifying they will create and maintain a workplace free from substance abuse.In addition to listing current pledge signatories, the CCDAFW website, http://www.drugfreeconstruction.org/, includes educational materials and state-by-state policies for substance abuse testing.

The CCDAFW is comprised of Associated Builders and Contractors (ABC), The Associated General Contractors of America (AGC), Construction Industry Round Table (CIRT), Construction Users' Roundtable (CURT) and Women Construction Owners & Executives (WCOE).

"We are driving an industry toward world-class safety," said ABC President and CEO Michael D. Bellaman. "If we want to have an industry that is world class in safety, we have to start with a rock-solid foundation that includes an environment free of drugs and substance abuse. This coalition is a way to help companies build that foundation so we can continue toward our goal of eliminating all fatalities on construction worksites."

"This partnership will build on the significant steps firms across the country have already taken to make construction safer today than it has ever been," said AGC CEO Stephen E. Sandherr. "Making sure that every construction worker on every construction site is fully in control and absolutely sober is the best way to save lives and prevent injuries."

"As an organization composed of CEOs from both leading design and construction firms, the CIRT Board of Directors views participation in the coalition as extremely critical to reinforcing the importance of safety across the wide range of disciplines involved with construction job sites," noted CIRT President Mark A. Casso. "To that end, we see the center piece of this effort as not only the pledge itself, but also the educational materials, model policies, informational aids and best practices that will be made available and shared."

"At CURT, we believe the road to zero incidents encompasses all facets of effective safety and health programs," said CURT Executive Vice President Gregory L. Sizemore. "The Drug- and Alcohol-Free Workplace initiative is a way to help owners and contractors improve their safety performance - on and off the jobsite - leading to the elimination of accidents and injuries."

"The health and safety of the construction industry workforce is of primary importance to company owners," said WCOE National Executive Director Penny Pompei. "Drugs and construction sites do not mix. Small businesses often don't have the resources to develop in-depth substance abuse awareness and prevention programs. This coordinated effort by a group of construction industry organizations will provide the tools WCOE's small business owners need to combat this danger to our workers."

The launch of the CCDAFW website and online pledge coincides with North American Occupational Safety and Health Week, May 6-12.

To view this news release on ABC's website, click here.