House of Representatives Passes Legislation to Protect Michigan Businesses, Workers and Taxpayers

Associated Builders and Contractors of Michigan (ABC) praised the Michigan House of Representatives for passing Senate Bill 1085 to protect Michigan's Fair and Open Competition in Governmental Construction Act (PA 98 of 2011). The existing act prohibits governmental entities from discriminating against Michigan businesses and workers on the basis of union affiliation, while also providing Michigan taxpayers the fiscal accountability they deserve on publically funded construction projects.

"In today's economy, taxpayers deserve the accountability that results from a fair and open competitive bidding process," says Chris Fisher, ABC of Michigan President. "The House of Representatives recognize that the citizens of Michigan expect the most responsible use of their tax dollars."

Senate Bill 1085 makes technical clarifications to the existing law and by stating that project labor agreements (PLAs) shall be permissible only when they are voluntary, but not when they are mandated by a governmental entity. This bill creates a level playing field for all qualified companies by allowing them to perform construction work on publicly funded projects, regardless of labor affiliation. The bill also clarifies that the legislature is seeking economic efficiency, a direct result of fair and open competition.

"SB 1085 ensures that the majority of Michigan's construction workforce, who choose not to belong to a union, are not excluded from performing work on projects funded by their own tax dollars," stresses Fisher. "The end to anti-competitive picking of winners and losers results in a better use of taxpayer dollars when building or renovating public buildings, schools, universities, roads and bridges."

The legislation now returns to the Senate for enrollment and presentation to the Governor.

McCotter Votes Against Free Enterprise, Workers, Taxpayers

Yesterday embattled U.S. Rep. Thaddeus McCotter (R-Livonia) became the only federal republican lawmaker from Michigan to cast a vote denying taxpayers fiscal accountability and discriminating against a majority of Michigan's construction workforce by voting to allow the federal government to mandate the use of union-only project labor agreements (PLAs) on taxpayer funded construction projects.

"It's a shame Congressman McCotter would vote in favor of a taxpayer funded special interest monopoly for union bosses that comes at the expense of fiscal responsibility and job opportunities for Michigan citizens," said Chris Fisher, president of Associated Builders and Contractors (ABC) of Michigan. "I can guarantee this will not bode well with republican primary voters in Michigan's 11th Congressional District. Republicans, especially in Michigan, don't take well to wasteful spending and union boss favoritism."

The controversial vote stripped fair and open competition language from section 517 of the MilCon/VA Appropriations FY 2013 bill (H.R. 5854). This language had prohibited government-mandated PLAs on construction projects. Under PLAs, only firms and workers that agree to abide by collective bargaining agreements are allowed to perform work on a public construction project, effectively excluding about 80 percent of the possible qualified pool. According to the U.S. Department of Labor, most construction workers in Michigan choose not to belong to a union.   Denying these workers opportunities for employment erodes competition by diverting projects to a small pool of unionized companies. This wastes tax dollars by driving up the costs of projects, often as much as 20 percent.

"Republican voters are already questioning McCotter's judgment following his failure to turn in legitimate signatures to place his name on the primary ballot," Fisher concluded. "His careless vote record raises serious questions and makes it less likely republicans will ever want to write in his name in the August Primary."

According to the vote record from the US House of Representatives, every other republican member of Congress from Michigan voted to prohibit the use of costly and discriminatory PLAs. All but one state-level GOP lawmaker in Michigan has likewise opposed government-mandated PLAs. In 2011 Michigan Governor Rick Snyder signed the Michigan Fair and Open Competition in Governmental Construction Act into law, prohibiting the use of government-mandated PLAs in the state.