Breaking News: ABC applauds signing of bill ending construction industry discrimination and providing fiscal accountability in Michigan
Today Governor Rick Snyder signed into law Public Act 238 again making government mandated project labor agreements (PLAs) that discriminate on the basis of labor affiliation illegal in Michigan.
"Today is an important day for all Michigan workers and taxpayers," said Chris Fisher, president of ABC of Michigan. "This law means that all businesses and all workers-union and nonunion alike-have a level playing field to compete for and build publically-funded construction projects and ensures that nobody is denied a fair shot at succeeding in Michigan."
New changes to the Michigan Fair and Open Competition Act specify that contractors may enter into a PLA only if doing so is voluntary and not mandated. On taxpayer-funded construction projects, a mandate that requires or prohibits contractors to sign a union-favoring PLA or other agreement as a condition of performing work is illegal. In addition, any term discriminating on the basis of labor affiliation is illegal. The law requires the neutral, economical, nondiscriminatory and efficient procurement of construction services by the state.
"This major reform protects citizens with transparency in governmental contracting and defends taxpayers against costly special interest handouts that eliminate competition when public money is at stake," Fisher explained. "As of today Michigan is again a national leader joining with more than a dozen other states that are promoting construction industry competitiveness, growth and opportunity."
In early 2012, a Federal District Court judge made a controversial decision to suspend the Michigan Fair and Open Competition Act. Public Act 238 creates new protections that are not affected by the court's previous ruling.
"We commend Governor Snyder, bill sponsor Senator John Moolenaar, and the legislature for standing up for Michigan citizens and for their staunch support of fiscal accountability and equal opportunity," said Fisher.
