Last week, the Federal District Court issued a preliminary injunction against Michigan's 2012 law prohibiting government-mandated project Labor Agreements (PLAs).
This ruling was in response to a complaint filed by the Michigan Building and Construction Trades Council, AFL-CIO. The matter was decided by the same judge who originally ruled with the unions on the 2011 Michigan Fair and Open Competition in Governmental Construction Act.
Although ABC does not agree with the Federal District Court ruling, government-mandated PLAs are again permissible in Michigan.
"While we disagree with the ruling, we are nonetheless confident that Michigan's law will be upheld at the appellate level," said Chris Fisher, president of ABC of Michigan. "We have known all along that this law would be settled at either the US Court of Appeals or even the US Supreme Court. As the case advances we know that our chances of success improve because no federal appeals court has ever ruled against a state law prohibiting government mandated PLAs."
Earlier this month the Court of Appeals sent notice that the oral argument in the 2011 Michigan PLA case will be held on the morning of January 15, 2013 in Cincinnati (where the appeals court is located). ABC of Michigan recently finalized and submitted an amicus brief to the court that will be considered in January. ABC was also joined by the National Federation of Independent Business.
Governor Snyder, as the defendant, remains committed to fairness in PLAs and continues to pursue the appeal in defense of the legislation he has signed into law. Over the past 18 months Michigan has permitted, then prohibited, then permitted, then prohibited and then permitted again the use of PLAs. ABC of Michigan has been the tip of the spear in challenging what was otherwise an unacceptable status quo of allowing the discriminatory and costly use of PLAs.
"ABC of Michigan is completely dedicated to our fight in support of fair and open competition. We know that the free enterprise philosophy of the Merit Shop will come out on top by ending union-only PLAs once and for all in Michigan," Fisher concluded.
