Feds Should Follow Michigan's Regulatory Lead, ABC President Testifies 

PLYMOUTH TOWNSHIP - Associated Builders and Contractors of Michigan President Chris Fisher May 6 urged members of a congressional subcommittee to "stop picking winners and losers based on union affiliation" and support regulatory reforms on the federal level that increase jobs and help improve the economy, such as those implemented in Michigan since Gov. Rick Snyder took office in 2010.

"Here in Michigan we are able to see firsthand that our approach to labor policy - as opposed to the current federal government approach - is working," Fisher testified before the House Subcommittee on Government Operations, which held a hearing at Plymouth Township Hall about the impact of federal regulations on small businesses and job creation.

"Over the past three years, the Michigan construction industry has not only gained jobs every year, but construction worker incomes have likewise increased every year," he said. "ABC urges this committee to follow the lead of states like Michigan to sensibly reform regulations - benefiting our industry, our workforce and the overall construction economy."

Fisher pointed to three examples "of federal regulations attempting to pick winners and losers based on union affiliation" -- the Obama administration's stance on project labor agreements (PLAs), as well as policies implemented by the National Labor Relations Board (NLRB) and Occupational Safety and Health Administration (OSHA).

Fisher noted that in 2009, President Obama issued Executive Order 13502 to encourage federal agencies to require PLAs on federally funded construction projects in excess of $25 million.  (PLAs require firms to hire or use only unionized workers in order to qualify for construction contract awards.)

"Absent the economic benefits of competitive bidding, government-mandated PLAs are known to increase construction costs between 10 percent and 20 percent," Fisher said. "The result is that federal PLAs drive up costs for American taxpayers while unfairly discriminating against the 85.9 percent of U.S. construction workers who have chosen not to affiliate with a labor union."

Michigan, in comparison, passed a law in 2011 banning PLAs on publicly funded construction projects. "The result is equal opportunity for everyone instead of political favoritism," Fisher told the subcommittee.  "Michigan taxpayers are also guaranteed the fiscal accountability they deserve through openness and integrity in the public construction competitive bidding process."

Fisher also testified that the NLRB has "continually pursued a one-sided agenda that is entirely biased toward Big Labor instead of maintaining an evenhanded and balanced approach on behalf of both labor and management."  The latest concern is NLRB's proposed "ambush" election rule, which would shorten the time for a union election process to as little as 10 days.

"Curtailing the time in which employers can pass along facts and relevant information to employees impedes their opportunity to weigh the pros and cons of whether or not their company should be unionized," Fisher said. Fisher cited OSHA as "unfortunately another example of federal government regulations run amuck."

"OSHA lately seems more interested in promoting a radical labor agenda instead of focusing on issues that are germane to its core purpose -  safety and health," he testified. Fisher referred to a letter of interpretation released Feb. 21, 2013, by OSHA stating that nonunion employees can authorize an individual "affiliated with a union or a community organization" to act as their representative during agency-sanctioned inspections and other enforcement situations. "Allowing a union organizer to enter the worksite of employers that are targeted for possible unionization raises serious questions about the intentions of the union organizer - and, for that matter, the intentions of OSHA in promoting interference in the existing employer-employee relationship," Fisher said.

"Fortunately, it doesn't need to be this way," he said. "In Michigan, we in the construction industry have been able to form alliances with MIOSHA and work cooperatively to promote worker health and safety for the benefit of our workforce and our industry.  A cooperative approach is the way it ought to be, and is refreshing compared to the sometimes hostile approach we are seeing by federal OSHA."

ABC of Michigan congratulates the participants from Michigan who traveled to the National Craft Championships in Birmingham, Alabama at the end of April. The skilled trades students and professionals traveled to Alabama from ABC training schools and member firms across the country, and competed to become national champions in their trade.

Trevor Reis, employed by ABC Greater Michigan Chapter's G.E. Insulation, won the highest level Gold honor in the Insulation category. Reis was sponsored by the Greater Michigan Construction Academy after winning his division in the chapter's Local Craft Championship. "All of us at G.E. Insulation Co are very proud of Trevor and congratulate him on winning the Gold Medal at the National Craft Championship this year," remarked Gary Elza, President of G.E. Insulation Co. "He did an excellent job! Trevor continued the tradition of showing how good our students are, [as] the 5th Gold Medal winner from G.E. Insulation Co. in the last five years."

ABC President & CEO Mike Bellaman with Trevor Reis and Greg Sizemore, Chairman of the NCC

Aaron Ziehmer of Valley Electrical also qualified in the Electrical category through the Greater Michigan Chapter and participated in the national competition.  

Across the United States more men and women enroll in ABC training programs than in other skilled trades schools. Our enrollments even surpass ITT Tech. Moreover, the ABC Greater Michigan and Southeastern Michigan academies are also the two largest state propriety schools in Michigan. 

ABC of Michigan member contractors employ workers whose training and experience span all of the 20-plus skilled trades that comprise the construction industry. 

For more information on the National Craft Championships visit www.nationalcraftchampionships.com

If you have not yet taken some time to fill out the ABC of Michigan 2014 member survey, we encourage you to do so.

It's important to ABC to know your business needs and concerns, the reason you're a member of ABC, and what you're seeing in the economy. To ensure that we're meeting your expectations and providing you with the best representation at the state Capitol and beyond, please take a few moments to complete a short survey.

Completing the survey should take 5 minutes or less and will give us direction as we look ahead to the future of ABC of Michigan.  Please complete the survey by clicking the link below or pasting the link into your browser. 

https://www.surveymonkey.com/s/H2PWPJS  

If you prefer, you may contact the ABC of Michigan office (phone: 517-853-2545) to receive the survey via fax or mail. The survey will be available until May 17.

The Tax Reform Act of 2014, released in draft form by U.S. House of Representatives Ways and Means Committee Chairman Dave Camp (R-Mich.), would lower the top tax rate for construction businesses from 35 percent and 39.6 percent to 25 percent regardless of entity-level structure. 

The proposal confirms that the 25 percent Qualified Domestic Manufacturing Income (QDMI) rate would apply to "construction of real property in the United States as part of the active conduct of a construction trade or business."The legislation aims to reduce tax rates to provide greater incentives for investment, hiring and better wages, as well as ensure that no business engaged in domestic manufacturing, production, farming, extraction or construction would be taxed at a higher rate. 

Other provisions would create a new payroll tax treatment that would be unfavorable for pass-through entities and dedicate $126.5 billion to the Highway Trust Fund to fully fund highway and infrastructure investment for eight years. 

This article appears on www.constructionexecutive.com. 

Coffee with MIOSHA - This free event will include MIOSHA representatives from MIOSHA Construction, CET, Wage & Hour and an Industrial Hygienist to answer your questions and provide information on program services and resources. This event is on Thursday, May 29th from 9:00am to 11:00 am in Grand Rapids, and is open to all Michigan employers and employees. Upcoming events will be focused specifically to the construction industry, if you are unable to attend the May 29 gathering.

WHAT: "Coffee with MIOSHA" - A Cup of Coffee and an Ounce of Prevention!
WHEN: Thursday, May 29th; 9:00 a.m. to 11:00 a.m.
WHO: All West Michigan employers and employees
WHERE: Blackmer - A Dover Company
1809 Century Avenue SW, Grand Rapids, MI 49503
COST: Free

RSVP: Brian Oczepek: President@wmasse.org; (269) 998-9507

Event flyer 

Upcoming Coffee with MIOSHA events:
June 5th - Livonia (this event will have a joint general industry and construction focus)
June 26th - Marquette
July 22nd - Kentwood (general industry focus)

Sign up to receive these updates on events, regulatory changes and compliance instructions directly from MIOSHA.