Lansing, Mich. - Associated Builders and Contractors of Michigan (ABC) June 12 applauded the Michigan Legislature for adopting a more flexible Michigan Merit Curriculum to give students, parents, and school districts more options for success.

"Michigan's students should have the opportunity to pursue rigorous job training and vocational skills while they are in high school," said Chris Fisher, president and CEO of ABC of Michigan. "Strengthening Michigan high school graduation requirements by allowing greater access to vocational education and CTE opportunities in high school prepares kids for rewarding skilled trades careers that are in high demand."

House Bill 4465 sponsored by Rep. Ed McBroom (R-Vulcan) and House Bill 4466 sponsored by Rep. Joel Johnson (R-Claire) result in greater flexibility for Michigan students to take classes that prepare them for technical and skilled trades careers. The State of Michigan and the U.S. Bureau of Labor Statistics both expect skilled and technical careers in industries like construction to be in high demand over the next decade.

MLive reports that the bills will not take effect until the 2015-2016 school year. 

"The legislation passed today strengthens the Michigan Merit Curriculum by preparing students for jobs that Michigan employers are eager to fill," added Fisher.

The bills now head to Governor Rick Snyder for his signature.

By Chris Fisher (published in the Lansing State Journal, June 14, 2014)

Voters in school millage elections in May said "Yes" to nearly $469 million to be spent on construction projects in districts locally and across the state. While it's welcome news, unfortunately the tab for those projects will be about $35 million higher than it needs to be, thanks to the outdated Michigan Prevailing Wage law that adds hundreds of millions of dollars to the cost of educational construction every year.

"Based on our research," says Alex Rosean of Anderson Economic Group, who authored a nonpartisan economic impact study on prevailing wage in 2013, "it is likely that these projects (authorized by the new millages) will cost approximately $35 million more than they would have without Michigan's prevailing wage law in place."

That's $35 million that taxpayers shouldn't have to spend or could otherwise spend on other educational resources, such as new technology, more teachers or even additional per-pupil investment.

Polling shows that most Michigan citizens (73 percent) do not understand the Prevailing Wage Law or confuse it with a minimum wage. Unlike the minimum wage currently being debated, prevailing wage and benefit rates for some construction trades are often to $50 to $70 an hour, depending on where the work takes place. The construction industry is the only sector subjected to prevailing wage rules. There's no logical reason for our industry to be treated differently than every other industry.

Workers in the Michigan construction industry already make a healthy wage, higher than most other industries and most other worker paychecks. The artificially high premium required by the prevailing wage law raises the overall cost of construction projects funded by Michigan taxpayers. Last November, the unbiased AEG found in its study that prevailing wage costs Michigan taxpayers more than $224 million per year in educational construction costs. Those funds over the last decade could have built 317 brand new, averaged-sized elementary schools with the tax dollars that were lost to prevailing wage.

Michigan should follow the best practices of other states like Ohio, where prevailing wage repeal saved schools more than $487.9 million, without any impact on overall quality.* (Ohio Legislative Service Commission, May 2002). In fact, 44 other states either have no prevailing wage rate at all, or at least attempt to determine a prevailing wage based on a realistic sampling of all wages. Indeed, Michigan should get in line with the rest of the country, rather than allow the hijacking of public construction costs by union agreements not subject to negotiation by public officials.

Legislation to repeal the prevailing wage law was introduced in the Michigan Legislature in 2013. It's time Michigan gave taxpayers a break from the unnecessary financial burden of this antiquated law.

Coffee with MIOSHA

June 26, 2014

9:00 am - 11:00 am

This FREE Coffee with MIOSHA event at NMU's University Center will include representatives from MIOSHA's administration, wage and hour, general industry and construction divisions. This is a great opportunity to connect with MIOSHA to have your questions answered and meet MIOSHA staff. MIOSHA will also provide information on program services and resources.

University Center

Northern Michigan University

1401 Presque Isle Ave, Cadillac Room
Marquette, MI  49855   

RSVP:    

Phu Nguyen (Nguyenp1@michigan.gov) (or)

April Walker (walkera1@michigan.gov)