The National Federation of Independent Business is backing a citizen’s
initiative proposal that would repeal Michigan’s Prevailing Wage Law. The organization Protecting
Michigan Taxpayers filed the petition with the backing of the Michigan Freedom
Fund and the Associated Builders and Contractors of Michigan (ABC).
can no longer afford the outdated and wasteful Prevailing Wage Law, said NFIB
State Director Charlie Owens. “The law forces taxpayers to be overcharged
anywhere between 10 and 15 percent more than what a competitively bid job would
cost without the Prevailing Wage Law mandated union wage requirement.”
prevailing wage law, passed in 1965, requires that contractors on state funded
projects pay the wages and fringe benefits according to the union scale
regardless of whether the builder in question has union or non-union employees on
the job. Michigan is one of only six states in the nation that require union
wages be paid on state funded construction projects. Estimates are that the law
results in $224 million in extra costs per year on school construction alone.
that NFIB will be supporting the petition drive that will bring the initiated
law before the legislature for action. Under Michigan’s Constitution,
supporters have 180 days to collect about 252,523 signatures in order to put
the proposal to repeal the Prevailing Wage Law before the legislature. If both
chambers of the legislature pass the proposal within 40 days it becomes law
without the signature of the governor being required. If the proposal fails to
pass, or the legislature does not act within the 40 days, the proposal for
repeal would go on the next general election ballot for the people to decide.
recently testified before the Senate Competitiveness Committee in support of Senate Bills
1, 2 and 3 that would also end Michigan’s Prevailing Wage Law. “We are missing
the opportunity to increase the buying power of the state, school districts and
local governments without any new taxes or increased state spending,” said
Owens. “We will be working with the other groups supporting this petition drive
to end Michigan’s antiquated and unnecessary Prevailing Wage Law.”
For more about Michigan’s Prevailing Wage Law go HERE.