Prevailing Wage Repeal Petition Submitted

Date: September 14, 2015

Board of State Canvassers Approval is Next Step

Monday,
September 14, 2015(Lansing) –The National Federation of Independent
Business (NFIB) applauded the submission of petitions to repeal Michigan’s prevailing
wage law to the Board of State Canvassers today. The organization, Protecting
Michigan Taxpayers, submitted more than 390,000 signatures – well over the 252,523 required – to the
Board of State Canvassers that would put a repeal of the law before the state
Legislature for approval. Protecting Michigan Taxpayers filed the citizen’s
initiative petition with the backing of the Michigan Freedom Fund and the
Associated Builders and Contractors of Michigan (ABC).

“Michigan
taxpayers can no longer afford the outdated and wasteful Prevailing Wage Law,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.”

Michigan’s
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.

Owens
said that NFIB has been supporting the petition drive
that will bring the initiated law before the legislature for action. Under
Michigan’s Constitution, when the Board of State Canvassers certifies that the
required number of signatures have been collected, the proposal to repeal the
Prevailing Wage Law will go 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.

NFIB
testified in May 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 in the Legislature to urge action on
this citizen initiated proposal to end Michigan’s antiquated and unnecessary
Prevailing Wage Law.”

Related Content: Small Business News | Michigan

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