ABC backs introduction of prevailing wage repeal legislation
ABC of Michigan is backing legislation that would repeal the Michigan Prevailing Wage law effective July 4, 2010, and provide independence from the outdated and costly special-interest giveaway.
“As lawmakers and the governor talk about the need for reforms, they should take a serious look at repealing Michigan’s prevailing wage law,” says Chris Fisher, president of ABC of Michigan. “The law is tantamount to government-sanctioned wage fixing. It is anything but ‘prevailing,’ and it comes at the expense of Michigan jobs and taxpayer dollars. We need to promote competitive wages that are neither artificially low nor high.”
The legislation, House Bill 5522, introduced by Rep. David Agema, R-Grandville, has more than 20 co-sponsors: Reps. Justin Amash, Bob Genetski, Kevin Elsenheimer, Tom McMillin, Darwin Booher, Cindy Denby, Matt Lori, Kenneth Kurtz, Pete Lund, Kevin Daley, Joe Haveman, Kenneth Horn, Hugh Crawford, Dave Hildenbrand, Bill Caul, Larry DeShazor, James Bolger, Arlan Meekhof, Paul Scott and Sharon Tyler.
“The growing list of co-sponsors sends a clear message that more and more lawmakers are stepping up their support for prevailing wage repeal,” said Fisher. “Requiring exorbitant wages in the public sector that are far above those found in the private sector diverts vital funding from essential programs. Eliminating the special-interest giveaway would fund vital programs and help protect per-pupil spending priorities.”
ABC has been lobbying key lawmakers, meeting with other business groups and is planning to continue to make the issue a priority issue on behalf of its members and industry.
ABC of Michigan met with lawmakers and spoke before the House Regulatory Reform Committee in December against unnecessary sprinkler fitter licensure.
ABC argued that House Bill 5320 creates new licensure procedures that are not needed due to current contractor licensing as required under the Forbes Mechanical Contracting Act. Likewise, the state building code already protects the public health, safety and welfare. In fact, the state Department of Energy, Labor and Economic Growth has already made clear that the building code ensures fire safety.
In testimony before the House of Representatives, ABC of Michigan President Chris Fisher pointed out that the legislation essentially serves as a money grab by the state in the form of a tax on the building and construction industries — which are facing 30 percent unemployment in Michigan.
“It is unneeded and will do nothing to improve the overall quality of construction or improve public safety,” explained Fisher. “Instead, this would amount to another regulatory requirement in our industry, inviting further bureaucracy and government intervention while making Michigan less business-friendly by making it more costly to do business in our state.”
The legislation was ultimately not voted on, and the committee chair requested that it be redrafted to address some of the concerns ABC and other groups had with the proposal.
State Sen. Mike Nofs, R-Battle Creek, was sworn into office at the state Capitol in November with Michigan Supreme Court Justice Robert P. Young administering the oath.
Nofs was chosen by voters in a special election on Nov. 3 to fill the 19th District Senate seat that was vacated in January 2009 after Mark Schauer, D-Battle Creek, was elected to Congress. ABC of Michigan PAC strongly supported Nof’s election. The win by the conservative in a previously Democrat-held seat, which mirrored fall election results in many other parts of the country, sends a strong pro-business message and signals the electorate’s changing mood from just one year ago.
“I am grateful for the opportunity to serve the good people of the 19th District and am humbled by the task before me,” said Nofs. “The hardworking residents in Calhoun and Jackson counties have been without Senate representation for nearly a year, despite an economy that continues to struggle. I am eager to go to work for them. I will fight every day to help improve Michigan’s jobs climate and put our residents back to work.”
Senate Majority Leader Mike Bishop greeted the newest member of the Republican caucus.
“It is my great pleasure to welcome Sen. Mike Nofs to the Michigan Senate,” said Bishop, R-Rochester. “He joins a Republican caucus that is united in its effort to move Michigan forward responsibly, by reforming government and respecting taxpayers. Sen. Nofs recognizes the challenges his constituents face every day and has the knowledge and experience to help lead them and our state through these difficult economic times. I look forward to working with such a dedicated public servant.”