ABC of Michigan took the lead before the House Commerce Committee to oppose legislation aimed at expanding the Michigan Prevailing Wage Act. We successfully recommended amendments to the so-called “Hire Michigan First” 12 bill package of legislation, which were accepted.
At issue was House Bill 4086, which would have excluded firms from state contracts if they violate the Michigan Prevailing Wage Act, PA 166 of 1965.
ABC pointed out that minor and technical violations resulting from occasional wage errors and technical misclassifications should not be affected by the bill. Yet, because of the proposed language a reputable contractor could be mistakenly excluded by mis-paying an employee on a multi-million dollar project by as little as $1. To remedy the problem, ABC recommended removing all references to the prevailing wage act or, at the very least; amending the bill to specify that it only applies to contractors and vendors who “knowingly” violate the Prevailing Wage Act.
ABC mounted a strong coalition in opposition to the package of bills. Also joining were several members of the committee that were heavily lobbied by ABC. The legislation was ultimately amended.
On February 19, the Michigan Senate passed Senate Resolution 16 (SR 16) to ask the U.S. Congress to oppose the so-called “Employee Free Choice Act” (EFCA). The State Senate further resolved to transmit to the President of the Senate, the Speaker of the House, and members of the Michigan congressional delegation the ABC backed resolution strongly opposing the act.
ABC worked with the sponsor of SR 16, Sen. Mark Jansen (R- Kent County), to pass the resolution in support of merit shop firms throughout Michigan and across the United States.
The proposed Employee Free Choice Act, also known as “card check,” would publically rob workers of their fundamental right to private ballot elections on union organizing. A private ballot election is currently the preferred method of voting as it guarantees against threats, intimidation or coercion to ensure workers the ability to vote their conscience. Another concern is that EFCA would require a government-appointed third party – with no knowledge of or stake in an employer’s business or an employee’s livelihood – to impose a binding two-year collective bargaining agreement upon a company just 90 days after the card check process is certified.
The resolution declared that the flawed card check process “threatens the freedom of Michigan employees and severely limits the ability of the National Labor Relations Board to ensure the protection of Michigan workers.”
Senate Resolution 16 passed the State Senate by a vote of 20 to 15. Joining ABC in support of the resolution were the Michigan Chamber of Commerce and the National Federation of Independent Business.
Senators supporting ABC members and their employees by voting yes were Senators Allen, Bishop, Birkholz, Brown, Cassis, Cropsey, Garcia, George, Gilbert, Hardiman, Jansen, Jelinek, Kahn, Kuipers, Pappageorge, Patterson, Richardville, Sandborn, Stamas and VanWoerkom.
In opposition were Senators Clarke, Scott, Clark-Coleman, Hunter, Anderson, Basham, Olshove, Switalski, Jacobs, Brater, Whitmer, Cherry, Gleason, Barcia and Prusi.
Repeal of business tax surcharge passes major hurdle
The ABC-backed repeal of a nearly 22 percent surcharge on the Michigan Business Tax took a step forward, with Senate passage of a bill eliminating the surcharge after 2009.
Senate Bill 1, sponsored by Sen. Mark Jansen (R-Kent County) passed the Senate in a 25-11 bi-partisan vote. The bill came out of the Senate Finance Committee, where ABC of Michigan stated its support of the repeal last month. The legislation will cut the surcharge in half, reducing it from 21.99 percent to 11 percent for the 2009 tax year. The surcharge would be eliminated in 2010.
ABC and other business groups have pushed for elimination of the surcharge, which was added onto the MBT in late 2007 as a way for the state to replace a widely unpopular tax on services.
The bill now moves to the House where ABC will continue to urge swift action.
In late February, the Governor’s office revealed a list of projects to be considered for funding under the recently passed federal stimulus package.
The list includes more than 16,000 proposed projects totaling more than $49 billion. The list contains requests, rather than approved projects.
The final list of stimulus projects will be considerably shorter than the initial list. Current estimates suggest Michigan will receive $6.9 billion for projects tied more directly to government programs, according to estimates from Federal Funds Information for States, a service of the National Governors Association and the National Conference of State Legislatures.
Organizations, including cities, counties, universities, community colleges, local school districts, law enforcement agencies, non-profit organizations and others were asked to submit their requests to the state for funding.
Some of Michigan’s stimulus dollars will be distributed by existing formulas that affect federal funds. Other areas will be subject to approval and oversight by the state Legislature through the appropriations process.
To review the current list of requests and related information, visit http://mi.gov/documents/gov/inventory_267577_7.htm.