AssociatedBuilders and Contractors of Michigan is a statewide trade association representing 1100 contractors, subcontractors, material suppliers and related firms in the industrial and commercial building industry. We are devoted to building Michigan's economy by advancing the merit shop construction philosophy which encourages open competition and a free enterprise approach that awards contracts based solely on merit regardless of labor affiliation. ABC-MI is the construction industry's voice with state government and provides services such as legal advocacy, education and workforce development to its members.
ABC of Michigan is strongly opposed to union-only PLA's on taxpayer funded construction projects because they violate the practice of full and open competition. A union-only project labor agreement requires all construction companies to sign a contract with the union in order to work on that job. The agreement also requires that all contractors only use the union hiring hall to obtain workers, pay union wages, contribute to their benefit plans, and abide by outdated and restrictive union work rules, job classifications and arbitration procedures. These union-only requirements are not only shown to drive up the cost of construction by reducing competition, but they also discriminate against merit contractors and workers
(82% of the nation's construction workers choose not to belong to a union) from bidding and working on projects paid for by their own tax dollars.
As the Michigan Legislature and Governor work to address the growing fiscal concerns facing our state, ABC of Michigan opposes any and all efforts to increase the overall tax burden on businesses, especially those in the construction industry. ABC of Michigan adamantly believes that it is an overall bad business climate and tax structure that leaves ABC members in Michigan struggling and having to look forward to a possible tax increase, while our fellow members in states like Indiana instead look forward to building a new Honda Plant.
Citizens suffer from an increasingly inordinate number of regulatory requirements to comply with our national, state and local laws. ABC of Michigan supports improvements in the environment, health, and safety in the workplace. However, the regulations imposed often place a burden disproportionate to the benefit gained. In particular, small businesses - those who actually create the vast majority of jobs in Michigan - often face unfair and prohibitive regulations that impede their ability to compete.
"Salting" is a practice designed by organized labor to create financial hardship for open shop contractors. This is done by placing professional union organizers and agents in a non-union company to harass or disrupt company operations, apply economic pressure, increase operating and legal costs, and ultimately put the company out of business. The objectives of the union agents are accomplished through filing frivolous and unfair labor practice complaints or discrimination charges against the employer. Salting campaigns are increasingly used in the construction industry and have begun to expand into other industries across the country. ABC of Michigan supports state legislation to ensure that employers are not forced to hire an individual who is not a bona fide applicant and who wants to harass the employers to further the objectives of another organization.
State prevailing wage laws are usually modeled on the federal Davis-Bacon Act, a depression-era wage subsidy law enacted in 1931. Like the federal act, these laws mandate that the prevailing wage be paid on public projects. Because of the vast problems associated with implementing these laws, they translate into severely increased construction costs. Research shows that Michigan's Prevailing Wage Act of 1965 is a costly piece of special-interest legislation that forces public schools alone to waste millions of dollars each year on inflated construction costs. ABC of Michigan believes repealing the act-or at least exempting schools from its rules-would make school construction more affordable, save money for use in the classroom, and allow for other improvements to public education. These laws artificially inflate the cost of construction to governments anywhere from 5% to 38% percent above what the project would have cost in the private sector with no measurable gain in safety, training, or quality.
ABC of Michigan strongly supports Michigan becoming a right to work state. Right to Work means that every worker can choose to pay — or not pay — union dues in order to get or keep their job. Right to Work laws,if passed at the state level, would prohibit requiring union membership as a condition of employment in a particular job. Currently, 22 states have right to work laws. For the past thirty years, Right to Work states have been outperforming compulsory unionism states. Forced-unionism states like Michigan are losing jobs to states that are providing people with the right economic incentives. Lawmakers looking to improve Michigan’s economy should embrace Michigan becoming a Right to Work state.