Governor Whitmer Forces Road Workers to Pay for Benefits They Don’t Receive

Whitmer Hits Workers’ Paychecks to the Tune of $29 Per Hour, While Slashing Road Funding

October 1, 2019

Jeff Wiggins, State Dicrector
[email protected]

LANSING, MIJeff Wiggins, State Director of the Associated Builders and Contractors of Michigan today criticized Governor Gretchen Whitmer for eliminating a common sense provision approved by the House and Senate to prevent contractors doing business with the state from mandating road workers pay into benefit plans in which they do not participate and from which they would not benefit:  

“Governor Whitmer late last night launched an absurd attack on Michigan’s road workers, forcing many to pay up to $29 an hour into benefit funds in which they do not participate. Whitmer’s move to hit workers’ paychecks will inflate the price of road projects at the same time she is slashing road funding by almost $400 million.”  

Note: Earlier this year, several road contractors entered into an agreement with the Operating Engineers Local 324, mandating every employee who works on a road project pay into several of the union’s fringe benefit funds, even if they do not participate or benefit from the funds. The additional cost to the hourly wage could reach as high as $29 per hour. The United States Department of Labor recently disclosed a document showing the union will also be tacking on a 5 to 10 percent surcharge to all employers who pay into these benefit funds, increasing the costs even more.

Associated Builders and Contractors of Michigan is a statewide association serving Michigan's commercial and industrial construction sectors.  Founded on the merit shop philosophy to provide equal opportunities to all contractors and all workers, ABC of Michigan works to help employer members develop people, win work, and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.