Small
Business Organization Praises Prevailing Wage Repeal Bills
January 15,
2015 (Lansing) – The state’s leading small business organization,
the National Federation of Independent Business (NFIB), praised the
introduction today of legislation to repeal the state’s Prevailing Wage Act. Republican
lawmakers in both the House and Senate announced plans to end the 1965 law that
pegs construction projects using state dollars to union scale wages. The House today
introduced House Bills 4001, HB 4002 and HB 4003 that would repeal prevailing
wage and the Senate is expected to follow with Senate bills 1, 2 and 3 that
would do the same.
“This is a
top priority for small business this session”, said NFIB State Director Charlie
Owens. “Michigan’s antiquated prevailing wage law results in overcharging taxpayers
on publicly funded construction projects by requiring that union scale wages be
paid regardless of whether a contractor has non-union employees.”
Owens said
that Michigan has already made union favored “Project Labor Agreements” on
public construction illegal. “Repealing Michigan’s Prevailing Wage Act is the
next step in assuring fair and open competition on publicly funded construction
projects,” said Owens. “The state’s current prevailing wage law acts as a ‘super
minimum wage’ that sets wages much higher than local construction wages
determined by fair competition in the free market”.
Owens also said
that the law discourages small business contractors from bidding on public
projects.
“Republican
lawmakers deserve credit for stepping forward and addressing this labor union
sacred cow that is cheating taxpayers out of hundreds of millions of dollars
every year,” said Owens.
