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House Considers Legislation Allowing Closed Competition in Governmental Construction

Advocacy News – June 14, 2023

The House Labor Committee heard testimony Thursday on legislation (HB 4231, Rep. Hill) to repeal the Michigan Fair and Open Competition in Governmental Construction Act. This would give the green light to municipalities wishing to enact anti-competitive government mandated project labor agreements (PLAs).

PLAs limit competitions by exclusively awarding construction work to contractors that are signatory to collective bargaining agreements with labor unions for the duration of the project. PLAs mean that quality and taxpaying businesses are discriminated against and prohibited from being awarded bids for projects unless they sign on with labor unions. In the past, PLAs have been mandated on taxpayer funded construction projects at universities, community colleges, counties, cities, townships, and school districts for projects funded.

The Chamber is part of coalition opposing this effort. Read the coalition’s memo to the committee or contact Wendy Block with questions at wblock@michamber.com.