Advocacy News – March 9, 2023
On a strict party line vote of 56-53, House Democrats on Wednesday voted to repeal the state’s Right-to-Work law and restore the state’s prevailing wage law. The massive change in public policy came two months after taking control of the Legislature and set in motion a major win for labor unions.
The legislation is now headed to the Senate, and it is rumored that they could vote and send the bill to Gov. Whitmer as early as next week. In doing so, Michigan would return to the days of compulsory union dues and mandatory union-level wages on all public construction projects, regardless of whether a union contractor is being used to perform the work.
The Right to Work bills (HB 4004-5) have both private and public sector provisions but the public sector bill is canceled out until, or unless, the US Supreme Court reverses its 2018 decision in Janus v. AFSCME, which found mandatory membership fees among public sector unions violated the First Amendment.
Both Right to Work bills include a $1 million in appropriations to make the legislation referendum-proof, a maneuver that Gov. Whitmer promised to veto when she took office in 2019 and signed an Executive Directive 2019-07 on. Whitmer has vetoed legislation in the past based on the inclusion of the referendum-proof maneuver.
While Democrats and the unions say the bills will increase wages, benefits and workplace safety, the MI Chamber and other business groups strongly disagree and have vocalized their concerns with Democrats and Republicans alike.
Right to Work
Right to Work is about freedom and personal choice. It’s about the freedom of employees to decide whether to join a union and pay dues or other equivalent fees to labor unions as a condition of employment, even in workplaces covered by union contracts. It gives people a personal choice in how to spend their hard-earned wages.
A November 2022 poll of Michigan voters shows strong support of our Right to Work law. The SurveyUSA poll says 74% of Michigan’s registered voters opposed a repeal — even in union households. Of those opposed, 83% say they are Republicans, 67% Democrats and 76% independents.
Today, 28 states have Right to Work laws. Our law has made us more competitive nationally, and especially with neighboring states, for desperately needed economic development projects and new jobs — and is a tool to keep companies headquartered in Michigan.
Prevailing Wage
Reinstating Michigan’s prevailing wage law means all publicly funded construction projects must pay union-level wages and benefits, regardless of their individual skill level or productivity. This law was repealed in 2012 because it drove up the cost of public construction projects and made it more difficult for small businesses and non-union contractors to compete for public contracts. The prevailing wage reinstate legislation can be viewed HERE.
What We’re Saying
The MI Chamber will continue to be outspoken about its opposition to these bills. View our full press release and a joint statement with the Michigan Manufacturers Association for more information. The joint release was issued after the business community, including the MI Chamber and MMA, were denied the right to testify at committee.
For questions, contact Wendy Block, senior vice president of business advocacy and member engagement, at wblock@michamber.com.