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Right to Work Repeal Passes Senate, One Last Stop Before Heading to Governor

Advocacy News – March 16, 2023

Michigan is on the verge of being the first state in the nation to repeal its Right to Work law.   

The Michigan Senate voted Tuesday, along a strict party line vote of 20 to 17, to repeal the state’s Right to Work law and restore the state’s prevailing wage law. While the House has already passed the legislation, also along a party line vote, the bills need to make one more stop there before they can be sent to Governor Whitmer. She is fully expected to sign the legislation.   

The bills would return Michigan to the days of allowing collective bargaining agreements to require union membership (and union dues) as a condition of employment and requiring 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 (SB 34 and HB 4004) 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.    

Twenty-eight states, including Michigan, have Right to Work laws. Our law makes 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.  

Reinstating Michigan’s prevailing wage law (SB 6) 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 This law was repealed in 2012 because it drove up the cost of public construction projects and made it more difficult for small businesses and non-union contractors to compete for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.  

All of the bills include 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, but has said she will sign the bill with the appropriation in it.   

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, including through testimony to the Senate Labor Committee, individual meetings with lawmakers, press statements and media interviews (a few highlights listed below):   

A special thank you to the 600-plus Chamber members who made their voices heard on this issue over the last week. While our side didn’t prevail, it’s important for lawmakers to hear differing viewpoints and to understand their constituents are watching and care about core issues impacting our state’s workers, businesses and economic competitiveness.   

For questions, please contact Wendy Block at wblock@michamber.com. 

Advocacy News – March 16, 2023

Michigan is on the verge of being the first state in the nation to repeal its Right to Work law.   

The Michigan Senate voted Tuesday, along a strict party line vote of 20 to 17, to repeal the state’s Right to Work law and restore the state’s prevailing wage law. While the House has already passed the legislation, also along a party line vote, the bills need to make one more stop there before they can be sent to Governor Whitmer. She is fully expected to sign the legislation.   

The bills would return Michigan to the days of allowing collective bargaining agreements to require union membership (and union dues) as a condition of employment and requiring 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 (SB 34 and HB 4004) 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.    

Twenty-eight states, including Michigan, have Right to Work laws. Our law makes 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.  

Reinstating Michigan’s prevailing wage law (SB 6) 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.  

All of the bills include 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, but has said she will sign the bill with the appropriation in it.   

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, including through testimony to the Senate Labor Committee, individual meetings with lawmakers, press statements and media interviews (a few highlights listed below):   

A special thank you to the 600-plus Chamber members who made their voices heard on this issue over the last week. While our side didn’t prevail, it’s important for lawmakers to hear differing viewpoints and to understand their constituents are watching and care about core issues impacting our state’s workers, businesses and economic competitiveness.   

For questions, please contact Wendy Block at wblock@michamber.com.