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Whitmer Reinstating Prevailing Wage is Unfair and Unnecessary

Put projects and services out for competitive bidding

… were only going to pay union wages, regardless of whether other … why, by reinstating “prevailing wage” for state contractors, … the opposite? This arbitrary wage floor raises prices on taxpayers … repealed the state’s prevailing wage law. The law had mandated union wage scales on public construction …

Repealing Indiana’s Union Wage Mandate Was a Win-Win

The bulk of research support these findings

… state’s Common Construction Wage law — more readily known as a prevailing wage. These laws, which are … key union argument for prevailing wage is that giving more money … that repealed Indiana’s prevailing wage mandate required the state … 2009 and 2014, when the prevailing wage law was in effect. Jobs …

What Do We Know About the Impact of Prevailing Wage Laws?

Scholars should pay close attention to several points when reviewing the impact of these laws

… first state to enact a prevailing wage mandate, which generally … governments to pay a predetermined wage for work it contracts out, … spread and repeal of prevailing wage mandates created ample … of research. But the prevailing wage research literature reports, … published literature on prevailing wages and a somewhat incomplete …

Bad Information About the Prevailing Wage Abounds

Lawmakers should be skeptical of a recent study

… Michigan’s now-defunct prevailing wage law. The first involved … would reinstate the costly wage mandate on government contracts … repeatedly criticized. Prevailing wage laws artificially inflate … Indiana repealed its prevailing wage law, the average wage … as a rationale for a prevailing wage requirement. In 2018 a …

What Happens to Public Works Employment after a Prevailing Wage Mandate Ends?

Public works construction employment in Indiana grew at a faster rate

… the effect of repealing prevailing wage mandates. The first one … state’s Common Construction Wage Act in 2015. The law imposed a prevailing wage mandate on construction … Institute, repealing the prevailing wage mandate had a disappointing … blamed on the end of the prevailing wage. Like the institute’s …

The Weak Case Against Repealing Prevailing Wage

It's risky to draw conclusions from faulty data

… the effect of repealing prevailing wage mandates. The first one … The effect of repealing prevailing wage mandates, which require … Indiana, which repealed its prevailing wage mandate in 2015. The report says that repealing the prevailing wage mandate “had no impact … Indiana repealed the prevailing wage mandate to the average …

Do Construction Wages Fall after Ending a Prevailing Wage Mandate?

Evidence shows the repeal was a win-win for construction workers

… state’s Common Construction Wage Act. This Great Depression-era … amount, commonly known as a prevailing wage. The law’s repeal raised … It states that construction wages fell by 8.5% from 2014 to 2016 … repealing the state’s prevailing wage law. Sound advice, to … before Indiana ended its prevailing wage law — employment rebounded …

Economic Well-Being Tied to Economic Freedom

The best economic development tool is a free market

… including gross receipts and excise taxes; Minimum wage mandates; Government employment as a percentage … should likewise avoid mandating higher minimum wages or reversing the state’s right-to-work law, and … should not re-enact the recently repealed prevailing wage statute. 2. Mitigate state revenue losses …

Some Perspective: Michigan is Stronger Today

The state is in a more resilient position to weather an economic storm than at any time before

… development tool. And the recent repeal of its prevailing wage law should help the state save money on valuable, … sharp declines in state growth. Repeal of prevailing wage laws means that government-financed construction projects need not pay higher than market wages, which should drive down the cost of building more …

Prevailing Wage Repeal Critiques: Cookie Cutter Criticism

New reviews should be treated with caution

… producing papers about prevailing wage in different states, primarily … States that maintain prevailing wage laws should keep them. … Michigan repealed its own prevailing wage law in 2018, the same … mandates to pay union scale wages in publicly funded construction … roads and schools. The “prevailing” wage is typically determined …

There is Waste in Michigan’s Budget

Not all of it can be cut immediately, but some can redirected to roads now

A version of this article appeared in the Detroit News.  The prevailing view among many politicians is that the only way to spend more on roads and bridges is through a large tax increase. But that’s not the only way to prioritize road funding. There is plenty of waste in Michigan’s budget that lawmakers …

The Good News And Bad News For UAW Members

Their money is being mismanaged but you don’t have to contribute

… management is misusing their dues to build a pricey vacation home for the outgoing president. The good news is that they are using nonunion, non-prevailing wage labor to save money. The other good news is that Michigan is a right-to-work state. No worker can be forced to pay union dues and fees in order …

Legislature Says Yes To Subsidies, No To Tax Cuts

October 26 MichiganVotes weekly roll call

… Initiative Petition 2, Repeal prevailing wage law: Passed 23 to 14 in the Senate … 6, 2018 To repeal the state prevailing wage law, which prohibits awarding … lowest bid unless the contractor pays wages based on union pay scales that local … Initiative Petition 2, Repeal prevailing wage law: Passed 56 to 53 in the  …

How Much Will the Repeal of Prevailing Wage Save Taxpayers in Michigan?

It’s complicated, but a reasonable estimate is in the hundreds of millions

… Michigan has repealed its prevailing wage law, the big question … much these mandated union wages add to the cost of a project. … Peninsula showed that the prevailing wage law led to 16 percent … impacted by the federal prevailing wage law, the Davis-Bacon Act. … issued bonds. Without a prevailing wage law, schools will not …

Auto Insurance Reform for Seniors, Repeal Prevailing Wage, Medicaid Work

June 8, 2018 MichiganVotes weekly roll call report

… Initiative Petition 2, Repeal prevailing wage law: Passed 23 to 14 in … To repeal the state prevailing wage law, which prohibits awarding … unless the contractor pays wages based on union pay scales that … Initiative Petition 2, Repeal prevailing wage law: Passed 56 to 53 in … The House vote on the prevailing wage law repeal described above. …

Why Michigan Should Repeal Prevailing Wage

Law benefits big companies at the expense of taxpayers

… arbitrary and archaic prevailing wage. Michigan’s prevailing wage law — which mandates a wage for laborers working on certain … for higher bills. The prevailing wage costs taxpayers hundreds … the argument against prevailing wage in an interview on WDET …

Michigan’s Prevailing Wage Law Drives Up Costs

Government should do fair bidding for projects

… exactly what Michigan’s prevailing wage law does. The decades-old … these laws mandate specific wages for those working on government … for by taxpayers. The prevailing wage law often benefits larger … glazing contractors see prevailing wage as an essential benefit … any bill that undoes prevailing wage. But there is a solution …

Dog-Fight Dogs, Obamacare, Financial Exploitation, Multi-Lingual State Websites

August 18, 2017 MichiganVotes weekly roll call report

… House Bill 4594: Exempt schools from union "prevailing wage" mandate Introduced by Rep. Pamela Hornberger … construction or repair projects from the state "prevailing wage" law, which prohibits awarding contracts to … submit the lowest bid unless the contractor pays wages based on reported union pay scales in a region. …

Unions Try to Kill a Private Trade School

But Greater Michigan Construction Academy is a success

… competition. Their main policy fight with ABC is over the state’s prevailing wage law, which mandates union wages on construction jobs. But taxpayers should care about the results of programs, …

The Legislative Clock is Ticking

It's time for free-market reformers to act

… achievements, legislative leaders must take advantage of the opportunities they have. There is no shortage of good ideas. The state could repeal the prevailing wage law, which inflates the cost of public works projects by tens of millions of dollars. We should craft a long-term solution for unfunded liabilities …

House Republican Policy Plan Lays the Groundwork for Action

Pensions, education, criminal justice all areas ripe for change

… welcome good policy ideas coming from the other parts of government. The document isn’t all-encompassing. It’s missing some key issues, like prevailing wage, as well as union release time and recertification (learn about those and other issues here). But overall, it is a solid document with issues …

Recently Introduced Bills of Interest

January 27, 2017 MichiganVotes weekly roll call report

… city’s income tax. Senate Bill 3: Repeal prevailing wage law Introduced by Sen. David Robertson (R), to repeal the state “prevailing wage” law, which prohibits awarding government … submit the lowest bid unless the contractor pays wages based on pay scales that local union officials …

Archaic Prevailing Wage Law Should Be Repealed

State-imposed wages lead to unnecessary extra costs for taxpayers

… pay all contractors union wages for construction projects — the so-called prevailing wage. This wage rate is established … argue these wages were “prevailing” many decades ago, but today, … it comes to Michigan’s prevailing wage law. Average construction … triple the minimum wage — prevailing wage only pads the pay of already …

July 31 MichiganVotes Weekly Roll Call Report

Bills on school “adequacy,” secret corporate welfare, police shootings and more

… “economic damages” including lost wages, plus reasonable attorney fees. Versions … Bill 4429: Exempt schools from "prevailing wage" mandate Introduced by Rep. … construction projects from the state “prevailing wage” law, which prohibits awarding … unless the contractor pays "prevailing wages," which are based on union pay …

Skorup Joins Pat Johnston for Prevailing Wage Discussion

The two debated repealing the law on the Art Lewis Show on WSGW

… have the opportunity to repeal the state's prevailing wage law, which mandates that government projects pay union wages to all laborers, regardless of market wages.  Jarrett Skorup recently debated the issue with …

Five Road Funding Principles

Mackinac Center President Joseph Lehman lays out a free-market approach to pay for roads

… oppose basic government infrastructure. Illuminate inefficient road spending practices and recommend reforms within road agencies. Repealing the prevailing wage law is a modest start. Retain the user-fee principle. Those who drive more should pay more. The per-gallon fuel tax approximates a user fee. …

What You Need to Know About the Initiative to Repeal Prevailing Wage

If sponsors gather enough signatures in time, then legislature votes

… repeal of the state's “prevailing wage” law. This law prohibits … pays the equivalent of union wages that often exceed market rates. … alleged deal and veto a prevailing wage repeal bill that has already … which wants to repeal the prevailing wage law through a process … to repeal Michigan's prevailing wage law. It requires sponsors …

Prevailing Wage Repeal is Sound Policy

However, not all reforms are cuts

… repealing the state’s prevailing wage law. It is an expensive … projects. Bills to make prevailing wage an artifact of history … actually "cuts." State prevailing wage laws mandate that construction … pay fabricated union scale wages. Our 2007 study, “The Effects of Michigan’s Prevailing Wage Law,” by Paul Kersey reported …

May 15, 2015 MichiganVotes Weekly Roll Call

… VoteSpotter today! Senate Bill 3, Repeal “prevailing wage” law: Passed 22 to 15 in the Senate To repeal the state “prevailing wage” law, which prohibits awarding government … submit the lowest bid unless the contractor pays wages based on pay scales that local union officials …

Interpreting Proposal 1’s Loss

First, look at current resources

… begins devoting more tax revenue from the growing economy to needed road funding. It is also encouraging the see the Senate consider a repeal of prevailing wages, a step towards saving on construction costs in state, local governments and school districts. People should be coming together around proposals …

Prevailing Wage Research Cited in Detroit News

Repealing the law could save taxpayers millions every year

Michigan's prevailing wage law mandates hourly pay for workers on public projects, often inflating wages 10 to 15 percent above market rates. Consistently … Mackinac Center research in her column on prevailing wage in the May 8 edition of the Detroit News. …

House GOP Action Plan Points the Way to Real Reform

Repealing prevailing wage a top priority

… Repealing Michigan's Prevailing Wage: “Prevailing wage laws hinder economic growth … December 1994 to June 1997, prevailing wage laws were suspended because … states have repealed their prevailing wage laws, bringing the number … “Municipal ordinances governing wages and benefits known as ‘sick …

88 New Bills in Four Days — a Sampler

Ban local Uber bans, restrict religious freedom restrictions

… “community benefits” ordinance that imposes mandatory wage, benefit, or leave time requirements on developers … would also prohibit locals from imposing a “prevailing wage” mandate requiring these employers to pay “union scale” wages, to the extent this is not already required by …

Why Not Double the Prevailing Wage?

Arbitrary rate harms taxpayers, school districts

Michigan’s prevailing wage law sets an arbitrary mandate for … of Republicans is to lower wages and have people work for less," … arbitrary rate that raises wages with no harm to taxpayers or … the state double the prevailing wage rate? The reason is that … real costs to Michigan’s prevailing wage policy. Because of it, …

And They’re Off – Jan. 16 Legislature Report

Hike taxes, extend term limits, repeal "prevailing wage"

… Senate Bill 1 and House Bill 4001, Repeal “prevailing wage” law Introduced by Sen. Arlan Meekhof (R) … Price (R), respectively, to repeal the state “prevailing wage” law, which prohibits awarding government … the lowest bid unless the contractor pays “prevailing wages,” which are based on union-submitted pay …

Legislature Looks at Repealing Prevailing Wage

Center experts made suggestion 20 years ago

Senate Majority Leader Arlan Meekhof, R-West Olive, said today that the Michigan Legislature will seek to repeal the state’s costly prevailing wage law. Here is more information on why such a policy change would benefit Michigan.

In or Out? How is Michigan Doing Among Other States?

United Van Lines National Movers Study a good gauge of where opportunity lies

… in 2015. Second, the state should repeal its archaic and expensive Prevailing Wage law which mandates higher than necessary wages on government financed construction projects. Doing so might save $224 million …

House Road Plan Is Solid

A way to fix roads without raising gas taxes

… that stabilize the state’s finances and relieve burdens on families and taxpayers. Among the reforms the House could pursue are eliminating the prevailing wage law, closing the Michigan Public School Employees Retirement System or perhaps adopting a proposal to put a Taxpayer Bill of Rights on a future …

November 7, 2014, MichiganVotes Weekly Vote Report

New legislative leaders; facilitating medical innovation

… done by Michigan print shops. The bill appears to leave in effect a “prevailing wage” mandate on state-funded printing, which prohibits granting the lowest bid to a shop unless its employees are paid the equivalent of local union wages. Who Voted “Yes” and Who Voted “No” SOURCE: MichiganVotes.org, a free, …

Low-Hanging Fruit Can Help Fund Roads

There's plenty of money in the current budget

… additional reforms (such as repealing a state prevailing wage law that increases the cost of government … circulate that to get Democratic votes on a minimum wage increase pre-empting an even worse ballot initiative, … hike sausage is not repealing Michigan's prevailing wage. That would be a shame, because doing so could …

Commentary: A Legislative Agenda for 2014

Get back to the 2011 and 2012 reform agenda.

… systems to new employees. -- Repeal the state prevailing wage law that prohibits granting government construction … public education. -- Repeal Michigan's minimum wage law, don't increase it. As Mackinac Center for … policy Michael LaFaive put it, the only true minimum wage is zero, which is what many more low-skill workers …

Center Research Cited on Prevailing Wage Repeal

… repeal of the state’s prevailing wage law today. The story … “The benefits of the prevailing wage law to the state as a … evidence that strong prevailing wage laws are associated with … does not offset the higher wages that are also associated with strong prevailing wage laws.”

Balance Increased Road Spending with Cuts

Tax, spending cuts should be pursued

… following six suggestions are one way to fill this gap: Repeal Michigan’s prevailing wage law: estimated savings, $107 million. This state law punishes taxpayers … government construction projects pay an artificially high, union-related “prevailing wage.” The dollar estimate provided here comes from a 2007 Mackinac Center …

February 8, 2013, MichiganVotes.org Weekly Roll Call

… Senate Bill 157 and House Bill 4172: Repeal “prevailing wage” law Introduced by Sen. Arlan Meekhof (R) … Price (R), respectively, to repeal the state “prevailing wage” law, which prohibits awarding government … the lowest bid unless the contractor pays "prevailing wages," which are based on regional union pay scales …

Labor Expert Addresses Prevailing Wage

… people Monday night at a meeting regarding prevailing wages and a proposed new jail in Muskegon County, according to MLive. “Essentially prevailing wage costs taxpayers and it takes out competition,” … Mackinac Center analysts have shown that prevailing wage increases the cost of publicly funded projects. …

Lansing Builds a 'Scaffolding for Plunder'

GOP Representative supports

… argument for leaving it to the private sector. In units with local prevailing wage laws, money may be wasted simply paying union scale wages for the construction projects and due to distortions that arise when government …

'Birthday Tax' Unveiled in Lansing

… be to enact money-saving reforms, such as eliminating a so-called “prevailing wage” law that prohibits granting government construction contracts (including … bridges) to the lowest bidder unless the company pays above-market union wage scales. Spending gas tax money on non-motorized transportation projects …

Bay City Repeals Prevailing Wage Ordinance

… to repeal that city’s prevailing wage ordinance, something no … done, to our knowledge. A prevailing wage law mandates union scale wages on government funded construction … $100,000 exempt from the prevailing wage ordinance. I covered that … titled “Bay City Amends Prevailing Wage Ordinance.” It was expected …

Bay City Amends Prevailing Wage Ordinance

… voted to amend the city’s prevailing wage ordinance to exempt contracts … significantly — eliminates the prevailing wage mandate when Bay City … meeting this month. A prevailing wage law mandates that union-scale wages be paid on construction work … Federal, state and local prevailing wage laws can exist simultaneously. …

Kersey: End Prevailing Wage

… Director Paul Kersey in this Detroit Free Press Op-Ed calls for an end to prevailing wage in Michigan. You can read Kersey's study about the effects of the state's prevailing wage law, including additional costs to taxpayers, here.

PLAs: Some Good News for Taxpayers

No more directing construction work to union companies

… to the cost of construction. That's on top of the 10 percent that prevailing wage laws add. Which leads to the next task for the Legislature, repealing the state's prevailing wage law. But we're in a generous mood, so that can wait until after they …

Obamacare: "Final Report of Stakeholder Work Group Recommendations"

Text of Michigan Department of Community Health Document

… that led to the recommendation that there be a single state Exchange prevailed here. Administrative efficiency and avoiding the cost of separate entities … treasury data includes—and Bridges may supply—residency status. 3. Quarterly wage reports may supply employment status. 6/17/2011 Technology Work Group 31 …

Poached Goose Eggs

Granholm's record and the case for right-to-work

… been a spending-cutter, government employee compensation continued to rise beyond what was affordable, and labor union payoffs like the state’s prevailing wage law were not open to debate. Granholm may wish to ignore the whole subject of labor relations in order to avoid creating embarrassment for one …

Teacher Strikes, Prevailing Wage

… (the MEA) are very well-financed and deeply entrenched in the school districts.” Kersey also told The Daily Caller that overturning Michigan’s prevailing wage law could save taxpayers about $250 million a year.

On (Recent Events in) Wisconsin

… changes to the Emergency Financial Manager law that will allow EFMs to set aside union contracts, and legislators are poised to consider repeal of prevailing wage laws and binding arbitration for police officers and firefighters. Throughout the upper Midwest, and Michigan is no exception, labor unions have …

Bigger Fish to Fry

Proposal to end the Civil Service Commission doesn't quite get to the real problem

… small amounts. We estimate that the state’s prevailing wage law, which mandates the payment of union-level wages on state construction contracts, costs $200 to … quality of construction and minimal benefit to low-wage workers. And normalizing public-sector benefits, …

Prevailing Against Prevailing Wage

Law forces taxpayers to spend millions more than necessary on state projects

… has been introduced to repeal the state’s prevailing wage law, according to The Saginaw News. Paul … Michigan Legislature recently that the state’s prevailing wage law costs taxpayers an additional $200 million … million a year because the law requires union-scale wages be paid on all construction projects involving …

Kersey Testifies on Prevailing Wage

… and Ethics Committee regarding Michigan’s prevailing wage law, according to both MIRS Capitol Capsule and Gongwer News Service. Prevailing wage dictates that union-scale wages be paid on construction projects involving taxpayer …

MichiganVotes.org Feb. 18 Weekly Roll Call Report

… state money would still be subject to the “prevailing wage” law, which prohibits awarding government … bidder unless the contractor pays so-called "prevailing wages" based on union pay scales, which are generally … Bill 95 and House Bill 4224 would repeal “prevailing wage”. Referred to committee, no further action …

A Reform Movement Is Born

Lawmakers in Ohio, Wisconsin and Michigan zeroing in on the union establishment

… a bill to repeal the state's prevailing wage law, which prohibits granting … unless the company pays union scale wages. Enacted at a time when unions made … they all tend to make above-average wages anyway.  Rep. Price's bill would allow … basically limiting negotiable subjects to wages, and limiting pay hikes to the rate …

MichiganVotes.org Feb. 4 Weekly Roll Call Report

… benefits, repeal the state “prevailing wage” law and more. House … the penalty by working for no wage at a non-profit organization, … Senate Bill 95 (Repeal “prevailing wage” law) Introduced by Sen. … to repeal the state “prevailing wage” law, which prohibits … the contractor pays "prevailing wages," which are based on …

'Hire Michigan' Won't Increase Hiring in Michigan

… with if those companies hire Michigan-based workers would increase costs, Fiscal Policy Director Michael LaFaive told WEYI-TV25. “We know that prevailing wage adds 15 percent to 20 percent to the cost of constructing new school buildings, for instance,” LaFaive said. While LaFaive thinks such a law …

Saginaw Fails to Repeal Prevailing Wage

… scheduled vote to repeal its “prevailing wage” ordinance for construction … costing more than $50,000. Prevailing wage laws prohibit granting … above-market, “union-scale” wages. In addition to state and federal prevailing wage laws, around 30 local … research indicates that prevailing wage laws increase the cost …

All The Cool Guvs Are Doing It

Challenging the unions, that is

… illegal, and back up that prohibition with the termination of striking government employees. Finally, Kasich proposes that the state repeal its prevailing wage law. Add in the example of Indiana, where Gov. Mitch Daniels ended state employee collective bargaining via executive order, and Michigan is …

Editorial: End PLAs

… drives up prices for government construction projects due to the “prevailing wage.” The editorial cites a study done more than a decade ago by Richard … an adjunct scholar with the Center. More information on Michigan’s prevailing wage law can be found here.

A MichiganVotes.org Apology to Rep. Dave Agema

… (Require photo on welfare "bridge cards") House Bill 5594 (Mandate public schools privatize non-instructional services) House Bill 5523 (Repeal "prevailing wage" law) House Bill 5351 (Authorize MEGA tax breaks for select "multimodal commerce" firms) House Bill 5291 (Withhold unemployment benefits if …

Benefits, Not Salaries, Key to School Costs

… Other areas where public schools could reduce overspending, Van Beek noted, include privatizing non-core support services, repealing the state's prevailing wage law that forces schools to spend an additional $250 million a year on construction, and embracing schools-of-choice.

Superintendent, Teacher Pay

… for school employees. Other ways schools can save a larger amount of money include privatizing non-core support services, repealing the state's prevailing wage law that forces schools to spend an additional $250 million a year on construction, and embracing schools-of-choice.

Gas Tax Hike Another Obstacle to Recovery

… Another big chunk of the road money gets sucked into an unconscionable transfer of wealth from taxpayers to union interests in the form of "prevailing wage" laws, "project labor agreements," etc. Plus, Michigan's state and local government full-time employees are getting $5.7 billion more in benefits …

Center Cited in Detroit, Grand Rapids

… Rapids Press highlights a 2007 Mackinac Center study on Michigan's prevailing wage law and calls for the act's abolition. "The Effects of Michigan's Prevailing Wage Law," by Labor Policy Director Paul Kersey, examines the rationale …

Center Cited on Prevailing Wage

… Paul Kersey, director of labor policy for the Center, that found Michigan's public schools could save about $250 million a year if the state's prevailing wage law was overturned.

Mackinac Center in the News

… the Detroit Free Press regarding a push in Oakland County to pass a prevailing wage ordinance. Kersey's 2007 study on the issue showed that Michigan's prevailing wage law increased costs needlessly, especially for public schools. An …

Foul Ball

The Tigers don't quite make contact with the ticket tax

… programs, and reforming expensive but non-productive laws like the prevailing wage (which adds upwards of $200 million to state construction annually) … Relations Act (PERA is responsible for hundreds of millions annually in inflated wage and benefit costs.)   It’s perfectly understandable that the Tigers would …

Is MSU Hyping Project Labor Agreements?

School of Labor Relations holds conference on controversial construction rules

… contractors receive more than enough protection under the state's prevailing wage law, which mandates union wages on state construction and adds 10 percent to the cost of government construction. …

State or federal, protectionism hurts

… exceptions. The bills also impose “prevailing wage” provisions favored by unions on state contractors. (Prevailing wage is a law that prohibits awarding … the contractor pays so-called "prevailing wages" based on union pay scales in … or without the discriminatory prevailing wage provision, such mandates increase …