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Earlier today, Gov. Gretchen Whitmer announced that she was bypassing the Michigan Legislature and the normal constitutional process by ignoring state law and reinstating a prevailing wage mandate for state construction projects. The Mackinac Center for Public Policy has done extensive research on the impacts of prevailing wage and supported its repeal in 2018.
The following is a statement from Steve Delie, director of labor policy at the Mackinac Center.
When the UAW was building a retirement cottage for their corrupt former president, they put it out for competitive bidding — rejecting two pricey union-only bids to go with non-union labor. The Mackinac Center also believes that all work should be put out for competitive bids, and the state should pay the best price for the best work. It's unfortunate that Gov. Whitmer wants to slant the process for unions.
After Michigan got rid of its anti-competitive prevailing wage law, state construction jobs and wages both increased significantly. Reinstating prevailing wage is a misguided decision that will hurt small businesses and increase taxpayer spending. At a time when Michigan should be focused on economic recovery, Gov. Whitmer is instead choosing to favor unions — who represent only a small percentage of construction workers — at the expense of taxpayers.
You can read more about the Mackinac Center’s work on prevailing wage here.
Steve Delie is available for comments and interviews. Please contact Holly Wetzel at wetzel@mackinac.org.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
Please consider contributing to our work to advance a freer and more prosperous state.
