We are reaching out to you today regarding an urgent matter that requires your collective attention and action.

Senate Bill 170 and House Bill 4231, currently under consideration in the Michigan Legislature, would drastically impact the construction industry in the state by repealing the Fair and Open Competition in Governmental Construction Act. Current law protects all Michigan construction workers, apprentices, and businesses from being discriminated against and denied work opportunities based on their labor status. No one should be denied equal access to opportunity because they decide to affiliate with a labor union or not affiliate with a labor union.

What Do SB 170 and House Bill 4231 Do:

• Blocks Qualified Apprentices: Because collective bargaining agreements only cover union apprenticeships, PLAs result in apprentices being utilized exclusively from union apprenticeship programs. Unfortunately, apprentices in U.S. Department of Labor registered programs through community colleges, universities, company training programs, and trade school programs are all excluded. 
• Double Fringe Benefit Costs: Nonunion companies already paying employee healthcare and retirement costs for their employees must also pay union pension and healthcare plans as required by the terms of collective bargaining agreements. This forces employers of nonunion workers to pay “double benefits” into plans in order to keep their employees’ health coverage and retirement plan in place, as well as paying into the union plans. 
• Wage Theft: Employees of nonunion contractors who are forced to perform under government-mandated PLAs must also cover employee contributions into union benefits plans that they can never access unless they join a union and vest in the union plans. 
• Mandated Union Agreements: PLAs typically require companies to agree to recognize unions as the representatives of their employees on that job even though they never voted to form a union.
• Worker Referral Concerns: PLAs use the union hiring hall to obtain most or all workers, meaning non-union companies often have unfamiliar workers they never hired working for them on a jobsite instead of their employees being able to perform work.
• Increased Construction Costs: Government, academic, and private research has shown government-mandated PLAs can increase the cost of taxpayer-funded construction by 12% to 20%. 

We urge you to take a stand against this detrimental bill by sharing your personal stories, experiences, and concerns with lawmakers. Your voices matter, and by expressing your opposition directly to legislators, you can help influence the outcome of this critical issue.

To read the full text of Senate Bill 170 and House Bill 4231 and understand its implications, please visit the official Michigan Legislature website here:

Senate Bill 170 of 2023 - Michigan Legislature

House Bill 4231 of 2023 - Michigan Legislature

Let's join forces to ensure that our voices are heard and that the best interests of ABC Michigan members are represented.