Thursday
morning, the Senate passed a three-bill package, SB 1, SB 2, and SB 3,
repealing prevailing wage. Each bill passed the full Senate on a 22-15 vote.
Democrats in the Senate voiced their opposition to the bills stating that repealing this law will lower wages of Michigan workers and hurt Michigan families. The other side of the argument, however, disagrees, thinking that prevailing wage laws cost taxpayers hundreds of millions of dollars each year.
Before the vote in the Senate, Democrat Senator Rebekah Warren (D-Ann Arbor) attempted to introduce an amendment removing an appropriation from the package. She argued an appropriation passed in legislation prevents the legislation from potentially facing a voter referendum. The amendment failed, while the Republicans claim the monies will be used to educate the public about the significant change to the law.
A recent report offered by East Lansing based Anderson Economic Group, suggests that Michigan could save about $225 million a year if there was not a prevailing wage. The study was commissioned by the Associated Builders and Contractors who have been very supportive of this repeal.
Some of the opponents that fear public work will become about the price point and not the quality of work. Others suggest you will see less contractors bidding on public projects because they cannot compete with prices.
Supporters of the legislative package suggest that without the repeal, Michigan is at a competitive disadvantage as only a few states have a prevailing wage, and those without it, tend to attract a more skilled and competitive workforce.
Either way, the bill package now heads over to the House of Representatives where it will be reviewed in committee prior to all 110 members having the opportunity to vote on this package.