Senate panel moves to repeal MI’s prevailing wage

LANSING, Mich. — Senate Republican legislation to repeal Michigan’s outdated prevailing wage law and help schools and communities save money was approved by the Michigan Competitiveness Committee on Wednesday.

Sen. Peter MacGregor, R-Rockford, sponsored one of the bills in the three-bill package.

“Repealing Michigan’s prevailing wage law is good for the economy, encourages competition and job creation, and, importantly, will help keep more tax dollars in the classroom,” said MacGregor. “This is yet another smart reform that will help foster a modern, 21st century economy and continue Michigan’s comeback.”

The existing prevailing wage law requires all construction firms at state-funded worksites to pay employees union scale wages, which costs taxpayers, schools and local communities more money than would allowing the construction market as a whole to determine wages.

Senate Bills 1-3 repeal the state’s prevailing wage law, remove the law from the list of applicable laws that public schools must follow, and remove the requirement that public economic development corporations adhere to the prevailing wage law when determining project wages and benefits.

“It simply does not make sense for taxpayer-funded construction projects to cost more than others for no other reason than the government says so,” MacGregor said.

SBs 1-3 now advance to the full Senate for consideration.