Prevailing wages benefit customers and taxpayers in Michigan

Michigan’s prevailing wage law protects paychecks, defends taxpayers and creates American jobs. 

If corporations successfully block Michigan’s prevailing wage law, it will destroy jobs and cost taxpayers millions of dollars. That’s because in other states when prevailing wage laws were repealed, corporations did not pass the savings from pay cuts on to taxpayers:

  • When comparing Michigan, Ohio, and Kentucky, there were no statistically significant differences between public schools built with or without prevailing wage laws.
  • After repeal in Utah, the state budget did not benefit and they lost substantial income tax and sales tax revenue, in fact total cost overruns on state and road construction tripled.
  • In the Great Plains, there was no money saved for taxpayers, as school construction costs were virtually identical in states with or without prevailing wage laws.

Moreover, Michigan workers should be working in the safest environment possible.  Prevailing wage laws ensure that this is possible:

  • In Utah after they appealed their prevailing wage law, occupational injuries in construction rose by 15%.
  • In a study comparing Kansas with 15 other Plains states, serious injury rates in construction rose by 21% after repeal of the prevailing wage law.
  • Kentucky’s serious injury rate rose by 11% after the repeal of their prevailing wage law.

Finally, it is important to keep apprenticeship programs at high standards, as this means well-trained workers and higher quality infrastructure for Michigan.

  • After repeal of their prevailing wage law, Kansas saw their apprenticeship-training fall by 38%.
  • After the prevailing wage law was repealed in Kentucky, minorities in construction apprenticeship fell by 19%.

Michigan’s prevailing wage law has been protecting paychecks, defending taxpayers, and creating good jobs for decades. With our economy still sputtering, the last thing middle-class families need is a pay cut for working people. Blocking the payment of prevailing wages will destroy good jobs, while handing more of our tax dollars to corporate CEOs.

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  1. […] Now, Michigan’s Laborers’ Union-affiliated Labor-Employers Cooperation & Education Trust (LECET) has weighed in on the debate with some striking facts that we could not help but share. Debunking the myth of heightened project cost has already taken place — see Belman’s piece, for one — but information about safety, training and hiring practices is less discussed. Michigan’s LECET addresses these aspects in their post: […]

  2. […] Michigan’s LECET addresses these aspects in their post: […]

Mission
To leverage the skills and resources of Michigan Laborers and its union employers to build our state, and to work as a team to secure projects and jobs, increase union-sector market share, advertise their services, develop a workforce, and advance shared market-related interests. Together, Michigan LECET looks down the road, sees where the construction industry is going, then musters their resources to make the most of the future.