Bills that repeal standardized labor regulations and protections for nonunion contractors and construction workers on public projects could come up in the state Legislature before Michigan’s Democratic trifecta loses control.

Senate Bills 170 and 171 would repeal the Fair and Open Competition in Governmental Construction Act and the Local Government Labor Regulatory Limitation Act, replacing the state’s uniform standard on wage and benefit regulations with a patchwork of rules.

Although the bills have been sitting idle for more than a year, they are on the watch list during Michigan’s frenzied lame-duck session as the sun sets on Democratic control of both chambers of the Legislature and governor’s office.

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Supporters say the bills, nicknamed “Death Star” legislation, would allow local governments to set labor and workforce policies, giving them authority over local public projects, wages and labor conditions.

Opponents – which include some of the state’s Chambers of Commerce, trades, and home builders’ associations – say it paves the way for discrimination in public projects.

The bills, if passed, would open the door for local Project Labor Agreements and local government’s ability to set labor standards, including higher-than-state-minimum wage and other benefits.

As it stands now, current law protects all Michigan construction workers, apprentices, and businesses from being discriminated against and denied work opportunities based on their labor status.

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According to the Legislative Analysis, “If a local governmental unit, school district, or the State were to include provisions in contracts, it could reduce the number of eligible contractors resulting in higher bids and higher contract costs.”

The proposed Senate Bill 170 would allow government entities to mandate Project Labor Agreements, which are controversial collective bargaining agreements on a specific construction project.

“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,” the organizations in opposition of Senate Bill 170 wrote in written testimony.

The National Federation of Independent Business Michigan opposes both bills. The NFIB contends a repeal of the project labor agreements ban would hurt small companies and shut out local businesses.

A number of other business organizations, including the American Subcontractors Association – Michigan, the Small Business Association of Michigan, the Michigan Chamber of Commerce and Grand Rapids Regional Chamber, the Home Builders Association of Michigan, the Michigan Minority Builders Association, and the Michigan Infrastructure and Transport Association, among others, submitted written testimony against Senate Bills 170 and 171, and identical bills introduced in the House.

The SBAM says Senate Bill 171 “would allow Michigan’s 1,800+ local units of government to enact their own regulations governing minimum wage, sick leave, and other labor requirements.” Current Michigan law sets a consistent regulatory framework across the entire state.

“For small business owners, who seldom have the time or resources to closely track the ever-changing whims of local officials, this bill would destabilize and complicate the environment in which they do business,” the SBAM explained in this 2024 Legislative Watchlist.

Those in opposition of PLAs say they are problematic for several reasons, including excluding qualified apprentices who are not part of union apprenticeship programs. Registered programs through community colleges, company training programs, and trade school programs are all excluded.

Other issues include double fringe benefit costs, wage theft, mandated union agreements, and increased construction costs. Research has shown government-mandated PLAs can increase public construction projects by 12% to 20%.

“Embracing government neutrality instead of mandating PLAs allows all contractors, workers, and apprentices, regardless of their union affiliation, to compete on a level playing field,” they wrote. “It also protects taxpayers from higher costs and lower quality work.”

Regarding Senate Bill 171, they argued that giving local governments control over employment-related rules and regulations would be a “bureaucratic, red-tape nightmare for business owners and employees.”

The bills, both sponsored by Sen. Sean McCann, D-Kalamazoo, were first introduced in March 2023. Members of the Senate Labor Committee voted along party lines to advance the bills in September 2023. They were referred to the Senate floor with recommendation that they pass.

Labor Committee Chair John Cherry, D-Flint, who co-sponsored both bills in the Senate, said these changes are intended to protect workers.

“When you talk about the ‘Death Star’ legislation from, you know, nearly a decade ago, we saw Texas passed that same legislation this year. Right, and what’s happened? Construction workers die. You know, they’re not getting water breaks,” Cherry told Michigan Advance.