As it battles Right to Work, Ohio watches Michigan unions preparing for fight to protect prevailing wage law

As the Right to Work battle heats up in dead of winter in Ohio, unions here are watching developments in neighboring Michigan over Prevailing Wage laws.

The topic has become a hot button issue in a number of states including Michigan, Pennsylvania and Delaware.

Advocates feel that organizations attacking Prevailing Wage laws, like the Associated Builders and Contractors of Michigan, are only trying to pocket profits and lower wages and benefits for workers.

Unions point to the Washington D.C.-based Economic Policy Institute as proof that prevailing wage laws don’t increase government contract costs noting that labor expenses comprise about a quarter of construction costs and contractors could cover these higher costs out of their profits instead of passing them along to the government.

“A strong middle class is dependent on prevailing wage law,” said Pat Sink, Ohio’s IUOE Local 18’s business manager. “An educated voter base is just as important to this topic as it has been in our fight against Right to Work laws.”

The higher wages provided by prevailing wage law can also be attractive to higher quality workers, offsetting costs by increasing productivity.

Following the passage of Right to Works laws in 2012, Michigan labor supporters are convinced repealing prevailing wage laws would further damage the state’s economy, an economy that is reeling from the recent bankruptcy approval for Detroit.

According to the Michigan Department of Licensing and Regulations, the Prevailing Wage law covers construction workers employed on state financed or sponsored construction projects. Under this act the Wage and Hour Division establishes wage and fringe benefit rates to be paid to construction workers on state projects.

The prevailing wage rate also extends to carpenters, plumbers and electricians.

SOURCE:  Keep Ohio's Heritage

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