It was an action-packed week in Lansing, as many high-profile issues were brought before the state Legislature. Among them were key Detroit Regional Chamber- and regional business-relevant issues, like the repeal of “right-to-work” and prevailing wage and expansion of the Elliott-Larsen Civil Rights Act. Here’s what business leaders need to know about the progress.
WHAT: “Right-to-Work” Repeal and Prevailing Wage
STATUS: This legislative package passed the Michigan House and now goes to the Senate for further action. It would repeal the law that prohibits public and private unions from requiring that non-union employees pay union dues even if the union bargains on their behalf, and reinstitute prevailing wage and benefits on any government-funded construction project.
WHY IT MATTERS FOR BUSINESS: If Michigan repeals “right-to-work” and reverses course on prevailing wage, it will weaken its competitive business climate and require more costly and time-consuming incentives to secure business attraction and economic development wins.
It will also amplify the state’s key competitive disadvantage: inconsistency. Seemingly every new governor and legislature enacts a new approach to economic development that sometimes drastically changes what it is like to do business in the state. Michigan needs every advantage it can secure in this race for the future and must uphold its current advantages to which businesses have become accustomed.