Lansing’s Pro-Union Policy Shift
Lansing’s Policy Shift: A Looming Threat for Merit Shop Companies
As Lansing, Michigan, steers into a new political era, the city’s recent policy changes are sending ripples through the local business community, particularly impacting merit shop companies. These businesses, known for their competitive, non-union work environments, are now facing an increasingly challenging landscape. Recent legislative developments and regulatory shifts are poised to redefine the operational terrain, potentially stifling the flexibility and autonomy that merit shop companies have long enjoyed. With new policies tightening labor regulations and altering workforce management practices, the once-promising climate for merit-
based business models is starting to look decidedly uncertain. As Lansing transitions through these changes, the road ahead for merit shop companies seems fraught with potential hurdles, signaling a turbulent period for those who have thrived on a foundation of meritocratic principles.
What Has Happened?
Michigan Democrats took control of both the House and Senate Chamber while also holding the Governor’s office
When President Joe Biden said he would be “the most pro-union President leading the most pro-union administration in American history,” the Michigan legislature was clearly listening and has decided to follow suit.
Repeal of Right to Work and reimplementation of Prevailing Wage within the first four months of taking over the legislature in January of 2023.
Strengthening prevailing wage by passing a bill to implement a yearly pre-registration process to bid prevailing wage work.
What May Still Happen?
Barrage of union friendly bills waiting to be passed this fall.
Independent contractor reform bills have been introduced that could significantly limit your ability to use 1099 employees. Under the bill, workers are presumed to be employees and employers are required to bear the burden of proof by a preponderance of evidence that they did not misclassify someone as an independent contractor. The bills also implements fines for misclassification including prison time.
Apprenticeship ratio changes have been proposed that would cut the use of apprentices on a jobsite by 66% or more by limiting electricians to a 1:1 ratio and plumbers to a 2:1 ratio. This would be done at a time when ABC National estimates the national skilled trades worker shortage at nearly 500,000 workers per year. The bills would also implement fines and even give the department the ability to suspend your license.
The Fair and Open Competition in Construction Act protects Michigan’s construction industry from the State of Michigan requiring contractors and sub-contractors to sign discriminatory Project Labor Agreements to do state funded work. A Democrat introduced bill would repeal FOCA and allow the government to require PLA’s which are a form of collective bargaining agreement. These agreements would require your non-union company to pay into the union pension and healthcare funds for the duration of the project. PLA’s can also bar any non-union apprentices from a jobsite.
