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Michigan appeals court declines invitation to repeal prevailing wage

Date Posted: August 5 2005

LANSING - The anti-union Associated Builders and Contractors are on a seemingly unending mission to repeal Michigan's Prevailing Wage Act.

But after a July 19 ruling by the Michigan Court of Appeals, their efforts continue to be a case of mission impossible.

A three-judge Court of Appeals panel squarely upheld the statute. The court unanimously disagreed with the ABC's contention that the state's prevailing wage law is unconstitutional. The appellate court cited state legal precedent and stated: "Having considered the merits . . . we conclude that the PWA does not unconstitutionally delegate legislative authority to private parties, and . . . that the PWA is not unconstitutionally vague . . ."

Michigan Building Trades Council attorney John Canzano, who has been arguing the case, expanded on the judges' ruling. "The ABC's beef with the prevailing wage law basically comes down to the fact that they don't like it. The court's response was that if you don't like the law, you need to go to the legislature to get the law repealed. And the ABC keeps striking out with the legislature."

The ABC has dragged this case through three different courts and at least four separate court hearings. The next stop is probably a return visit to the Michigan Supreme Court.

There is no other law on Michigan books that has such a vital implication for the living standards of the state's construction workers, both union and nonunion.

Here is a short history lesson on the case:

The ABC originally filed a lawsuit in what it expected would be an employer-friendly Midland County Circuit Court in 2000, alleging that the Prevailing Wage Act is unconstitutional under Michigan law. The Midland court gave the ABC a partial victory, but when the case first went to the Michigan Court of Appeals, the legal panel ruled against the ABC in August 2003.

The panel ruled that the law is not "impermissibly vague" as the ABC alleged and that the (financial) injuries sought by the ABC "are at this point merely hypothetical."

On Dec. 9, 2004, the Michigan Supreme Court heard arguments from attorneys for the ABC and the Michigan Building Trades Council together with the State of Michigan on whether the ABC-Saginaw Valley Area Chapter had the legal standing to go to the courts to challenge the legality of the state's prevailing law.

The high court did rule that the ABC had legal standing and was affected by the law. However, on the issue of whether the Prevailing Wage Act is unconstitutional, the court sent the case back to the Court of Appeals for a ruling. With that ruling being made, the ABC will likely take the case back to the state's highest court.

While the Michigan Supreme Court has been notoriously conservative over the past several years, Canzano expressed confidence that they won't overturn the Appeals Court ruling.

"I think that the Appeals Court wrote their decision in such a way that the Supreme Court will likely agree with it," Canzano said. "Over the years, this Supreme Court has indicated that they're here to interpret the law as written, not rewrite the law or make new law. I'm encouraged by that."

In issuing a statement on this case, Michigan Appeals Court judge William Whitbeck wrote: "…Since 1972 there have been 13 proposed amendments to exempt certain projects from the Prevailing Wage Act. During the same time period there have been 10 attempts to repeal the act. However, no proposed amendment, or repeal of the act has passed.

"In essence, the Saginaw ABC invites us to do what the legislature has refused to do: repeal the Prevailing Wage Act. As is clear from the majority opinion, today we have declined that invitation."