Skip to main content

Michigan House moves to outlaw prevailing wage and living wage, But Granholm pledges a veto

Date Posted: March 7 2003

LANSING - Is there any hope that with terms limits, retirements and the infusion of a lot of new blood among state lawmakers beginning this year - including 50 freshmen in the House - that there would be a kinder, gentler attitude towards Michigan's working people?

Nahh. It's worse.

After being on the job for only a month this session, the Republican-led Michigan House on Feb. 25 passed a measure that would prohibit local governments from instituting or enforcing "living wage" standards. Only four Republicans voted with a unanimous group of Democrats against the bill

With the non-specific language in which House Bill 4160 was written, a municipality could easily interpret from this bill that in addition to living wage laws, adoption of local prevailing wage laws are now prohibited by the state. So an amendment was quickly inserted by Democrats that would have specifically exempted prevailing wage from being a target of the bill.

That amendment once again garnered the support of all Democrats in the state House, and this time, seven Republicans voted for it. But the amendment was still defeated, 55-54. The bill now goes for review before a subcommittee in the Michigan Senate.

"Republicans know that Gov. Granholm will veto this bill," said Michigan AFL-CIO Legislative Director Ken Fletcher. "By attacking living wage and prevailing wage, Republicans are just showing their friends in the Chamber of Commerce that they're delivering for them."

Genna Gent, a spokeswoman for Granholm, confirmed that the governor will veto the bill. "The governor believes local communities should be able to make their own decisions on this matter," she said.

In Michigan, 13 local governments have instituted living wage ordinances. Such laws require businesses in that community to pay their workers a "living wage," which can range from $8 per hour and higher. And federal, state and local prevailing wage laws uphold pay and benefit standards for construction workers.

House Bill 4160 is similar to bills that have been floated by Republicans over the last two years, but they were unable to muster enough votes for passage. But Republicans gained five seats in the House in the November election, increasing their majority.