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Revival plan for state focuses on construction spending

Date Posted: March 18 2005

LANSING - How can Michigan's workers survive and attempt to thrive in an incredibly difficult economic environment?

There weren't any easy answers to that question, but speakers at the 47th annual Michigan Building and Construction Trades Council Legislative Conference attempted to shed some light on the subject.

"We have been actively attempting to increase market share for our members," said Tom Boensch, the council's secretary-treasurer. "We have a lot of work ahead of us."

Indeed. Rocked by a statewide unemployment rate of 7.1 percent - the highest in the nation - Michigan is also beset by chronic budget deficits that hamper taxpayer-funded construction activity, a listless domestic auto industry, and the outsourcing of good jobs to foreign nations that has led to closed plants here and fewer work opportunities in the building business.

Politically, President Bush has chosen to first solve the future crisis in Social Security while Medicare, Medicaid, prescription drugs and other health care costs are eating away at wages and the U.S. economy right now.

On the state level, there are 40 new state lawmakers this year, whose agendas are unclear. Anti-prevailing wage legislation and proposals to make Michigan a right-to-work state are perennially in the hopper. There is also a proposal afoot to limit union-friendly project labor agreements on public-sponsored construction projects.

Such legislation wouldn't pass because of a certain veto by Gov. Granholm, but the anti-union proposals are continually brought up to remind everyone that those back-burner issues aren't far from the front burner.

In addition, the money available to rebuild Michigan's roads is significantly out of whack with the needs in the state.

Boensch said Granholm's January State of the State message provided a good starting point for improving Michigan's business climate. He urged support for Granholm's proposal to spend $800 million per year for three years on new construction activity - about half on state roads and half on state university upgrades

Over a longer term, he also pushed for support for Granholm's five-year, $2 billion bond proposal that will focus on improving state-owned facilities - "that means jobs for our members," Boensch said. He also called on supporting Granholm's proposal to increase the minimum wage.

On the federal level, Boensch said unions need to "support the strategies we already have," including those that support union pensions, good wages, Social Security and Medicare.

State Sen. Virgil Bernero (D-Ingham Co.) told delegates that he is often asked by constituents why state Democrats and Republicans can't get more done together.

"The reason is, there's a fundamental difference in philosophy between Democrats and Republicans," he said. "Democrats are for working men and women, Republicans are for the rich. That was true when I was in fifth grade and it's true today."

State House Democratic Leader Dianne Byrum said in Michigan, all the political news wasn't doom and gloom for Dems, who picked up five seats in the state House last November. She said House Democrats won seats in districts carried by President Bush.

"It takes a grassroots effort, it takes going door to door; it makes all the difference in the world," she said.

Even though Democrats continue to be a minority in the state House and Senate, Byrum said Dems still plan to "play offense," by pushing for an increase in the state minimum wage, lowering health care costs and getting the word out about why making Michigan a right-to-work state is a bad idea.

Kelly Keenan, legal counsel to Gov. Granholm, said Michigan is today faced with a "historic challenge" to make the state budget work and to lower statewide unemployment. Construction workers would be one of the main beneficiaries of a major portion of Granholm's spending plan.

"The governor's 'Jobs Today, Jobs Tomorrow' program is a simple plan to accelerate state spending on infrastructure, and to improve parks, brownfield sites, roads and bridges," Keenan told delegates. "Our plan to spend $800 million per year should result in the creation of 36,000 good-paying jobs over the next three years."

Keenan said the other part of the Granholm's plan is to "accelerate" the state's economy and create jobs is to institute a $2 billion bond issue that will pay for other infrastructure improvements.

"The plan is to build on Michigan's strengths: auto research and design, life sciences, homeland security," which will lead to diversifying the state's economy with good-paying jobs, Keenan said.

Former Plumbers, Pipe Fitters and Service Trades Local 174 Business Manager Doug Bennett retired from his union position and decided to run for the state representative in the 92nd District State House. He won the Muskegon-area seat - and became one of the few building trades workers to win such a high office.

"I wouldn't be here today if it weren't for you," Bennett told delegates. "I'm going to fight for what we believe in as organized labor. The things we fight for are good for everybody."

Bennett said the role of Democrats, "is to question what Republicans put forth - and that's a pretty easy thing to do." Using the attacks on prevailing wage and the tax structure as examples, he said Republicans have taken up the role of "taking from the least among us and giving to the most among us. My job is to see that government does the opposite."

MIOSHA Director Doug Kalinowski told delegates that a female electrician recently "got all defensive" when he asked her about wearing personal protection equipment. He said it's common for workers and employers to regard MIOSHA with suspicion.

"Working men and women in this state should not be afraid of MIOSHA," Kalinowski said. "MIOSHA is here to help."

He said MIOSHA is keenly aware that the construction industry accounted for more than half of all on-the-job fatalities in Michigan last year. The state safety agency, he said, is continually trying new outreach and education efforts to help workers, most recently in the areas of asbestos awareness, excavations and falls.