PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN WINTER 2012
Labor law update
Also: How to Move Michigan Forward Annual Report: Monumental Year for ABC in Michigan
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Inside
4 Executive Perspective ABC is fighting to make 2012 a year of positive action, greater successes and lasting reforms.
5 Feature Article
Labor Law Update
New regulations for union elections adopted by NLRB. Also, NLRB requires employers to post an extensive notice informing their employees of certain labor law rights effective April 30, 2012.
10 The State of our State:
How to Move Michigan Forward
Gov. Snyder has made progress in getting the state back on track. He will honor that progress — and the people of Michigan — if he continues to streamline an expensive and demanding state government.
14 ABC of Michigan Annual
Report: A Monumental Year for Merit Shop Construction
The efforts of members and staff over the last two years gave ABC the momentum it needed to make the most sweeping changes in its nearly 50 years for the Merit Shop Construction Industry in the state. VOLUME V, ISSUE. 4
19 Advertisers Index
New NLRB regulations change the course of labor relations for 2012 and beyond.
Government Affairs Update 12
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Snyder signs bills to update workers’ comp, unemployment insurance systems
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Top 10 reasons to repeal Prevailing Wage in Michigan Winter 2012 3
ASSOCIATED BUILDERS and CONTRACTORS of MICHIGAN 2012 BOARD of DIRECTORS Dave Mollitor – Chairman Consolidated Electrical Contractors – Greater Michigan Chapter Chris Beckering – Vice Chairman Pioneer Construction – Western Michigan Chapter Dave Sheffield – Secretary/Treasurer Onslow-Sheffield – Southeastern Michigan Chapter Jim Cripps – Past Chairman Cripps Fontaine Excavating, Inc. – Western Michigan Chapter
Key developments that affect your bottom line
Rick Jackson Jackson Associates, Inc. – Southeastern Michigan Chapter
One of the primary objectives of this magazine is to provide ABC members with key governmental, economic and labor law developments.
Mike Kelly Wolverine Building Group – Western Michigan Chapter Rod Kloha Circle K Service Corp. – Greater Michigan Chapter Bill Molnar Wm. Molnar Roofing, Inc. – Southeastern Michigan Chapter Dan Murphy MAG Insulation – Greater Michigan Chapter Brian Stadler Wolgast Corporation – Greater Michigan Chapter Jack VandeGuchte Sobie Co., Inc. – Western Michigan Chapter Dan Welch Welch Tile & Marble Company – Western Michigan Chapter Michigan Merit Contributors Publisher: Christopher Fisher Managing Editor: Mary Boardway, CAE Communications Coordinator: Kelly Dancsok ABCMI Economist: Don Wilson Advertising: Arion Media Printing: Bradford Printing Michigan Merit (ISSN# 1938-9051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 230 N. Washington Sq., Suite 202, Lansing, MI 48933, (517) 853-2545. Please direct all inquiries to the previous address. Articles written by outside authors do not necessarily reflect the views of Associated Builders and Contractors Inc. of Michigan. ABC of Michigan reserves the right to reject or edit all material submitted for publication. The appearance of an advertisement in Michigan Merit does not constitute endorsement of the advertiser, its products or services, nor do Michigan Merit or Associated Builders and Contractors Inc. of Michigan guarantee or warrant any claims or offers made by the advertisers.
There are certainly a lot of moving pieces that fall into one or more of these three categories. And they all affect the bottom line of your business, as well as the ongoing strength of our economy, state and nation. As you will see on the pages of this edition of Michigan Merit, there have been a lot of recent developments, with still more come. As this year unfolds, we hope you will count on ABC to provide you with information that will help keep you ahead of the curve and ensure you have what you need We will never sit to more forward.
on the sidelines when we can fight on your behalf.
Moreover, know that ABC doesn’t view economic, labor law changes and political happenings as a spectator sport. We will never sit on the sidelines when we can fight on your behalf. More than ever 2012 will be a year for standing up on principle to push our economy forward, stop an increasingly hostile labor climate and elect leaders, especially a president of the United States, who will ensure that our government reflects the very best of our citizenry. We’re gearing up for the fight and we’ll fight hard, and with your help 2012 will be a year of positive action, greater successes and lasting reform. Yours for the Merit Shop,
Chris Fisher
Permission to reprint in whole or in part is hereby granted, provided the following credit line is used: “Reprinted by permission from Michigan Merit, a publication of Associated Builders and Contractors Inc. of Michigan.”
4 Winter 2012
Michigan Merit
New Regulations for Union Elections adopted by NLRB By Frank Mamat
On December 21, 2011 the Obama dominated NLRB adopted on a (2-1) politically dominated “vote” regulations that will change the course of labor relations for 2012 and longer if a Republican President is not elected in November of 2012. To cut to the chase: The NLRB now will make it possible for a union to force an election in your company in as soon as 7-10 days after you are served with a petition seeking an election. And the NLRB has almost totally eliminated all procedural rights you (as an Employer) used to have (for the last 75 years) to fight about who gets to vote - or cannot vote in that Election. The new “credo” is vote first, challenge later. The problem with that is, once you have an Election - that the Union wins, anything you do or say will be reviewed through a prism of the NLRB that you are somehow violating the NLRA and committing
an unfair labor practice. The odds of your Company “winning” - under the Obama/NLRB rules - are less than 10%. And once you have lost “an Election”, every little thing you do can land you before an NLRB Administrative Law Judge (ALJ). So to avoid this nightmare - there are three things you can - and should do - to inoculate and immunize your Company under the new “rules of engagement:” 1. Since you will no longer have 42 days (after the organizing petition is filed) to un-brain-wash your employees, you must make sure they are “brain-wash” resistant to union propaganda now. 2. Since you will be denied any chance to argue - before the NLRB election - about who should or should not be allowed to vote and you need to make structural and organizational changes now.
“The odds of your Company “winning” - under the Obama/ NLRB rules - are less than 10%. And once you have lost “an Election”, every little thing you do can land you before an NLRB Administrative Law Judge.”
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3. Your Company must review and refine all personnel and organizational paperwork to insure you can successfully demonstrate the Election Bargaining Unit is as large as possible. The larger the Bargaining Unit, the more likely the Union will lose the Election.
Stop the Presses As this article, about NLRB “Quickie Elections” regulations was being written, two new things have happened: (1) Right before the New Year, a coalition of Employer Associations (including ABC) filed a lawsuit to stop the regulations from being enforced; but, (2) On January 4, 2012, President Obama named 3 “recess” appointees to the NLRB which would bring it up to full strength (5 members) - thereby paving the way for the “Full” NLRB to “legitimize” the regulations posed by the 3 member Board on 12/21/11 and possibly setting the stage for more anti-Employer Regulations! MM Frank T. Mamat is an attorney with Foster, Swift, Collins & Smith, P.C. an ABC member in Farmington Hills, MI. For more information on how you can protect your company contact Frank at 248-539-9919 or fmamat@ fosterswift.com.
Winter 2012 5
Employers Must Post of Employees’ Right to By Keith Eastland
In August 2011, the National Labor Relations Board (NLRB) adopted a regulation requiring nearly all private employers to post an extensive notice informing their employees of certain labor law rights – including the right to unionize, strike and picket, share information about wages and working conditions, and complain to their employer or the government. Despite several pending lawsuits challenging this rule and after several delays, the regulation is currently set to take effect on April 30, 2012. The NLRB’s stated purpose for this new rule is to enable employees to exercise their rights under the National Labor Relations Act (NLRA). But a close examination of the final notice reveals that the posting requirement is aimed to please organized labor. It is obviously onesided in favor of unions. The required notice downplays employer rights, and gives short shrift to employee
statutory rights not to unionize. It also includes a detailed list of actions that “it is illegal for your employer to” take, and gives instructions to employees on how to file unfair labor practices against their employers.
Here are some key points about the posting rule that you should know: n
All employers under the NLRB’s jurisdiction, whether currently unionized or not, must post the required notice by April 30, 2012.
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Employers may not alter the NLRB’s approved language, which as noted above omits several important employee rights, including their right to decertify a union, as well as an employee’s constitutional right to refuse to pay union dues and fees for purposes unrelated to collective bargaining.
6 Winter 2012
Michigan Merit
Notice Unionize n
The notice must be 11” x 17” and posted in conspicuous places where the employer customarily posts other notices to employees.
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If an employer customarily communicates with its employees about personnel rules or policies by posting information on an intranet or internet site, the notice must also be posted electronically on that site.
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If 20 percent or more of an employer’s workforce are not proficient in English, the employer must post the notice in the employees’ foreign language.
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AddiTioNAL RighTs under the National Labor Relations Act The National Labor Relations Board (NLRB) requires all employers subject to the National Labor Relations Act (NLRA)—including employers in the construction industry—to display a notice in their workplaces listing certain employee rights under the NLRA. The NLRB notice posting requirement permits employers to post their own notice, as long as it does not contain “threat[s] of reprisal or force, or promise[s] of benefit.” We are therefore advising employees of additional rights under the law:
Under the NLRA: YOU HAVE THE RIGHT
to refuse to support or vote for any union.
YOU HAVE THE RIGHT
to work, think, and speak for yourself, without paying dues to any union.
YOU HAVE THE RIGHT
to refuse to sign any union authorization card or petition without fear of threats or reprisals.
YOU HAVE THE RIGHT
to perform work and be rewarded based on merit, without worrying about where you rank on a union hiring hall list.
YOU HAVE THE RIGHT
to work without being threatened, fined or harassed for crossing a union picket line.
This notice is intended for informational purposes only, and does not constitute legal advice or opinion. ABC recommends that employers consult with experienced legal counsel in all federal labor relations matters.
8 Winter 2012
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Failure to post the notice will constitute an unfair labor practice, and may result in the suspension of the NLRA’s statute of limitations for other unfair labor practices. A willful failure to post will constitute evidence of an unlawful anti-union motive in any unfair labor practice cases against the employer.
Several employer-based organizations have filed federal lawsuits seeking to stop the rule’s implementation. Proponents of these actions make several arguments, including that the Board has no authority to issue this rule and that it violates employers’ First Amendment free speech rights by forcing them to post a biased, prounion view of employee rights. These organizations are now seeking to add another argument that the NLRB cannot enforce the new rule. After the expiration of NLRB Member Craig Becker’s recess appointment in December 2012, the Board was down to just two members and had no authority to issue decisions or rules. The Supreme Court has made clear that the NLRB must have a threemember quorum to act. Nevertheless, on January 4, 2012, in a highly controversial move, President Obama purportedly made two “recess” appointments to the NLRB. He did so despite the fact that Congress had not formally approved a recess and despite the Senate’s continued pro forma sessions during this time period. This last argument will turn on whether President Obama’s latest pro-labor appointments to the Board were constitutional. We will continue to monitor these ongoing lawsuits and update the ABC membership regarding any changes. For now, however, employers should be prepared to comply with the new rule starting at the end of April. MM Michigan Merit
Having the appropriate tools for the job
Keith Eastland is a member of Miller Johnson an ABC member in Grand Rapids, MI. Keith’s major areas of practice include Construction Law, Labor & Employment Law, UnionManagement Relations and more. For more information please contact Keith at eastlandk@millerjohnson.com. NOTE: The required poster can be found at the NLRB website using the following link: https://www.nlrb.gov/poster. In addition to challenging the posting requirement, ABC has produced an 11-by-17-inch sample supplemental notice (see facing page) which may be posted with the required NLRB poster (not in place of it). ABC’s supplemental notice is designed exclusively for contractors outlining additional rights granted under the NLRA. Under the rule’s provisions, employers have the option of posting their own notice (in addition to the Board’s notice), as long as it does not contain “threat[s] of reprisal or force or promise[s] of benefit.” The ABC supplemental poster can be found on the ABC of Michigan web site at www.abcmi.com and can be printed for posting in addition to the required NLRB poster.
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Winter 2012 9
The State of Our State:
How to Move Michigan Forward By Michael D. LaFaive
Gov. Snyder has made progress in getting the state back on track. He will honor that progress — and the people of Michigan — if he continues to streamline an expensive and demanding state government.
10 Winter 2012
Gov. Rick Snyder and the Legislature deserve considerable credit for improving Michigan’s public policy landscape during the last year. But with much work still to be done, what changes will occur in 2012? The governor will announce his policy proposals in an upcoming State of the State speech, perhaps as early as January. A key indicator of Michigan’s future will be whether he forgoes expansions of government influence in our lives — and suggests some key limitations as well. Gov. Snyder has made progress in getting the state back on track. He will honor that progress — and the people of Michigan — if he continues to streamline an expensive and demanding state government. Counting the proposed limitations and expansions of state government in State of the State speeches is one method the Mackinac Center has used to gauge each governor’s willingness to trust Michigan’s residents, since these proposals indicates how much control over people governors believe Lansing should exercise. Last year, for instance, Gov. Snyder proposed nine expansions and three limitations. That’s the bad news. The good news is that friends of freedom probably received more than they might have hoped. The state business tax was simplified and trimmed by $600 million; unemployment benefits were reduced by six weeks, saving taxpayers $240 million annually; and schools and municipalities were offered incentives to reduce their annual costs.
The Michigan Economic Growth Authority, a so-called “jobs program,” was mercifully put down; the scope of film subsidies to private business was significantly reduced; costly project-labor agreements were ended; and Michigan’s archaic itempricing law was repealed. There were a few missteps, such as the new pension tax, but on balance, it was a good policy year for the Great Lake State. The Mackinac Center’s tallies of proposed government expansions and limitations go back to Gov. William Milliken’s 1969 address. Obviously, our counts are not a precise measure of a governor’s proclivity to tell us what to do. It’s sometimes difficult to classify a policy — is a targeted tax credit a limitation or expansion? — and sometimes a governor’s actions diverge from his or her proposals. Still, the count indicates an administration’s attitude toward government. The all-time high for proposed expansions, 24, was made by Gov. Jennifer Granholm in 2008. She also holds the record for the highest average number of proposed expansions (16.4). Gov. Jim Blanchard holds the distinction of proposing the lowest average number of government limitations at 2.1. Remarkably, in 1974 Gov. Milliken promised no new expansions of state government, a feat that has yet to be matched by any subsequent governor. His 1974 speech is what a State of the State address should be: short and sweet. It covers 550 Michigan Merit
words, or about six minutes with polite applause. In many ways, it is a model for the speech Gov. Snyder should give. Consider this Gov. Milliken line: “They (Michigan residents) want us to meet their priority needs while preserving the largest tax cut in Michigan history — and cutting taxes further when possible.” With zero new proposed expansions of government, Gov. Snyder would be off to a good start. But he should consider several limitations that would free the money and creative energies of Michigan’s people: n
Continue reining in the cost of nonsalary benefits for government employees. Billions of dollars can be saved by benchmarking these benefits to private-sector norms. Pension
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reform is also necessary, including a shift from defined-benefit to defined-contribution plans. n
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Eliminate Michigan’s personal property tax. This “tool tax” discourages investment. Replace the revenues with spending cuts only. Pass right-to-work legislation. Liberating Michigan’s workers is arguably the state’s most promising economic development initiative. Failing that, right-to-work should be extended to publicsector employees at the least and an elimination of collective bargaining privileges for unionized government workers should be considered. Repeal prevailing wage. This law effectively mandates union scale wages and benefits for many
government construction projects. We estimate that repealing this law could save taxpayers $200 million annually. n
Address the state’s regulatory regime, particularly the environmental permitting process. The current system is a deterrent to businesses’ locating or expanding in Michigan.
Gov. Snyder has made progress in getting the state back on track. He will honor that progress — and the people of Michigan — if he continues to streamline an expensive and demanding state government. MM Michael LaFaive is director of the Morey Fiscal Policy Initiative for the Mackinac Center for Public Policy. He can be reached at lafaive@mackinac.org.
Winter 2012 11
Snyder signs bills to update workers’ comp, unemployment insurance systems ABC of Michigan backed legislation recently signed by Governor Rick Snyder that strengthens the state’s Unemployment Insurance program and updates workers’ compensation laws. “These bills are critical to our reinvention of Michigan,” Snyder said. “Modernizing our unemployment insurance and workers’ compensation systems will ensure their solvency and integrity.” Senate Bills 483 and 484, sponsored by state Sen. Mark Jansen, allow Michigan to restore the Unemployment Insurance program to solvency by issuing revenue bonds. Michigan has the highest per capita unemployment insurance debt in the nation. The state has paid more in benefits than it has collected from job providers who finance the system. Since 2007, Michigan has borrowed money from the federal government to pay its obligations to unemployed workers. The current debt exceeds $3 billion. These bills are now Public Acts 267 and 268 of 2011. The bond proceeds extinguish
the federal liability and allow for repayment of money borrowed from the General Fund. This will eliminate Michigan’s debt to the federal Unemployment Trust Fund and ensures that the trust fund is solvent moving forward. In addition, the legislation creates an amnesty program for claimants and employers. It also lets small businesses spread unemployment insurance payments over a calendar year while allowing greater flexibility in seasonal employer designations targeting Michigan’s tourism industry. Other updates include changing the definition of the “suitable work” requirement to include jobs outside of a claimant’s experience if the work pays 120 percent of his or her weekly benefit amount, and providing the Unemployment Insurance Agency with tools to have greater control over the system’s integrity. S.B. 806, sponsored by state Sen. Jack Brandenburg, provides a triggering mechanism to ensure the state develops and maintains a surplus in the trust fund to avoid future deficits as well as institutes several administrative efficiencies. The maximum weekly benefit of $362 remains unchanged DESIGN, INSTALL, SERVICE & MAINTAIN as does the of Jackson Associates, Inc. formula unemployment benefit calculation. 1111 West Oakley Park Road Walled Lake, MI 48390 The legislation does not reduce 248-669-5155 www.jacksonassociatesinc.com the number of
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12 Winter 2012 406184_JacksonAssociates.indd 1
benefit weeks for claimants. S.B. 806 is now P.A. 269 of 2011. House Bill 5002, sponsored by state Rep. Brad Jacobsen, continues the state’s mission to protect workers who are injured on the job, while ensuring that the workers’ compensation system remains viable. H.B. 5002 is now P.A. 266 of 2011. The bill promotes certainty to workers and employers by codifying years of Supreme Court and Court of Appeals decisions. Under the bill, a person receiving workers’ compensation benefits must take a job that is within his or her skill set, and that they can physically perform, if it is available to them. If not, the person risks losing the compensation benefits. “The system’s goal must be to help injured workers get back on the job as soon as possible while making sure the benefits they deserve during recovery are paid fully and promptly,” Snyder said” The legislation supports the Workers’ Compensation Agency’s goal of gaining efficiencies through electronic filing and results in a savings of over $400,000 through reorganization of the mediation system for contested workers’ compensation issues. Benefits held up by contested cases will move more quickly. Issues such as fraudulent claims by employees or the failure of employers to secure coverage increase the cost of workers’ compensation. H.B. 5002 requires the agency to report to the Legislature on measures taken to address such issues. Michigan Merit
11/3/08 5:06:07 PM
Top 10 Reasons to Repeal Prevailing Wage Jobs, Fiscal Accountability, Common Sense
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Unlike 42 other states that either have no prevailing wage mandates or that at least attempt to calculate prevailing wages based on an accurate sampling of all construction wages, Michigan’s prevailing wage law dictates that wages and fringe benefits on all taxpayer-supported construction projects be determined exclusively by union collective bargaining agreements.
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Michigan has no ability to negotiate or determine wages for contracted employees performing public work. This effectively holds state budgets and taxpayers hostage to the wage demands of union bosses.
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Michigan should not deny taxpayers the fiscal accountability they deserve by ignoring the labor costs of contracted workers and not maintaining a baseline level of transparency that is consistent with that of directly hired state workers.
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The average free-market construction wage is more than $22.00 per hour. Prevailing wage increases these above-average wages by as much as 60 percent for certain trades.
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Studies have consistently shown $250 million can be saved on state and school construction by repealing Michigan’s Prevailing Wage Act.
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Michigan law forces schools to abide by prevailing wage requirements. This unfunded mandate results in schools paying excessive prices at a time they can least afford it because they are denied local control in determining or negotiating their construction labor costs.
Prevailing wage is a bureaucratic nightmare. All n Michigan’s current prevailing told, there are several thousand wage law kills jobs. When different wages from locality to locality and from trade to trade that must Putting our clients constantly be monitored by out front contractors. Since 1995 Many of these Public relations counsel and communication consulting for corporations, associations, are nearly government agencies, non-profits impossible to Issue Management distinguish from Crisis Communication one classification 2175 Commons Parkway Strategic Planning and Research to another. If Okemos, MI 48864 Media Relations 517-381-1900 a tradesperson www.lezottemiller.com Internal/External Communication l l l l
puts down a hammer, picks up a paint brush and then a shovel he or she may have passed into three different wage classifications all on the same construction project. If that tradesperson uses that same hammer at a different location on that building site, for example on the roof, he or she has also crossed over at least one other prevailing wage classification with an entirely different wage and benefit rate. Prevailing wage rates also differ from location to location. For example, an electrician in Ann Arbor is paid differently than one in Brighton, and Brighton even has a different wage and benefit rate than Howell, which is only a few miles down the road in the same county.
Michigan’s prevailing wage law was suspended for 30 months, from December 1994 to June 1997 as a result of a federal district court ruling, the US Department of Labor reports that 11,000 more construction jobs were created.
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No other industry is forced to comply by these wage mandates. Michigan’s construction industry should not be treated differently than other industries.
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In 2012 nobody would ever vote to place these burdens on another industry or another sector of the economy. So why should this unfair and costly law continue to be tolerated for Michigan’s construction industry? It’s time to repeal Michigan’s prevailing wage law to ensure common sense, taxpayer accountability and new work opportunities for all. MM
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Winter 2012 13
Monumental Year for Merit Shop Construction in Michigan The efforts of members and staff over the last two years gave ABC the momentum it needed to make the most sweeping changes in its nearly 50 years for the Merit Shop Construction Industry in the state. On the heels of the highly successful 2010 election, ABC got to work immediately to engineer one of the biggest Merit Shop victories in history. With Merit Shop friendly legislators championing our cause legislation was drafted, lobbied and passed in both houses of our state legislature and signed into law by Governor Rick Snyder on July 19, 2011 to make government-mandated uniononly Project Labor Agreements illegal on state-funded construction projects in Michigan. What a win for the Merit Shop! ABC of Michigan then turned its efforts to other needed changes in our government to make Michigan a business friendly environment for ABC members in the state by decreasing business taxes and improving the regulatory climate in the state.
ABC Members Are the Change As ABC of Michigan worked for sweeping reforms legislatively, our efforts did not go unnoticed by the leaders of our state. A call for qualified members to be involved at the regulatory level on boards and commissions whose members are appointed by the governor were answered by some of the best in merit shop construction. ABC members were appointed by the governor to the MIOSHA Board, the Electrical Administration Board, the Safety Review Committee, the Board of Mechanical Rules and the Bureau 14 Winter 2012
of Construction Codes. There are more appointments to come as well. In addition, members from across the state answered the call to meet one-on-one with their legislators in Lansing to educate them on Merit Shop issues and let their legislators know the importance of returning Michigan to a business-friendly climate. ABC members responded to the call to be the change they want to see in our state legislative, regulatory and rule-making entities.
Award Winning PR Campaign The strategic campaign undertaken by the PLA Task Force to aggressively battle union-only PLAs over a twoyear period won the Michigan Society of Association Executive’s highest honor – the Diamond Award in the public relations campaign category. Judged not only on its execution and planning, but on its effectiveness, the Campaign to End GovernmentMandated Project Labor Agreements out shadowed the others in its budget category to capture the top honor. The campaign used print media, strategically targeted billboards, strategically selected radio time, legislator meetings with members and staff, legislative testimony provided by affected members and staff, as well as, educational campaigns targeted to construction buyers and the taxpayers to get the message out. The result was passage of the Fair and Open Competition in Governmental Construction Act on July 19, 2011.
Looking to the future The association leadership hosted a strategic planning conference bringing together leadership from all four chapters to craft a plan for moving the association forward over the next few
years in the midst of the new more business-friendly climate. Leaders intentionally employed out-of-the-box thinking to all facets of the association to derive solutions and direction that were not boxed in by traditional ideas while still preserving what is good and working with the association. The outcomes, applied to the association programs, services and structure resulted in the development of new initiatives that allow the association to better meet the needs of members while continuing to strengthen its legislative presence in the state. ABC of Michigan continues to leverage the strength of its nearly one thousand member companies to influence the business and legislative communities in our state to make Michigan a better state for business and for merit shop construction companies. In addition to government affairs activities, the association will also focus on business development opportunities for member companies, keeping the association strong financially and supporting the chapters with collaborative efforts as needed. In 2012 the association is poised to defend legal attacks on the Fair and Open Competition Act, eliminate Prevailing Wage and encourage lawmakers to make Michigan a Right to Work state.
Michigan Merit
C hairman ’ s R eport Thank you for the opportunity to have served ABC of Michigan and the Merit Shop Construction industry as the association Chairman of the Board during 2011. What a landmark year for the Merit Shop Construction industry in our state! After 50 years we have outlawed government-mandated union-only PLAs in Michigan. The success of our legislative efforts is a direct result of everyone’s hard work over the last two years. The dedicated and tireless work of Chris Fisher, our PLA task force, our state and local chapter staff, and the generous donations of our members’ time and money to the ABC MI PAC all attributed to this success. All this together created the perfect storm that allowed us to assure that this crucial legislation was passed through both chambers of our state legislature and signed by our governor. I was privileged to be in the governor’s office and participate in the bill signing ceremony. This year also brought a relocation of the state office to a larger space which better meets the needs of our staff. In addition to offices, the location provides a private conference room and a small visiting member office and is just a few blocks from the capitol. In September, nearly forty members and staff from across the state took a day and a half away from their jobs to help ABC in Michigan define the future of the organization at our Planning Retreat. I am thankful for the participation of members from each chapter that accomplished so much in such a short time. Seeing that such a diverse group could agree on the most important association things was refreshing for me.
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Lastly, there was a big change at the local level in early December. The merger of two of our chapters, ABC Central Michigan and ABC Saginaw Valley, has created the new ABC Greater Michigan chapter. As the second largest in our state, it serves members in 23 counties representing over 300 companies. In addition to the anti-PLA legislation, ABC helped to bring about legislation lowering taxes for member businesses in Michigan and saw several members appointed to key regulatory positions in our state government. The change brought about by ABC for our membership in Michigan this past year is truly unprecedented and game-changing. Because of the commitment of members like you, this association has successfully been able to make these changes during the last year. Each of us doing our part and pulling together will strengthen our industry and continue the success of ABC of Michigan. Thank you for your support throughout the year.
Jim Cripps Cripps Fontaine Excavating, Inc. 2011 ABC of MI Chairman of the Board
Winter 2012 15
P resident ’ s R eport On behalf of ABC of Michigan and the Board of Directors it is a pleasure to report that your association ended 2011 stronger, more fiscally secure and as great a champion as ever of the free enterprise philosophy of the Merit Shop. The 2011 legacy is one of improvement for our state, our industry and your business. As ABC of Michigan ushered in 2011, the membership set high expectations for the association, punctuated with a mandate to elected officials to fundamentally change our state on behalf of businesses, especially the Merit Shop. The result was the most ambitious agenda in a generation and a successful year of overdue reforms that will leave a lasting footprint on behalf of free enterprise for generations to come. Nothing more reflected this than ABC winning its decadeslong battle with the construction unions over fair and open competition that resulted in Michigan finally prohibiting the practice of government-mandated project labor agreements, ending once and for all a union-only monopoly on construction that denied merit shop companies their ability to perform work on billions of dollars in public construction, while also denying Michigan taxpayers the fiscal accountability they deserve. In 2011 Michigan led the nation in passing the Fair and Open Competition in Governmental Construction Act, achieving a game-changing reform that few thought was possible and that could not have happened without the leadership of ABC. The year also saw other significant reforms, tax cuts for every ABC member in the state and a return to Merit Shop friendly governance with numerous ABC leaders being
appointed to key positions in state government to help ensure a business friendly culture of change which will help turn Michigan around. During the year, ABC staff met goals to better serve members, improved it’s communications and various ABC publications to keep the industry better apprised of ongoing news and information, expanded its member benefit offerings and highlighted ABC member companies through statewide radio, television, newspaper and online media exposure. As 2012 unfolds, ABC of Michigan is stronger than it was a year ago and is foremost committed to its principled mission of representing the Michigan construction industry by advancing and defending the free enterprise philosophy of the Merit Shop. Despite the many successes of 2011 there is plenty of work to do, not the least of which is defending our gains at the ballot box later this year. We are ready for this challenge and will continue to vigorously fight for you throughout the year. Finally, as we embark upon 2012, marking the 50th anniversary of ABC of Michigan, I am proud that we remain true to the principles embraced half a century ago when were founded, originally as the Liberty Association. As always, thank you to all our members throughout the state who support their association, enabling ABC of Michigan to be a leading business organization as well as the premier construction trade association in Michigan.
Chris Fisher President & CEO ABC of Michigan
T reasurer ’ s R eport Great news ensued financially for ABC of Michigan in 2011 to add to the legislative victories and success. Although the construction industry in the state has not fully recovered, ABC of Michigan’s efforts to diversify its revenue streams and decrease expenses in previous years helped to give the association a stronger financial picture by the end of 2011. The Member Services Committee, which oversees our Workers Compensation Fund, approved a plan enacted by staff from both ABC of Michigan and the Fund which is producing growth in the fund. Most new fund participants this past year have been non-members which produced growth in both fund premium and membership dues. The benefits are realized at both the state and chapter levels. The Super Fleet discount fuel program continued to grow and the discount bulk fuel plan began to provide some
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revenue as well. On the expense side, ABC of Michigan moved the annual directory from an expense line item to an income producer. ABC of Michigan, which has been holding its own financially, through cost cutting and reduced spending measures, is now beginning to grow financially despite the economic conditions in our state and industry. Your Board of Directors sees their fiscal oversight of the association as a solemn and important responsibility and continues to work with the staff to maintain the financial health of the association through the coming year. Thank you for your support of ABC of Michigan and the Merit Shop Philosophy. Sincerely,
David J. Sheffield Onslow-Sheffield, Inc. 2011 ABC of Michigan Board Secretary/Treasurer
Michigan Merit
Improving our state, our industry and your business Government Affairs n
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Made government mandated union-only Project Labor Agreements illegal in Michigan by passing the most comprehensive open competition law in America Lead the construction industry working with Governor Snyder and legislative leaders to eliminate The Michigan Business Tax Cut taxes for every ABC Member
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Worked to appoint ABC members to the MIOSHA Board, Electrical Administration Board, Safety Review Committee, Board of Mechanical Rules and Bureau of Construction Codes
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Passed a law making it illegal to discriminate against nonunion contractors and workers
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Worked with the Snyder administration to eliminate the Michigan Prevailing Wage Violators List
www.abcmi.com
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Introduced legislation to end Prevailing Wage in House and Senate
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Lobbied for final passage of a fiscally sound balanced budget with no tax increases
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Reformed unemployment insurance for contractors (Three Times!)
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Helped pass new unemployment insurance reforms to benefit the entire Michigan construction industry Worked with key stakeholders, the ABC Workers Compensation Fund and lawmakers to
reform Michigan Workers’ compensation laws and promote a better system n
Worked to kill costly ergonomic standards with MIOSHA’s Construction Safety Standards Division
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Reduced government regulations to make Michigan a better place to create jobs
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Promoted paycheck protection laws to prevent union dues from being used for activities that extend beyond bargaining
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Worked to strengthen Michigan’s mass striking and private picketing laws
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Promoted ABC training programs for Michigan’s new Talent Connect
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Defeated efforts to expand Michigan’s Prevailing Wage law
Defended and advanced the Merit Shop legislative agenda on statewide radio
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Ended the unfair double tax on small business owners
Led billboard advocacy efforts to support open competition
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Backed efforts to restore brownfield investment in Michigan
Launched a new web site in our fight against union only PLAs www.AccountableConstruction. com
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Backed efforts to maintain Historic Preservation incentives
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Backed elimination of Charter School Cap to help create and build more quality Michigan schools.
Promoted ABC member issues using the improved Merit Minute online e-newsletter
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Partnered with business organizations across Michigan to highlight and implement a more friendly business climate
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Implemented a statewide campaign to promote ABC members on Michigan Public Radio Stations
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Relocated the state office to provide greater visibility and a higher level of professionalism with state government, our legislators, the media, ABC members and the public.
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Worked with counties, universities, cities and schools to successfully implement changes ending local PLA requirements Led the effort with Attorney General Bill Schuette to defend Michigan’s Open Competition Law in Federal Court.
Visibility and Public Relations n
ABC of Michigan won the Michigan Society of Association Executives Diamond Award for conducting the best public relations campaign of any association in Michigan in 2011 for our efforts to end project labor agreements.
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Promoted ABC issues and services with leading state newspapers
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Authored op-eds in statewide publications on need to end prevailing wage and prohibit PLAs.
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Spoke on business and industry panels on behalf of Michigan’s construction industry.
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Expanded Michigan Merit Magazine’s coverage of key industry topics
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Fought disingenuous Carpenter Union bannering campaigns on
18 Winter 2012
television, radio and on the web.
Member Services & Business Development n
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Promoted and grew the ABC Self Insured Workers Compensation fund through a successful marketing plan which additionally strengthened the fund and assisted chapters with new member recruitment. Implemented constituent visits to their legislators at the ABC of Michigan Legislative Conference to specifically address ABC issues with the legislators Developed new initiatives for the association to better meet the needs of members and continue to strengthen our legislative presence in the state at our first-ever statewide planning retreat.
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Grew the Super Fleet program and our Bulk Fuel discount program to increase benefits to the membership n
Provided quarterly issues of the Michigan Merit Magazine to the statewide membership with articles to help with the continued development and growth of member businesses
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Delivered bi-monthly Merit Minute e-newsletters to the membership providing upto-the-minute information and news regarding issues of importance
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Premiered a new, searchable electronic flip book as an additional feature of our Annual Membership Directory available on the state and all chapter web sites
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Researched and reported on Capital Financing program options and availability to assist member companies in acquiring capital for growth and operations.
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Used the expertise of our professional staff to assist our chapters with association governance, legislative and membership issues
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Encouraged cooperation and collaboration of all ABC entities across our state as a technique to increase synergy and growth for the profitability of each entity and the membership Michigan Merit
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Winter 2012 19
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