Ban on local wage and benefit ordinances passes House

LANSING – A ban on local ordinances that set wages and benefits for businesses operating in their communities squeaked by the House of Representatives Wednesday on a 57-52 vote.

"This bill is not about merits of particular employment practices. It is about who is better to set the standards for employment in the state of Michigan. It clarifies existing practice in Michigan that employment matters are governed by federal and state law," said state Rep. Earl Poleski, R-Jackson, the sponsor of the bill. "The setting of wages and fringe benefits needs to be consistent from town to town, county to county."

Democrats strongly opposed the legislation, calling it an assault on local control and voters' rights to determine what is best for their towns.

"We have a living wage ordinance in Southfield. And for the last two weeks, we heard testimony that local ordinances hamper economic growth. I whole heartedly reject that. Southfield has more office space than the central business districts of Detroit and Cleveland, and is home to 9,000 businesses," said Rep. Jeremy Moss, D-Southfield. "Southfield is a large contributor to the state's economy and shows directly that wage equality and business growth are not opposing values."

A similar bill stalled in the Legislature last year, largely because it also would have prohibited communities from negotiating community benefits packages with businesses that are getting tax credits from towns. Such agreements dictate some of the terms of what developers do in communities, like hiring local residents or requiring training for employees, for example.

An initial version of the bill took that language out, but it was reinserted into the amended version of the bill. Cities still oppose the legislation, saying the bill limits local control. For example, several cities have passed living wage ordinances over the years.

"Local government can often times best understand the needs of their communities and find innovative solutions," said Rep. Stephanie Chang, D-Detroit, who broke into tears during her speech opposing the bill. "This is a back door attack on community benefit agreements."

Democrats in the Legislature also have introduced bills that would require paid sick leave for employees in the state and a prohibition on wage discrimination based on gender, but those bills have not received a hearing and the bill passed Tuesday would render those bills moot.

Rep. Robert VerHeulen, R-Walker, said he understood the arguments over local control, having been the mayor of Walker.

"But certain things have to be controlled at the state level. We need regulations that are simple, uniform and easy to understand," he said. "What company is going to decide to invest in a town if four members of a city council or township board control wage and benefit levels."

Democrats tried unsuccessfully to get nearly a dozen amendments added to the bill that, in part, would have allowed communities to negotiate community benefit packages with companies that are receiving taxpayer dollars, and prohibited the law from invalidating ballot proposals passed by voters in communities. All the amendments failed.

Five Republicans — Reps. John Bizon, of Battle Creek; Mike Callton, of Nashville; Martin Howrylak, of Troy; Ed McBroom, of Vulcan; and Jim Runestad, of White Lake — joined all the Democrats in opposing the bill.

The legislation — HB 4052 — now moves to the Senate for consideration.

Contact Kathleen Gray: 517-372-8661, kgray99@freepress.com or on Twitter @michpoligal.