construction-prevailing-wage.jpg

(MLive File Photo | Tanya Moutzalias )

LANSING, MI -- A simmering debate over the state's prevailing wage law may heat up next week in the Michigan Senate, where a committee is set to take up legislation that would repeal the 50-year-old law.

"The Senate will become ground central for that," Senate Majority Leader Arlan Meekhof, R-West Olive, told reporters after session on Thursday.

Michigan's prevailing wage law, like the federal Davis-Bacon Act, requires contractors to pay union wages and benefits to workers on government-funded construction projects. It's widely supported by labor groups.

Indiana Republican Gov. Mike Pence on Wednesday signed legislation repealing that state's construction wage law. Meekhof, who traveled to Indiana in late March to testify in support of the bill, said he'd like to see Michigan follow suit.

"It's always a good time to save taxpayers money," he said. "...It's abhorrent to me that the taxpayers have to pay more for their buildings. It's just not right."

Michigan Republican Gov. Rick Snyder, who angered unions by signing controversial right-to-work legislation in 2012, has not backed previous attempts to repeal the state's prevailing wage law.

The governor "hasn't supported (prevailing wage repeal) during the last four years and has no intention of doing so in the next four," a spokeswoman said in January.

Meekhof acknowledged that Snyder may not be on board, but he said the Senate GOP caucus is, "so we're going to move it."

The prevailing wage debate comes as lawmakers regroup to consider alternative road funding options in the wake of Tuesday night's resounding defeat of Proposal 1, a complex plan that would have raised the state sales tax and fuel taxes.

Meekhof said developing a new road funding plan will be a "deliberative" process that will take time, indicating that talks could continue through the summer, when the Legislature typically goes on break.

Prevailing wage repeal is not related to that effort, he said.

Most road construction projects utilize at least some federal money, so federal wage laws typically apply. But prevailing wage repeal could affect building construction projects, such as schools.

Democrats have long fought changes to the prevailing wage law because repeal would likely lower wage rates for construction workers on applicable projects.

"I hope we don't go any further than hearings on this," said Sen. Steve Bieda, D-Warren. "I think people understand the issue. It's going after working people in this state, but it's also short sighted, because it's something that industry actually supports. It works well."

Prevailing wage legislation has also been introduced in the Michigan House, and the GOP Action Plan calls for repeal. Last session, a proposal that would have banned local prevailing wage made it through a House committee but did not see action on the floor.

Jonathan Oosting is a Capitol reporter for MLive Media Group. Email him, find him on Facebook or follow him on Twitter.