SPRING 2012
PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
Career Choices for the Next Generation: Also: Showdown with Organized Labor Michigan Voters Like Right to Work 2012 Legislative Conference Highlights
Construction Must Be An Option
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SDW108_ABC_Michigan_Merit_Ad_4c_7.5x10_V2b.indd 1
10/11/11 10:16:42 AM
Inside 4
A change to Michigan’s graduation requirements is necessary.
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Career Choices for the Next Generation: Construction Must Be An Option Despite an expanding market for skilled workers, now and in the future, fewer and fewer young people are going into the skilled trades. What must be done?
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Executive Perspective
Economic Update Michigan’s economy is showing signs of recovery.
12 Most Michigan Voters Think Right-To-Work Is a Winner
A majority of Michigan voters support right-to-work, according to multiple polls done in the state over the past few years.
16 2012 Legislative Conference
Highlights and photos of the February conference in Lansing.
19 Advertisers Index VOLUME VI, ISSUE 1 Michigan High School graduation requirements have made it more difficult for young people to enter the construction trades.
Government Affairs Update 14 ABC readies for the largest showdown with organized labor in a generation.
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 Rick Jackson Jackson Associates, Inc. – Southeastern Michigan Chapter 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 Sales, Design and Printing: Keystone Millbrook 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. 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.”
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Introducing Michigan students to a rewarding and successful construction career is an ongoing challenge that needs to continually be on the forefront. Changes to Michigan’s high school graduation requirements that more easily allow and do not discourage Michigan students from pursuing a technical or trade-oriented career path are essential to ensuring that our schools not only focus on the traditional “three R’s,” but that they also embrace a fourth, and equally important “R” word: Relevance. Unfortunately, the current Michigan Merit Curriculum endangers high school Career and Technical Education at a time when demand for skilled construction workers is increasing. We need to replace retiring workers with those who have the technical training to build and rebuild our state. Technical training in high school allows Unfortunately, the students to develop marketable job skills current Michigan Merit that are relevant for today’s and tomorCurriculum endangers row’s job market. The State of Michigan expects construction trade and technical high school Career and jobs to expand in the next decade. The Technical Education at Bureau of Labor Statistics estimates a time when demand that half of all jobs available in the next for skilled construction decade will be in such areas. A construction career is challenging, workers is increasing. well paid, highly skilled and in demand. Yet, all too often, parents, teachers or even aspects of society try to steer young people away from a construction career in favor of a more common (and often lower paid) career pathway. Four-year colleges and universities are certainly needed in a knowledge-based job market, but are no more relevant, rigorous or necessary than a career in the building and technical trades. We agree that high standards are needed for Michigan students, but we urge the Legislature to avoid a “one size fits all” approach and instead fine-tune graduation requirements to help a larger percentage of students succeed. Now is the time to finish the job by ensuring all students have access to a high school education that will prepare them for Michigan’s new economy. Good careers and a strong economy depend upon it. So do our students. Yours for the Merit Shop,
Chris Fisher Michigan Merit
ABC Wins Awards for Efforts to End PLAs The ongoing ABC of Michigan public relations effort to end government mandated PLAs, implemented in partnership with Okemos-based Lezotte Miller Public Relations, is the only Michigan PR effort to win at the Public Relations Society of America’s 2011 Diamond Awards, earning the top award in the Public Affairs Campaign category among six states (Michigan, Indiana, Ohio, Pennsylvania, Kentucky and West Virginia.) The Associated Builders & Contractors of Michigan’s Campaign to End Project Labor Agreements (PLAs) in Michigan resulted in passage of the Fair and Open Competition in Governmental Construction Act in July 2011. “ABC of Michigan was up against a well-funded opposition, so a targeted budget that took the campaign directly to public officials and the media was key,” explains Barbara Lezotte, president of Lezotte Miller. “Focusing on the unnecessary cost to taxpayers in a tight budget time was the message we continually drove home.” As reported in the last issue, ABC of Michigan’s campaign also won top honors from the Michigan Society of Association Executives (MSAE) in September 2011. MM
ABC of Michigan
50th Anniversary Gala Cocktails at 6:00pm Dinner at 7:00pm Saturday, October 27, 2012 University Club of Michigan State University 3435 Forest Road Lansing, MI 48910 Join us for a night filled with Cocktails, Dinner and Entertainment! Visit www.abcmi.com to register today!
Ari Adler, Central Michigan Public Relations Society of America (PRSA) president, presents Lezotte Miller Inc. with three awards for its work on behalf of Associated Builders and Contractors of Michigan (ABCMI). From left Barbara Lezotte, LM Inc.; Chris Fisher, ABCMI and Mike Turner, LM. Inc.
www.a b c m i . c o m
Space is limited.
Spring 2012
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Article
F E AT U R E
Career Choices for the Next Generation:
CONSTRUCTION must be an option
C
raftsman. For centuries, the word has inspired respect and allowed those who endeavored to become skilled at their chosen trades to earn a comfortable income well beyond those of their uneducated peers. Even today, we speak of excellent craftsmanship with a sense of pride and even awe. Those who are in the construction trades are craft professionals in the truest sense of the word, requiring high-level skills and a dedication to detail and quality. And yet fewer and fewer young people are entering into construction trades. According to the 2011 Manpower Group Talent Shortage Survey of 40,000 employers worldwide, skilled trades positions posed the third biggest challenge in finding qualified workers globally, but poses the greatest challenge here in the United States. And the challenges of finding skilled employees are expected to increase over the next eight years.
According to the U.S. Bureau of Labor Statistics, employment of carpenters is projected to grow 20% by 2020. Employment of plumbers, pipefitters, and steamfitters is expected to grow 26% during that period, and of electricians, 23%. The need for heating, air conditioning, and refrigeration mechanics and installers is expected to grow a whopping 34%. These growth figures are well beyond the average expected growth for all occupations. According to Chris Fisher, President and CEO of ABC of Michigan, the shortage of skilled tradesmen is not just a future concern, but one employers are facing today. “Many of our members are looking for skilled individuals and can’t find them,” he says. Carol Eberhardt, Education Director for ABC’s Southeastern Michigan Chapter, agrees. “Many skilled tradespeople have either retired or left the state due to the economic downturn. As our economy is ramping up a little, there’s a shortage.”
construction must be an option
So what’s keeping young people from entering the trades?
Many ABC of Michigan members believe that the change in Michigan’s graduation requirements have negatively impacted students going into vocational education. “It has decimated our ‘farm clubs’ by eliminating vocational programs in the high schools,” says Mark Sawyer, executive director of the ABC Southeastern Michigan Chapter. The current Michigan high school graduation requirements, known as the Michigan Merit Curriculum (MMC), were established in 2006; they dramatically increased the math, science and English requirements students had to pass in order to graduate. Students must now complete 4 credits of math, including Geometry, and Algebra I and II; four credits of English; 3 in science, including one in biology and one in either physics or chemistry; and 3 in social studies. Beginning with the class of 2016, students will also have to complete 2 credits in a foreign language. These requirements were developed, according to state publications, “to ensure that Michigan’s students have the skills and knowledge needed for the jobs of the 21st Century global economy.” But many ABC of Michigan members believe that the Michigan Merit Curriculum puts too much emphasis on 4-year college preparation tracks, while ignoring equally important, rigorous and demanding pathways. Many Michigan legislators agree. Two Michigan representatives have introduced legislation to change the Michigan Merit Curriculum. Representative Ed McBroom (R-Vulcan) has introduced House Bill 5451, which would reduce state requirements for math from 4 to 2 and make the Algebra II requirement elective, reduce 8
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the social science and science credits to 2 each, health to .5, and completely eliminate the arts and foreign language requirements. Representative Joel Johnson (R-Clare) is proposing a measure with a more local focus. It would allow local districts working with parents to develop a vocational program that would meet local needs. It would be required to be at least one year in length and could replace all or some of the Algebra II, Science 3, English 4, Foreign Language II, and the arts and online learning requirements. Both legislators see their bills as a way to support career and technical education (CTE), which they see as a viable pathway for creating high-skill, high-demand, high-paid workers. Even many educators agree that the current requirements need more flexibility. Jeff Bohl, Principal of the Ingham County Intermediate School District Career Center, says it’s very difficult for students to reconcile graduation requirements with a two-year high school vocational program. “About 70% of a student’s schedule is set, leaving little time for career and technical education programs,” he says, “especially if a student fails one of the required classes and has to retake it.” ABC of Michigan strongly supports the position that there should be a dual path to getting a diploma. Both Sawyer and Eberhardt suggest that the state model its schools after Germany, where students sit down with their parents and counselors to determine whether to follow a college prep or vocational path. “One shouldn’t be considered better than the other,” says Sawyer. Corey Hannahs, owner of Hannahs Electric Company in Ann Arbor and Lansing, echoes the sentiment: “Everybody pushes college and that’s not everyone’s cup of tea.” The debate focuses primarily on the Algebra II requirement. “The requirement that every student complete Algebra II is putting a crimp in voc tech kids’ program,” says Bohl. Michigan State Superintendent Mike Flanagan contends that, over the last couple years, the state has sought to build additional flexibility into state law to help students complete their Algebra II credit. It can now be replaced with statistics and/or data analysis, which he sees as very applicable to CTE programs. But many counter that greater flexibility is still needed and that the current graduation requirements must be changed. ACBMI is working toward that goal. One thing every individual interviewed could agree on was that the MMC isn’t the only factor contributing to fewer students entering the skilled trades. Vickie Markavitch, Superintendent of Oakland Schools, observes, “Some of our technical programs, including the construction program, are on the verge of closing due to low enrollment and have been, even before the MMC was put in place.” Recent research reveals that the skilled trades suffer from a poor image and a lack of exposure to what the trades can offer. A recent poll of 15 year-olds by the Organization for Economic Cooperation and Development found only one in 10 American teenagers saw themselves in a blue-collar job at age 30. “Construction is seen as a dirty, hard-working industry by students today,” says Sawyer. “It (...continued on page 18) Michigan Merit
Photos courtesy of the ABC Southeastern Michigan Chapter’s Education Program
How ABC is PREPARING THE NEXT GENERATION OF CRAFTSMEN Helping Young People Explore the Trades
ABC offers a unique educational opportunity to expose young people to the skilled trades through a career exploration program. Through the Exploring the Trades program, ABC is reaching out to young people ages 16-24 to familiarize them with the various skilled trades to help them determine if one of these careers may be right for them. “Any school, manufacturer, or alternative education program can establish an Exploring program in their community,” says Jimmy Greene, CEO of the Greater Michigan Chapter of Associated Builders & Contractors. “Any ABC member can call our office and we’ll work with them to set up the program.” The program template offers one 2-hour program per month, October through May. Each session focuses on a different trade, giving students insights into the kind of work, wages, educational requirements, and types of positions available. Each session also includes a hands-on component so that students get a real-life experience with the trade. The template can be customized to suit the needs of the sponsoring company or organization. The Exploring program informs young people of the career opportunities available, and encourages much-needed consideration of a career in the skilled trades. And that benefits us all.
Apprenticeship Training
ABC provides apprenticeship training throughout Michigan and across the United States. In fact, ABC has become the world leader in apprenticeship and craft training in the merit shop construction industry. All ABC apprenticeship programs are accredited through the National Center for Construction Education and Research (NCCER) and are registered with the U.S. Department of Labor, Office of Apprenticeship. There are three ABC apprenticeship programs in Michigan, one in each chapter: • ABC Greater Michigan Chapter: The ABC Construction Academy offers apprenticeship and craft training in 11 different trades including carpentry, electrical, HVAC, plumbing, pipefitting, millwright and masonry, among others, and is a State of Michigan proprietary school. • ABC Southeastern Chapter: The Construction Education Trust has been instructing apprentices in the skilled trades for 20 years. Their apprenticeship program offers four years of intense and trades-specific training in the following crafts: Electrical, Carpentry, Plumbing, Sheet Metal and HVAC. • ABC West Michigan Chapter: ABC/WMC offers apprenticeship training in cooperation with Grand Rapids Community College Tassell M-Tech Center. MM
Update
ECONOMIC
By Don Wilson
Nonresidential Building Update
With the start of 2012, ABC of Michigan thought it appropriate to show the Michigan Merit readership how the economic recovery in Michigan is progressing. The first indicator we used was the Michigan Business Barometer compared with private sector employment (Exhibit #1). The Barometer, a composite measure of business activity in nine sectors of the state (comprising 90% of private sector payrolls) is an index whose base year (2001) is equal to 100. A barometer reading of 80 during a particular calendar quarter means the volume of business activity occurring in that quarter was 20% lower than in a three months average volume of 2001. A reading of 105 means business volume is 5% higher than in a 2001 quarter. MICHIGAN BUSINESS BAROMETER / PRIVATE SECTOR EMPLOYMENT
Employment (000) 4000
Barometer (2001=100) 100 Business Barometer Private Sector Employment
3900 90 3800 3700 80 3600 3500
70
3400 60 3300 3200 50 3100 3000
40
and 2.6% in the same quarter last year. The 11.4% surge in output, produced by a 7.9% increase in Chrysler, Ford and General Motors sales in the U.S. and Canada, was generated by a 28% increase in automotive production volume across the State, compared with a 1.2% upturn in the remainder of the automakers’ North American manufacturing network. The next indicator (Exhibit #2) compares three measures of annual change in the value of investment in commercial and industrial classes of real property. The index of investment uses 2002 as a base year. The Industrial Property Investment Index is a measure of change in the annual value of industrial class properties based primarily on 1) the value of new structures in the process of construction, 2) the value added with alterations and additions to existing facilities, and 3) the value of completed new structures, which in total are representative of the estimated value of capital investment by for-profit developers, landlords and owners in this property class. The Commercial Property Investment Index is calculated the same as the Industrial Property Investment Index, only for commercial class properties. The Net Property Investment Index is a measure of the annual change in the value of commercial and industrial property investment less the losses in property value due to facility shutdowns or closure, removal or destruction of a property component, changes in classification or revision of value due to an improper evaluation.
05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
MICHIGAN REAL PROPERTY ANNUAL INVESTMENT
Exhibit # 1
According to the Barometer, statewide business activity moved to a level of 82.7 in the fourth quarter, up 1.4% from 81.6 in same quarter of 2010, and averaged 81.3 in all of 2011, up 2.5% from 79.3 in the four quarters of 2010. By contrast, growth across the U.S., as measured by Gross Domestic Product, was 1.7% in 2011. Michiganarea growth in the fourth quarter continued to be driven by strength in all sectors except retail trade, energy, and banking. The improving sales volume of Detroit automakers provided much of the stimulus. The auto industry is still a driver of factory operations in many segments of the state’s manufacturing sector, whose rich earnings provide a multiplier effect across many other sectors. Car and truck production rose 11.4% year over year in October through December, up from a 10.7% rise in the preceding quarter, 10
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Commercial /Net Propety investment Index (2002=100)
140
Industrial Investment Index
120
Commercial Property investment Index Net Property Investment Index Industrial Property Investment Index 120 100 100 80 80
60
60
40 40 20 20 0 00
01
02
03
04
05
06
07
08
09
10 0
-20 Source: Michigan Department of Treasury
Exhibit # 2
The Commercial Property Investment Index confirms that commercial investors since 2006 and industrial investors since 2007 have been increasingly reluctant to commit capMichigan Merit
Update
ECONOMIC
ital funds for nonresidential structures except for the pickup in commercial investment in 2010. And when losses in property values are subtracted from capital expenditures, it appears that net commercial and industrial investment across the state had come to halt by 2010. Much of the cause of the decline in investment can be attributed to the Detroit automakers’ loss of market share and similar declines in competitiveness in select other industries. These declines were spurred by shutdown or downsizing of the automakers’ facilities, those of their supplier industries, and the properties in peripheral sectors whose customers’ buying power shrank with a reduction in their earnings. The secondary effect of the investment decline was its impact on the remaining properties still in operation. Their vacancy rates rose, rental rates declined, and leasing income shrank as: 1) landlords offered more generous signing incentives, 2) employers assigned their workers to less space, 3) others postponed commitments to larger space, filed for bankruptcy or emigrated out of state, and 4) lenders tightened commercial mortgage standards. Exhibit #3 displays how the decline in jobs, particularly private sector employment (84% of all jobs), has impacted the planning and funding of expenditures for nonresidential building construction. Such capital expenditures, as measured by the Building Contracts Awards Index, show that the inflation-adjusted value of contract awards for start of future work dropped to 27.3 in 2010’s first quarter (2002=100) from 140.1, its previous peak in the second quarter of 2007. That excludes 2008’s second quarter when the Index soared to 262.2 with a $1.9 billion award for expansion of the Marathon Oil Refinery in southwest Detroit. After again dropping to 27.2 in the 2011’s first quarter, the Contracts Index climbed to 81.1 in 2011’s fourth quarter and then declined to an estimated level of 47 in 2012’s first quarter.
4.6
MICHIGAN EMPLOYMENT / NON-RESIDENTIAL BUILDING Building Employment CONTRACT AWARDS Contracts Index (Millions)
300
All Employment (Millions) Private Employment (Millions) 4.4 250 4.2 200 4
ployment change with the Contracts Index, shows employment, which started growing in the second quarter of 2010, was only an estimated 3.5% higher in 2012’s first quarter than in 2010’s second quarter. Furthermore, with the long history of jobs losses, occupancy in existing buildings has markedly declined since mid-2005 and the amount of space available for lease has risen substantially. In southeastern Michigan, office buildings were about 80% occupied at the close of 2011’s fourth quarter, industrial facilities at 87% and retail at 90%. In southwestern Michigan, office building occupancy was 88% at the close of 2011’s third quarter, the most recent period tabulated, industrial at 92% and retail at 86%. The occupancy, available leasable space and employment data suggest that renovation comprises a large portion of current construction work. In southeastern Michigan, nearly 60% of work completed or started in 2010 was for renovation purposes. Exhibit # 4 CHANGE IN PRIVATE SECTOR EMPLOYMENT / NONBuilding RESIDENTIAL BUILDING CONTRACT AWARDS Contracts Index
Employment (000)
Source: McGraw-Hill & Bureau of Labor Statistics Building Contract Awards Index (2002=100) Year / Year Change in Employment
50
0 200 -50
150
-100
-150 100 -200
-250 50 -300
0
-350 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Exhibit #5 portrays the actual level of statewide employment and the value of payrolls of nonresidential general building contractors and their subcontractors through the second quarter of 2011, and an estimate for the third and fourth quarters for which data are not yet available. While the information does not show that industry activity is in a growth mode, its year-over-year volatility has lessened. This suggests the start of some stability within a range, which is a prerequisite before growth can resume. MM MICHIGAN NON-RESIDENTIAL BUILDING TRADES of EMPLOYMENT / VALUE OF PAYROLLS Number Jobs (000)
1400
3.6
100
250
150
3.8
150
300
Source: Bureau of Labor Statistics
100
Exhibit # 5
Value of Payrolls ($ Millions)
100 Value of Payrolls (Millions)
Number of Jobs (000) 95
1300
3.4
90
50 1200
3.2
85
0
3
05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Source: McGraw-Hill & Bureau of Labor Statistics Exhibit # 3
With movement in the Contracts Index to a level of 47 in 2012’s first quarter, well above the 27.3 posted in the corresponding period of 2010 and 27.2 in 2011, the question arises regarding what caused the upturn. Neither job growth nor a shortage of leasable space can be identified as a sole driver. Exhibit #4, comparing private sector emwww.a b c m i . c o m
1100
80 75
1000
70
900
65 800 60 700
55 50
600 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Spring 2012
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Development
BUSINESS
Most Michigan Voters Think Right-to-Work Is a Winner By Jack Spencer
Overwhelming support for choice in unionization A majority of Michigan voters support right-to-work, according to multiple polls done in the state over the past few years. Earlier this month, Lansing-based Marketing Resource Group released the most recent polling result on right-to-work in Michigan. The survey, commissioned by Inside Michigan Politics, showed that 58 percent of likely voters support rightto-work. Opposition among Michigan voters participating in the survey was at 37 percent. A right-to-work law would guarantee that no one can be forced as a condition of employment to join a union or have to pay dues or a fee to cover the costs associated with a union bargaining on behalf of its members. The Marketing Resource Group poll came out shortly after an East Lansingbased Mitchell Research and Communications Inc. poll showed virtually the same result. According to the Mitchell Research poll, 57 percent of likely voters support a right-to-work law, with 35 percent of respondents registering some level of opposition. The Mitchell Research poll results, released on March 6, were from a survey commissioned by the National Federation of Independent Business and the Associated Builders and Con-
A right-to-work law would guarantee that no one can be forced as a condition of employment to join a union or have to pay dues or a fee to cover the costs associated with a union bargaining on behalf of its members.
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tractors of Michigan. According to the Mitchell Research poll, 41 percent of the likely voters surveyed who supported right-to-work said they strongly supported it. Among those who opposed to it, only 26 percent said they were strongly opposed. A coalition of unions are doing a petition drive to put a proposal on the November ballot that would constitutionally prevent Michigan from becoming a right-to-work state. When the proposal was first announced it was specifically identified as anti-right-towork. However, when the petition language was unveiled, the term rightto-work was conspicuously absent. Mitchell Research Chairman Steve Mitchell said he thinks that exclusion was intentional because “right-towork” polls so favorably. “They know that right-to-work is popular. I remember working on term limits back in 1992. Those opposing term limits were aware that the terminology ‘term limits’ was popular and voters knew what it meant. Knowing this, they tried to work on the ballot proposal without mentioning ‘term limits.’ And that’s what we see happening now with right-to-work. “What the proposal is really about is stopping right-to-work and getting back bargaining advantages for the unions,” he said. “But the unions are going to try to say it’s about protecting collective bargaining.” “My point of view is that you can have collective bargaining and right-towork,” Mitchell continued. “Those two things are not mutually exclusive.” Michigan Merit
Development
BUSINESS
Union Conservatives, a group representing union members who support right-to-work, held a rally in support of right-to-work at the Capitol Building in Lansing in late March. Terry Bowman, founder of the Union Conservatives, said that the poll results on the issue are a true reflection of what voters think of right-to-work when it’s presented fairly. “It’s obvious that the voters support right-to-work once they hear the truth about what it really is,” Bowman said. “When asked, a majority of voters agree that workers should not be forced to pay dues to an outside, third party. This is true of union workers as well. “Unions sometimes pay for polls that ask about right-to-work by describing it in terms of whether workers should get union representation without having to pay for it,” Bowman added. “When the question is asked that way, it tends to bring the numbers in support down. But when the truth is told about right-to-work, even union workers support it.” Both the MRG and Mitchell polls came in the wake of Indiana becoming the nation’s 23rd right-to-work state on Feb. 1. However, previous polling also showed a majority of Michigan voters support right-to-work. In the spring of 2011, EPIC/MRA released polling data showing 54 percent of respondents supported right-to-work, with 45 percent opposed. A poll commissioned by the Grand Rapids Press and released on Labor Day weekend, 2010, showed support
for right-to-work at 51 percent, with to join unions. A February 2010 Pew slightly more than 27 percent opResearch poll revealed only 41 percent posed. of those surveyed had a favorable Mitchell said he can’t remember view of unions, with 42 percent holdwhen he last saw poll results that ing unfavorable sentiments. MM showed more opposition to right-towork than support. Reprinted with permission from “If I’ve seen any, it would have been Michigan Capitol Confidential, March a long time ago,” he said. “Everything 30, 2012. I’ve done recently shows strong supJack Spencer is Capitol affairs specialist port for it. That includes in-depth pollfor Michigan Capitol Confidential, a news ing I did last year that wasn’t released service of the Mackinac Center for Public publicly. With that polling we really Policy. Spencer can be contacted at vetted the issue from a lot of angles author@mackinac.org. and it stood up very well.” Nationally, polling — particularly since COMMERCIAL • RESIDENTIAL • INDUSTRIAL • AGRICULTURAL early 2009 — has shown QUALITY – C&R Electric has the experience and professionalism unfavorable your job requires. attitudes toward SERVICE – Customer satisfaction labor unions. A is important to us! March 2009 poll BONDED – C&R Electric is insured conducted by and bonded. Rasmussen Reports showed TIM SPONSELLER only 9 percent 989.828.4020 of non-union www.candrelec.com workers wanted
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Spring 2012 11/3/08 5:06:07 PM
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Affairs
GOVERNMENT
ABC Readies for Largest Showdown with Organized Labor in a Generation
T
he Michigan Board of State Canvassers has approved language for the so-called Protect Our Jobs petition drive. This is a union-backed ballot drive that would enshrine collective bargaining rights in Michigan. In the meantime, ABC of Michigan and other industries have geared up and will be allocating significant resources to fight this radical effort. Protect Our Jobs backers must collect at least 322,609 valid signatures by July 9 for the measure to qualify for the Nov. 6 ballot. The coalition of labor unions is all but assured to satisfy this requirement, especially given Michigan’s high union-member density. The petition drive began March 6. If Big Labor is successful in passing this omnibus ballot proposal under the banner of protecting collective bargaining rights, many current laws will be overturned and many future legislative efforts will be killed. This bill would: • Prohibit the legislature from passing laws ending PLAs and nullify current PLA statutes prohibiting PLAs that ensure governmental neutrality in the state; • Prohibit the legislature from ever making Michigan a Right-to-Work State; • Allow for state workers to collect union political contributions with state resources; • Prohibit “paycheck protection;” • Nullify the provision in the MI Emergency Manager law, PA 4 of 2011, that gave state-appointed emergency managers for financially troubled local governments and school districts power to void or amend collective bargaining agreements to avoid bankruptcy; • Seems to ensure public university graduate student research assistants could unionize (currently prohibited in MI); • Enshrine in the Constitution the ability for state employees to collectively bargain, strengthening their collective bargaining ability; • Affect the law enacted in 2011 that barred local gov-
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ernment service consolidation from being a subject to collective bargaining; • Prevent the Legislature and governor from making changes to unionized state employee pensions; • Overturn a law enacted last year that barred the following subjects from collective bargaining between teachers and their school districts: teacher placement; policies for personnel decisions made when an employer eliminates a position or recalls or hires after a position has been eliminated; an employer’s performance evaluation system; policy for discharging or disciplining employees subject to the tenure law and the discharge or discipline of an individual employee; classroom observation; performancebased method of compensation; and parental notification of ineffective teachers; • Overturn a law enacted last year freezing public employees’ wage and benefit levels after the expiration of their collective bargaining agreement; • Nullify current law setting a maximum amount of money public employers can contribute toward the cost of their employees’ health benefits; • Overturn current law prohibiting School districts from automatic payroll deduction for teachers to pay their union dues. Simply put, this proposed legislation is the biggest threat to the merit Shop in more than a generation. This could affect ABC members more than any other group, because it also may involve PLAs. ABC’s objective is to helping coordinate a statewide campaign along with other business groups to defeat this dangerous proposal. “ABC will tirelessly fight to protect the right of or membership and taxpayers,” said ABC of Michigan president Chris Fisher. “This is going to be one of the most important ballot proposals that ABC has seen in a generation and we will not let up until we know for certain the we have prevailed by killing this dangerously radical proposal.” The issue is slated to be decided in a statewide vote in the November General Election. MM
Michigan Merit
An Open Letter to all ABC Members from ABC of Michigan President Chris Fisher May 14, 2012 RE: Project Labor Agreements (PLAs) Dear ABC of Michigan Members: As you know, a Federal Judge in Detroit recently made a controversial ruling invalidating 2011 Public Act 98, which prohibited governmental units from mandating union-only Project Labor Agreements (PLAs), as well as any other discrimination on the basis of labor affiliation. Like a dozen other states, Michigan did the right thing to protect taxpayers and defend equal opportunity for all workers and businesses. This ruling was wrongly decided and it is in conflict with the Washington, DC Circuit Court’s favorable decision in the Allbaugh case, which upheld President George W. Bush’s 2001 Executive Order prohibiting federal government-mandated PLAs and discrimination on the basis of union affiliation. However flawed, the Judge’s decision is effective immediately. ABC has already notified the full membership of this unfortunate development. However we have also taken many other steps, many of which are ongoing. I wanted to take this opportunity share some of these with you now: ABC is in ongoing talks and planning meetings with legal and legislative contacts to determine the extent to which ABC can push to amend current law to end PLAs in a matter that is consistent with the Court’s ruling. This is a very careful procedure and requires the judge’s ruling to be fully dissected, along with a complete statutory audit of Michigan’s law. This process is now complete and amendments to the current law have been introduced by Senator John Moolenaar (R-Midland). This will be a significant legislative effort, but one which we are confident in our ability to help usher through the House and Senate, and ultimately to the governor’s desk. These changes to the current law seek to clarify that the legislature intends to ensure the economic efficiency in procurement of construction services The first change clarifies that the legislature is seeking economic efficiency by passing this law (something which the judge incorrectly questioned). The other changes would clarify the language of the law to better mirror George W. Bush’s Executive Order, which was able to survive a federal court challenge. As such, this will make it easier to apply existing precedent to better ensure that the intent of the Legislature and Governor are restored. ABC has also reached out to the Attorney General, encouraging the State of Michigan and Governor Rick Snyder to vigorously appeal this flawed decision to the United States 6th Circuit Court of Appeals in Cincinnati. Up to and including the United States Supreme Court, we are confident that the appeals process will uphold Michigan’s law. Moreover, many legislative leaders are also supporting a rapid appeal. The plea to urgently appeal the case was successfully put into place and the Attorney General filed a notice of appeal on behalf of Governor Snyder in February. This matter is now before a three-judge panel and it may be upwards to a year before the appeals process is complete. A stay has been requested keep the law and the effect of the law in place. The request has been filed in U.S. Federal Court by the Attorney General, and affidavits have been submitted with the assistance of ABC. ABC is also monitoring developments at public entities which have utilized PLAs in the past and is asking Members to report all new PLAs to ABC immediately at www.PLAwatchMichigan.com or via email to me personally at fisher@abcmi.com Obviously ABC of Michigan’s response is multifaceted. Coordination of these developments has been of the utmost importance to the Board of Directors and staff. As developments unfold, ABC will keep you up to date, as well as welcome your comments, concerns, recommendations or questions. As one anti-Merit Shop commentary in Michigan Construction News summarized …“Associated Builders and Contractors Michigan is still on the Warpath.” They’re right, we are. Yours for the Merit Shop,
Chris Fisher
www.a b c m i . c o m
Spring 2012
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Report
L E G I S L AT I V E C O N F E R E N C E
Lt. Governor Addresses ABC of Michigan Members ABC of Michigan members from across the state gathered on February 15, 2012 at the Radisson Hotel in downtown Lansing for their annual State Legislative Conference. Prior to scheduled meetings between ABC member constituents and their legislators, attendees were privileged to have Attorney General Bill Schuette as their morning keynote speaker. The Attorney General reported on the status of the court case to uphold 2011’s PA 98 – the Fair and Open Competition in Governmental Contracting Act. The case is presently before the United States Court of Appeals. Lt. Governor Brian Calley presented the afternoon keynote address, reporting on the administration’s primary goals for 2012. ABC members were pleased to hear that
several of the goals of Governor Snyder’s administration are supportive of the free enterprise tenets of ABC. Two legislators were awarded prestigious Legislator of the Year awards, Senator Arlan Meekhof (R-West Olive) and Representative Bradford Jacobsen (R–Oxford) (see sidebar) during the course of the conference that ended with a Legislative Reception. The Legislative Reception brought about 50 elected officials into a casual setting to speak one-on-one with their constituents. Members from across the state had the opportunity to have the ear of their representative or senator to discuss the issues of importance to Merit Shop Construction companies specifically, and to small businesses in general. MM
Rep. Bradford Jacobsen (R-Oxford) with ABC members from Southeast Michigan
Attorney General Bill Schuette delivers the morning keynote
Lt. Governor Brian Calley addresses ABC
Report
L E G I S L AT I V E C O N F E R E N C E
ABC Legislator of theYear awarded to Senator Meekhof and Representative Jacobsen Two Michigan legislators, Senate Majority Floor Leader Arlan Meekhof and State Representative Bradford Jacobsen, have been named ABC of Michigan’s 2012 “Legislators of the Year.” Both legislators received their awards at the ABCMI’s Legislative Conference on Feb. 15 in Lansing. Senator Meekhof received the award in recognition of his efforts to end prevailing wage and to reform the state’s tax system. “Being selected as the Associated Builders and Contractors’ 2012 Legislator of the Year is a distinct honor,” said Meekhof, R-West Olive. “I am humbled to be recognized with this award for simply doing the job I was elected to do.” Representative Jacobsen was also recognized by ABC of Michigan for his efforts to repeal Michigan’s prevailing wage law, which would save significant costs on construction projects. “I am honored by the recognition from ABC Michigan and will continue to advocate for my legislation to repeal prevailing wage requirements,” said Jacobsen, R-Oxford. “Finding ways to save money and be more efficient is important to getting Michigan back on track, and I remain committed to this legislation and other efforts that will help us do this.” MM Top: Senator Arlan Meekhof (R-West Olive) with ABC members of his constituency Middle: Rep. Bradford Jacobsen (R-Oxford) with ABC members of his constituency Bottom Left: Senator Arlan Meekhof (R-West Olive) Bottom Right: Rep. Bradford Jacobsen (ROxford)
www.a b c m i . c o m
Spring 2012
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(continued from page 8...) almost seems that going into the trades makes you less of a person,” observes contractor Hannahs. The recent economic downturn hasn’t helped student perceptions of the trades as providing a secure economic future. But the fact is, when students learn a trade they have a skill for a lifetime, one that is transportable and profitable. For most of the trades, students will be making $40,000 or more by the time they finish their apprenticeships, equal to or exceeding many entry-level positions for 4-year degreed individuals. As individuals get more experience, there are opportunities to move up into management, even business ownership. There’s no denying that since the 1970s, students have been told that getting a bachelor’s degree was the ticket to financial success, a trend that continues today. President Obama has said that he wants to produce the highest proportion of college graduates in the world by 2020; at the same time, his administration has cut funding for vocational education by 20%. Parents are also instrumental in steering their children away from the trades. “I’ve had parents literally yell at me for encouraging kids to pursue CTE pathways,” says Superintendent Markavitch. “Parents and high school counselors consistently discourage students from going into the trades because of this mindset that kids have to have a 4-year degree to be successful.” And the state superintendent agrees. “We have to make kids, parents and school guidance counselors aware that skilled trades and other career and technical education paths are viable alternatives for kids. I would be happy to work with ABC of Michigan to make this happen,” says director Flanagan. Also hampering enrollment in CTE is the misconception that the trades are a “dumping ground” for kids who aren’t smart or can’t make it in college. To the contrary, the trades often make learning core subjects like math and reading relevant, answering the “what’s the point?” question high school students have been asking since days of the oneroom schoolhouse. “All you have to do is go to a vocational program and see how excited and enthusiastic these students are,” says Eberhardt. It is clear that the debate over graduation requirements will continue, and reaching consensus on academic requirements will be a struggle. But rebuilding the image of the skilled trades and promoting vocational education to young people dazzled by the Internet seems to be something on which ABC of Michigan members, lawmakers and educators can agree. Recruiting more students into the skilled trades will benefit everybody – builders and contractors, the economy, and especially students. After all, as Mark Sawyer points out, there’s more than money involved: “Nothing gives you a sense of personal satisfaction like passing by a building that you’ve been part of constructing.” MM
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Michigan Merit
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