Wednesday, January 17, 2018

Michigan’s Prevailing Wage Law Drives Up Costs [Michigan Capitol Confidential]

Michigan’s Prevailing Wage Law Drives Up Costs [Michigan Capitol Confidential]:
"I recently installed a new roof on my house.
Before doing so, I did what any responsible homeowner does — I got bids from different companies and made a decision by balancing quality and costs and using market competition to my advantage.
...These calculations are what most people make when considering construction projects on their own homes and businesses.
But imagine if I had determined from the start that no matter who did the project, I was going to spend a minimum of $12,000 for a new roof because that’s the average price in some areas.
You’d probably find that to be a bit silly and a real waste of my money.
Image result for Michigan’s Prevailing Wage LawWhy would I pay more than I need to for a service just because it’s the going rate that other people pay? 
But that is exactly what Michigan’s prevailing wage law does.
The decades-old law mandates that all government entities pay union prices for construction projects.
Michigan’s law is the most stringent in the nation, setting arbitrary — and often absurd — prices for schools, roads, parks, libraries, and other public construction projects.
This drives up costs by hundreds of millions of dollars every year, paid for by taxpayers.
In short, these laws mandate specific wages for those working on government projects.
It wipes out local control and competitive bidding. 
Even if local school boards or city councils can find a higher quality at a lower price or more bang for the buck, they aren’t allowed to pay less..."
Read on!

No comments: