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Political Update

Political and Legislative Update

Fall 2015

Senate Bills 1, 2 and 3 were passed out of the Senate by a 22-15 vote prior to the legislative summer recess. SB 1, 2 and 3 are sponsored
by Senators Arlan Meekhof (R- West Olive), Peter MacGregor (R-Rockford) and Dave Robertson (R-Grand Blanc), respectively. These bills would repeal Michigan’s Prevailing Wage Law, that requires state funded projects to pay the regional prevailing wage.

As you know, Michigan’s Prevailing Wage Law protects local workers and construction companies from having to engage in a race to the bottom against dishonest out of town contractors that use cheap, unskilled labor from other states or countries on Michigan construction jobs. Prevailing Wage keeps our jobs local, and puts money into the wallets of Michigan’s construction workers.

The legislature also passed, and the Governor signed HB 4052, sponsored by Earl Poleski (R-Jackson). This bill is now Public Act 105, and prohibits local units of Government from enacting their own prevailing wage ordinance. However, this bill does grandfather in previously existing prevailing wage ordinances, in communities around the state.

Additionally, a few organizations are collecting signatures to establish a voter initiative law that repeals the state’s Prevailing Wage law. On Monday September 14th, they submitted 390,000 signatures to the Secretary of State in support of passing this law.

Governor Snyder has been clear that he does not support a repeal of Michigan’s Prevailing Wage Law, so organizations such as ABC have been working on the voter initiative process to circumvent the Governor. To do this, over 250,000 signatures of those they recently submitted will need to be found valid by the Secretary of State. Once these are validated, they are submitted to the House of Representatives and the Senate. Both chambers will then have 45 days to act. If one chamber does not act, then the issue will be placed before the voters on the November 2016 ballot. If both chambers support the initiative, then the law will take effect without the Governor’s signature.

Media reports have found that many of these signatures were obtained by circulators being dishonest with citizens about the law’s true intent. Ironically, some circulators were caught claiming the petition would “create jobs” or “fix the roads,” even though the result of losing Michigan’s Prevailing Wage Law would be the opposite.

Fortunately, this initiative is opposed by the business community and the labor community, and by Republican and Democratic lawmakers, because these leaders know we can’t leave the construction of our municipal projects and more to chance.

If the initiative does not successfully pass both houses of the legislature, it will appear on the ballot in November 2016. The men and women of OE324 stand ready to defend Michigan’s Prevailing Wage Law in the legislature and at the ballot box.

OE 324 encourages everyone to contact their state lawmaker and urge them to defend and uphold Michigan’s Prevailing Wage Law. Visit michiganprevails.com to contact your representative.

Road Funding May Now Move Forward

Now that the investigations into the misconduct of two state House Republicans has been completed (more on that below), the leadership in both the Senate and House and the Governor are turning their focus to road funding. Since Proposal 1 in May went down in resounding defeat, OE 324 has continued to work closely with the Governor and legislative leaders to craft a solution that prioritizes Michigan’s infrastructure and creates good quality local jobs for local Michigan workers.

The impasse in the legislature regarding road funding fundamentally centers on whether Michigan will raise new revenues, or divert existing revenue to road funding. Most proponents of increased roads funding believe that a dedicated new source of revenue is necessary to make up for years in serious shortfalls in road funding investment.

Further, diverting existing state revenue to road funding would divert crucial state resources away from K-12 education, higher education and health care, just to name a few. This is making it difficult for any such proposal to secure the necessary Democratic votes.

Proposals that have been discussed thus far include a $600/$600 plan that would raise $600 million in new revenue through increases in registration fees, gas tax and diesel parity and diverting $600 million in existing state dollars to road funding.

The newest proposal would raise $800 million in new revenue by way of increases in registration fees, gas tax and diesel parity and diverting $400 million of existing dollars to road funding. This plan would have less of an impact on other areas of the state’s budget and create a more consistent revenue source for road funding that would likely be sustainable for a longer period of time. Now, many leaders agree that the total annual increased funding needed for roads exceeds $1.2 billion. Neither plan will likely raise the amount of funds necessary to adequately address the deterioration of Michigan’s infrastructure.

Legislative leaders and the Governor all remained hopeful that a plan will come together by the end of this September.

Legislative Events

You may have noticed a lack of real movement on fixing the roads or any of the legislature’s other real agenda items since the failure of Proposal One last May. In addition to launching attacks on our membership and our way of life, this legislature has proven to have a real talent for taking lengthy vacations and finding other ways to waste time on distractions.

To that end, the legislature returned to Lansing after their weeks-long summer recess and focused their efforts on addressing a scandal involving two state representatives. Rep. Todd Courser (R Silverwood) and Rep. Cindy Gamrat (R-Plainwell).

As information began to come forth, it was clear that the House Business Office needed to intervene and investigate what exactly had been going on, for how long, and whether state resources were misused to inappropriately maintain, then cover up the affair. After a long investigation into the matter, a special committee was formed to study the findings of the House Business Office investigation and determine if the two members should receive punishment that could include censure or expulsion.

In the end, the special committee led by Rep. Ed McBroom (R-Vulcan) recommended that the full House expel both legislators. After a marathon session in the House, Rep. Courser chose to resign and Rep. Gamrat, after refusing to resign, was expelled.

The legislature has naturally been consumed by this issue since the secret audio recordings were first publicly released in early August, complicating efforts to win progress on road funding or other priorities.

Rep. Brandon Dillon (D-Grand Rapids) also resigned from his office in June of this year, after being elected Chair of the Michigan Democratic Party.

With these changes, the House now has 107 members serving with 3 vacancies. Special elections have been called for all three seats. The primary elections will be held in November and the General Elections for these seats will take place in March of 2016.

We need your involvement!

Regardless of which party controls the agenda in Lansing, OE324 will continue to pride ourselves on working with lawmakers and leaders of both parties. Business Manager Stockwell has always believed that our membership’s diverse political views must be taken seriously and represented by our leadership in Lansing and all over this state. That’s why we’ve created 10 regional Political Action Committees (PACs) to focus our political efforts on assisting our friends and making life difficult for our enemies, regardless of political parties. We understand that your time is valuable, and your voluntary involvement in these efforts is greatly appreciated.

We continue our commitment to representing you in the halls of power in Lansing and all over this state. We appreciate your assistance and request your participation in this union and politically in your back yard.

Fraternally,

Ryan J. Dunn

Assistant to the Business Manager & Political Coordinator

Summer 2015

Once again, partisan politics rather than sound policy focused on employment opportunities are running the State of Michigan. Michigan’s citizens have spoken and want Lansing to fix our roads and bridges – no more excuses. “Get it done” was the message Michigan’s political leadership should have gotten on May 5th. (See Road Funding Update in this edition)

The State legislature ignored their constituents. Instead, they took the direction of their anti-worker corporate donors and renewed their war on working families by forcing bills through committees that cripple Michigan workers.

This is a fact about Lansing that few folks want to talk about. National anti-worker, pro-business special interests control everything that happens under the dome of the state capitol. They have bought themselves a majority legislature that caters to their every demand. That is how the state House and state Senate can enact a reckless and dangerous agenda without fear of retribution from voters. The majorities in the state House of Representatives and the state Senate are out-of-touch. They only listen to the special interests that contribute to their campaigns.

Just look at House Bill 4052, better known as the “Death Star” legislation sponsored by Rep. Earl Poleski. The “Death Star” bill bans municipalities from negotiating mandatory leave time, wages, benefits and community benefits ordinances. And House Bill 4052 doesn’t stop there.

House Bill 4052 prohibits municipalities from setting minimum wages for employees. And it prohibits municipalities from negotiating mandatory paid sick leave time and arranging community benefits agreements with private companies.

House Bill 4052 strips local control from our communities and cripples municipalities from being able to create good paying jobs, expand critical services and rebuild neighborhoods. Even more outrageously, House Bill 4052 protects the unaccountable flow of tax dollars to private developers.

Others have begun to notice how out of control our state House and state Senate have become. Here is what the Battle Creek Enquirer on May 16th said about HB 4052:

“Legislatures are supposed to represent us, but sometimes it seems as though the majority of Republicans in Lansing would prefer to rule us, instead. Advancing public policies that further depress wages or drive highly skilled trades workers to more lucrative markets is no way to rebuild the state’s economy. Little wonder that citizens have so little faith in state government to guard their interests. So much for the party of small government and home rule. This bunch has its own agenda.”

House Bill 4052 overrides local employment laws and rips decision making powers from local governments. Also, Ryan Dunn Assistant to the Business Manager & Political Coordinator House Bill 4052 will hurt every working family in the state.

House Bill 4052 is bad enough on its own. When you pair it up with Senate Bill 280, Michigan’s working families get a double dose of anti-worker, anti-labor legislation designed to drive down wages.

Senate Bill 280 is the brainchild of freshman state Senator Marty Knollenberg of Oakland County. Senate Bill 280 would rip up agreements between unions and governments that allow union members to be paid while conducting union business. Just like House Bill 4052, Senate Bill 280 cripples any ability for unions to negotiate working conditions.

Supporters of Senate Bill 280 claim that it protects taxpayers dollars. Yet, they provide no proof for their claim. In fact, the nonpartisan state Senate Fiscal Agency believes the Senate Bill 280 would have no fiscal impact on state or local governments. Senator Knollenberg and his majority in the state Senate want the public to believe these bills save taxpayer dollars. The real goals of legislation like House Bill 4052 and Senate Bill 280 are to whittle away your collective bargaining rights.

The simple fact is Senate Bill 280 takes a tool away from unions to negotiate wages and safe working conditions. Under Senate Bill 280, employers would hold the upper hand in negotiations and make grievances and contract issues harder to resolve. In fact, it is quite likely Senate Bill 280 may end up costing taxpayers because it would make collective bargaining agreements harder to complete.

Time and again, we have seen the special interests dictate to the legislature what the laws governing the state of Michigan will be. With Senate Bill 280 and House Bill 4052, the special interests have decided to take another whack at the collective bargain process and local control.

But Senate Bill 280 and House Bill 4052 are just the beginning. You can expect more legislation to come down the pike designed to hobble our rights as union members, bring down our wages and benefits and cripple our ability to negotiate.

All this came after SB 1, 2 and 3 where rushed through committee and quickly voted off the floor sending the Bills to the House. The House was prepared to take action, but the Governor threatened to VETO the Prevailing Wage Repeal Bills. So once again the special interest anti-union corporate financers created a Ballot Committee to gain signatures that if enough were gathered, would send the ballot initiative repeal back to the House and Senate and could either; 1) Be voted on by the caucus and if passed would circumvent the Govenor and become law, 2) Be voted on and be place on the 2016 Ballot to be voted on by the MI citezins or 3) Be voted down (as of today July 1st) is highly unlikely.

All this as numerous polls have reported the Michigan citizens do not want the Michigan Prevailing Wage Laws repealed. However as previously discussed the Michigan majority legislature is running a partisan agenda rather than a policy, Michigan citizen agenda. This is why we need your in-district participation. Sign page in this edition as well as visit michiganprevails. com and Take Action)

Operating Engineers Local 324 has always prided ourselves on being able to work closely with legislators of all political persuasions. Our guiding philosophy has always been “Policy over Party.” It’s a philosophy that has served our membership well. Business Manager Douglas W. Stockwell believes our memberships diverse political views need to be taken seriously. Our membership includes Democrats, Republicans and Independents. That is why our political activity focuses solely on public policy that betters the economic position of our membership. To the Michigan Operating Engineers, it doesn’t matter which political party created the policy. The only issue that matters is: “Does this policy improve the lives of our members and their families?”

It is sad that one majority party has chosen to target our members and their families. The facts are clear — the policies pushed by the current leaders in Lansing are damaging for Michigan citizens and Michigan’s union members. Mr. Stockwell believes we need to support legislators who are helping push policies that focus on creating jobs for Michigan’s families.

Mr. Stockwell has created 10 regional political action committees to focus our political efforts on legislators from either party that support sound public policies and to defeat legislators that want to rip the rights we have earned away from us. These Regional PAC’s all have a fundamental focus on direct in-district activities. Your Regional PAC’s continue to grow with Retirees, Active Members and Business Agents. Please consider participating in your specific Regional PAC. Your participation is solely based on your individual voluntary time. However, you will be included on all political items we receive and or request related to your specific PAC Region.

Further on membership participation, the members signing up to receive OE324 Text Alerts, Rapid Response Team along with active and retired member’s voluntary contributors to the Local 324 PAC, continue to increase. This is directly related to your need to be included as well as the total transparency created by Business Manager Stockwell. It you are not already signed up as a participant in the new 324 membership participation programs, please consider engaging in whichever or all programs you would like information on.

Mr. Stockwell is leading the Michigan Prevails campaign designed to protect Michigan’s Prevailing Wage. He has instituted a rapid response email and text program to alert our members and retirees when there is an assault on our rights and to contact legislators when critical legislation is moving in Lansing.

We are committed to making sure your opinions are heard as political decisions that affect our union are made. And we need your help in making sure our friends and enemies in the political world hear the voices of the Michigan Operating Engineers loud and clear.

Fraternally,

Ryan J. Dunn

Assistant to the Business Manager & Political Coordinator

Spring 2015

Safe Roads YES – VOTE Yes for Proposal 1 

Our Michigan road construction members provide the largest amount of work hours annually to our union and its funds. Even with the antiquated and underfunding formula, road workers remain critical to our union. Furthermore, a comprehensive guaranteed funding solution to fix our roads and bridges, would provide much needed work opportunities to our entire organization and all of our members and contractors. 

On May 5th, Michigan voters will have the opportunity to fix this antiquated road funding formula and guarantee funding for Michigan’s roads and bridges as well as funding for schools (K-12) and local units of government. Vote Yes for Proposal 1. 

Local 324 has joined the “Safe Roads Yes” campaign and are actively supporting the passage of Proposal 1. We are part of the bipartisan coalition to finally provide a guaranteed funding solution to improve the conditions of Michigan’s roads and bridges. 

Why Are We Supporting Proposal 1? 

Michigan’s Operating Engineers are supporting Proposal 1 “Safe Roads Yes” because Michigan’s roads and bridges are dangerous and a threat to the safety of our families. Dangerous roads and bridges cost lives, increase repair costs for drivers and hurt our economy. A “Yes” vote for Proposal 1 will provide us with long-term, comprehensive funding to fix Michigan’s roads and bridges. More over it will provide quality employment opportunities for our road construction members. Proposal 1 is our last, best chance to fix Michigan’s roads with funding constitutionally guaranteed. With the passage of Proposal 1, politicians and special interests will never be able to shift taxes we pay for road funding for their pet projects. This is our best chance to fix our roads and create employment opportunities. 

What Does Proposal 1 Do Other Than Provide Funding to Fix Michigan’s Roads and Bridges? 

A “Yes” vote on Proposal 1 will increase education funding, increase funding for local units of government and provide tax relief to lower-income Michiganders. For example, Passage of Proposal 1 would immediately result in $300 million more for Michigan’s classrooms, $100 million for local governments and $800 million for roads. When Proposal 1 is fully implemented, over $1.2 billion will be allocated for roads annually giving Michigan the steady funding stream needed to repair and upgrade Michigan’s roads and bridges. And with the passage of Proposal 1, for the first time, all state taxes paid on gas must go to transportation. 

 Does Proposal 1 Raise Michigan’s Sales Tax? 

Yes, passage of Proposal 1 would raise Michigan’s sales tax from 6% to 7% (or one penny for every dollar spent) on all products except groceries and pharmaceuticals. But, Proposal 1 does provide significant tax alterations to Michigan’s families by: 

• Eliminate sales tax on motor fuels (Currently Michigan is only one of five states that charges sales tax on fuel purchases and the only state that doesn’t dedicate any of those revenues to roads) 

• Eliminate the 19-cent gas tax and replace it with a 14.9% wholesale gas tax 

• Diesel fuel tax would adjust from 15-cents/gallon to 46-cents/gallon (“Diesel Parity”) 

• Provide $260 million in tax relief for Michigan’s working poor 

Passage of Proposal 1 reforms Michigan’s tax structure and ensures a stable, long-term solution to the problem of Michigan’s dangerous and deteriorating roads and bridges.

How Does the Money Get Spent? 

The overall funding will be phased-in over three years, thus allowing for debt that has accumulated over the years to be eliminated and allowing for the industry to build-up slowly with the expanded program. In the first year, $400 million will run through the road funding formula and $800 million will go directly towards debt. In year two, $800 million will be spent on roads and $400 million will pay down debt. And by the third year, the entire $1.2 billion will be directly invested in Michigan’s roads. 

Although the effective date of the fuel tax adjustment isn’t until October 1, 2015, MDOT expects to accelerate approximately $400 million dollars’ worth of projects across the state in order to jumpstart this investment program immediately this summer. 

How Can You Help Pass Proposal 1 “Safe Roads Yes” 

Safe Roads Yes Coalition has a tool kit that provides you with all the tools necessary to communicate to your family, friends and neighbors the importance of passing Proposal 1. Included are guidelines on how to communicate with the general public on the benefits of passing Proposal 1 including social media content, letters to the editor examples and comprehensive fact sheets detailing the benefits of the Proposal 1. You can sign-up and receive updates with suggested responses to the distortions and lies from the opposition. 

If we work together with our families and the general public, we will be successful in making Michigan’s roads and bridges safer while creating direct job opportunities for Local 324 membership. 

Again, a “Yes” vote on Proposal 1 on May 5th is ultimately a win for our union and Michigan’s roads, schools and local units of government! 

Fraternally, 

Ryan J. Dunn 

Assistant to the Business Manager & Political Coordinator 

OE_324_Portrait_Ryan_BW

Ryan J. Dunn

Assistant to the Business Manager & Political Coordinator

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