Sunday, September 15, 2013

Sixth Circuit Upholds Michigan Law Limiting Project Labor Agreements

On September 6, 2013, the Sixth Circuit Court of Appeals voted 2-1 to uphold the "Michigan Fair and Open Competition in Government Construction Act" (PA 98 of 2011).  

The act prohibits a city, village, township or other governmental unit from awarding a public construction project, grant, tax abatement or tax credit based on whether or not a bidder, contractor or developer employs union or non-union labor. 

The Court noted in a 13-page published opinion that "The act furthers Michigan’s proprietary goal of improving efficiency in public construction projects, and the act is no broader than is necessary to meet those goals." 

The Sixth Circuit's decision overturns a 2012 decision we reported here by U.S. District Judge Victoria Roberts, who had ruled that PA 98 violated the National Labor Relations Act.

Cite: Michigan Bldg & Const Trades Council v Snyder, 729 F.3d 572 (6th Cir. 2013).

For more about Michigan Construction Law Update, click here.

Additional reading:
  • "Sixth Circuit upholds Michigan's open competition law," Legal Newsline Legal Journal, Sept 9, 2013 (click here
  • "New Michigan Law Prohibits (Most) Project Labor Agreements," Michigan Construction Law Update, July 22, 2011 (click here
  • "U.S. Circuit Court Upholds Michigan Ban on Project Labor Agreements", National Legal and Policy Center, Sept 16, 2013 (click here

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