Posts tagged union scale
Opinion: Say No to prevailing wage
March 13, 2023 // Prevailing wage mandates artificially lift the cost of government construction projects by forcing bidders to pay the local or, “prevailing,” wage in a particular area. Typically, that means union scale wages. Michigan repealed its prevailing wage law in 2018. The Michigan House of Representatives voted this week to reinstate it. The Senate should vote it down. Research shows prevailing wage laws artificially raise the cost of government construction projects. In a forthcoming study, economist Michael Hicks, co-author of this post, estimates that the cost of road construction is raised by between 8.5% and 14.3% in quality-adjusted road miles. In Michigan in 2018 that would translate to between $5,900 and $9,200 in additional costs per mile. Who foots these extra costs? Taxpayers.