ABC Nov. 27 praised the 6th Circuit U.S. Court of Appeals for upholding Michigan’s 2011 law that prohibits government-mandated project labor agreements (PLAs) on construction projects paid for by Michigan taxpayers. 

“The court’s decision means that Michigan’s commitment to fiscal accountability and non-discrimination was further secured today,” said ABC of Michigan President, Chris Fisher. “We’re pleased to see that equal opportunity to compete for business remains the law of the land.”

The decision made denied a motion filed by the Michigan Building and Construction Trades Council, AFL-CIO, to rehear the Sept. 6 decision which upheld the decision of Public Act 238 of 2012 which ensured that government-mandated PLAs are prohibited on state, local and publicly funded projects in Michigan.

Public Act 238, supported by ABC and signed by Gov. Rick Snyder in June 2012, amended Michigan’s Fair and Open Competition in Governmental Construction Act (Public Act 99, 2011) to address concerns of the initial law. 

The U.S. Circuit Court of Appeals for the 6th Circuit is the second federal Circuit Court of Appeals to uphold the right of a government entity to ban government-mandated PLAs. In 2002, the U.S. Circuit Court of Appeals for the District of Columbia upheld Executive Order 13202, issued by President George W. Bush in 2002. Additionally, the U.S. District Court for the Southern District of Iowa upheld a similar order issued by Iowa Gov. Terry Branstad (R) in 2011.