Michigan House Drops Penalties for Labor Contracts

Michigan House Drops Penalties for Labor Contracts

Republicans who control the Michigan House are dropping plans to punish public universities, schools and local governments that signed unusually long labor contracts before the state's right-to-work law took effect in March.

House budget committees had approved funding reductions or restrictions for public employers such as the University of Michigan and Wayne State University in recent weeks. But the full House on Tuesday stripped the language from spending bills.

Republican Appropriations Chairman Joe Haveman of Holland says House Republicans succeeded in making their point because few public bodies went through with "rumored" plans to sidestep the right-to-work law with long contracts. Haveman says the penalties were "largely unnecessary."

The Republican-led Senate and Republican Gov. Rick Snyder have been skeptical of cutting aid to public employers with lengthy contracts.


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