Title
Resolution to Rescind City Requirement that Contractors Execute CUB Agreement with Washtenaw County Skilled Building Trades Council as Condition of Award of City Construction Contract
Memorandum
On July 19, 2011, the Fair and Open Competition in Governmental Construction Act (P.A. 98 of 2011)(‘the Act”) became law. For all construction contracts executed by the City after July 19, 2011, the Act prohibits the City from entering into or expending funds under a contract for construction, repair, remodeling, or demolition of a facility if the contractor or subcontractor is required under the terms of the contract to enter into or adhere to an agreement with a collective bargaining organization related to the construction project. Construction bids issued after July 19, 2011, may not include a bid specification requiring such an agreement with collective bargaining organizations. If included in the bid documents, project agreement, or other contractual agreements such language will have no effect.
City Council Resolution R-11-16-09, approved November 16, 2009, required the inclusion in City construction invitations to bid and awarded contracts the requirement that contractors and subcontractors execute Construction Unity Board (CUB) Agreements with the Washtenaw County Skilled Building Trades Council. In adopting R-11-16-09, Council noted the benefits of uniform wages, work rules, and benefits across multiple skilled trades and crafts employed on a project as well as the benefit of no-strike and no-lockout provisions in such CUB Agreements. While the Act prohibits the City from requiring CUB Agreements, the Act does not prohibit individual contractors and subcontractors from voluntarily entering into CUB Agreement to be governed by the current collective bargaining agreement of the appropriate Local Unions of the Washtenaw County Skilled Building Trades Council.
Prevailing wage law is not affected by P.A. 98 of 2011.
The attached resolution for...
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