DETROIT (AP) -- A federal appeals court has cleared the way for a Michigan law that could diminish the role of union labor in public construction projects.
The court on Friday overturned an injunction that had suspended the 2012 law. The law, signed by Gov. Rick Snyder, allows local governments to avoid strict labor agreements with a construction contractor.
Snyder and Republicans in the Legislature say the agreements can add at least 12 percent to the cost of a project. But labor groups sued, saying the Michigan law violates federal law.
In a 2-1 decision, the appeals court says Michigan lawmakers want to improve efficiency in government. The court noted that the law still allows a winning contractor to enter into labor agreements with subcontractors on a project.