MEMO
To: MITA Contractor Members
From: Michael A. Nystrom, Executive Vice President/Secretary
Date: January 31, 2019
Subject: Contractor Dues Adjustment
At its January 23, 2019 meeting, the MITA Board of Directors unanimously approved a MITA Contractor Dues Adjustment. This change allows MITA to continue the professional level of service to which the heavy construction industry has become accustomed.
The first noticeable change is that the categories of volume have been adjusted and expanded to better reflect the significant growth that has happened in the industry. Certain categories have been expanded (such as the lowest category), which is now “Up to $2 Million” rather than the previous “Up to $1 Million” level. Other categories have been added, as well. Prior to this change, the highest volume category was “Over $50 Million”. Now, with this new breakdown in place, three new volume categories are being offered: “$50 Million to $75 Million”, “$75 Million to $100 Million”, and finally, “$100 Million Plus”.
The most significant area of change is in the category of Union Contractors. Since the inception of MITA in 2005, this category of membership has never seen an increase in dues. Also, as of January 1, 2019, MITA will no longer be collecting the 12-cent Industry Advancement Funds on Operating Engineers Road and Utility Distribution work. Thus, even with the dues increase, most union contractors should see a reduction in the total amount of money being sent to MITA on an annual basis. Overall, the majority of union contractors will see an increase in dues of approximately 20%.
In order to keep balance amongst the Union and Non-Union Contractor categories, in terms of total support of the association, there is also a slight adjustment in the various dues categories for all Non-Union Contractors. This adjustment averages approximately 5% across the board for Non-Union Contractors. Non-Union Contractors continue to pay an amount slightly higher than Union Contractors in order to keep some level of equity with the continued support that Union Contractors share with MITA through other Industry Advancement Funds (Laborers, Cement Masons, Carpenters and Teamsters). These additional revenues from both contractor categories are used specifically for the MITA industry promotion campaign, Fix MI State (fixmistate.org), which is a public awareness campaign focused on educating the general public on the importance of infrastructure across the state.
The Board of Directors appreciates the fact that most contractors have adjusted their dues categories based on fair and honest volume disclosures. In the future, the Board of Directors may consider simply using an inflationary scale when considering any further increases, just like any other cost that affects the industry. Ultimately, MITA contractor dues range from one quarter of one percent of a contractor’s total volume, all the way down to less than one/one hundredth of one percent. On a national scale, MITA Contractor Dues are still some of the most competitive among state heavy/highway construction associations.
The new dues categories are attached to the links below:
If you have any questions, please feel free to contact Mike Nystrom, Executive Vice President/Secretary, at mikenystrom@thinkmita.org, or Rob Coppersmith, Vice President of Membership Services, at robcoppersmith@thinkmita.org. They can both be reached at the MITA office by calling 517-347-8336.
