Legislation advances to Senate floor following testimony from labor leaders on impact of stock buybacks on workers
LANSING, Mich. (May 21, 2026) — Today, the Senate Economic and Community Development Committee, chaired by Sen. Mallory McMorrow (D-Royal Oak), passed her legislation with bipartisan support, prohibiting corporations from repurchasing their own stock on the open market if they receive economic incentives from the state of Michigan, including grants, loans, tax captures or abatement, or other financial assistance.
“Tax dollars from the people of Michigan need to go to the people of Michigan — not to line the pockets of corporate executives and shareholders attempting to pull a ‘reverse Robin Hood’,” said Sen. McMorrow. “By banning stock buybacks for companies that receive state tax breaks, my legislation ensures our resources are protected for the benefit of hardworking Michiganders. It was a true privilege to have the support of local labor leaders in the room as we voted this legislation out of committee today, and I remain committed to continue showing up for them as they do for us each day.”
“Buybacks don’t improve healthcare or retirement benefits. Buybacks don’t upgrade a Michigan plant or improve safety equipment. Buybacks don’t create training programs that help build workers’ careers. And buybacks don’t strengthen our communities,” said Lisa August-Schmidt, Assistant Director at the UAW Research Department, while testifying in support of the legislation today. “When Michigan gives a company public money to grow and create jobs, we should require that company to invest in Michigan workers and communities — not hand the profits of our labor to Wall Street.”
“We are not asking for special treatment. We are demanding fair treatment. We are demanding our fair share,” said John Krauss, UAW Local 2093 member and worker at American Axle, who also testified in support of the bill today. “We are demanding accountability for corporations like AAM that take public incentives while pushing workers into poverty. We are demanding a future where no worker sleeps in their car, no parent chooses between food and insurance, and no mother loses her home because corporations like AAM decided her paycheck is expendable.”
Learn more about Senate Bill 783 here, which now heads to the full Senate floor for consideration.
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