Tuesday, March 23, 2010

Project Labor Agreements on the Rise

Project Labor Agreements (PLAs) that require the use of union labor on public works projects are being considered and approved by more public agencies across the nation.

What is a PLA?  PLAs are a mechanism employed by unions that have the effect of limiting competition to only union contractors on public works projects.  PLAs are promoted by unions to public agencies by arguing that a PLA helps ensure quality construction (union workers perform the work better than non-union workers).  Furthermore, the reasoning goes, a PLA will prevent any labor disruptions (strikes by the union).

White House Support of PLAs:  President Obama has directed the use of PLAs on major federal construction projects.  According to a report by the White House Middle-Class Task Force, PLAs "help ensure compliance with laws and regulations governing safety and health, equal employment opportunity, and labor and employment standards." 

PLAs Not in Public's Best Interests:  From my perspective, PLAs are detrimental to the public's interests in that they restrict competition and favor union contractors.  Public contracting should be blind to the union or non-union status of contractors.  Compliance with laws is an issue that should be enforced through contractual terms, not by restricting competition to only union contractors, who may or may not comply with various laws any better than merit contractors.
California:  In California, the Port of Long Beach recently approved a PLA for the development of its Middle Harbor Project.

Illinois:  Union County recently approved a PLA for county public works projects costing more than $100,000.  The immediate use of the PLA will be on the construction of a new county courthouse.

Maryland:  In Maryland, the City of Baltimore is considering legislation that would require contractors on projects of $5 million or more to hire first from union hiring halls, and then open up hiring to others only after two days.  For more information, visit The Baltimore Sun's website.


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