Tuesday, March 1, 2011

States Target Use of Project Labor Agreements

Iowa Governor Terry E. Branstad has issued Executive Order 69 rescinding the executive order of the previous governor mandating the use of Project Labor Agreements (PLA).  Governor Branstad's order prohibits the use of PLAs on state and local agency construction projects.

The Idaho Legislature has sent Senate Bill 1006 to Governor C.L. "Butch" Otter for his signature.  The bill would, among other things, ban the use of PLAs on public works projects in the state.

Project Labor Agreements are a highly controversial tool that pit organized labor interests against non-union or merit shop contractors. Merit shop contractors argue that PLAs restrict competition to union contractors only, while organized labor argues that PLAs are an effective tool for ensuring the safety and continuity of projects by requiring the contractor to utilize union labor on public works projects.

President Obama has issued an executive order encouraging use of PLAs on federal construction projects.
Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

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