Posts tagged construction projects
Opinion: Gov. Shapiro’s labor agreements will harm workers and taxpayers
April 19, 2024 // Gov. Josh Shapiro often brags about his competitive spirit. However, his recent directive to “evaluate and implement” Project Labor Agreements (PLAs) into public construction projects is anything but competitive. When Gov. Shapiro announced this decision, it’s no wonder why he did so in front of several prominent Pennsylvania union bosses in a union training center. PLAs are a gift-wrapped handout to labor unions, who openly applauded the governor’s decision to funnel more construction bids to unionized shops—all at the expense of taxpayers and a huge majority of Pennsylvania’s businesses and workers.
Commentary: Percentage of Construction Industry Workers in a Union Continues to Decline
April 6, 2024 // Third, construction employers that avoid all unionized projects might leave money on the table. For example, President Joe Biden issued a rule that will require large-scale federal construction projects to be covered by project labor agreements (PLAs) between contractors and unions. Some states have also passed legislation requiring or strongly preferring PLAs for construction projects in developing industries, such as wind power and legalized cannabis. It therefore may make sense to enter into PLAs for certain projects. (Although a PLA usually should only apply to a specific project, employers need to ensure the PLA does not arguably create a long-term relationship with a union.) The rate of unionized construction employees may continue to slowly decline, but union interaction will remain a regular part of the industry. Employers should remain vigilant in their awareness of the NLRA, union organizing, and PLA opportunities, among other legal issues.
ABC: Final Davis-Bacon Rule Undermines Taxpayer Investments in Infrastructure
August 9, 2023 // “The final rule comes in the midst of challenging economic conditions facing the construction industry, including high materials costs and a skilled labor shortage of more than half a million in 2023,” said Brubeck. “The onerous new requirements and artificial inflation of construction costs imposed by this rule will only exacerbate these headwinds and undermine taxpayer investments in infrastructure.” ABC submitted nearly 70 pages of comments on the DOL’s proposed rule, and its more than 50 significant changes, urging the DOL to withdraw the proposal. The 1931 Davis-Bacon Act and related regulations require contractors and subcontractors that perform work on federal and federally funded construction projects of $2,000 or more to pay a government-determined prevailing wage and benefit rate on an hourly basis to on-site construction workers. According to the DOL rulemaking, the Davis-Bacon Act and 71 active Related Acts collectively apply to an estimated $217 billion in federal and federally assisted construction spending per year—about 63% of all government construction put in place—and provide government-determined wage rates for an estimated 1.2 million U.S. construction workers. The Congressional Budget Office estimates that repealing the 1930s-era Davis-Bacon Act would save the federal government $24.3 billion in spending between 2023 and 2032. A May 2022 study found that the Davis-Bacon Act costs taxpayers an extra $21 billion a year, increases the price tag of construction projects by at least 7.2% and inflates construction workforce wages by 20.2% compared to local market averages if the DOL calculated prevailing wages using modern and scientific methodology via the U.S. Bureau of Labor Statistics.
Why the Biden administration’s new Davis-Bacon prevailing wage proposed rule is so troubling for Americans.
June 2, 2022 // Today’s Davis-Bacon requirements are already problematic — driving up overall federal infrastructure costs as high as 10 percent and wages over 20 percent — on top of shifting more work to union over non-union workers despite the fact that over 86 percent of construction workers are not members of a union.
House-Passed ‘America COMPETES Act’ Contains Union Neutrality, Card Check and Binding Arbitration
February 7, 2022 // The COMPETES Act contain provisions of the PRO Act, as well as the now defunct Employee Free Choice Act