Posts tagged PLA
Bid Protests Offer a Way Around PLAs, But Will a Slow, Steady Precedent Win the Day?
June 25, 2025 // The OMB memo instructs federal agencies to maintain the labor pact requirements but also points to a Federal Acquisition Rule provision that provides an exception to the PLA requirement for large construction projects when its use would substantially reduce the number of bidders and impact the price. But it has left neither contractor groups nor NABTU happy. "To that extent this isn’t what we hoped for, it is definitely better than what was in place with the Biden administration,” Brian Turmail, vice president of public affairs and workforce at AGC told ENR. “In addition, given the recent court decisions, it is hard to see how the administration will be able to impose a mandated PLA without facing successful bid protests."
PLA mandate to stay, with exemptions: OMB
June 17, 2025 // The Trump administration said Thursday that it supports the use of project labor agreements on federal construction projects when they are “practicable and cost effective.
Right to Work Foundation Submits Legal Brief Opposing Biden “Project Labor Agreement” Rule for Federal Construction Projects
June 5, 2025 // Amicus brief at Eleventh Circuit Court of Appeals exposes rule as discriminating against nonunion workers and contractors in violation of Constitution
Even Gavin Newsom opposes this Big Labor inflationary scheme
November 4, 2024 // Likewise, PLA opponents can cite multiple studies of hundreds of taxpayer-funded affordable housing and school construction projects, which found that government PLA mandates increase the cost of construction by 12% to 20% compared to similar non-PLA projects already subjected to union-friendly prevailing wage regulations. The latest study of affordable housing projects funded by Los Angeles Proposition HHH found that PLA projects were 21% more expensive and suffered delays 27% longer than non-PLA projects.
California: Offshore wind terminal to be built primarily with union hands
August 17, 2023 // Two of five commissioners (Aaron Newman and Craig Benson) noted their hesitation in voting due to the concerns of non-union construction workers but ultimately voted in support. Harbor district executive director Larry Oetker noted that this type of agreement is necessary — a recent executive order mandates any construction project over $35 million funded with federal dollars must include a labor agreement. The grant for phase 1 of the project involves the district requesting more than $300 million in federal dollars, according to an email from District Development Director Rob Holmlund. The agreement, which was negotiated largely by Jeff Hunerlach, from the Building and Construction Trades Council of Humboldt and Del Norte Counties and Chris Hannon, president of the State Building and Construction Trades Council of California, includes some provisions for non-union workers. It allows for any construction under the amount of $250,000 to be exempted from the agreement, according to a presentation from Oetker, who noted the benefits include no work stoppages in the process of construction. Union members said that labor agreements streamline the project by providing the skilled workers needed and to keep things on budget. Lynette Mullen, who said she was hired about three weeks ago by the Humboldt Builders' Exchange (an association of around 300 businesses in the construction industry) to get to the bottom of the labor agreement, said that the Exchange wants fair and equal opportunity toward the project and have more of a chance to weigh into agreements. She said people are frustrated they're being forced to join a union and pay into the union, adding that the Exchange understands the harbor district needs to do the agreement for federal funding. "This has been the saddest thing I've ever seen," she said. Environmental Protection Information Center, Missing and Murdered Indigenous People,
Opinion Project labor agreements are not right for Prince George’s new schools
July 10, 2023 // A debate has arisen over the use of project labor agreements (PLAs) on the construction of six new schools in Prince George’s County. But PLAs, which require union construction crews, are not the solution for Prince George’s County. PLAs are government mandates that exist exclusively as a method for public officials to steer tax dollars to organized labor. Most local businesses, particularly those owned by racial minorities, cannot work on projects covered by PLAs. These businesses risk financial ruin in the form of exorbitant pension withdrawal liabilities by agreeing to the terms of PLAs. Consider the case of a trucking company in New Jersey that unwittingly agreed to work on a PLA project and, years later, was hit with a demand from the union’s pension fund for $700,000 — more than twice what the company earned on the project.
Appeals panel: Chicago must force telecom companies to hire union labor to upgrade their equipment on city-owned poles
January 6, 2023 // A state appeals panel has ruled a labor union can force the city of Chicago to require telecommunications companies to hire union workers to install 5G antennas on city-owned utility poles. After Chicago officials allowed nonunion contractors to install modern cellular service antennas on light and traffic poles, International Brotherhood of Electrical Workers Local No. 9 filed a grievance alleging a violation of its multiproject labor agreement with the city. An arbitrator ruled in favor of the union. But after the city challenged that ruling, Cook County Circuit Judge Anna Loftus vacated the award in June 2021.
Editorial: Biden’s favors to unions keep costing taxpayers
March 16, 2022 // Pitching the executive order as a cost saver is disingenuous, as collective bargaining inherently drives up costs. It’s the same faulty logic used to defend prevailing wage laws that force union-level pay and benefits on publicly funded construction projects.