Project labor agreement

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A Project labor agreement (PLA) is a collective bargaining agreement with one or more unions that establishes the terms and conditions of employment for a specific construction project.

If a PLA exists for a given construction project, then construction unions and contractors have bargaining rights to determine the wage rates and benefits of all employees working on the particular project, before any workers are hired.

On February 6, 2009, U.S. President Barack Obama issued an executive order requiring the use of project labor agreements on federal projects of $25 million or more. President Joe Biden (D) issued an executive order on February 9, 2022, that aimed to require the use of project labor agreements on large-scale federal construction projects of $35 million or more.

Support and opposition

Support

Construction Employers of America (CEA) issued a statement in support of project labor agreements in 2017, stating, "PLAs are valuable tools for the construction industry because they can be used to create the conditions needed for a superior construction project. ... The improvement of America’s infrastructure demands the highest quality and safest work product. To ensure this high-quality construction and jobsite safety, and to encourage apprenticeship and training, Davis-Bacon prevailing wages, along with project labor agreements, should be applied to these projects."

Secretary of Labor Tom Perez also issued a statement of renewed support for PLAs in April 2016.

Opposition

The Associated Builders and Contractors (ABC) have opposed the use of PLAs and have challenged their use through litigation, lobbying, public relations campaigns, and boycotting of all PLA projects. They state on their website, "Anti-competitive project labor agreements (PLAs) are special interest schemes that end open, fair and competitive bidding on public works projects. PLAs drive up the cost of construction by reducing competition and effectively excluding merit shop contractors and their skilled employees from building projects paid for by their own tax dollars."

The National University System Institute for Policy Research conducted a study on PLAs used for California Prevailing Wage school construction in which they concluded that "costs are 13 to 15 percent higher when school districts construct a school under a PLA."

Ballot measures

Below is a partial list of ballot measures related to PLAs covered on Ballotpedia:

• Chula Vista Public Works Contracts and Unions, Measure G (June 2010)
• San Diego Ban on Project Labor Agreements, Proposition A (November 2010)
• Vote on a Proposed Oceanside Charter, Measure K (June 2010)
• City and County of Sacramento Bans on Project-Labor Agreements (June 2012)
• San Diego Ban on Project-Labor Agreements, Proposition A (June 2012)

External links

• President Obama Executive Order 13502: Use of Project Labor Agreements for Federal Construction Projects
• What are Project Labor Agreements?
• Project Labor Agreements
• The Truth About PLAs Blog
• The Partnership for Working Families: Project Labor Agreements
• Union-only Project Labor Agreements: The Public Record of Poor Performance
• Project Labor Agreements and Financing Public School Construction in Massachusetts
• The Effect of Project Labor Agreements on the Cost of School Construction
• Project Labor Agreements and Public Construction Costs in New York State