The Associated Builders and Contractors, with other construction industry groups, wrote a letter to President Trump asking him to rescind an Obama-era Executive Order that encourages federal agencies to use project labor agreements (PLAs) for any federal or federally assisted project of $25 million or more, according to www.constructiondive.com.
The coalition wrote that PLAs prevent contractors from being able to compete for work and that the holdover policy did not make sense during a time of construction growth and labor shortage. Association members suggested the president replace the Executive Order with two other orders that would ban PLAs on federal or federally funded projects.
Project labor agreements are collective bargaining agreements that dictate working conditions, dispute resolution procedures, pay, benefits and the type of labor that will be used. The agreement typically is between management and one or more trade unions, but PLAs don't generally keep nonunion contractors and their employees from taking part; however, nonunion workers still must follow the PLA's terms.
Many states, such as Missouri, also view PLAs as a barrier to competition and have eliminated them to attract big business. Most lawmakers who oppose PLAs say the agreements prevent growth and drive construction costs up. Those who support PLAs say they keep wages from falling too low and help maintain the quality of work.
Some owners prefer using PLAs even when they're not required, in part so they can ensure a steady stream of qualified labor. In 2017, Brent Booker, secretary-treasurer of North America's Building Trades Union, told Construction Dive that PLAs often have local hiring requirements that prevent large out-of-town contractors from bringing in low-wage workers.
