On March 21, Gov. Matt Bevin (R-Ky.) signed off on House Bill 135—also known as the Fair and Open Competition Act—which prohibits state and local government agencies from forcing bidders to sign on to project labor agreements for public works projects, according to www.constructiondive.com. The law does not prevent contractors from entering into voluntary PLAs and prevents public agencies from prohibiting PLAs altogether.
Associated Builders and Contractors says the law applies to taxpayer-funded projects and favors the 88 percent of Kentucky's construction industry that is open-shop rather than union-affiliated.
Kentucky is the 25th U.S. state to enact a law prohibiting government-mandated PLAs. Proponents of the law say it will lower construction costs in Kentucky; opponents argue mandatory PLAs are not in use in Kentucky and 100 percent of the voluntary PLAs are with merit shop contractors.
The arguments regarding PLAs often break down along union and nonunion lines. Those opposed to PLAs claim they discourage competition; those supporting PLAs say they ensure fair wages and benefits for union and nonunion workers—and because of the union component, ensure a steady, qualified stream of labor to a project.
