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Project Labor Agreement Issues PLA = DISCRIMINATION
Joint Schools Construction Board Update (click dates below to download document)
Downloads Project Labor Agreements increase costs for school construction in New York says academic think tank How project-labor agreements drive up taxpayer costs NYS Comptroller's audit of the Buffalo Schools PLA Office of the New York State Comptroller audit of Buffalo City School District Construction 9/03-2/06 School PLA's Myth vs. Fact Brochure ABC Empire State Chapter's President says about PLA's  Few people are aware of a labor tactic that dramatically increases the cost of public construction projects. This tactic is called the "PLA," an acronym for "project labor agreement". A PLA is a contract that requires all bidders on a construction project to adhere to costly and unproductive union work rules. The PLA is sold to unsuspecting construction owners on the basis that work rules are modified, costs are reduced, "local" union workers are hired, or the PLA "mandates" prevailing wages and benefits that are already required on public work. The fact is, however, that PLAs eliminate competition, add contract provisions which increase costs, and hide the waste of construction dollars. Very few bidders on today’s construction projects – whether merit or union contractors – are signatory to the multiple union agreements that are required under a PLA. By law a PLA must be "justified" by a study. Unfortunately, most studies fail to consider marketplace conditions, truthfully examine costs or realistically consider the needs of the project owner. The failure of these studies have led to unbelievable cost overruns and delays. No cost-conscious public official would ignore the advantages of competitive bidding. But in an effort to regain market share lost to more productive merit (non-union) workers, union leaders have hired consultants to spin a web of mythical cost-savings and other "benefits" of PLAs at the expense of unsuspecting public officials. Project owners rarely realize the true cost of a PLA. Astute engineers typically increase estimates 5% to 10% to take into account the very real cost of eliminating competition. Once competition is eliminated by the PLA, owners never receive competitive bids that may run significantly below budget. Most merit contractors, whose productivity is not limited by union work restrictions, will not bid these projects and force their workers to pay union dues. Many union contractors, required by the PLA to sign agreements with additional building trades unions, do not bid, or increase their costs accordingly. Associated Builders and Contractors (ABC) is a national association of over 22,000 merit contractors and construction professionals. ABC promotes competitive bidding, safe job sites, nationally standardized construction training programs, superior employee benefit plans, and the merit approach – where all contractors and their workers, whether union or merit, work together in the interest of the owner’s quality project. ABC is working with taxpayer groups, business organizations, and associations of both union and merit contractors, to educate the public on the facts about PLAs. Bush Signs Executive Order on PLAs On February 17, 2001, President Bush issued an Executive Order on Preservation of Open Competition and Government Neutrality Towards Government Contractors' Labor Relations on Federal and Federally Funded Construction Projects.  ABC Urges Immediate Appeal Of Court Ruling On Bush Executive Order - ABC called for an immediate appeal after a federal district court ruled in favor of the unions to bar the enforcement of the Bush administration's Executive Order 13202on project labor agreements. In April, the AFL-CIO Building and Construction Trades Department filed suit to bar enforcement of the executive order, which prohibits publicly mandated project labor agreements on federally funded construction projects. ABC, joined by a broad coalition of business organizations, filed a friend-of-the-court brief in opposition to the AFL-CIO. U.S. District Court Judge Emmet Sullivan ruled in favor of the AFL-CIO, finding the Bush executive order violated the National Labor Relations Act.The Supreme Court Upholds Bush PLA Executive Order. This represents a major victory for Open Competition! Click here to read the Executive Order. |
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