ABC in February responded to two U.S. House of Representatives’ hearings on job creation saying that government-mandated PLAs and expensive federal rulemakings are impeding job growth in the construction industry, which still faces an unemployment rate of 16 percent.
In a letter (PDF) sent to the chairman and ranking member of the House Committee on Small Business, ABC pointed out that according to the Obama administration’s most recent regulatory agenda, 45 new regulations that are expected to cost at least $100 million each to implement were finalized last year, and 138 more are in the pipeline. ABC also pointed out that some of the regulations aren’t even based on any scientific analysis and that unjustified and unnecessary regulations translate into higher costs for the construction industry. In addition, ABC called attention to the overregulation in the banking sector that has caused a lack of access of capital within the construction industry.
In another letter (PDF) sent to chairman and ranking member of the House Education and Workforce Committee, ABC pointed out the negative impact government-mandate project labor agreements (PLAs) have on the construction industry.
ABC contrasted two states – Michigan, which recently banned PLA mandates on state-funded projects, and Connecticut, whose governor has required the use of PLAs on at least one high-profile project and is being encouraged to expand the use of government-mandated PLAs to other public projects. The letter pointed out that PLA mandates can increase construction costs by as much as 18 percent and that Michigan has already improved its business climate for construction firms by giving employers the opportunity to compete for jobs and grow their workforces.
On the federal level, ABC advocated for President Barack Obama to reverse his Executive Order 13502, which encourages federal agencies to require PLAs on projects costing more than $25, because the order limits the ability of the 86 percent of the private construction workforce that chooses not to belong to a union to compete on federal construction projects.
“ABC members of all sizes are eager to take the lead in stimulating growth and spurring job creations,” ABC told House committee leaders. “We look forward to working with you as you develop initiatives to put American back to work.”