North Carolina is 18th State to Ban Government-Mandated PLAs

ABC July 17 celebrated a victory after North Carolina Gov. Pat McCrory (R) signed a bill (H.B.110) into law that will prohibit state government entities from requiring contractors to sign a project labor agreement (PLA), or any other agreement with labor unions, as a condition of performing work on public construction projects.

"This new law will ensure that public construction contracts will be awarded to firms that provide taxpayers the best construction at the best price," said ABC Carolinas Chapter President & CEO Doug Carlson. "There is no question that construction labor union bosses in other states are using these types of mandates to steer public construction projects to contractors who are willing to accept their onerous demands and this new law will protect North Carolina taxpayers from this kind of abuse."

North Carolina is the 18th state to take action to protect taxpayers and the vast majority of the construction industry workforce from wasteful and discriminatory PLA mandates. Additionally, it’s the 14th state to enact this reform since President Obama issued Executive Order 13502 in February 2009, which encourages federal agencies to require PLAs on federal construction projects costing more than $25 million and allows state and local governments to require PLAs on federally assisted projects.

PLA and other union-only mandates have been found to increase construction costs by an average of 12 to18 percent—and much more in some cases.

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