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From the category archives: GA-PLAs-State & Local
GA-PLAs-State & Local
During its annual reconvene/veto session April 22, the Virginia General Assembly agreed with Gov. Ralph Northam (D) and delayed the effective date of two laws permitting prevailing wage and project labor agreement requirements on taxpayer-funded public works projects.
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Ben Brubeck, ABC’s vice president of regulatory, labor and state affairs, conducted 11 radio and TV interviews during the Conservative Political Action Conference on Feb. 27 in Washington, D.C. Brubeck discussed the outlook for construction spending and infrastructure investment, highlighted the industry’s response to its current skilled labor shortage and promoted the benefits of fair and open competition on taxpayer-funded construction contracts.
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A bill introduced in the Baltimore City Council by Councilmember Shannon Sneed and Council President Brandon Scott would make sweeping changes to the City of Baltimore’s procurement laws. The proposed ordinance, File 20-0488, would impose government mandated project labor agreements on any construction contract valued at $25 million or more.
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On Oct. 9, the Honolulu City Council passed a highly contentious ordinance that will require the city to negotiate a “community workforce agreement” with the Hawaii Building and Construction Trades Council, the Hawaii Construction Alliance and their affiliated labor unions for certain public works projects. The city says the ordinance will apply to “critical city projects” in which the city has a particular interest in timely and cost-efficient project completion. The CWA will largely apply to critical road, wastewater, drainage and park improvement projects.
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On March 11, a federal judge dismissed a lawsuit by the Arizona State Building and Construction Trades Council that aimed to block enforcement of parts of a pro-taxpayer Arizona law restricting government-mandated project labor agreements.
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Following the Commonwealth Court of Pennsylvania’s Jan. 11 decision to strike down the state Department of Transportation’s project labor agreement mandate for the Markley Street reconstruction project, PennDOT withdrew their appeal of the decision on March 7.
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Project labor agreements are special interest schemes that end open, fair and competitive bidding on public works projects. PLAs drive up the cost of construction by reducing competition and effectively excluding merit shop contractors and their skilled employees from building projects paid for by their own tax dollars. Check out ABC’s new video below to learn more about PLAs.
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ABC and a coalition of construction and business associations sent President Trump a letter urging him to eliminate government-mandated project labor agreements on federal and federally assisted projects, allowing all qualified contractors and Americans to fairly compete to build and work on these taxpayer-funded projects.
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A study released today by the Beacon Hill Institute found that Ohio schools built under government-mandated project labor agreements (PLAs) cost 13.12 percent more than schools that were bid and constructed through fair and open competition, free from PLA requirements. The study looked at 88 schools built in Ohio since 2000 and found that those built under a PLA mandate cost $23.12 more per square foot than projects built without PLA mandates.
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ABC thanked Iowa Gov. Terry Branstad for signing
legislation into law to ensure the government cannot mandate PLAs on public construction projects. The bill, SF 438, codifies Gov. Branstad’s previous executive order, which prevented state and local governments procuring state and state-assisted construction projects from encouraging or prohibiting PLAs in contract solicitations, preventing a future governor from mandating PLAs through executive order. It also extends government neutrality toward PLAs to projects funded by local governments.
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