Federal Government Withdraws Project Labor Agreement

The U.S. Department of Labor has withdrawn a solicitation that would have required contractors to sign a controversial union agreement as a condition of building a $40 million Job Corps Center in Manchester, N.H.


“It is time for the Obama administration to stop trying to steer lucrative federal construction contracts to Big Labor—one of the president’s largest political supporters—through unlawful government-mandated PLAs,” Brubeck said. “The American people deserve the best possible construction project at the best possible price. We can’t afford the increased costs, reduced competition and delays created by these special interest handouts. ABC will continue to fight for fair and open competition, and will challenge federal agencies attempting to impose unjustified PLAs on federal projects.”

 

Numerous studies show PLAs discourage merit shop contractors and subcontractors from competing for federal contracts, thereby increasing costs to taxpayers and discriminating against the 86 percent of the construction workforce that does not belong to a labor union. PLAs typically force contractors to hire most or all of their craft employees from union hiring halls; follow inefficient union work rules; hire apprentices exclusively from union apprenticeship programs; and pay into union benefit plans on behalf of employees even if they have their own qualified benefit programs. PLAs force employees to pay union dues; accept unwanted union representation; and forfeit benefits earned during the life of a PLA project unless they join a union and become vested in union benefit plans.

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