A project labor agreement (PLA) establishes the terms and conditions of employment on construction projects – not only for a single contractor but for all the contractors and subcontractors involved at the site – before work has begun.  The purpose of a PLA is to facilitate the smooth completion of a project by allowing stakeholders to agree to ground rules and synchronize expectations before the project starts. Typically under PLAs, wages are higher, benefits are better, worksite conditions are safer, workforce is more highly skilled, and work is more efficiently coordinated.  They also help managers and owners – PLAs usually also eliminate all work stoppages through a project-long no-strike, no lockout commitment, with binding procedures to resolve all disputes.  That’s why major corporations like Disney and Toyota, along with public entities have used PLAs since the 1930s.  To learn more about the benefits of this construction tool, visit www.plaswork.org. 

After years of urging from New Hampshire residents, the federal government authorized funding for a $30 - $35 million project to create a Job Corps Center in Manchester.  This project was likely to be the first use anywhere in the country of any Project Labor Agreement on a federal construction project in nearly a decade, since President Obama’s Executive Order to overturn a Bush era policy discouraging use of this excellent labor-management tool that benefits union and non-union workers alike.  U.S. Senator Jeanne Shaheen and U.S. Representatives Carol Shea-Porter and Paul Hodes fought for a PLA for this Manchester project.  The New Hampshire AFL-CIO deeply appreciates their commitment to good working conditions for all people, as they demonstrated by advocating for this PLA.

But North Branch Construction Co. evidently did not want New Hampshire workers to enjoy the benefits of a Project labor Agreement.  The company filed in bid protest in the fall of 2009, and the U.S. Department of Labor has cancelled the solicitation for bids in November. 

Bottom line: a wonderful community resource for young people has been put on hold – along with dozens of good jobs for local people in a terrible economy.

The New Hampshire AFL-CIO looks forward to the U.S. Department of Labor reissuing the solicitation for bids on this project with a PLA to bring good jobs to New Hampshire and opportunities to our youth.

Below are some common objections to PLAs and the facts that address those concerns.

• PLAs absolutely do NOT shut out non-union contractors and workers.  Non-union workers can still work on the project; they just go through the local union hall.  Federal law prohibits union hiring walls to dispatch workers based on union membership or seniority.

“Aren’t unions the only ones who benefit from PLAs?”

• No!  Union and non-union workers benefit because their wages and benefits are defined and protected.  Union and non-union contractors benefit from the assurance of a level playing field, and a skilled workforce is guaranteed.  Lenders and insurance companies benefit from lowered risk.  But, the construction owner and the taxpayer benefit the most.  The virtual elimination of costly delays due to labor conflicts or skilled worker shortages are vital factors for a job coming in “on time…and on budget.”

“PLAs shut out most contractors from the bidding process.”

• Federal public works projects already require that all contractors, union and non-union, pay the prevailing wage.  PLAs simply create a level playing field for all contractors by standardizing all labor conditions on a particular project.

“Don’t PLAs just drive up the costs of the project?”

• PLAs actually eliminate costly labor-related delays on large construction projects. Millions of dollars are also saved in health and safety costs, thanks to programs and standards initiated under PLAs and now viewed as “best practices” in the industry. And workers always deserve a prevailing wage, as federal law already requires.

“PLAs are unfair because non-union workers have to pay the union hall.”

• That’s false.  PLAs do not require non-union workers who register to get hired on the project through the union hall to actually join the union.  Non-union workers also do not have to pay dues to be represented in the collective bargaining.