About Union-Only PLAs PDF Print E-mail

ABC strongly opposes union-only project labor agreements (PLAs) on construction projects. These agreements not only exclude open shop contractors from bidding on projects paid for by their own tax dollars, but also drive up the cost of construction by reducing competition for the work.

A union-only PLA is a contract that requires that the project be awarded only to contractors and subcontractors who agree to:

  • recognize unions as the representatives of their employees on that job
  • use the union hiring hall to obtain workers
  • pay union wages and benefits
  • obey the union's restrictive work rules, job classifications and arbitration procedures

PLAs

If a contractor bids and is a successful bidder on a project, they must be willing to:

  • Recognize the unions as the “sole and exclusive bargaining agent of all craft employees.”
    (Employees of the merit shops choose not to be represented by a union and have not voted for union representation). The contractor would be double fringe benefits; those for the union workers and maintain those for his/her own workers who cannot work on the project.
  • Be bound by the “legal referral system” maintained by the unions when workers are required; and
    This means that a non-union contractor would have to use union workers from the local hiring hall rather than his/her own workforce. It is a way unions limit competition by allowing any company to bid the job, but if successful bidder, you would have to use union workers and not your own workforce. What non-union contractor would participate?
  • Agree that all employees, even if they are not union members of a union, pay union dues after eight (8) days on the job.
    Again, this is being done without the consent of the workers.
  • Obey restrictive and antiquated union work rules about worker classification, hiring and firing of workers, and worker evaluations.
    The union decides all personnel issues for your company. Apprentices would have to come from the union training programs instead of your own training programs.
  • Allow union stewards access to your job sites who do not work for your company to investigate, ascertain, and observe certain activities.
    Union representatives are not allowed on job sites where they do not represent workers. So in most situations they do not have legal access to the site of non-union contractors. This agreement allows them open access.

The opportunity to compete for jobs is supposed to be open to all. But Big Labor makes big promises — like political support or strike protection — to convince government officials to use union-only project labor agreements. These quid pro quo deals shut out the majority of construction workers.

Minorities and women receive a double dose of discrimination under union-only PLAs. Both are significantly underrepresented in union shops. Moreover, union-only agreements make it extremely difficult for small, minority- and women-owned businesses to compete with unionized big businesses.

Regardless of labor union affiliation, all qualified contractors and their employees who have the necessary training and skills should have an equal opportunity to compete for public construction projects.

When government writes a check for the increased cost of union-only project labor agreements, taxpayers are stuck paying the balance. While these union-only agreements cost nonunion workers a job, they also end up costing taxpayers a lot more.

Union-only PLAs are exclusive and anti-competitive. Reducing the number of potential bidders is certain to increase the cost of construction and reduce the opportunity for local contractors and workers. Studies show that union-only agreements drive up costs without improving quality.

Maximizing the pool of potential bidders and using open competition create savings and deliver quality construction for taxpayers.

Union-only project labor agreements (PLAs) are top-down covenants that exclude almost nine out of ten construction employees from working on a project. Government officials and other project owners that agree to union-only PLAs require construction companies on projects to sign agreements with unions — without any vote or say by employees.

Contractors bound by a union-only PLA are typically required to:
• recognize the union as the exclusive representative of employees on the job
• use the union hiring hall to obtain workers • train apprentices exclusively through the union program
• pay union fees, wages and benefits
• obey the union’s restrictive and antiquated work rules, job classifications and dispute procedures

With open competition, contractors and employees can deliver high-quality construction at the best price through innovation, flexibility and efficiency. And taxpayers can enjoy the results of strong competition.

Put freedom to work. Support Open Competition for All Construction Jobs. Say “No” to Union-Only Project Labor Agreements.

 

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