Why Union Construction
Project Labor Agreements

Project Labor Agreements (PLAs) have been used in the construction industry since the 1930's. A PLA is a single-site craft labor agreement that is used to provide reliable, cost-effective project staffing for public and private capital construction projects. It is in essence a "prehire" collective bargaining agreement to govern labor relations policy and conditions and is authorized by Section 8(f) of the National Labor Relations Act.

Ultimately, the owner of a project (whether public or private) makes the decision of whether the use of a PLA will benefit them. Advantages of their use include:

· Providing the most effective tools for controlling the cost and quality of the labor force on a project.

· Eliminating the possibility of work stoppages by guaranteeing no-strike, no-lockout provisions for the duration of the project.

· Uniform work rules and working conditions for all contractors and workers.

· Dispute resolution through joint labor-management committees.

· Increasing productivity through the use of apprenticeship and union referral procedures.

· Making bidding open to all contractors (whether union or non-union) provided they meet the requirements of the project required by the owner.

· In a time of skilled worker shortages, guaranteeing that a skilled workforce is available to complete the project on-time and on-budget.

Project Labor Agreements can be very useful for owners, contractors and workers. By taking contentious issues off the table before a project begins, a PLA guarantees workplace harmony that keeps projects moving forward. Unfortunately, even though a PLA neither excludes non-union workers nor requires union membership, a number of groups, led by the Associated Builders and Contractors have fought hard to make sure they are not used, often by attempting to get governmental units to outlaw their use. This is in spite of the fact that the United States Supreme Court ruled in 1993 in the Boston Harbor case that PLAs are legal.

The Boston Harbor case is a classic example of how PLAs really work. In spite of the fact that the ABC claimed that the use of a PLA discriminated against non-union contractors, fully 16 of the 58 contracts on the project went to non-union contractors. Their argument that a PLA discriminates against non-union contractors is clearly not true.

Project Labor Agreements are a useful tool for owners of projects to use to make sure that a project can proceed smoothly and be done on-time and on-budget. Owners of projects should consider them as a tool that may benefit them on major construction projects.

For more information on the use of Project Labor Agreements, Please click here >