PLA Benefits
Standardized
conditions and established wages. Labor costs are stable and contractors
can bid a project with no guesswork.
A
reliable supply of talented and skilled, local workers for the duration
of the project.
Apprenticeship
training programs.
A
no-strike, no-lockout commitment. Binding procedures for settling disputes.
You are protected against work stoppages
Little
chance of cost overruns.
Flexibility
in meeting local conditions and any special project needs.
State
laws permitting PLAs offering lower worker's compensation premiums.
For
more information and for a copy of Public Sector Project Labor
Agreements - An Objective Review, contact
The
Building and Construction Trades Department
AFL-CIO
815 16th Street, NW
Suite 600
Washington, DC 20006-4104
Frequently Asked Questions About
PROJECT LABOR AGREEMENTS (PLA)
* What is a PLA?
* What guarantees does a PLA provide?
* How is a project budget affected by a PLA?
* Do I have to use union contractors?
* What if I want to negotiate for lower wages?
* Are PLAs legal in public sector construction?
* Don't PLAs violate laws requiring projects be awarded to the lowest bidder?
* Does the scope and the size of a project determine whether a PLA is useful?
What is a PLA?
A comprehensive pre-hire collective bargaining agreement. That means basic
terms and conditions for labor are established in advance for everyone
involved in the project: the public sector employer, contractors and subcontractors,
and the labor force.
Top of FAQ
What guarantees does a PLA provide?
It guarantees:
- That all construction jobs are filled by local workers.
- All contractors... union and nonunion... are included in the bidding process.
- At least 25% of the jobs on the project are filled by minority and female workers.
- Safety guidelines on the job site are enforced.
Top of FAQ
How is a project budget affected by a PLA?
The project budget is safe under a PLA. There are no hidden costs or cost
overruns. You won't be confronted with unexpected wage demands or disputes
halfway through the project.
Top of FAQ
Do I have to use union contractors?
No, public works PLAs never restrict bidding solely to union contractors.
A PLA is available to any contractor who will accept its terms. It's the
contractor's decision.
Top of FAQ
What if I want to negotiate for lower wages?
Lower wages can cause problems as the project proceeds. Lower wages mean lower
productivity and higher accident rates. Both lead to cost overruns. Lower
wages also mean you will see all kinds of hidden costs pop up unexpectedly.
There are no hidden costs with a PLA. Everything is settled before
construction begins, right up front for the life of the project, including
wage increases.
Top of FAQ
Are PLAs legal in public sector construction?
Very legal. In a major 1992 decision (the Boston Harbor case), the U.S. Supreme
Court ruled in favor of the public sector PLAs, affirming that private
and public owners can decide for themselves when a construction project
should utilize a PLA.
Top of FAQ
Don't PLAs violate laws requiring projects be awarded to the lowest bidder?
Some state and federal governments have hesitated to use them for this
reason but it is without foundation. The U.S. Supreme Court ruled unanimously
that project labor agreements are legal in a case involving the cleanup
of Boston Harbor which is currently being done under a PLA.
Top of FAQ
Does the scope and the size of a project determine whether a PLA is useful?
Yes. Normally what you would do is hire a company, unless you had somebody
in-house who could do it, to make an assessment of whether it was in your
interest to have a PLA or not. Some jobs just are not't big enough
to warrant the paperwork involved in a PLA. You would look at it from
a financial standpoint and say "this makes good financial sense for
us to have one or it doesn't."
The complexity, length of time, the number of trades that are involved and
the amount of social goals [local labor, minority training, etc.] that
you're interested in achieving when the project goes out to bid are
all determining factors. How quickly do you need to get the project finished?
Is it important to have stabilization of starting times because of noise
requirements in the city? Is it important to have common holidays? Is
it important to have a common grievance procedure? The owner would have
to answer a number of questions.
Top of FAQ
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