AGC is asking the U.S. Department of Labor to justify its requirement of a project labor agreement (PLA) for a $10 million Job Corps Center in Manchester, N.H., contending the decision effectively shuts out a majority of local contractors
Sources: Associated General Contractors of America, Washington, D.C.; CP staff
AGC is asking the U.S. Department of Labor to justify its requirement of a project labor agreement (PLA) for a $10 million Job Corps Center in Manchester, N.H., contending the decision effectively shuts out a majority of local contractors. AGC represents nonunion and union contractors, the latter accounting for 10.9 percent of New Hampshire’s construction workforce. How does severely restricting competition for federal work benefit taxpayers, help construction workers or support economic recovery? asks AGC CEO Stephen Sandherr. There must be a good explanation for why denying so many people access to economic opportunity makes sense.
The Labor Department’s move follows an executive order proposing that agency officials consider mandating PLAs on all federal construction contracts exceeding $25 million. The agreements typically set above-market wage rates for site workers, including drivers delivering supplies, and force contractors to hire through union halls. Union contractors may find the government’s terms for the Manchester Job Corps Center too prohibitive, Sandherr observes, adding that the Government Accountability Office has found little evidence of PLAs delivering cost savings, easing work-place tensions, or protecting against construction delays.