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SD inks union construction pact

Posted by National Alliance for Fair Contracting on

Andrew Keatts
Kate Murphy
February 1, 2024

The city of San Diego on Wednesday reached a major deal for local construction unions, agreeing to a seven-year project labor agreement, or PLA, on all city work exceeding $5 million for the next two years and more than $1 million for the following five years.

State of play: The agreement among the San Diego County Building and Construction Trades Council stipulates wages and benefits for workers and guarantees sufficient labor to complete projects, while requiring contractors to hire through union halls.

National City, Chula Vista and La Mesa likewise agreed last year to PLAs for most city projects.

Between the lines: Those deals illustrate the dramatic remaking of union politics in San Diego in more than a decade.

In 2012, voters passed a ballot measure prohibiting the city from requiring PLAs on public works, following passage of similar bans around the county.

In 2022, city voters passed a ballot measure rescinding that ban, making way for the agreement the City Council approved Wednesday.

The big picture: The share of American workers who are union members hit a new low in 2023 — now 1 in 10 — although the total count of unionized employees rose slightly, Axios’ Nathan Bomey writes.

Why it matters: Advocates say unions are a needed proponent of worker rights and compensation, while critics suggest they throttle progress in the workplace.

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Project Labor Agreements are key to our clean energy transition

Posted by National Alliance for Fair Contracting on

Project Labor Agreements, or PLAs, enable contractors to know, definitively, what their costs will be, and typically include language that eliminates the risk of strikes, lockouts, or other labor disruptions.

By Marc Poulos Jun 8, 2023, 2:15pm EDT

A large-scale American energy transition is upon us. The Inflation Reduction Act, signed into law in 2022 by President Joe Biden, allocates nearly $400 billion for new energy projects, including solar, wind, carbon capture and sequestration, hydrogen, nuclear and more.

It represents what politicians in both parties have long suggested was the key to American energy independence: an “all of the above” strategy.

That is, if we can deploy the sufficiently skilled workforce to build, maintain and operate these facilities.

So how do we do it?

First, we need to acknowledge that for all of their environmental risks, America’s legacy fossil fuel sector has produced a largely sustainable workforce model. The industry long ago recognized the importance of partnership with skilled trade unions to attract, train and retain the skilled workforce it needed. Not surprisingly, U.S. government data has found that legacy energy projects typically feature two to three times the level of union density as renewable projects.

Another study, analyzing the energy industry in Minnesota, North Dakota and South Dakota, found that clean energy projects were simply not competitive in the labor market relative to their legacy industry peers, and increasingly reliant on lower-skilled workers from out-of-state to build projects.

To its credit, the Inflation Reduction Act has recognized the importance of job quality and local workforce development as central tenets of America’s clean energy transition. Most of the tax incentives linked to new project development require minimum labor standards, including prevailing wages and apprenticeship utilization.

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New Regulation Proposal Would Require Project Labor Agreements for Federal Construction ‎Projects

Posted by National Alliance for Fair Contracting on

JD Supra | Aug. 25, 2022

On Thursday, August 19, 2022, as mandated by Executive Order 14063, issued by President Biden February 4, the Federal Acquisition Regulatory Council proposed a rule to amend the Federal Acquisition Regulations (FARs) to require that federal contractors and their subcontractors enter into project labor agreements (PLAs) with unions as a condition to receiving federal construction contracts worth $35 million or more. The new regulations, if adopted, would apply to solicitations issued after the effective date of the final regulations issued by the FAR Council. Comments on the proposed regulations are due October 18, 2022, such that, if the proposed regulations are enacted as drafted, federal contractors may begin to see the PLA requirement in new solicitation issued at the end of 2022 or the first quarter of 2023.

As discussed in our prior update on Executive Order 14063, a PLA is a pre-hire collective bargaining agreement between an employer and one or more trade unions that establishes terms and conditions of employment for a specific construction project. Under the current version of FAR 22.505, federal agencies have the discretion to require PLAs on construction contracts by including FAR 52.222-33 in the solicitation. That clause currently states:

Notice of Requirement for Project Labor Agreement (May 2010)

(a) Definitions. “Labor organization” and “project labor agreement,” as used in this provision, are defined in the clause of this solicitation entitled Project Labor Agreement.

(b) Consistent with applicable law, the offeror shall negotiate a project labor agreement with one or more labor organizations for the term of the resulting construction contract.

(c) Consistent with applicable law, the project labor agreement reached pursuant to this provision shall-

(1) Bind the offeror and all subcontractors engaged in construction on the construction project to comply with the project labor agreement;

(2) Allow the offeror and all subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements;

(3) Contain guarantees against strikes, lockouts, and similar job disruptions;

(4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement;

(5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and

(6) Fully conform to all statutes, regulations, Executive orders, and agency requirements.

(d) Any project labor agreement reached pursuant to this provision does not change the terms of this contract or provide for any price adjustment by the Government.

(e) The offeror shall submit to the Contracting Officer a copy of the project labor agreement with its offer.

Under the proposed rule, federal agencies would be required to include revised 52.222-33 and 52.222-34 FARs in solicitations for construction projects estimated to cost the government $35 million or more. This means that federal contractors working on construction projects costing $35 million or more, would need to enter into PLAs for those projects. Federal agencies will retain their discretion under FAR 22.505 to require PLAs (by including FAR 52.222-33 in the solicitation) for projects below the $35 million mark. For IDIQ (indefinite delivery, indefinite quantity) contracts, only individual task orders will be considered when calculating the size of the contract for purposes of applying the proposed revised 52.222-33 and 52.222-34 FARs. There is no exception for small businesses, such that if a small business receives a construction contract award of $35 million or greater, or is a subcontractor on such an award, the small business may be required to enter into PLAs if the contract award includes the proposed revised 52.222-33 and 52.222-34.

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FAR Council Proposes New Rule on Project Labor Agreements for Major Construction Projects

Posted by National Alliance for Fair Contracting on

By Alexandra Barbee-Garrett, Peter J. Eyre & Thomas P. Gies on August 23, 2022

On August 18, 2022, the FAR Council issued a proposed amendment to the FAR implementing Executive Order 14063, Use of Project Labor Agreements for Federal Construction Projects, which requires the use of project labor agreements (PLAs) on any large-scale federal construction projects valued at or above $35 million unless an exception applies. The Order, and the proposed rule, also give agencies discretion to use PLAs on projects under that $35 million threshold.

In addition to expanding definitions of “construction,” “labor organization,” and “large-scale construction project” to align with E.O. 14063, the proposed rule would revise FAR 22.503 to reflect the change in policy that mandates agencies to require the use of PLAs when awarding large-scale federal construction contracts—including individual orders under Indefinite Delivery, Indefinite Quantity contracts—unless an exception applies. The proposed rule would make the PLA requirement a mandatory flow-down. The proposed rule would also allow agencies to include any additional agency-specific requirements in a PLA through FAR 22.504(b)(6), and would strike the current FAR 22.504(c), which grants agencies discretion to specify PLA terms and conditions.

Both the E.O. and the proposed rule implementing it provide an exception from the PLA requirements. The proposed rule would allow the senior procurement executive of an agency to grant a written exception to the PLA requirement in each of the following circumstances, as provided in the E.O.:

1. Requiring a PLA would not achieve economy and efficiency in Federal procurement, as described in 22.504(d);

2. Requiring a PLA would substantially reduce the number of potential bidders so as to frustrate full and open competition, i.e., where adequate competition at a fair and reasonable price could not be achieved; or

3. Requiring a PLA would be inconsistent with statutes, regulations, other E.O.s., or Presidential Memoranda.

This change in policy will become effective with the publication of the Final Rule, following a 60-day public comment period.

We will continue to monitor developments concerning this initiative.

(See Article)

North America’s Building Trades Unions and Ørsted Agree To Build an American Offshore Wind Energy Industry With American Labor

Posted by National Alliance for Fair Contracting on

Wed, June 29, 2022 | Yahoo Finance

A first in the U.S., the National Offshore Wind Agreement sets industry on a course to build an equitable offshore workforce with family-sustaining careers

WASHINGTON, June 29, 2022 /3BL Media/– Today, North America’s Building Trades Unions (NABTU) and Ørsted, the U.S. leader in offshore wind energy, announced a Project Labor Agreement (PLA) to construct the company’s U.S. offshore wind farms with an American union workforce. A first-of-its-kind in the United States, the National Offshore Wind Agreement (NOWA) sets the bar for working conditions and equity, injects hundreds of millions of dollars in middle-class wages into the American economy, creates apprenticeship and career opportunities for communities most impacted by environmental injustice, and ensures projects will be built with the safest and best-trained workers in America. Authorized by 15 International Union Presidents and their local affiliates, the NOWA covers all of Ørsted’s contractors and subcontractors that will perform offshore windfarm construction from Maine down to Florida.

“The signing of this unprecedented agreement is historic for America’s workers and our energy future. NABTU’s highly trained men and women professionals have the best craft skills in the world. This partnership will not only expand tens of thousands of career opportunities for them to flourish in the energy transition but also lift up even more people into the middle-class,” said Sean McGarvey, President of NABTU. “The constant drumbeat of public support for unions being important to maintain and build the middle class helped secure this momentous achievement. We commend Ørsted, AFL-CIO President Shuler, the Biden Administration and many Congressional leaders for their help and support to make today’s signing a reality and for setting forth a new framework for middle-class job creation in all energy sectors.”

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Project labor agreements on federal construction projects will benefit nearly 200,000 workers

Posted by National Alliance for Fair Contracting on

Posted February 9, 2022 at 11:07 am by Ihna Mangundayao, Celine McNicholas, and Margaret Poydock

President Biden recently signed an executive order (EO) requiring project labor agreements on federal construction projects over $35 million, a move that is expected to affect $262 billion in federal construction contracting and improve job quality for nearly 200,000 workers.

Project labor agreements (PLAs) are used primarily in the construction industry to establish the terms of employment for all workers on a project. Generally, PLAs specify workers’ wages and fringe benefits and may include provisions requiring contractors to hire workers through union hiring halls, otherwise establish a unionized workforce, or develop procedures for resolving employment disputes. PLAs often include language that prevents workers from striking during the project while also preventing employers from locking workers out.

PLAs are effective mechanisms for controlling construction costs, ensuring efficient completion of projects, and establishing fair wages and benefits for all workers. PLAs also help ensure worker health and safety protections while providing a unique opportunity for workforce development. These agreements can be written to engage local populations, provide jobs for underrepresented groups, and develop experience for apprentices.

Project labor agreements don’t raise construction costs

Evidence shows that PLAs do not increase construction costs. For example, New York City embarked on a $5.3 billion project in 2009, and the use of four PLAs was estimated to lead to 1,800 new jobs while saving the city approximately $300 million. A study from the Berkeley Labor Center also found that projects with PLAs attracted a “similar number of bidders” and “came in at a slightly lower price” when compared to projects without PLAs in place. Another 2015 paper from University of Utah economists compared nine PLA affordable housing projects with 121 affordable housing projects built without PLAs and found that the PLA projects were not more expensive to build.

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Biden joins ironworkers in Upper Marlboro to sign federal labor protections into law

Posted by National Alliance for Fair Contracting on

Joshua Barlow
February 5, 2022, 10:32 PM

President Joe Biden joined union members at Ironworkers Local 5 in Upper Marlboro, Maryland, where he signed an executive order that gives construction workers new protections for federally contracted projects.

According to the White House, the executive order requires federal construction contracts worth more than $35 million to use project labor agreements.

The order, which goes into effect immediately, will affect an estimated 200,000 union workers in an industry that has taken severe economic hits due to the pandemic.

Project labor agreements (PLA) are legal mechanisms by which the terms and conditions for workers on an individual project are determined. Within the new executive order, any contractor who is awarded a federal contract must co-sign the PLA with any union representing their labor force.

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County Supervisors Direct Staff to Develop Community Workforce Agreement for Construction Projects (CA)

Posted by National Alliance for Fair Contracting on

By Giana Magnoli
April 10, 2019 | 9:54 p.m.

Contractors from all over Santa Barbara County commented during Tuesday’s Board of Supervisors meeting on a proposal to develop a community workforce agreement ordinance, which would affect contracts for some government projects.

A community workforce agreement, also called a project labor agreement, is negotiated between public agencies and construction trade unions “with the goal of providing a stable, skilled workforce and high quality standards on publicly funded projects,” said county supervisors Joan Hartmann and Das Williams, who pitched the idea to their colleagues.

The supervisors voted 3-2 to direct staff to develop a community workforce agreement ordinance and come back with details at a later date….

The project labor agreement would have a “targeted hire provision” aimed at getting people from “disadvantaged communities” – low-income workers, veterans and others – into construction through apprenticeship training programs, according to the board letter from Hartmann and Williams.

Michael Lopez, of the Santa Barbara Plumbers and Pipefitters Local 114, said the Community Workforce Agreement would boost the efforts of apprenticeships and trained workers.

“This is how we want to take care of our local people,” Lopez said.

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San Diego airport officials vote to use PLA on $3B airport project (CA)

Posted by National Alliance for Fair Contracting on

AUTHOR – Kim Slowey
PUBLISHED – April 8, 2019

Dive Brief:

  • Board members of the San Diego County (California) Regional Airport Authority have voted to require that the design-build contractor chosen to lead the $3 billion redevelopment of San Diego International Airport must enter into project labor agreements with local unions.
  • The regulation requiring the PLAs, according to a staff-prepared report, “ensures labor harmony by eliminating the threat of work stoppages, strikes, slowdowns, and lockouts for the life of the project,” which, airport staff said, is a critical element for keeping the five-year project on schedule.

…

Dive Insight:

Also included in the staff report to the authority was the fact that California state law allows a public agency to require a PLA. Lawmakers in many other states, however, don’t. Last month, Kentucky became the 25th state to enact anti-PLA regulations mandated by state and local government agencies. Kentucky’s new law keeps its public agencies from requiring that bidders sign on to PLAs, although it does not ban the agreements altogether nor does it prevent contractors from entering into voluntary PLAs.

(Read More)

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Your Turn: Project labor agreement needed in Worcester Red Sox deal (MA)

Posted by National Alliance for Fair Contracting on

By Frank Callahan
March 14, 2019

The city of Worcester, the Worcester Red Sox and Madison Downtown Holdings, a private developer, are building a $240-million downtown project that includes a new, $90-million, 10,000-seat stadium for the Boston Red Sox Triple-A Minor League affiliate team. Most see this as good news for the community. And it can be if the stakeholders embrace the use of a project labor agreement to ensure safety, equity and fairness for the workers who build the stadium.

Unfortunately, some contractor lobbying groups who advocate to pay workers lower wages are engaged in a cynical campaign aimed at ensuring the prosperity generated by this large proposal isn’t shared with the actual workers doing the work. They also don’t care if the project is done in the safest way possible, or with the best-trained workers possible.

Every fan sitting in that stadium over the decades that will follow its opening deserves to know that Worcester built its stadium in the safest way possible with the best-trained workforce. That’s just one reason why the union building trades are speaking up for a project labor agreement to ensure the safety of workers and the public in Worcester.

Project labor agreements, also called community workforce agreements or project stabilization agreements, emerged in the early 20th century as basic pre-hire agreements between the owner or contractor and the local building trades unions.

By the 1980s, these agreements were common in both the public and private sectors. Modern PLAs are negotiated on a case-by-case basis, and include sophisticated provisions that keep jobs running smoothly, promote efficiencies, and nurture the development of a skilled workforce. Most importantly, they prevent worker exploitation, wage theft and other illegal or unsafe acts that can harm local workers on a non-PLA job site.

For years, wealthy special interests have tried to undermine workers’ rights and advance narratives around the concepts of unions being outdated and unneeded. Despite the anti-worker spin promoted by organizations like the Merit Construction Alliance, public support for unions is growing. Meanwhile, union membership and the need for PLAs are also both on the rise in Massachusetts.

The building trade unions have been creating economic prosperity and a pathway to the middle class for workers throughout Central Massachusetts for generations. Right now, many Worcester area families could benefit from a good, union job in the construction industry.

Sadly, efforts are afoot in Worcester to lower safety, wage and training standards for working people on the new stadium project, putting Worcester workers at risk of losing life or limb, and in the position of earning less for the same work that is done elsewhere in the state. That simply would not be fair.

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