Position NAGC is opposed to forced Project Labor Agreements that have the result of denying federal contracting opportunities to small businesses. Take Action Write a letter to your elected officials. Show your support with a Web Sticker. Coalition NAGC has joined the coalition supporting an end to forced Project Labor Agreements. Learn more at TruthAboutPLAs.com.

From a White House press release April 12th, several days before the Project Labor Initiative (PLA) was officially handed down:

"One of the first actions taken on behalf of the Middle-Class Task Force was President Obama's signing of Executive Order (EO) 13502, encouraging executive agencies to consider requiring the use of project labor agreements (PLAs) when they engage in large-scale construction projects. Project Labor Agreements are pre-hire collective bargaining agreements with one or more labor organizations that establish the terms and conditions of employment for a specific construction project.

The use of a Project Labor Agreement can provide structure and stability to large construction projects. PLAs also help ensure compliance with laws and regulations governing workplace safety and health, equal employment opportunity and labor and employment standards. The coordination achieved through PLAs can significantly enhance the economy and efficiency of Federal Construction projects."

We at NAGC are a bit confused by the what is meant by the phrase "encouraging executive agencies to consider."

Are we to believe this is meant to be only a suggestion instead of the non-competitive, job-stopper it will inevitably amount to?

Project Labor Agreements reduce competition, increase costs for taxpayers, and add layers of bureaucracy and red tape to federal construction projects. Creating a formal federal process for imposing these Depression-era mandates on construction projects may be a win for special interests, but it's a loss for workers, taxpayers, and small businesses hoping to compete for federal jobs.

It is a bit confusing why this initiative is being attached to a "Middle-Class Task Force" when the results are aimed at Big Labor and seems to be putting more federal contracts out of reach for the mid-sized and small contractors who are best able to infuse the crippled job market with immediate opportunities.

Just last year, the U.S. Department of Labor decided to cancel a Job Corps Center construction project in New Hampshire. Kline pointed to this as an example of the dangers PLAs pose to federal job creation and project efficiency. The New Hampshire project was canceled after a local contractor raised a legal challenge to the project's PLA requirement, arguing it was discriminatory and would disqualify most contractors in the state.

PLAs generally require federal contract bids to adhere to union work rules and wage scales and to pay benefits into union pension funds even when non-union workers - who will never benefit from these funds - participate in the project.

As to why this ill-advised move has been made the Wall Street Journal has gotten straight to the point: "The executive order, which will become effective next month (May 2010), is the latest in a series of moves by the administration that are favorable to unions, whose members could play a critical role in the upcoming midterm elections as Democrats try to hang on to seats in Congress."

"This is the latest win for unions in their tug-of-war with employers. Unions recently welcomed Mr. Obama's recess appointment of former union lawyer Craig Becker to the National Labor Relations Board after the nomination failed to win enough Senate votes. But unions have expressed frustration that their most important legislative priority, a bill that would ease unionization, is stalled in Congress. Unions are also looking to the executive branch to act on its own, independently of Congress, on other labor issues."