U.S. infrastructure is crumbling. According to federal data, one-third of U.S. roads are in poor condition, 28 percent (56,000) of the 173,919 bridges are structurally deficient and 14,000 of the 83,000 dams have “high hazard potential.”
Our crumbling infrastructure should be a top priority for the next Congress in 2019. As we await the Trump administration’s $1 trillion infrastructure plan, lawmakers should work to protect indispensable tools like Project Labor Agreements (PLAs) to deliver on President Trump’s election night pledge.
The truth is that PLAs are good for business, which is why they continuously receive bipartisan support and are used both in public and private projects. They are prehire collective bargaining agreements that standardize contract terms across various craft agreements, prevent delays and provide access to a steady supply of safe and highly skilled workers.
Cornell University conducted a study in 2011 that concluded PLAs benefit everyone involved: the construction industry, end users, contractors, workers, local communities and tax payers. The industry increasingly relies on PLAs that provide value for government and corporate purchasers of construction services, delivering on-time, on-budget performance.
In 2010, an Economic Policy Institute (EPI) briefing paper stated, “PLAs can help projects meet deadlines by guaranteeing a steady supply of highly skilled labor and reconciling various work routines across trades. PLAs help ensure timely completion, keeping projects free from disruptions. Because PLAs are negotiated pre-bid and tailored to the needs of each project, they allow project owners, contractors and workers a unique opportunity to avoid potential problems that might impede progress.”
PLAs increase the stability, safety and efficiency of complex and long-term construction projects. Large projects usually have multiple employers and present special challenges. Large and complex projects across the nation such as the Hoover Dam, Kitsap Naval Base, LAX Airport and the Tappan Zee Bridge replacement have been built using the PLA model. Disney World uses PLAs in its core construction and maintenance operations to ensure a steady flow of qualified workers in a largely non-union environment like Florida, proving that many private companies find PLAs cost effective and useful to keep them competitive.
One of the biggest challenges in the construction industry today is a lack of a skilled workforce. PLAs include provisions for workforce development and apprenticeship programs that train workers for careers in construction using formal, standardized curricula. PLAs include provisions establishing committees to manage safety and health issues. The National Maintenance Agreements, a series of collective project agreements utilized by more than 2,000 industrial contractors, have taken safety to the next level as evidenced by millions of safe, incident-free hours worked in the private sector across the nation. Ford, General Motors, Chrysler, American Electric Power and Chevron, to name a few, have been the proud recipients of the National Maintenance Agreements Policy Committee’s Zero Injury Safety Award.
One of the most persistent myths used in propaganda against PLAs is that they are “government mandated” and “discriminate against non-union.” It is simply not true.
PLAs originated in the private sector and are overwhelmingly used in private construction projects to prevent costly delays. Major corporations such as Walmart, General Motors, Delta Airlines, Toyota, Exelon Corp., Southern Co., Pfizer, Merck, Johnson & Johnson and Astellas use PLAs to ensure the timely delivery of high-quality construction projects. President Trump’s private construction projects including Trump National Club House, Trump Plaza, and the Trump Taj Mahal, have benefited from PLAs.
PLA bidding must be open and fair, without any discrimination against any contractors. There is no federal mandate requiring the use of PLAs.
The claim that PLAs require contractors to hire union members and force non-union workers to pay union dues is a myth. PLAs do not require exclusive use of union labor. It’s against the law.
In its landmark 1993 Boston Harbor decision, the U.S. Supreme Court recognized the value of PLAs in serving the public interest and opened the door for state, county and municipal agencies to use them.
PLAs ensure that taxpayers get the most for their dollars and protect residents from the burden of unsafe jobs where the injured lack quality health care. A 2011 study showed that the local economic impact of employing local workers is eight times higher. PLAs include provisions to ensure local workers get jobs on projects and taxpayer- funded worker wages are spent locally. PLAs are a social investment used to support communities and build middle-class careers. It is a win-win situation for all.
For more information, visit www.ironworkers.org or call (202) 383-4800.