Eleven trade organizations, including the American Road and Transportation Builders Association, recently sent a letter to President Donald Trump opposing the mandatory use of Project Labor Agreements (PLAs) on federal and federal-aided construction projects.
PLAs require the use of union labor, undermining existing collective bargaining agreements and creating union jurisdiction issues, the letter claims. PLAs also drive up costs between 12 percent-18 percent by limiting competition, the letter said.
Since 2009, PLAs have been required on federal construction projects exceeding $25 million on a case-by-case basis. States and localities also can mandate PLAs on federally assisted projects.
“At a time when American taxpayers and private enterprise must find efficiency and value in every dollar invested in infrastructure to meet our country’s projected 10-year $2 trillion infrastructure investment gap, it would be prudent to eliminate the current pro-PLA executive order and replace it with a policy that will foster vigorous competition, reduce costs, provide value for taxpayers and ensure all Americans have the opportunity to rebuild their communities,” the letter said.
The construction industry will need to fill an additional one million jobs as early as 2020, the organizations said, if an infrastructure bill results in $1 trillion more worth of construction spending and if the industry grows at 2 percent to 3 percent over the next few years.