A group of construction and business associations voiced their support for a bill introduced in Congress that would not require contractors to sign project labor agreements (PLAs) as a condition of winning federal construction contracts.
U.S. Rep. Dennis A. Ross (R-FL) introduced the Fair and Open Competition Act (HR 1552), which prevents federal agencies and recipients of federal funding from requesting that contractors to PLAs, or union bargaining agreements that establish the terms, wages and benefits of all employees working on the particular project.
A similar bill was introduced in the Senate by Sen. Jeff Flake (R-AZ).
Signed PLAs are not currently required, but a 2009 executive order by President Obama encouraged the use of PLAs by federal agencies.
Agency preference for PLAs has had a chilling effect on the bidding process for non-union firms, which, in turn, have enabled unions to drive up construction costs due to the lack of competition, Ross said.
“Government-mandated PLAs discriminate against more than 86 percent of the private construction workforce in America that chooses not to join a labor union,” Ross said. “They further drive up the cost of taxpayer-funded construction by 12 percent to 18 percent compared to projects not subject to PLA mandates. We must create a level playing field where more qualified contractors are able to compete for public construction contracts, allowing taxpayers to receive the best possible construction projects at the best possible price.”
The Fair and Open Competition Act will reduce costs for taxpayers by encouraging all qualified construction companies to compete for federal and federally-funded construction projects, Ross added.
“This common-sense legislation will create more construction jobs, and therefore, help increase competition, reduce waste, and eliminate favoritism in the procurement process. This bill will also create jobs for veterans, minorities, women and local workers not affiliated with unions, and will create opportunities for small businesses and qualified contractors hurt by PLA requirements,” Ross said.
In a letter to the U.S. House, 14 construction and business groups – including the Small Business and Entrepreneurship Council, Associated Builders and Contractors, and the U.S. Chamber of Commerce – expressed their support.
“Your support of the Fair and Open Competition Act will create a level playing field in the procurement of government construction contracts, increase competition, help small businesses grow, curb construction costs, and spread the job-creating benefits of federal and federally-funded contracts throughout all of the construction industry,” the group said.