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AGC is asking the U.S. Department of Labor to justify its requirement of a project labor agreement (PLA) for a $10 million Job Corps Center in Manchester, N.H., contending the decision effectively shuts out a majority of local contractors. AGC represents nonunion and union contractors, the latter accounting for 10.9 percent of New Hampshire’s construction workforce. “How does severely restricting competition for federal work benefit taxpayers, help construction workers or support economic recovery?” asks AGC CEO Stephen Sandherr. “There must be a good explanation for why denying so many people access to economic opportunity makes sense.”
The Labor Department’s move follows an executive order proposing that agency officials consider mandating PLAs on all federal construction contracts exceeding $25 million. The agreements typically set above-market wage rates for site workers, including drivers delivering supplies, and force contractors to hire through union halls. Union contractors may find the government’s terms for the Manchester Job Corps Center too prohibitive, Sandherr observes, adding that the Government Accountability Office has found little evidence of PLAs delivering cost savings, easing work-place tensions, or protecting against construction delays.
Sources: Associated General Contractors of America, Washington, D.C.; CP staff
3 comments:
It is ridiculous that we currently have to pay "prevailing wages" on state projects (if the state is not a right to work state) or "Davis-bacon" wages on federal projects. As stated in your articles, the unions are such a small percentage of the workforce. An average government project costs the taxpayers between 15-25% more to construct than a similar building constructed in the private sector by merit shop contractors. These buildings are built with the same quality and within the same schedule as they would be in the public sector. PLA's only benefit 8-10 percent of the American construction workforce and they hurt ALL of the taxpayers.
It is ridiculous that we currently have to pay "prevailing wages" on state projects (if the state is not a right to work state) or "Davis-bacon" wages on federal projects. As stated in your articles, the unions are such a small percentage of the workforce. An average government project costs the taxpayers between 15-25% more to construct than a similar building constructed in the private sector by merit shop contractors. These buildings are built with the same quality and within the same schedule as they would be in the public sector. PLA's only benefit 8-10 percent of the American construction workforce and they hurt ALL of the taxpayers.
PLO contracts that are being forced by the federal government are at best unfair to the majority of qualified contractors. Not only is it unfair :its not the American way of doing business( which is being able to compete Equally).
The premise that qualified construction workers only reside within unions is a real joke on the American people. It is a shame that probably 70% of the qualified General Contractors and Sub- Contractors from New Hampshire and most likely from New England will be excluded from bidding this project on the basis of this requirement(PLO).
The politics behind this stinks!!!!!!! Our Motto still thrives in this state “Live and Work Free or Die” PLO’s are a deathwish to a free economy. They do nothing but cost the American taxpayer more money with no benefit or better value.
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