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Introduction by Erin Shannon, Director of WPC's Center for <br /> Worker Rights <br /> The use of government-mandated Project Labor Agreements(PLA)on publicly <br /> funded construction projects has come under increasing scrutiny as states look for <br /> ways to improve efficiencies,maximize value for the public and ensure taxpayer <br /> dollars are spent wisely. <br /> The practice of suppressing competition and discriminating against non-union <br /> contractors(especially those owned by minorities and women)in the process in <br /> order to award labor unions virtually sole access to public works projects,has <br /> become a controversial example of the influence special interests wield over <br /> policymaking at the expense of taxpayers. <br /> PLAs are a"pre-hire collective bargaining agreement with one or more labor <br /> organizations that establishes the terms and conditions of employment for a specific <br /> construction project.."' <br /> PLAs set wage rates,benefits, and working conditions for every worker,union <br /> and nonunion,who will be employed on a public works project. The agreements <br /> also typically include provisions requiring either all workers on the public project be <br /> hired through a union hiring hall,or that workers of any non-union contractors and <br /> subcontractors pay union dues and fees,as well as pay into union benefit programs <br /> such as pension and medical. <br /> Most of the nonunion workers forced to pay into these union benefit programs <br /> (as a condition of employment)will not meet the programs'vesting requirements <br /> and will forfeit any claim to those benefits in the future,meaning they will not <br /> receive any benefit at all. <br /> Any contractor,or subcontractor,union or nonunion,who bids on a project <br /> with a PLA is bound by the terms of the agreement,which unfairly favor union <br /> over nonunion bidders.While PLAs do not directly forbid nonunion,merit-based <br /> contractors from bidding and working on a public project,they effectively suppress <br /> competition because the stringent requirements in PLAs create barriers that are <br /> difficult for nonunion contractors to overcome. <br /> This is particularly true for smaller,locally owned contractors and <br /> subcontractors,especially those owned by disadvantaged business enterprises,such <br /> as women and minorities,which tend to be nonunion. These contractors,and the <br /> skilled workers they employ,are shut out of the opportunity to fairly compete for <br /> jobs on projects that are funded with taxpayer dollars. <br /> The exclusionary and discriminatory nature of PLAs is why a broad range <br /> of trade groups representing small,women and minority owned construction <br /> companies have consistently,and vocally,opposed PLAs. These groups include <br /> the National Association of Minority Contractors,National Black Chamber of <br /> Commerce,Black Contractors Association,National Association of Women in <br /> 1 Presidential Executive Order 13502,"Use of Project Labor Agreements for Federal <br /> Construction Projects,"signed by President Obama,February 6,2009 at www.govinfo. <br /> gov/content/pkg/FR-2009-02-11/pdf/E9-3113.pdf <br /> III <br />