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2019/10/16 Council Agenda Packet
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2019/10/16 Council Agenda Packet
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Council Agenda Packet
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10/16/2019
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contractors had participated. Therefore, the project cost will be higher, with fewer bidders <br /> attempting to under-bid each other for the contract. Some opponents also argue that requiring a <br /> PLA violates state competitive bidding laws that require a free and open bidding process. <br /> Proponents of PLAs counter that PLAs keep projects on time and on budget and that they help <br /> to assure the use of qualified, skilled workers on a project. They argue that the agreements <br /> provide for work conditions that are harmonious by eliminating inefficiencies in existing union <br /> collective bargaining agreements and that they guarantee predictable wage costs for the life of <br /> the contract. They contend that the combination of work rules and provisions that prohibit <br /> strikes, slowdowns and lockouts keep the project on time while preventing cost overruns due to <br /> delays. They argue, furthermore, that the wage stipulations allow firms to estimate more <br /> accurately the labor costs for the life of the project and thus keep the project on budget.9 <br /> Proponents also argue that the work rules, such as overtime and vacation pay under PLAs are <br /> often less generous than the collective bargaining agreements for some trades. Thus, if a PLA <br /> stipulates that overtime pay begins only after 40 hours per week, and not after eight hours per <br /> day,as in some collective bargaining agreements,then the PLA will produce savings on overtime <br /> costs. <br /> Advocates insist that the union rules allow for a safer work environment, thereby reducing <br /> accidents and thus lowering the number of workers' compensation claims. Besides, they claim <br /> workers' union certifications and apprenticeship training programs ensure the quality of the <br /> work. These features, they argue, save money in the long run by keeping projects on budget by <br /> reducing cost overruns. Also, proponents assert that through union apprenticeship programs, <br /> PLAs help to ensure local workers are hired and trained. <br /> 9 Gerald Mayer,"Project Labor Agreements."Congressional Research Service,R41310,July 1,2010, <br /> https://www.cga.ct.gov/2011/rpt/2011-R-0360.htm. <br /> The Anticompetitive Effects of Project Labor Agreements on Public Construction in Washington State 6 <br />
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