The Republican from Arizona introduced the Fair and Open Competition Act, which would make clear “agencies may neither require nor prohibit Project Labor Agreements (PLAs) as a condition for receiving a federal contract.” PLAs are bargaining agreements that contractors must sign to work on a construction project.
Under these agreements, non-unionized firms must subject employees to union control and non-union employees are required to pay union dues and contribute toward pension and healthcare costs that they won’t benefit from without joining, according to information from Flake’s office.
President Barack Obama’s executive order was interpreted by some agencies as requiring PLA consideration as a condition for awarding contracts with the federal government, according to information from Flakes office. He contends these agreements favor “politically-connected” unions, which drive up costs and inhibit competition.
Some members of Congress, though, said they think the agreements are beneficial. Last month, Congressman Donald Norcross, a Democrat from New Jersey, along with several other House representatives from both sides of the aisle, wrote a letter to President Donald Trump enumerating their support for PLA’s “as a tool to raise wages for workers and save taxpayers funds.” Norcross urged Trump, for his part, not to outright prohibit PLA’s and keep all construction management tools on the table.
According to advocacy site The Truth About Project Labor Agreements, Trump both voluntarily declined to enter into the labor agreements for some of his personal business projects as well as executed agreements with labor unions in others.
“Having worked as an IBEW electrician, I saw firsthand how project labor agreements benefit workers and contractors. The best developers use PLAs to save money and increase efficiency–the federal government should have access to the same tools,” Norcross said. “PLAs will save taxpayer funds and help American workers by creating greater opportunities, increasing job security and raising wages.”
The trade organization Associated Builders and Contractors (ABC) came out in support of Flake’s bill and disparaged PLAs, claiming the mandated union labor agreements “discriminate” against the more than 86% of the construction workforce not in a union. The ABC took the lead on a letter of its own sent to the Senate and signed with a total of 14 organizations, including the Associated General Contractors, U.S. Chamber of Commerce and the National Federation of Independent Business.
“The Fair and Open Competition Act will create more construction jobs and help taxpayers get the best possible construction project at the best possible price by increasing competition, reducing waste, and eliminating favoritism in the procurement process,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck in a statement. “This important bill will create a level playing field where more qualified contractors will compete for public construction contracts because the government can neither encourage nor prohibit project labor agreements.”
According to information from the ABC, taxpayer-funded construction costs as much as 18% more when projects are subject to PLA mandates. So far, 22 states have enacted similar legislation to Flake’s and a number of other states are considering like bills.