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You are here: Area of Law Government Contracts/Relations Government Contracts Project Labor Agreements & Large Federal Construction Contracts

Project Labor Agreements & Large Federal Construction Contracts

THEY'RE BAAAACK: PLAs Return to Haunt Non-Union Contractors

Baker Donelson
May 13, 2010

Please see our Hot Topics for more on Project Labor Agreements.

New Rule Encourages Federal Agencies to Consider Use of Project Labor Agreements

Holland & Knight
May 6, 2010

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The Final Rule Implementing the PLA Executive Order: Why it Should Be Challenged

Venable
April 21, 2010

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New Rule Implements Executive Order Encouraging Project Labor Agreements for Federal Contractors

Jackson Lewis
April 22, 2010

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Federal Project Labor Agreements — The Other Shoe Drops

K&L Gates
April 16, 2010

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New Push Toward Project Labor Agreements For Federal Construction Work

Crowell & Moring
April 20, 2010

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New Project Labor Agreement Rule on Large-Scale Federal Construction Projects

Ballard Spahr
April 20, 2010

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Final Rules Issued on Project Labor Agreements for Federal Construction Projects

Kilpatrick Stockton
April 14, 2010

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President Obama Signs Executive Order Encouraging Project Labor Agreements on Federal Construction Projects

Kilpatrick Stockton
February 18, 2009
This Alert reviews President Obama’s Executive 13502 authorizing the use of project labor agreements (aka pre-hire contracts) on federal construction projects valued at $25 million or more. The Alert understandably refers to the use of this type of an agreement as “something of a political football passing back and forth on the national playing field with each shift in political power.” President Obama’s order overturns one forbidding the use of project labor agreements issued by President Bush, which in turn reversed a Clinton Administration order permitting them.

Project labor agreements are a type of collective bargaining agreement unique to the construction industry whereby management signs an agreement with one or more unions representing workers before those workers are even hired.  This arrangement reflects the reality that many construction projects are short in nature and involve the hiring of a project-specific workforce, making it difficult for unions to organize employees and bargain a contract before a project is completed.

Pursuant to the order, federal agencies are authorized but not required to include project labor agreement provisions in all bid proposals, but the Alert leaves little doubt that there will be a “proliferation of project labor agreements” and that they will “have major implications for the labor costs and labor relations of construction contractors and subcontractors working on federal projects.” The Alert also notes that there may be an increase in project labor agreements in respect of nonfederal construction projects financed with federal funds, especially significant given the massive amounts of money budgeted for state and local construction projects in the Stimulus Bill.

Please see our Hot Topics for more on Project Labor Agreements.