Labor & Employment Law

Obama Project Labor Order Implemented Today

By James Parks

During his first month in office, President Obama issued an executive order encouraging agencies to require the use of project labor agreements (PLAs) on large-scale construction projects. Today, the Federal Acquisition Regulatory Council (FAR) issued the final rule that implements the order.

Says Mark Ayers, president of the AFL-CIO Building and Construction Trades Department:

Contrary to claims by those who oppose these agreements?who subscribe to a “race to the bottom” mentality, where success is predicated on the ability to assemble a low-wage, easily exploitable workforce?PLAs have proven over and over that they are a valuable, market-based tool that ensures superior jobsite management, project efficiencies, and workforce productivity and development.

Project labor agreements are pre-hire collective bargaining agreements that establish the terms and conditions of employment for a specific construction project.  

Numerous cost-conscious and profit-oriented private corporations, such as Disney, Toyota, Southern Company, ENG Energy and Constellation Energy, have embraced the benefits of PLAs, Ayers said.

These companies, just like a growing number of state and local governments, utilize these agreements to not only ensure an “on-time, on-budget” return on their investments, but to also create career training opportunities for local citizens.

 U.S. Labor Secretary Hilda Solis says PLAs are a “win-win” situation.

They benefit businesses, workers and taxpayers. I’ve seen the track record in cities like Los Angeles?high-quality work on projects done on time, on budget and good job and training opportunities that strengthen our communities.

Full post as published by AFL-CIO NOW BLOG on April 13, 2010 (boomark / email).