PLA Benefits

Standardized conditions and established wages. Labor costs are stable and contractors can bid a project with no guesswork.

A reliable supply of talented and skilled, local workers for the duration of the project.

Apprenticeship training programs.

A no-strike, no-lockout commitment. Binding procedures for settling disputes. You are protected against work stoppages

Little chance of cost overruns.

Flexibility in meeting local conditions and any special project needs.

State laws permitting PLAs offering lower worker's compensation premiums.

What is a PLA?

A comprehensive pre-hire collective bargaining agreement. That means basic terms and conditions for labor are established in advance for everyone involved in the project: the public sector employer, contractors and subcontractors, and the labor force.

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What guarantees does a PLA provide?

It guarantees:

* That all construction jobs are filled by local workers.
* All contractors... union and nonunion... are included in the bidding process.
* At least 25% of the jobs on the project are filled by minority and female workers.
* Safety guidelines on the job site are enforced.

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How is a project budget affected by a PLA?

The project budget is safe under a PLA. There are no hidden costs or cost overruns. You won't be confronted with unexpected wage demands or disputes halfway through the project.

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Do I have to use union contractors?

No, public works PLAs never restrict bidding solely to union contractors. A PLA is available to any contractor who will accept its terms. It's the contractor's decision.

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What if I want to negotiate for lower wages?

Lower wages can cause problems as the project proceeds. Lower wages mean lower productivity and higher accident rates. Both lead to cost overruns. Lower wages also mean you will see all kinds of hidden costs pop up unexpectedly.

There are no hidden costs with a PLA. Everything is settled before construction begins, right up front for the life of the project, including wage increases.

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Are PLAs legal in public sector construction?

Very legal. In a major 1992 decision (the Boston Harbor case), the U.S. Supreme Court ruled in favor of the public sector PLAs, affirming that private and public owners can decide for themselves when a construction project should utilize a PLA.

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Don't PLAs violate laws requiring projects be awarded to the lowest bidder?

Some state and federal governments have hesitated to use them for this reason but it is without foundation. The U.S. Supreme Court ruled unanimously that project labor agreements are legal in a case involving the cleanup of Boston Harbor which is currently being done under a PLA.

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Does the scope and the size of a project determine whether a PLA is useful?

Yes. Normally what you would do is hire a company, unless you had somebody in-house who could do it, to make an assessment of whether it was in your interest to have a PLA or not. Some jobs just are not't big enough to warrant the paperwork involved in a PLA. You would look at it from a financial standpoint and say "this makes good financial sense for us to have one or it doesn't."

The complexity, length of time, the number of trades that are involved and the amount of social goals [local labor, minority training, etc.] that you're interested in achieving when the project goes out to bid are all determining factors. How quickly do you need to get the project finished? Is it important to have stabilization of starting times because of noise requirements in the city? Is it important to have common holidays? Is it important to have a common grievance procedure? The owner would have to answer a number of questions.

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