On December 18th, senior officials from the Biden-Harris Administration announced a final rule implementing the President’s Executive Order 14063 requiring Project Labor Agreements (PLAs) for most large-scale Federal construction projects. This rule will help ensure that large Federal construction projects are completed efficiently and on time, while also supporting high quality jobs. The rule will empower workers as the President’s agenda rebuilds America’s infrastructure—a key pillar of Bidenomics.
The rule will promote increased stability in Federal contracting while uplifting workers in communities across the nation. The rule requires the use of PLAs—a pre-hire collective bargaining agreement unique to construction—for large Federal construction projects, where total estimated cost to the Federal Government is $35 million or more (with limited exceptions). By requiring all parties—contractors, subcontractors, and unions—to negotiate set terms that govern project construction, the rule will lead to increased efficiency.
In expanding the use of PLAs on large Federal construction contracts, the new final rule promotes economy and efficiency in Federal procurement by:
- Eliminating the risk of delay associated with labor unrest;
- Ensuring parties agree to dispute resolution procedures and mechanisms for labor-management cooperation on matters like safety;
- Making clear that PLAs may include other provisions designed to support workers from underserved communities and small businesses;
- Helping ensure a steady supply of skilled workers for Federal construction projects; and
- Promoting competition on Government contracts by allowing all contractors—including those who are non-union—to bid on contracts that require PLAs.
As required by the Executive Order, the Biden-Harris Administration is also publishing a companion guidance document to provide important information to Federal agencies responsible for executing the policy throughout the Government, and to ensure that agencies take full advantage of PLAs on large-scale construction contracts.
The PLA final rule could provide nearly 200,000 workers on Federal construction projects the benefit of collectively bargained wages, benefits, and safety protections regardless of union membership. It is estimated that the rule will result in the Federal Government requiring PLAs on a majority of large Federal contracts. For almost a century, the Federal Government has recognized the advantages of PLAs on complex Federal construction—the construction of the Hoover Dam was a PLA covered project.
The announcement was made by Administrator Robin Carnahan of the General Services Administration, Acting Secretary Julie Su of the Department of Labor, and Deputy Director for Management Jason Miller of the Office of Management and Budget at the Anthony J. Celebrezze Federal Building in Cleveland, Ohio. There, the General Services Administration is working to modernize the building to ensure veterans have the support they need from the Federal Government. Contractors and unions at this site have entered into a PLA that helps the parties address the unique coordination challenges posed by large projects. The PLA covering the Celebrezze Federal Building project also supports equitable workforce development pathways into the trades and Registered Apprenticeship.
Cities and states across the country have invested American Rescue Plan funds to train thousands of workers for good paying jobs—over 2,000 state and local governments have made over 4,200 investments strengthening our workforce through the State and Local Fiscal Recovery Fund (SLFRF).
Through IIA, the Biden-Harris Administration continues to promote the use of PLAs on large, complex federally assisted construction projects, to increase the Government’s bang for its buck on large projects and expand opportunities for workers across the nation. For example, since January 20, 2021, the Department of Transportation has funded hundreds of PLA covered projects on over $10.4 billion of construction across ten states. Other IIA implementing agencies are also following this model, like the Department of Energy which has selected several Hydrogen Hubs that plan to incorporate PLAs into their projects. The California Hydrogen Hub plans to use PLAs on all of its projects and estimates it will directly create 130,000 construction jobs.
“North America’s Building Trades Unions applaud today’s announcement. This final step for the executive order on project labor agreements is welcome news for the responsible use of taxpayer dollars. Project labor agreements ensure that large-scale projects are completed on time, with the highest quality, efficiency, and safety. Time and again, PLAs have proven to address labor supply issues, prevent work stoppages, protect workers’ classification, strengthen health and safety standards, and achieve substantial, direct cost savings by standardizing contract terms for highly skilled craft workers. PLAs also boost community economies through local hiring goals and recruitment of workers into apprenticeship and pre-apprenticeship job training programs that uplift historically marginalized communities into middle-class construction careers,” said North America’s Building Trades Unions (NABTU) President Sean McGarvey. “With this latest action to strengthen economic security, labor-management relations and family-sustaining job opportunities, President Biden is yet again demonstrating his rock-solid commitment to American taxpayers and all workers – union and non-union – across the country.”
The fiercely anti-union Associated Builders and Contractors organization has thrown an absolute fit over this rule, saying that it will give union workers a monopoly over all federal projects.
Tristin Amezcua-Hogan is the Editor of The Labor Beacon and a member of LIUNA Local 264. Tristin also serves as the Director of Communications for the Greater Kansas City AFL-CIO and the Chair of the Kansas City Regional Transit Alliance.
Tristin grew up as the son of a UA Local 669 member in Tecumseh, KS and the great-nephew of George C. Amis, longtime leader of the United Rubberworkers (now USW Local 307) in Kansas. Growing up in rural Kansas as the child of teen parents, Tristin quickly came to appreciate the life-changing benefit of a union job.
Tristin and his partner, Rebeca Amezcua-Hogan, are residents of the Westside, Kansas City, MO's historic Mexican neighborhood. They are proud members of Kansas City's New Reform Temple.
