ConDig (04-Feb-22) US construction industry leaders have blasted a decision by president Biden to impose labor agreements on many federal construction projects.

The Associated General Contractors of America slammed the executive order as “needless” and said the move contradicted the opinions of the vast majority of Federal procurement officials, who believe there is no benefit in labor agreements and could undermine existing collective bargain agreements.

Under the executive order on Friday, project labor agreements will be required on federal construction projects over $35 million. The administration believes the move will provide a boost to workers and speed up building times.

“It is hard to explain why the President would choose to impose government mandated project labor agreements to solve a problem that doesn’t exist. Construction workers are among some of the highest paid workers in the economy, earning ten percent more than the average worker in the U.S. Their pay rates have continued to climb 5.1% as labor shortages have made this a workers’ market,” said chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr.

“Government-mandated project labor agreements undermine the collective bargaining process by imposing a separate agreement in a specific region that applies only to a limited number of construction firms and unions. These imposed PLAs undercut the benefits of the collective bargaining agreements that were negotiated in good faith between employers and labor union and will likely prompt many firms to think twice about participating in the bargaining process in the future.”

He added that rolling out project labor agreements also discriminates against the more than 85% of construction workers who choose not to belong to a union.