Union-only Project Labor Agreements (PLAs) on federal contracts require that the contracts be awarded only to those who agree to collective bargaining and union hiring. Union-only PLAs exclude a majority of the workforce from the opportunity to participate in federally-funded projects.

Union-only PLA proponents argue that the agreements promote fair wages and labor peace through non-strike clauses. However, Davis-Bacon laws already ensure that the local, usually union, prevailing wage is paid on federal construction projects and merit shop employees do not go on strike. In reality, these agreements are about forcing merit shop contractors to submit to union rules and hiring halls if they want to bid on projects covered by a union-only PLA. As merit shop contractors have already chosen to operate non-union, why would they agree to bid on projects covered by union-only PLAs?

PLAs cost the American taxpayer more money by drastically limiting project bids to a small segment of the market that runs union-only shops. In a time when elected officials in both parties preach the doctrine of fiscal discipline, the expense of PLAs does not seem justified. In a move designed to curtail wasteful federal spending in 2001, President Bush signed Executive Order 13202, which expressly prohibits PLAs on federal construction projects.

In 2008, according to the Bureau of Labor Statistics, 84% of the construction workforce in the United States did not belong to a labor union. Not only do union-only PLAs waste taxpayer money, but they prohibit the large majority of the workforce that has chosen not be a part of a union from working on projects financed by their tax dollars.

Status of Legislation: On February 6, 2009, President Barack Obama signed Executive Order 13502, which authorizes and encourages the use of union-only project labor agreements (PLAs) on federal construction contracts. President Obama's order also repealed President Bush's Executive Order 13202, which banned PLA?s on federal projects. Senator David Vitter (R-LA) and Representative John Sullivan (R-OK) have introduced the Government Neutrality in Contracting Act (S. 90/H.R. 983), which would preserve open competition on federal construction projects. Specifically, S. 90 and H.R. 983 would "prevent discrimination against Federal Government contractors or their employees based upon labor affiliation or the lack thereof, thereby promoting the economical, nondiscriminatory, and efficient administration and completion of Federal and federally funded or assisted construction projects."

IEC Position: IEC opposes any legislation that would promote union-only PLAs. IEC supports any effort to ensure open competition on federal construction projects.

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