Here is a video of Gonzalez making the claim on a local TV news report:

This claim is completely ridiculous, and TheTruthAboutPLAs.com contributor Kevin Dayton lays out of the facts from the San Diego campaign finance reports.

Here are the highlights from Kevin’s report on the Dayton Public Policy Institute website on this subject:

One person said to me, “I read your blog showing how unions spent $1.2 million against Proposition A. What is she talking about? Did the Yes on A campaign really raise more than $7 million?”

No. As shown here in the campaign finance reports of the City of San Diego Ethics Commission, unions and union-managed organizations spent more against Proposition A ($1,325,231.20) than “corporate interests” spent in support of Proposition A ($934,037.81), in a ratio of almost 3 to 2. Supporters of Prop A did not even raise $1 million for a city-wide campaign in a city with 1.3 million people. Gonzalez’s 7 to 1 ratio for spending on Proposition A could only be met with $8.2 million in additional imaginary money to the Yes on A campaign or with some sort of incredible distortion of data on campaign finance reports.

We strongly encourage you to read Dayton’s full blog post on this, and hope you follow his blog in the future.

The post Big Labor Claims Prove Unfounded appeared first on The Truth About PLAs.

This video is just one more resource in the fight against wasteful government-mandated PLAs.

Supporting facts for the video are also available here.

Say No to Government-Mandated PLAs

The post Project Labor Agreements: Not What We Need, Not What We Deserve appeared first on The Truth About PLAs.

Proposition A, the City of San Diego ballot initiative that will ban government-mandated PLAs on city funded construction projects, was approved with 58 percent of the vote.

The City of San Diego is the eighth most populous city in the U.S.

This was the fourth time voters in California got the opportunity to consider whether PLA mandates are appropriate on construction projects in their communities, and voters choose to ban these big labor handouts all four times.  (See: Chula Vista, Oceanside and San Diego County)

Here at TheTruthAboutPLAs,com, we hope politicians recognize that voters last night clearly indicated that they want quality and accountability – not Big Labor handouts – on public construction projects.

We hope the Brown administration and the Legislature got the message.

The post San Diego Area Voters Again Say No to PLA Mandates appeared first on The Truth About PLAs.

This support comes despite union claims that if Proposition A is adopted, the city risks losing future state construction funding due to a new state law signed by Gov. Jerry Brown last week.

Here are the highlights from the Union-Tribune‘s editorial announcing the paper’s support for Proposition A:

We acknowledge that Proposition A puts state construction funding at risk. Former Councilwoman Donna Frye points out that Mayor Jerry Sanders’ administration considered the funding threat significant enough that it was mentioned in a disclosure document for an upcoming bond offering.

But this bullying of local governments and taxpayers should not be accepted as a legitimate tactic, especially when the law used to execute the bullying is so susceptible to a court challenge.

Beyond that, the concern that Proposition A addresses – that union-allied elected city officials could began mandating PLAs – is real. Such a local union power play would be nothing new.

For four years, union-allied City Council members helped stall the implementation of a 2006 voter initiative meant to downsize city government by creating “managed competition” between private companies and government workers to provide city services. Union-allied members of the San Diego school board pushed through a version of a PLA for projects built with the $2.1 billion Proposition S bond approved in 2008 – after never mentioning their intentions during the campaign for the measure.

If we can pre-emptively block such power plays, let’s do so. The U-T San Diego Editorial Board urges a yes vote on Proposition A. Don’t let the bullies win.

Proposition A will help guarantee San Diego taxpayers the best construction at the best price.

To learn more, visit their website www.fairandopencompetition.com or their Facebook page.

The post San Diego Union-Tribune: Vote for Prop. A – Don’t Let Bullies Win appeared first on The Truth About PLAs.

Here are the highlights from The LA Times, with my emphasis added:

Gov. Jerry Brown announced on Saturday that the state’s deficit has ballooned to $16 billion, a huge increase over his $9.2-billion estimate in January.

<snip>

“This means we will have to go much further, and make cuts far greater, than I asked for at the beginning of the year,” Brown said in the video.

Lawmakers and others were hoping that a rebounding economy would help the state avoid steep cuts to social services. But revenue in April, the most important month of the year for income taxes, fell far short of expectations, leading to a shortfall of at least $3 billion in the current fiscal year.

The state has also spent $2.1 billion more than expected, according to the controller, further worsening California’s financial health.

Advocates involved in budget discussions say they expect deeper cuts to social services than Brown originally proposed in January. Union officials are also in negotiations with administration officials about ways to reduce state payroll costs, an issue that wasn’t on the table earlier this year.

Brown has said there will be even deeper cuts, mostly to public education, if voters do not improve tax hikes in November. He is seeking a quarter-cent increase in the state sales tax for four years and a seven-year hike on incomes of $250,000 or more that will range from 1 to 3 percentage points. He says the measure would raise $9 billion in the upcoming budget year.

What does this have to do with wasteful and discriminatory project labor agreements (PLAs)?

Regular readers of this blog know that many California leaders at the state and local levels go out of their way to mandate the use of PLAs on public construction.  Recently, Gov. Brown signed bills that attempt to overturn the will of local voters and elected officials in 12 California communities by nullifying PLA mandate bans in general law localities, and attempting to deprive charter cities of state funding for construction.

California has the most dire state budget situation in America, at a time when most states have already turned the corner.  This should not be a surprise to anyone.  Governing has consequences.  If government officials are comfortable spending nearly 20 percent more for public construction projects just to help out construction union bosses, it is obviously that getting value for the taxpayers’ money is not a priority.

And that is how you end up with a $16 billion budget deficit.

The post California $16 Billion in the Red appeared first on The Truth About PLAs.

Eric Christen, executive director of the Coalition for Fair Employment in Construction (CFEC) recently debated former San Diego City Council Member Donna Frye on the merits of Proposition A, which would ban government-mandated project labor agreements on city funded projects.

To learn more, visit their website www.fairandopencompetition.com or their Facebook page.

The post Prop. A Face-off on KPBS in San Diego appeared first on The Truth About PLAs.

From 2000 to 2011, the merit shop construction community helped local leaders and voters across the state understand that government-mandated project labor agreements (PLAs) deprive taxpayers of the opportunity to get the best construction at the best price. Eight local communities enacted bans on PLA mandates, including three that did so through citizen initiatives.

Union bosses could feel the ground shifting under them, but were not going to take an assault on their monopoly lying down. As a major political contributor to most of the Democrats in the legislature’s majorities, Big Labor used its leverage to get state legislators to approve S.B. 922 in the closing days of the 2011 legislative session.

This bill was a clear special interest handout. From a policy standpoint, it nullified PLA mandate bans in localities controlled by the state government and was designed to deprive charter cities (i.e., cities where voters opted for local control by adopting a city charter) of state funding for future construction projects unless city leaders could consider the use of a PLA mandate.

If the policy wasn’t bad enough, this language was amended into an unrelated bill during the twilight of the legislative session, depriving taxpayers of the time to learn what the Democrats were really trying to pull, and then passed on party-line votes.

It turns out that Democrats in the legislature and their Big Labor allies moved the 2011 bill so quickly that the statute was not as air-tight as they wanted. Luckily for them, that is an easy fix for a state in which Big Labor calls the shots. On April 25, Gov. Jerry Brown (D) signed S.B. 829, which is designed to strip charter cities of state construction funds if the city cannot institute a government-mandated PLA.

Here are more details from a press release issued by Associated Builders and Contractors’ (ABC) Golden Gate Chapter:

Gut and Amend Bill interferes with local control for California Charter

Livermore, CA– Today, the Governor signed Senate Bill 829 (Rubio-Fresno), which intends to cut off all state funds from charter cities that ban Project Labor Agreements (PLAs). This is a follow-up bill to the original Union-Backed Senate Bill 922 signed by the Governor in 2011, intended to End Local Project Labor Agreement Bans or Fair and Open Competition ordinances for taxpayers at local governments.

SB 829 is the latest attempt by labor-backed lawmakers in Sacramento to limit state funds paid to any charter city that enacts restrictions on costly PLAs – including initiatives approved by voters. After heavy lobbying by labor unions and with minimal public debate, a maneuver called “gut and amend” was used to pass this bill in the State Senate last Thursday. The bill was passed on a straight party line vote.

“The bill has serious constitutional defects. However, that has not stopped some in the Legislature from backing what should be a non-starter. SB829 is a power grab by Sacramento politicians that will certainly be overturned by the courts,” said Nicole Goehring, Government Affairs Director, Associated Builders and Contractors Golden Gate Chapter.

SB829 is an attempt to undercut Proposition A in San Diego and similar Fair and Open Competition reforms gaining traction across the state. The bill was backed by the State Building & Construction Trades Unions in an attempt to gain state control of local construction money and block savings for local taxpayers.

Proposition A – the Fair and Open Competition Initiative – is on the June ballot in San Diego. It will prevent the City Council from imposing mandatory project labor agreements (PLAs) on city-funded construction projects and requires the Mayor to post construction contracts on-line for public review.

Senator Doug La Malfa and Assemblymembers Bill Berryhill, Connie Conway, Linda Halderman, Shannon Grove and Jim Nielsen among others in the State Legislature are to be applauded for opposing SB 829 and defending the rights of charter cities to exercise local control.

“We owe our duty to the constitution, not the unions,” said Assemblymember Shannon Grove, who spoke against the bill on the floor of the state Assembly. Grove represents part of the Central Valley where fair and open competition in construction is considered the best value for taxpayers.

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The Problem with Project Labor Agreements

All construction work done under a Project Labor Agreement (PLA) must be performed by union-only signatory construction workers. The PLA will force non-union contractors and their workers to pay union dues, pay into union benefit programs, require all employees to be hired through a union-hiring hall to get work, and would allow for union-only apprentices on the project. By unnecessarily limiting bidders and following outdated and inefficient union work rules, union-only PLAs consistently drive up costs to the taxpayers. Several academic studies indicate PLAs increase the cost of construction between 10 percent and 20 percent when compared to similar projects not subject to union-only PLAs.

ABC of California also issued a statement.

Here is some great video of Sens. Anderson and Wyland, both Republicans from the San Diego area, speaking out against this bill:

There is also good video of Assemblywoman Shannon Grove (R) correctly characterizing the bill as unconstitutional.

This is just another example of how California is broken. When you put special interest groups in the driver’s seat, taxpayers get left behind.

Let’s just hope San Diego voters can see through the smokescreen on June 6.

Read more from TheTruthAboutPLAs:

• WSJ Editorial Blasts California SB 922
• California Governor Signs Union-Backed Senate Bill 922, Intended to End Local Project Labor Agreement Bans
• California Governor Jerry Brown Will Decide Fate of Local Voter Rebellions Against Project Labor Agreements
• All California posts

The post California Lawmakers Pay Back Their Big Labor Allies, Take Steps to Deprive Charter Cities of Local Control appeared first on The Truth About PLAs.

Yesterday, the Free Enterprise Coalition released this press release (see below) about documents recently obtained from the San Diego Unified School District (SDUSD). They prove government-mandated PLAs reduce competition and increase costs.

Note: SDUSD calls these union agreements Project Stabilization Agreements (PSAs) instead of Project Labor Agreements (PLAs). There are a number of alternative names used to describe union agreements that are essentially PLAs, such as Community Workforce Agreements, Site Stabilization Agreements, etc. but they will continue to be referred to as PLAs in this post.

The press release says union-favoring PLA project bids were 9.7 percent less than the SDUSD’s budget. However, internal data reveals the projects bid without the imposition of the union-favoringPLA were 31.6 percent below budget…a significant cost difference even though both groups of projects are under budget.  If this trend continues, the imposition of the union-favoring PLA could cost taxpayers more than $200 million in unnecessary construction costs on planned projects.

The PLA reduced competition too. For union-favoring PLA projects, SDUSD was able to interest an average of five responsive general contractor bidders, compared to 10 responsive general contractor bidders on school projects where contractors were not forced to agree to a government-mandated PLA.  General contractors complained projects received only about 50 percent of the subcontractor bids that the non-PLA projects received.

It is no surprise the SDUSD-mandated PLA reduced competition and increased costs.

It will be interesting to see how local Big Labor bosses and school district officials beholden to special interests try to spin these numbers at today’s press conference, where officials were expected to engage in the deceptive manipulation of taxpayers in support of their anti-competitive pro-PLA agenda. (The press conference was planned prior to the public release of these damaging documents. A consultant was expected to present a report in support of the SDUSD PLA policy.)

Opposition to government-mandated PLAs on the $2.1 billion bond measure funding SDUSD projects, Proposition S,  has been covered numerous times here at the TruthAboutPLAs.com.

In 2009, the SDUSD sneakily introduced the PLA-mandate policy, which passed May 26 by a 3-2 vote. A number of projects funded by Prop S did not have PLAs mandated on them because of an inter-union dispute. In July 2009, AGC filed a lawsuit against the SDUSD PLA mandate policy. A second lawsuit was filed by the National Right to Work organization in October.  The AGC lawsuit was dismissed in California Superior Court in December 2009. An appeal was rejected in California’s 4th District appeals court in May 2011. The California Supreme Court declined to review the case in September 2011 . In February 2010, bids for the first project subject to the new PSA-mandate policy came in 35 percent more than initial estimates.  In July 2011, SDUSD documents revealed the PSA policy has failed to meet its local hiring goals.

The San Diego region has been a hotbed of government-mandated PLA controversy with Californians taking action in opposition to government-mandated PLAs.

San Diego County voters approved a Fair and Open Competition charter amendment with 76 percent of the vote in November 2010.

In June 2010, 56 percent of voters in the City of Chula Vista approved a Fair and Open Competition ordinance, and 54 percent of voters in the City of Oceanside approved a charter containing a Fair and Open Competition provision.

In response to the passage of similar local fair and open competition measures passed throughout California in 2011, Big Labor pushed the California legislature and Gov. Jerry Brown (D) to pass SB 922, which was signed into law Oct. 2, 2011, under odd circumstances through a gut and amend bill. It is a fine example of how Big Labor’s control of California’s elected officials is harming taxpayers and attacks the will of the people. Learn more here.

We will be following this San Diego story closely. Here is the press release.

Internal Documents Show San Diego Unified School District’s Union-Only Construction Program Costing Taxpayers Millions of Dollars

San Diego, CA – In documents obtained from the San Diego Unified School District’s Facilities Department, the construction industry has found that the District’s union-only Project Stabilization Agreement (PSA) for construction projects financed by the $2.1 Billion Proposition S bond measure has been a dismal failure. The document, prepared at the request of the firm hired by the District to “conduct a study of the impact and effect of the Projects Stabilization Agreement (PSA),” covers the bidding results of all construction projects bid utilizing Proposition S funding since its inception in 2009.

The PSA was negotiated between the San Diego Building and Construction Trades Council and the District in 2009. The first project imposing the terms of the PSA was bid in February 2010. Ten Proposition S projects were bid in 2009 before the PSA was implemented, and six other projects were bid in 2010 and 2011 that were not covered by the terms of the PSA. 17 projects were bid under the terms of the PSA in 2010 and 2011.

One of the documents, “Proposition S Construction Contracts Bidding Review,” shows that on average the District is paying a 21.9% premium for projects bid under the union-only terms of the PSA. This 21.9% premium amounts to approximately $16 million in additional construction costs that the District has incurred in the two years in which they have imposed the union-only condition on the projects. The document shows that while PSA project bids were 9.7% under the District’s budget, the projects bid without the imposition of the union-only PSA were 31.6% under budget…a 21.9% difference. If this trend continues, the imposition of the union-only PSA could cost taxpayers over $200 million in unnecessary construction costs.

Jim Ryan, Executive Vice President of the Associated General Contractors of America, San Diego Chapter, Inc., stated that “the reason for the 21.9% premium is obvious. On the union-only Prop S PSA projects, the District has only been able to interest an average of 5 responsive general contractor bidders, compared to 10 responsive general contractor bidders on Proposition S projects in which the PSA was not a condition of the contract. General contractors also tell us that the union-only PSA projects receive only about 50% of the subcontractor bids that the non PSA projects receive. When there are more bidders, the District receives better construction bids. It’s that simple.”

Scott Crosby, CEO of the Associated Builders and Contractors, San Diego Chapter, noted that “the District has also spent several hundred thousand dollars to administer the PSA. This includes additional staff to administer the numerous grievances and jurisdictional disputes on the union-only PSA projects, pay consultants to conduct seminars to explain the complex provision of the PSA to the industry, and market the bid opportunities to contractors in areas throughout the Southwest. These expenses were incurred because the local contractors have shown little interest in bidding the union-only PSA projects.”

Eric Christen, Executive Director of the Coalition for Fair Employment in Construction, expressed hope in the unlikely chance that the school board may use this as an opportunity to rid themselves of the PSA. “We now have two years worth of data in which every metric the district set forth has failed to be met. This disastrous study now gives the school board one more opportunity to put the interest of students and taxpayers ahead of Big Labor special interests who fund their campaigns.”

Another failure of the union-only PSA relates to local workers. The Building Trades promised that 70% of the craft workers would be residents of the San Diego Unified School District. As of December 1, 2011, only 40% of the craft workers working on the projects reside in the District.

The District will hold a “closed to the public” news conference Friday, December 9 to detail the results of a study by Rea & Parker Research, which was commissioned by the District’s Board of Trustees at the cost of $71,825.

The news conference will be held at Hoover High School’s Woodshop Building, which was the first Proposition S project bid under the union-only terms of the PSA. The project had to be bid twice. Only five bidders bid the first time, and the low bidder from Stanton, California was 35% over the District’s budget. All bids were rejected, and the District rebid the same project. This time there were only four bidders, and the low bid was about 26% over budget. A comparable project was bid about the same time by another school district that does not impose a union-only PSA on its projects. 17 bids were received, and the low bid was about 25% under budget.

Source Documents: Proposition S Construction Contracts Bidding Review & Project Specific Budget/Estimates/Bids

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CONTACT: Brad Barnum
858-731-8158

The post San Diego Unified School District PLA Reduced Competition and Increased Costs appeared first on The Truth About PLAs.

Government-mandated PLAs have a negative impact on local construction workers and taxpayers.  These special interest handouts to Big Labor line the pockets of union bosses at the expense of average Americans.

Californians throughout the state have learned about PLA mandates and said “No Thanks” time and again.  Despite Gov. Jerry Brown and the California Legislature’s attempt to slow down the fight against PLA mandates, merit shop contractors, their workers, taxpayer advocates and ordinary citizens are gearing up to bring the message of fair and open competition to the people of Sacramento!

Visit www.fairandopencompetitionsacramento.com to learn more about the effort to ban government-mandated PLAs on projects funded by the city of Sacramento.

This ballot initiative will be similar to those passed by overwhelming majorities in Chula Vista, Oceanside and San Diego.  By putting an end of PLA mandates, citizens can be sure they are getting the best construction at the best price.  Always.

The post On the Money: Sacramento CBS Affiliate Breaks Down the Added Cost of PLAs appeared first on The Truth About PLAs.

After sailing through the California legislature via a deceptive gut and amend legislative vehicle originally about tuberculosis screening, Governor Jerry Brown (D) signed SB 922 on Sunday to “prohibit” measures passed by local governments that ban government-mandated PLAs.

Local governments in California like the City of Fresno, Orange County, City of Chula Vista, City of Oceanside, Placer County, Palmdale Water District, San Diego County and Stanislaus County have passed measures prohibiting government-mandated PLAs on construction projects partially or completely funded by their government’s funds.  The measures permit contractors to voluntarily execute PLAs on local projects, as is permitted by the National Labor Relations Act and are intended to increase competition and deliver taxpayers the best possible construction project at the best possible price.

Popular ballot initiatives like San Diego County’s Proposition A, which voters overwhelmingly passed in November 2010 by a 75-24 margin, demonstrate that local taxpayers have had enough with these costly crony contracting PLA schemes. Faced with a threat that the people would put an end to union-favoring government-mandated PLAs, Big Labor called in a favor with Gov. Brown and Sacramento Democrats to pass SB 922.

Today the Wall Street Journal editorial board blasts Gov. Brown and Sacramento Democrats for trampeling the political will of local voters and supporting schemes that steer taxpayer-funded construction projects to prominent donors of the Democrat party (“Shovelling for Labor: California tries to raise the cost of construction projects,” 10/5/11):

We keep hearing that the U.S. needs better roads, bridges and other public works. But then why do politicians keep making it so much more expensive to build them? In the latest example, Governor Jerry Brown signed a bill on Sunday that attempts to prevent California cities from banning government-mandated project labor agreements, or PLAs.

PLAs are pre-hire agreements that contractors negotiate with labor unions. Construction firms must generally agree to play by union work rules, pay workers union wages, and contribute to union health and retirement funds—whether or not the employees they hire belong to a union. Non-union workers usually then have to join the union and pay union dues. According to some studies, PLAs raise costs by 12% to 18%, which explains why cash-strapped governments and tapped-out taxpayers are moving against them.

Arizona, Louisiana, Maine, Michigan and Tennessee have enacted laws in the last year prohibiting local governments and agencies, which often play into the hands of unions, from mandating PLAs. Voters in San Diego County and the San Diego suburbs of Chula Vista and Oceanside approved bans on government-mandated PLAs last November. The cities of San Diego and Sacramento are planning similar ballot measures next year.

Unions hate this trend, so they, er, encouraged Democrats who run the state legislature in Sacramento to pass the bill that Mr. Brown so obligingly signed. Democrats know that the National Labor Relations Act, a federal law, already prevents local governments from banning PLAs altogether. But what states and cities have been trying to do is prevent governments from requiring PLAs. Democrats hope the new law will deter cities from passing laws that keep the doors open to non-union contractors. Cities that ban government-mandated PLAs could face legal challenges and harassment from unions. The state could also refuse to fund their projects.

The California law is the first of its kind, and non-union construction firms fear that other labor-friendly state legislatures will follow Sacramento’s lead. If that happens, taxpayers will lose the limited ability they have to constrain costs and expedite construction. The result? Public projects that cost more and create fewer jobs, though they’ll be the kind of jobs that Democrats prefer—unionized, and thus with dues payable into campaign funds to elect more Democrats.

As usual, the Wall Street Journal editorial board’s analysis is correct.

It is unclear how SB 922 will impact current government-mandated PLA bans enacted by charter cities as well as the progress of ballot initiatives in the City of San Diego and City of Sacramento already underway.

What’s clear is that Big Labor’s chums in Sacramento have no qualms about choking free enterprise, soaking taxpayers with added construciton costs and smothering the will of the people in order to feed their campaign coffers with Big Labor’s campaign contributions.

Expect some legal wrangling, requests for legal opinions and lots of press in the coming weeks.

Update: Fox News covered Jerry Brown’s signing of this disastrous legislation on the October 7 edition of Fox and Friends:

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