The Truth About Project Labor Agreements

The Washington Examiner published an Op-Ed by Brett McMahon of ABC member Miller & Long Concrete that discusses gifts to Big Labor like Executive Order 13502 that will harm the economic health of the construction industry during this holiday season (“‘Tis the season for construction job loss caused by politics,” 12/24).

While many are receiving gifts this holiday season, many in the construction industry are receiving pink slips.

The newest data from the Bureau of Labor Statistics shows that the construction industry’s unemployment rate rose to 19.4 percent in November, up from October’s 18.7 percent.

Job growth is desperately needed in the construction industry, like in many others, but government spending may only create jobs for the politically-well connected. President Obama’s staunchest political patrons, Big Labor, will soon benefit from an executive order signed earlier this year that encourages government-mandated project labor agreements (PLAs) on all federal construction projects over $25 million. The final regulations to implement Executive Order 13502 and these special interest giveaways are currently under review by the Federal Acquisition Regulatory (FAR) Council and this gift to Big Labor is expected to be delivered any day.

The reason why this order is a lump of coal in the stockings of taxpayers, nonunion employers and employees is simple: It favors Big Labor over the majority (86 percent) of the construction industry’s nonunion workers. See, the order discourages competition from nonunion contractors by requiring that the jobs be awarded only to contractors agreeing to recognize unions as representatives of their employees for the life of a construction project.

Visit the link to read the rest of the Op-Ed.