Obradovich: Show You’re Not Playing Politics, Governor

0 February 9, 2010  State & Local Construction, Uncategorized

Iowa’s political commentators are weighing-in on Governor Chet Culver’s Executive Order 22, which encourages state agencies and departments to consider project labor agreements (PLAs) on state construction.  Des Moines Register columnist Kathie Obradovich is the latest to enter the fray with her op-ed published February 4 titled, “Show You’re Not Playing Politics, Governor.”

Here’s an excerpt:

Culver certainly didn’t shy away from politics in his statement to union members. “Democrats are getting the job done. We’re leading. We’re governing. We’re putting our state on a path to recovery,” he said.

Democrats have yet to pass any significant legislation to benefit unions this year. And Culver definitely needs union help to win re-election. This is a small token compared to something like a prevailing wage law, which would set standards for pay and benefits on all public projects.

The executive order requires agencies to “consider” project labor agreements, which Culver said is as far as he could go under his authority. Culver said he expects the agreements to be used most of the time when possible. If he pressures his department heads to use PLAs, it will be more than just pandering.

Will the taxpayers end up paying more for projects? Both sides can point to studies. Some projects will probably cost more. Others might not. There are a lot of factors besides PLAs that affect the cost of a project.

PLAs usually include wages and benefits, overtime, holidays and more. In return, the state gets a guarantee against strikes, lockouts and similar labor-related job disruptions.

Union leaders point to studies that show wage and benefit standards tend to put more experienced and skilled workers on a project. Skilled workers are more efficient and productive, so the extra cost of wages and benefits is offset by higher-quality work, on-time completion and improved safety, they say.

Associated Builders and Contractors of Iowa opposes PLAs. Its chairman, Mike McCoy, says his association provides apprenticeship and training programs to ensure skilled workers. Not all nonunion contractors do. But McCoy says he won’t bid on a PLA job because he doesn’t want to be required to hire union workers for any additional staff and pay into union dues and retirement funds for employees who won’t get the benefits of them. That’s a standard feature of PLAs, he said. So even though he might be able to compete successfully for a PLA contract, he wouldn’t want to bid. It’s a right-to-work issue, he said.

The economy and taxpayers benefit when construction workers are paid a living wage and health insurance. That might be worth paying a little more on some public projects. But it shouldn’t mean nonunion contractors are left on the sidelines.

In the face of sagging poll numbers, Governor Culver must think that he can secure union support by issuing this executive order.   Hopefully, taxpayers see this order for what it really is…a special interest handout that the people of Iowa simply cannot afford.

Read Ms. Obradovich’s entire op-ed after the jump.

February 4, 2010

Obradovich: Show you’re not playing politics, governor

KATHIE OBRADOVICH
[email protected]

Gov. Chet Culver got a standing ovation today from members of the Iowa State Building and Construction Trades Council for signing an executive order requiring state agencies to consider using project labor agreements for major construction work. He called it a “bold step in support of good wages, quality workmanship and the long-term health of our infrastructure in this state.”

He got a big, wet raspberry from Republicans, who said the move amounted to election-year pandering to the union. Project labor agreements mean the state would negotiate the terms and working conditions for jobs in advance with the relevant labor organizations. Nonunion contractors argue that PLAs benefit unions at the expense of taxpayers.

So was it bold, or was it just politics? And will taxpayers end up shelling out significantly more for public projects?

Culver certainly didn’t shy away from politics in his statement to union members. “Democrats are getting the job done. We’re leading. We’re governing. We’re putting our state on a path to recovery,” he said.

Democrats have yet to pass any significant legislation to benefit unions this year. And Culver definitely needs union help to win re-election. This is a small token compared to something like a prevailing wage law, which would set standards for pay and benefits on all public projects.

The executive order requires agencies to “consider” project labor agreements, which Culver said is as far as he could go under his authority. Culver said he expects the agreements to be used most of the time when possible. If he pressures his department heads to use PLAs, it will be more than just pandering.

Will the taxpayers end up paying more for projects? Both sides can point to studies. Some projects will probably cost more. Others might not. There are a lot of factors besides PLAs that affect the cost of a project.

PLAs usually include wages and benefits, overtime, holidays and more. In return, the state gets a guarantee against strikes, lockouts and similar labor-related job disruptions.

Union leaders point to studies that show wage and benefit standards tend to put more experienced and skilled workers on a project. Skilled workers are more efficient and productive, so the extra cost of wages and benefits is offset by higher-quality work, on-time completion and improved safety, they say.

Associated Builders and Contractors of Iowa opposes PLAs. Its chairman, Mike McCoy, says his association provides apprenticeship and training programs to ensure skilled workers. Not all nonunion contractors do. But McCoy says he won’t bid on a PLA job because he doesn’t want to be required to hire union workers for any additional staff and pay into union dues and retirement funds for employees who won’t get the benefits of them. That’s a standard feature of PLAs, he said. So even though he might be able to compete successfully for a PLA contract, he wouldn’t want to bid. It’s a right-to-work issue, he said.

The economy and taxpayers benefit when construction workers are paid a living wage and health insurance. That might be worth paying a little more on some public projects. But it shouldn’t mean nonunion contractors are left on the sidelines.

Culver’s executive order specifically states that PLAs must “allow all contractors and subcontractors to compete for contracts without regard to whether they are otherwise parties to collective bargaining agreements.” He should make it clear that the state’s PLAs will not force anyone to pay into union funds or hire union workers. That would show he’s serious about upholding the spirit of Iowa’s right to work law, not just the letter.

Political columnist Kathie Obradovich can be reached at (515) 284-8126 or [email protected]. You can follow her on Twitter at twitter.com/kobradovich. For more Obradovich columns, blogs and tweets, visit www.dmregister.com/Obradovich.

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