ABC Survey Reveals Opposition to Government-Mandated Project Labor Agreements
According to a September 2022 survey of ABC contractor members, 98% oppose President Biden’s proposed rule mandating project labor agreements on federal construction projects of $35 million or more.
For more information on PLAs and the executive order, read "No Agreement On Project Labor Agreement Order" from Tom Zind.
“The overwhelming opposition to PLA mandates demonstrates that fair and open competition on federal and federally assisted infrastructure projects is a win-win for taxpayers and the U.S. economy because it ensures all Americans and qualified companies are welcome to fairly compete to rebuild America’s infrastructure,” said ABC Vice President of Regulatory, Labor, and State Affairs Ben Brubeck. “In contrast, the Biden administration’s proposed rule requiring government mandated PLAs on federal contracts of $35 million or more, and other policies promoting PLAs on federally assisted construction projects, will needlessly increase costs by 12% to 20% and reduce competition from quality contractors and the 87.4% of construction workers who freely choose not to join a union.”
According to the survey:
- 97% of survey respondents said a construction contract that required a PLA would be more expensive compared to a contract procured via free and open competition.
- 99% said they were less likely to bid on a taxpayer-funded construction contract if the bid specifications required the winning firm to sign a PLA with labor unions.
- 97% of respondents said that government-mandated PLAs decrease economy and efficiency in government contracting.
- 96% expected a requirement to result in less competition from subcontractors.
- 95% of survey respondents said the requirements of government-mandated PLAs for firms to contribute to union benefits programs harm employees and 96% said they undermine investments in workforce development programs.
“Between 2009 and 2021, federal agencies mandated just 12 PLAs on 2,075 federal construction projects of $25 million or more, illustrating that when given the option, PLA mandates are unnecessary on federal construction projects,” said Brubeck. “ABC members are top federal contractors—they were awarded 57% of the value of $127 billion worth large-scale federal construction projects during this time period—but are needlessly excluded by the Biden administration’s policies promoting PLAs, which favor unionized contractors and labor.”
The majority of survey respondents said PLA mandates would either result in construction projects that are less safe (65%) or have no impact on safety (34%). Three-quarters (75%) said PLAs would result in poorer quality or have no impact on quality (24%). Fully 85% said PLA mandates decrease the likelihood of completing a project on time and on budget, with 9% saying there would be no impact.
In addition, as stated in a press release from ABC, 94% of survey respondents said a PLA would result in worse local hiring outcomes for a project. Almost 69% of respondents agreed that a PLA would decrease the hiring of women, veteran, and disadvantaged business enterprises and construction workers, which have traditionally been unaffiliated with labor unions, while another 27% of respondents felt that PLAs would have no effect in hiring these disadvantaged populations and contractors.
“The survey illustrates how PLA mandates undermine inclusive workforce development, hiring, and small business subcontracting practices and hinder the ability of the best contractors to safely deliver taxpayer-funded construction projects on time and on budget, which is why ABC members are outraged by the Biden administration’s discriminatory policies favoring special interests,” said Brubeck.
For more information on ABC's opposition to Executive Order 14063, read "ABC Sends Letter to White House Opposing Biden’s PLA Mandate" or the full press release from ABC about the survey.
For more on the Infrastructure Investment and Jobs Act, read "Show me the Money" by Tim Kridel.
