Biden Signs Union Labor PLA – Brings Out Strong Opposition From Associated Builders And Contractors

United States of America – Labor and PLA’s had something to celebrate as President Joe Biden has signed an executive order that will require project labor agreements in federal construction projects waging over $35 million in value. The order will apply to a total of $262 billion in federal construction contracting and nearly 200,000 workers will be impacted.

Project labor agreements are collective bargaining agreements among building trade unions and contractors. These accords typically establish wagers, solidify employment conditions, and resolve disputes surrounding certain projects.

Democratic presidents have historically been in favor of administering project labor agreements to the nation’s huge federal contracting budget while Republican presidents have overturned them.

Following the recent $1 trillion infrastructure bill signed into law by Biden which invests in roads, ports, and bridges of the U.S., the new executive order will go into effect immediately. Federal spending on waterways and military bases will also be implemented under the act.

A large portion of the budget from these project labor agreements will be funneled from federal agencies to states and local governments. Projects funded by grants to non-federal agencies will be excluded, says a senior administration official.

President Biden paid visit to Ironworkers Local 5 in Upper Marlboro, Maryland this past week to sign this executive order.

Throughout the entirety of the COVID-19 pandemic, the construction industry of the United States has been one of the realms of work that has been impacted the most. Workers, owners, developers, and contractors have experienced a delay of available goods and labor as projects typically ended in complete termination.

Biden has promised to strengthen the construction unions and increase membership in the country after subsequent years of decline. The President has additionally vowed to increase salaries for hourly construction workers and health care employees.

The new order says that contractors who offer lower wages or hire less qualified workers will need to raise their standards in order to effectively compete with other companies who grant high-wages and high-quality. Previous executive action materialized by Biden requires federal contractors in new or extended contracts to pay a minimum $15 per hour wage to their workers.

Daniel Hogan, chief executive of the Association of Union Constructors who represents over 1800 contractor companies, has said that these new regulations give employers the opportunity to access a highly skilled pool of craftworkers.

Backlash From Associated Builders & Contractors Association

Not everyone is happy about this. ABC, Associated Builders and Contractors, Inc, released statements in opposition.  In response to the Biden administration’s White House Task Force on Worker Organizing and Empowerment Report on how to raise union membership in the federal government and the public and private sectors, the Associated Builders and Contractors issued the following statement:

“Today’s report from the White House task force is of great concern, especially for Americans who expect the government to create and support policies ensuring fair and open competition on taxpayer-funded federal and federally assisted construction projects,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “The report’s recommendations to expand the use of anti-competitive and costly project labor agreements will increase infrastructure project costs by 12% to 20%, reduce competition from the best quality public works contractors and exacerbate the construction industry’s skilled labor shortage by discriminating against the nearly 9 out of 10 members of the construction workforce who choose to be union-free.

“Combined with President Biden’s Feb. 4 executive order requiring project labor agreements on federal contracts exceeding $35 million, it is clear that the Biden administration will not create opportunities for all construction workers, small businesses and experienced contractors who build America safely, on time and on budget,” said Brubeck. “Lawmakers and the Biden administration must promote inclusive, win-win policies that welcome all of America’s construction industry to compete to rebuild our nation’s crumbling infrastructure, increase accountability and competition and reduce waste and favoritism in the procurement of public works projects.”

Met with backlash on social media from commenters this is not the first time ABC has fought against the progression of unionization. The association’s member are mostly non-union shops. A slurry of comments came in from both sides.

DENIS MAYBERRY – Senior Vice President at Construction Quality Consultants, Inc.
“You insist on promoting lower wages for American workers. I don’t exactly understand what makes you an American. You’re anti-American worker.”

Kyle D Condon – Chief Construction Officer at Landis Construction Company, LLC
“Thank you Associated Builders and Contractors for representing the best interests of the working American people. This push/agenda by the current administration is exactly why we have term limits for these types of positions in our governments. Hopefully there will be a shift for the next election”

Scott Davis – Master Carpenter, Sr. Superintendent, Certified AGC Superintendent / Instructor
Denis I have been on record here many times pointing out the inequalities in Union Membership. Why is someone that’s only skill is that they hang drywall paid the same as someone that can metal frame, wood frame, cut a roof, cut a stair, hang cabinets and doors and trim? My carpenters were paid between the $35 and 45 dollars and hour based on skill level. The union was so skilled at quality construction that they lost the entire Chicago market for residential construction to independant contractors. And the same is happening in the commercial markets. I am flooded with ITB’s for commercial work every day. As to being un-American – what do you call being forced into a union or you can’t work. Ever hear of a Gulag.

Brian Robinson – President & CEO at Robinson Electric Co., Inc.
“Terrible move for our industry. Tax payers pay 30-40% more for projects and get less in return.”

Jeffery (Jeff) Williams – Principal at Business Resource Alliance
“I’ll say it. PLAs are racist and add about 30% to the cost of every PLA project. They are not about quality, results, or free markets. They are a tool to buy votes.”

Kevin Davis – Local 1 Laborer/ Auditor
“UNION YES ✅ and prevailing wages too. Better for the employee”

Jason Martinez – IBEW Local 11

“I have 20 plus years in the construction industry; 15 of which has been non-union. Believe me when I say union is the way to go for both the workforce and the management. Did not one of top 20 electrical contractors nationwide(non-union) recently get sued for screwing their workers”