Construction Dive
By Joe Bousquin
March 10, 2022
Dive Insight:
The objective of the memo is to create good-paying jobs, with the choice to join a union, for workers in traditionally underserved communities, according to a joint statement from DOL and DOT released this week. But it also said it would favor union partnerships and project labor agreements in grant decisions.
PLAs are similar to collective bargaining agreements but apply to a single project and are agreed upon by all parties: general contractors, subcontractors and labor groups. Last month, President Joe Biden issued an executive order mandating PLAs on federal contracts of $35 million or more.
While PLAs don't specifically cut non-union contractors out of federal projects, they're often perceived by construction employers' groups as doing so. For example, the Associated Builders and Contractors trade group, which has been waging a concerted campaign against PLAs since Biden took office, railed against their inclusion in the joint memo. It claimed PLAs actually promote exclusionary practices for underrepresented workers, since 87.4% of the construction workforce doesn't belong to unions, according to the Bureau of Labor Statistics.
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