In an official White House statement, President Biden declared that construction projects for the federal government valued at or above $35 million will require Project Labor Agreements (PLAs). This ruling is supported by the Biden-Harris administration after a period of demonstrated success using PLAs to complete federal construction projects with a quality, trained workforce in a timely, cost-effective manner, the White House reported.
This new mandate, called the Federal Acquisition Regulation: Use of Project Labor Agreements for Federal Construction Projects, was announced late last year and published on Dec. 22. It officially took effect Jan. 22, 2024. The edict enacts Executive Order 14063, which was initially published on Feb. 9, 2022. Historically, this sets a new precent for federal construction projects, as they had never needed to meet this requirement to move forward.
“For the first time in history, Project Labor Agreements will be required on federal construction projects valued at or above $35 million. This means that projects funded by my Investing in America agenda will move faster and without delays, giving taxpayers better bang for their buck. Workers will have the security and peace of mind that collectively bargained wages and benefits bring, better pathways to good-paying jobs, and stronger health and safety protections,” Biden’s White House briefing release reads.
PLAs are pre-hire collective bargaining agreements which are unique to the construction industry. PLAs typically are negotiated between construction unions and construction contractors in order to establish the terms and conditions of employment for construction projects, as defined by the U.S. Department of Labor (DOL). Some commonplace conditions included in PLAs are provisions that bind all contractors and s u b c o n t r a c t o r s to the agreement; no – s t r ike , no – lockout clauses; and grievance/arbitration procedures.
Many of these agreements also include wage and benefit specifications as well as guarantees that highly skilled laborers will participate in the projects, as they may designate that hiring is done through a union hiring hall. PLAs also often include health and safety provisions which help ensure that the workers chosen for the project undergo safety training, along with the implementation of other workplace safety procedures.
According to the DOL, PLAs may also help improve diversity efforts on federal projects. Clauses which outline goals for hiring local community members on projects, incorporate equity plans, detail strategic recruitment policies for workers from underserved communities, and require participation of small businesses are often included in PLAs for this reason.
Acting Secretary Julie Su, in the USDOL’s PLA 101 video, says, “PLAs are good for business and they’re good for workers. Because of their proven track record of success, the Biden/Harris administration strongly supports PLAs, and is promoting their use on federal projects that are being built across the country as we speak.”
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