WHAT IS A PROJECT LABOR AGREEMENT (PLA)?
HERE ARE THE FACTS:
A Project Labor Agreement (PLA) – sometimes
referred to as a Community Workforce Agreement
(CWA) – is a comprehensive pre-hire collective
bargaining agreement that sets the basic terms and
conditions of employment for an entire construction
project.
Why Do PLAs Work?
 Terms and conditions set by the PLA apply to every
contractor and subcontractor operating on the site
for the duration of the project.
 PLAs aim to provide a pool of highly-trained skilled
workers and ensure on-time, on-budget project
completion.
 PLAs govern the work rules, pay rates and dispute
resolution processes for every worker on the job.
 PLAs enable construction companies to bid on
projects with full knowledge of employment costs
and an assured supply of skilled labor.
Both private and public sector owners have been
using PLAs successfully for decades. Many schools,
courthouses, and public and private buildings have
been built on-time and on-budget under a PLA.
The Worcester Courthouse seen above was built
under a PLA and is the largest court facility in
Massachusetts. Built on time and on budget, the
courthouse received a 2007 Project Achievement
Award from the Construction Management
Association of America for a “New Building project
with a constructed value exceeding $100 million.”
The $85 million Fall River Justice Center, completed in
2010, was also built under a PLA.
Malden Mayor Richard Howard saw first-hand the
success of using a PLA. Howard said, “In our effort
to bring on-line six new public schools on time and
on budget, we found the Project Labor Agreement
with the Building Trades to be an indispensible tool
to meet these goals.”
Do PLAs bring value to the community beyond the
efficient building of the project?
 Yes. PLAs encourage the use of local workers.
When workers are hired from a local union it
means local workers.
 Many recent PLAs are initiating community
outreach efforts, enrolling minorities and women
in pre-apprenticeship programs.
 Because many local workers build the project, the
project’s payroll stays in the community and
contributes to its prosperity.
Who benefits from a PLA?
Owners /taxpayers benefit most. The virtual
elimination of costly delays due to labor conflict
and access to skilled craftspeople are vital factors in
completing the project “on-time and on-budget.”
Workers, union and non union, benefit because their
wages and benefits are protected. Contractors, union
and non-union, benefit from the assurance of a level
playing field, and the guarantee of a highly trained
and productive workforce.
Does a PLA shut out non-union contractors and
subcontractors from bidding on the project?
 No. Non-union contractors can bid on the projects
as long as they agree to abide by the wages,
benefits and other conditions specified in the PLA.
 On public construction projects, prevailing wage
rules dictate wage and benefit conditions.
 Non-union contractors don’t have to sign a
collective bargaining agreement to participate.
 No contractor is excluded from bidding unless it
excludes itself. On public projects the responsible
bidder with the lowest bid wins the contract.
Does a PLA enhance the value of a project?
Yes. Lenders look more favorably on projects being
constructed under a PLA because they know the
probability of on time and on budget completion is
greatly increased.
Bristol-Myers Squibb, a $750 million project,
was built under a PLA in Fort Devens, MA.
Anthony Ministeri, Jr., Executive Project Director
for Parsons, Construction Manager for the BMS
project, said, “The PLA has met my expectations.
The skills and fortitude that the union workforce
has brought to the project have been unsurpassed. All the craftsmen and women have
worked as a team on the project and have
contributed to its success.”
Why have we heard conflicting reports about PLAs?
What is the truth?
Some PLA opponents have invested considerable
money into aggressive marketing campaigns to
spread misinformation about PLAs which raises the
question why? Are they concerned about paying fair
wages, benefits, and abiding by appropriate safety or
other important requirements of the PLA that
ultimately benefit the owner and end user of the
project?
Why do private companies use PLAs?
PLAs have been used in the private sector for decades
because of their success as an effective project
management tool. A few of the many private sector
entities that have successfully utilized PLAs in
Massachusetts include: Massachusetts General
Hospital, Harvard University, Gillette Stadium, The
Boston Garden, Bristol Myers Squibb, Fidelity
Investments, and Reebok.
Yawkey Center for
Outpatient Care,
Massachusetts General
Hospital
Numerous studies and reports support the use of
PLAs for public and private construction projects.
Building Better: A Look at Best Practices for the
Design of Project Labor Agreements, Dale Belman
(Michigan State University, School of Labor and
Industrial Relations) and Matthew M. Bodah
(University of Rhode Island, Schmidt Labor
Research Center) (August 2010)
Project Labor Agreements' Effect on School
Construction Costs in Massachusetts, Dale
Belman, Russell Ormiston, et al., Industrial
Relations, Vol. 49, No. 1 (January 2010).
Construction Procurement Policies That Address
Health Insurance: A Cost Analysis, David C. May,
Concord Cymorth LLC and C. Jeffrey Waddoups,
(University of Nevada, Las Vegas) (2009)
Project Labor Agreements in New York State:In
the Public Interest, Fred Kotler (Cornell University,
ILR School) (March 2009)
Do PLAs increase the cost of construction?
No. Studies by UCLA, Cornell, Michigan State
University and other leading academics have
concluded that there is simply no evidence to back up
this conclusion, and that the studies on which PLA
critics rely routinely fail to take into account other
factors that influence a project’s costs. In fact, most
PLA users speak to the economic benefits that come
from having access to an uninterrupted supply of
qualified workers, being able accurately to predict
labor costs, and utilizing expeditious mechanisms for
resolving disputes. As just one example, Toyota, which
has built every one of its North American
manufacturing facilities under a PLA, reports that it’s
per foot construction costs are one-third less than
those of its competitors who shun these agreements.
Project Labor Agreements, Dale Belman,
(Michigan State University), Matthew Bodah,
(University of Rhode Island), and Peter Phillips,
(University of Utah) (2007)
The Benefits of Implementing a PLA for
Construction of the New Kent County Courthouse
RI 21st Century Labor-Management Partnership
(August 2003)
Project Labor Agreements: Reliable Staffing Plans
for Capital Construction Projects, Gerard M.
Waites and Gregory A. Mancini (October 2002)
Constructing California: A Review of Project Labor
Agreements, Kimberly Johnston-Dodds (October
2001)
For more information visit
www.plaswork.org
WHY A PROJECT LABOR
AGREEMENT (PLA) IS THE
BEST BUSINESS CHOICE
NO SURPRISES
Promoting on-time, on-budget completion.
ENSURE QUALITY WORK
With highly-qualified labor.
SUPPORT THE LOCAL ECONOMY
With fair wages and benefits.
BUILD COMMUNITY LADDERS
Creating job training opportunities.
ADDRESS SPECIFIC NEEDS
With stability and productivity.