Government mandated union-only project labor agreements (PLAs) can be costly to local workers, minorities and women, small and local contractors, and taxpayers. While a union-only project labor agreement is by law intended to be a voluntary contract between a construction employer and unions, a government mandated union-only PLA forces most workers and contractors to enter into a contract they never negotiated.
Myths about union-only PLAs have overshadowed the facts about the harmful impact of such agreements.
MYTH: Saves Money |
FACT: Academic studies overwhelmingly show that union-only PLAs cost more per square foot for construction projects such as schools. Anecdotal evidence of PLA projects with cost overruns, such as the San Francisco Airport expansion, Seattle’s Safeco Field and Boston’s Big Dig, show union-only PLAs are no protection against poor cost management and no guarantee that the alleged economic benefits of a PLA will translate into real cost savings. |
MYTH: Workers Benefit |
FACT: More than 85 percent of construction workers nationwide are not members of a union and will be shut out from working on a union-only PLA project or, alternatively, will be forced to pay union dues and fees, sit on the union-bench, follow union work rules for their craft, and be subjected to discipline under union rules. Contractors and workers object to these stipulations because they force workers into union representation and business practices, even though employees have not chosen to belong to unions. |
MYTH: Assures Local Jobs |
FACT: Unions represent a minority of construction workers in every state. Union membership is decreasing as a share of the overall construction workforce. As a result, local unions may not be able to provide an adequate labor supply for a specific project. A union-only PLA allows unions to fill this labor shortage by recruiting non-local union members to work on local projects. |
MYTH: Minorities Benefit |
FACT: The National Black Chamber of Commerce, Women Construction Owners and Executives, Latin Builders Association, National Association of Women Business Owners and other associations representing small, disadvantaged, minority- and women-owned businesses are publicly opposed to union-only PLAs. Local minority workers are shut out for much the same reason as most local workers: they overwhelming do not belong to unions. |
| MYTH: Quality Construction |
FACT: When comparing projects with and without union-only PLAs, there is no evidence of superior work on PLA projects. Union-only PLA projects, such as Boston’s Big Dig, demonstrate that a union-only PLA can’t substitute for quality control management. |
| MYTH: Complex Projects Need Union-Only PLAs |
FACT: Most large projects are built successfully without a PLA. Examples such as: the rebuilt Wilson Bridge in the Washington, D.C. area; the renovation of the Pentagon after 9/11; FedEx Field (formerly Jack Kent Cooke Stadium) in Landover, Maryland; Camden Yards in Baltimore, Maryland; and many other large projects are built on time and within budget – without a PLA. |
| MYTH: Worksite Harmony |
FACT: Strikes may be launched under a PLA. As recently as June 2006, the Laborers International Union Local 6 engaged in a work stoppage on an $850 million project in Chicago, Illinois. Regardless, work stoppages are rare and the threat of a strike is weak. The few strikes in the construction industry are only orchestrated by unions. Legal picketing, where unions protest the use of workers who do not choose to belong to a union, does not disrupt worksites or jeopardize tight construction schedules. |
| MYTH: Wages Are Better |
FACT: Worker shortages in construction are driving up market wages and benefits for construction workers. Contractors must offer competitive pay to attract top talent. Under some state laws, a construction prevailing wage covers the project without a union-mandated wage under a PLA. Union-only PLAs actually hurt the benefits of workers who do not belong to the union. If a worker doesn’t face forced termination, they must pay union fees and dues from any wage. |
| MYTH: Fringe Benefits Are Better |
FACT: Workers who don’t belong to the union don’t benefit. Unions usually make money or sustain struggling pension programs through employers’ payment of benefits into the union coffers. However, there is little to no direct benefit for workers who have not joined the union, as they will never see the benefits of the contributions unless they join a union. Employers who offer their own benefits, including health and pension plans, have to continue to pay for the existing program and into union programs under a union-only PLA with no increased benefits. |
| MYTH: Safer Work |
FACT: OSHA statistics show that union workers historically have a higher rate of fatalities than nonunion workers. There is no evidence to prove that workers are safer under PLAs. Safety and health management is the key to safe workplaces – not PLAs. |
| MYTH: More Training |
FACT: Union-only PLAs limit access to training. PLAs prohibit apprentices who are not enrolled in a union program from working and learning on-the-job. Penalizing workers who participate in training programs alternative to union programs is unfair and has contributed to the shortage of skilled workers in the construction industry. |
| MYTH: Anyone Can Bid |
FACT: Most construction companies that are not signatory to a union do not bid on projects subject to a union-only PLA. By submitting a bid and agreeing to the terms and conditions of a union-only PLA, contractors have to relinquish management of their own workforce to a third-party (the unions) by terminating their employees or in some circumstances, forcing their workers to go to the union hall for a worksite referral with no guarantee that their workers will be assigned back to their original employer. |
| MYTH: Anyone Can Work |
FACT: As long as workers and contractors relinquish all control to a third-party (the unions), they can work. Union-only PLAs are a tool to regain lost market share for union contractors and capture more workers into the union with mandated union rules and payment of union fees and dues during a PLA project. |
| MYTH: PLAs Are Legal |
FACT: PLAs are not necessarily legal in public construction. The federal government and four states, Utah, Montana, Arkansas and Minnesota, explicitly prohibit mandating union-only PLAs on state funded construction but continue to allow contractors and unions to voluntarily enter agreements. State government labor neutrality allows free and open competition to flourish. Some local and state courts have struck down PLAs for violating open competition requirements under competitive bidding laws. |
