COMMUNITIES IN U.S. REJECTING UNION-ONLY PLAs

Other Cities and Towns throughout the U.S. that are Saying "No" to Union-only PLAs

Louisville, Kentucky

Louisville Mayor Jerry Abramson recently vetoed a vote by the Louisville Metro Council that would have placed a union-only PLA on the construction of a $450 million project to construct a new downtown sports arena.  The veto followed an announcement by Kentucky Gov. Ernie Fletcher that he would withhold $75 million in state funding for the project because the union-only PLA potentially violated state code and could lead to “unequal treatment and reduced competition for contracts.”  As a result, Democrats on the Metro Council threatened to derail the project. 

Following the veto the Louisville Courier Journal published an editorial that read, in part, “In order for the downtown arena to happen, Democrats on the Metro Council and their union friends must abandon the unacceptable labor provisions they inserted at the last minute into the city financing agreement.  Gov. Ernie Fletcher, who pushed the arena … was right to reject it.  Greater Louisville, Inc., which raised more than $45 million in private financial commitments, was right to consider it unacceptable.  Mayor Jerry Abramson was right to veto it.  It’s odd, given how the Democratic Party and organized labor claim to represent ‘working people,’ that they would combine to sabotage a major construction project that could put some 3,500 people to work.”

Since the rejection of the union-only PLA, a financing resolution has been approved by the Louisville Metro Council, making it possible for arena construction to begin.

An editorial in the Louisville Courier-Journal read, “It was Mr. Abramson who hung tough, risking the anger of council Democrats and the union leaders who usually support Democrats.  In standing with the Mayor, Gov. Ernie Fletcher risked sinking a project that he is proud to have made possible for the state’s largest city.  But good sense seems about to prevail, and, barring some last-minute change of course, unions will have meaningful participation in, but not dominion over, the building of the new Louisville landmark.”

Fall River, Massachusetts

Fall River Mayor Edward M. Lambert Jr. recently scrapped plans to employ a union-only PLA for the construction of five schools after bids came in millions of dollars over the architect’s anticipated budget.

The Herald News published an editorial which stated, “To reinvent a popular expression: It’s the PLAs, stupid!  That’s Project Labor Agreements, and they look as if they will cost Fall River’s taxpayers a whole heap of extra cash as the city endeavors to construct five new schools … They are anti-competitive, anti-quality and, most importantly, anti-taxpayer … Persuading the unions to abandon the PLAs won’t be the easiest thing (Mayor Lambert’s) ever done, but if (he) doesn’t attempt to get out of the new agreements he may as well get used to a new meaning for the acronym. PLA? Public Loses Again.”

The same editorial also reported the two general contractor bids for the Matthew J. Kuss Middle School were greatly over budget.  “The lowest general contractor bid – there were only two – came in more than $9 million over budget.  The only other bid was about $17 million over budget.  With a budget of $36 million, that makes the low bid a whopping 25 percent over budget and the alternate bid a staggering 47 percent over budget.”  Bids for the construction of the Slade and Small schools were also greatly over budget.

According to a report published, “City officials attributed the low number of bid submissions to a new requirement that bidders be pre-qualified before bidding on a project, despite the fact that 75 subcontractors were pre-qualified to bid on the Kuss project … only 36 actually submitted bids.  Additionally, the Massachusetts School Building Authority had only agreed to provide $28 million for the project, which left a multi-million dollar deficit for taxpayers to cover.”

Since the removal of the PLA, bidding for the project has been opened to non-union contractors.  As expected, the additional competition has reduced prices.  “Better Bidding Sans PLAs,” read the headline of the Herald News after the first round of open bidding.  Mayor Lambert, who for months said the PLA did not inflate costs, appears to have had a change of heart. “After the bids were opened Lambert said the additional bidders do appear to be having a positive effect on the project cost,” the Herald News reported.  The first of the schools is expected to be completed on time in September 2008.

On October 5, 2006, one elected official from Fall River recommended that the Syracuse Joint School Construction Board avoid the use of a union-only PLA for the renovation of the Syracuse City Schools.

In a letter to members of the Syracuse Joint School Construction Board, Joseph Camara, City Councilor of Fall River, detailed the numerous problems his city faced when a union-only PLA was in place for its school renovation project and the cost savings and increase in competition created by removing the PLA.

To read Joseph Camara’s letter, click here.

Middletown, Connecticut

The Mayor of Middletown, Conn., Sebastian Giuliano, recently fired Tomasso Brothers Inc. (TBI) as the construction manager for an $80 million project to construct a new high school as the result of cost overruns, delays and the company's legal woes. 

The town’s building committee and council – at the urging of former mayor Domenique Thornton – originally agreed to put a union-only PLA on the project.

Thornton also heavily supported TBI which, according to an article in the Hartford Courant, “cost her political capital among increasingly fed-up parents.”  The article also stated, “Giuliano made the termination of TBI a campaign issue, and it helped him win convincingly in November.”

The termination of TBI as project manager also led to the termination of the union-only PLA the company had signed.  Mayor Giuliano was then left with the decision of abandoning the union-only PLA or adopting a new PLA.  Guiliano opted to abandon the union-only PLA.

Following the removal of TBI in February, bids for the project were re-opened.  The project was awarded to Gilbane building company, who was originally the runner-up in the initial round of bidding to TBI.

According to an article from the Middletown Press, “Voters approved a referendum to raise the cost to over $106 million.”

The city of Middletown is currently working to solicit new bids for masonry work on the school following controversy surrounding the top two bidders for price disparities, questionable hiring practices, and labor law violations.

Columbus, Ohio

Franklin County officials recently rejected the idea of a union-only PLA for the building of a new minor league baseball stadium in Columbus, Ohio.  Legislators threatened to withhold $7 million in state funding from the project if a union-only PLA was put in place.  On top of that, potential corporate sponsors also threatened to withhold funding from the project if a union-only PLA was signed.

An editorial published in the Columbus Dispatch read, “Franklin County commissioners are considering an unnecessary and expensive agreement that would give trade unions the power to choose which companies would build a new county courthouse and baseball stadium.  It’s called a project labor agreement … The Ohio Supreme Court ruled in 2002 that handing unions this exclusive decision-making over construction projects is constitutional.  But legal doesn’t equal efficient or wise … For Franklin County to adopt this agreement is like selling flood insurance to people living on a mountain top.  That peace of mind is a waste of money for no return.  Commissioners should leave well enough alone.”

Franklin County officials also “tabled indefinitely” a union-only PLA, which was referred to as a “Good Contractor and Fair Employment Agreement,”
for the construction of a county court building.  If the agreement was signed, non-union workers would have been forced to follow union regulations.

According to Ron Mason, attorney for the opponents of the union-only PLA, “Today, less than 20 percent of the construction done in the Central Ohio area is union and it is getting smaller every day.  Therefore, the actual number of bidders on a union-only project labor agreement will be reduced by 80 percent. Simple math tells us that the costs go up when the number of bidders goes down.”

Cromwell, Minnesota

The city council of Cromwell, Minnesota has tabled a city-wide union-only project labor agreement proposed by a number of local building trades unions.  The union-only PLA would have prevented non-union shops from bidding on any city construction contracts.

An article reported, “(Contractor) Jay Koning … testified before the city council, explaining that the PLA would prevent merit shop contractors from bidding on city construction contracts, ultimately increasing the cost of the projects and wasting taxpayer dollars.”