AGC Meets with Obama Administration on Government Mandated Labor Agreements

AGC CEO Steve Sandherr met with officials from the Obama Administration's Office of Management and Budget, Department of Labor, Office of Federal Procurement Policy and the Vice President's staff last week to discuss AGC's position on the Government Mandated Labor Agreements (GMLAs).  Earlier in the year, the President issued an executive order encouraging agency heads to consider mandating labor agreements on construction projects costing more than $25 million.  During the lengthy meeting, Steve explained the impact of mandated labor agreements on both union and open shop employers.  For example, he noted that while AGC is neutral on project labor agreements when they are voluntarily adopted by a project's owner, he noted that even union shop contractors have their existing labor arrangements undermined when the government imposes GMLAs.  The meeting gave AGC an opportunity to explain to senior Administration officials the practical, and negative, effect of mandated labor agreements.  For example, the Administration now understands the problems of having contracting officers with little construction expertise negotiate GMLA's, and they are now checking to see if previous mandated labor agreements have actually resulted in increased efficiencies and economies.  AGC will continue to press this issue with all federal agencies that perform construction work.  A copy of the fact sheet that was presented by AGC is available here.