AGC Contacts FHWA on Mandated Project Labor Agreements

AGC wrote to the Federal Highway Administration (FHWA) this week expressing opposition to the use of government mandated Project Labor Agreements (PLAs). The letter was instigated by guidance sent by FHWA to state DOTs pointing out that PLAs would be approved on federal-aid highway projects if states meet certain conditions which were spelled out in the document. FHWA took this action in response to President Obama's Executive Order directing Federal agencies to look at using PLAs on federally funded construction projects. FHWA reported that it has approved PLAs on six projects thus far, 5 in Illinois and 1 in New York. The six-page letter sets out a number of specific issues that FHWA should require states to consider in making a determination to use a PLA and points out the practical implications of government mandates for PLAs. The letter also points out the possible repercussions of a state's decision to require all offerors to negotiate and execute a PLA prior to submitting a bid on the project. The letters are the latest of AGC's continuing efforts to educate government agencies about PLA issues and implications. While AGC neither supports nor opposes PLAs in general, AGC strongly opposes government mandates for PLAs on publicly funded construction projects. AGC is committed to free and open competition in all public construction markets and believes that publicly funded contracts should be awarded without regard to the lawful labor relations policies and practices of the government contractor.