AGC Project Labor Agreement Policy Update

On May 20, 2011, AGC sent a letter to the Hawaii District of the U.S. Army Corps of Engineers providing comment on their solicitation regarding the potential use of project labor agreements (PLAs) for the FY11 PN65650 USARPAC Command and Control Facility, Phase 1, Fort Shafter, Hawaii, project.On May 25, 2011, AGC sent a letter to the Mobile District of the U.S. Army Corps of Engineers providing comment on their solicitation regarding the potential use of project labor agreements (PLAs) for a project in Redstone Arsenal, Alabama. This 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. Congress is also moving to limit the use of government-mandated project labor agreements. On May 24, 2011, the House Appropriations Committee approved by voice vote an amendment by Rep. Jeff Flake (R-Ariz.) to the FY 2012 Military Construction/VA Appropriations bill that would prohibit the use of federal funds to require by contract the use of a PLA for projects funded during fiscal year 2012. While this provision is now part of the legislation, it is expected that the amendment will be challenged when the bill reaches the House floor for final consideration in the next week or so. The House Committee on Oversight and Government Reform will hold a hearing June 3 on legislation currently pending by Rep. John Sullivan (R-Okla.) that ensures federal agencies awarding construction contracts do not: (1) require or prohibit a bidder, offeror, contractor, or subcontractor from entering into, or adhering to, agreements with a labor organization, with respect to that construction project or another related construction project; or (2) otherwise discriminate against or give preference to such a party because it did or did not become a signatory or otherwise adhere to such an agreement. AGC general counsel Mike Kennedy will offer testimony in support of the legislation and offer details on AGC’s position on government-mandated PLAs during the hearing. For more information, please contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.