Project labor agreements

What is it?

The project labor agreement, or PLA, has come into vogue in recent years for large construction projects. A PLA typically:

  • Requires local workers.
  • Supersedes collective bargaining agreements.
  • Requires diversity.
  • Establishes wages and work rules covering overtime, working hours and dispute resolution.
  • Ensures that safety guidelines on the job site are enforced.

 

Value.

Ever wonder why the big guys - Toyota, for instance - are opting for project labor agreements on their massive new projects in Indiana? Hint: It's value.

Project labor agreements actually save money - and yes, workers do get paid more under PLAs. Why?

  • Better training = better productivity.
  • Better training = better safety.

 

Flow.

PLAs guarantee a continuous flow of work, whether participants are union or non-union:

  • No jurisdictional disputes - and if you think these arise only on union construction sites, you're crazy.
  • No strikes or stoppages.
  • Scalability - A trained work force that can show up in numbers.

 

Non-exclusive.

PLAs do not exclude non-union contractors, but those contractors often refuse to participate due to the awkward recognition among their workers that higher pay is available for high-skill jobs.

 

The bottom line.

A substantial body of research indicates that project labor agreements are effective tools for bringing large and complex projects in on time and on budget, safely and with no additional expense.