PLA is short for “Project Labor Agreement.” PLAs are government-mandated schemes that require Virginia construction companies and workers to pay into union-run funds and permit unions to dictate the terms upon which Virginia’s public infrastructure is built.
Top 5 Drawbacks of PLAs
PLAs dramatically increase the cost of publicly funded construction projects, meaning taxpayers pay more for less.
X
PLAs add unnecessary complexity to projects, resulting in long delays on critical public infrastructure.
X
PLAs result in PLA Wage Theft, whereby local construction workers are forced to pay into union-run funds that provide them no benefits.
X
PLAs exclude Virginia construction workers by allowing union hiring halls to decide who gets to work on a project and who does not.
X
PLAs discriminate against minority- and woman-owned construction businesses that are overwhelmingly merit shop (i.e., non-union) businesses.
X
Get the Facts About PLAs
PLAs in Virginia
For decades, Virginia law required public agencies to use a competitive bidding process allowing all qualified businesses to compete on procurements, regardless of whether contractors were willing to sign PLAs. In 2020, however, the Virginia General Assembly passed HB 358 and SB 182, which, for the first time, permitted state and local governments to mandate PLAs on taxpayer-funded construction projects.
Since the passage of the 2020 law, Virginia has seen an increase in pressure tactics and misleading campaigns urging policymakers to mandate PLAs on local construction projects, most notably in Fairfax and Loudoun Counties. Virginia residents and taxpayers deserve the truth about the real costs of government-mandated PLAs.
Typical Requirements of a Project Labor Agreement
-
Contractors must adhere to union collective bargaining agreements.
PLAs require all employers on a project to adhere to the requirements of union collective bargaining agreements (“CBA”), even if the employer is not party to a CBA. Contractors must thus navigate the maze of CBA work rules if they choose to work on a PLA project, though most contractors simply won’t work on a PLA job.
-
Workers are assigned to contractors by union hiring halls.
While most PLAs allow construction firms to utilize a few of their existing employees on a project, usually up 5 employees, most workers on a PLA project are assigned to firms by union hiring halls. Union hiring halls typically operate based on seniority within the union; Workers that have been in the union the longest move to the front of the line for work on PLA projects. A contractor bidding a PLA job will have to utilize employees selected for them by a union hiring hall without their input.
-
Workers must contribute to union-run pension and benefit plans and pay union dues.
PLAs require workers – even those not in the union – to pay into union-run pension plans (called “multi-employer pension funds”) and benefit trusts. Most union pension plans require five years of vesting service to receive any benefit, so in most instances, non-union workers that make these contributions (solely because of the PLA) will not receive any benefit. Workers must also pay into union-run benefit funds even if they choose, as nearly all do, to stay on their existing employer’s plan. Finally, workers are required to pay union dues whether they want to join a union or not.