PLA Wage Theft
How PLA Wage Theft works.
Under a Project Labor Agreement, up to 34% of a worker’s take home pay – fully 1/3 of every dollar earned on a PLA project – is effectively stolen by union “benefit” funds. Unions do not return or refund this money to workers when their time on the project is over.
Where workers’ wages go under a typical Project Labor Agreement
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Nearly all multi-employer pensions have vesting and membership requirements that non-union workers have no chance of meeting. Furthermore, most multi-employer pension funds are severely underfunded, making them unlikely to be able to provide the benefits they promised to workers in any event.
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Many unions operate their own health and welfare – i.e., benefit – funds. These funds typically charge a “blended” premium to all workers, unlike most insurance plans which charge premiums based on whether a worker is single, married, or has children. An analysis of 13 union benefit plans shows that the average health insurance premium is 16% of a worker’s compensation. This compares to 7% of total compensation for market-based insurance. These union-operated funds appear to be gouging their members who are held captive to paying these exorbitant rates.
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Nearly all PLAs require workers to pay these funds even when they have no interest or desire to join the union.