ABOUT PROJECT LABOR AGREEMENTS

Project Labor Agreements (PLAs) provide owners and managers a tool for creating a stable, uniform labor management foundation for methodically planning and scheduling a project.  The agreements reduce the uncertainties inherent on construction projects by establishing all terms and expectations upfront and creating a framework for cooperation among all groups working on the project.  By adopting a labor-management model that fosters job-site efficiencies and ensures an uninterrupted supply of qualified workers, PLAs keep a project on schedule – avoiding costly delays – and assist in preventing wage theft.  They also allow parties to more accurately predict labor costs and production timetables, which means more accurate bidding and lower overall costs.  PLAs also offer direct cost savings through streamlined safety procedures, avoiding the need to renegotiate agreements during the course of the project, setting work schedules to keep costs low, and using expedited dispute resolution procedures.

By providing facility owners with a unique and exceptionally reliable source of skilled, trained manpower in all applicable trades, PLAs promote safe, timely, cost-effective construction delivered to the highest quality standards.

Moreover, due to the projected increased demand for skilled labor in the North American construction industry, PLAs help address long-term needs of project owners by providing a highly effective strategy for recruiting and training the next generation of skilled construction workers, thus assisting the industry’s critical need for future workforce planning and development. This experience, as well as those in major metropolitan areas across the nation, point to clear lessons in how Project Labor Agreements can make construction projects better for government, workers, contractors and communities.

Project Labor Agreements

 

Project Labor Agreements (PLAs) benefit all parties on a construction project.  These agreements set a standard for employment on the project to help ensure workers are protected and setting family-supporting wages and benefits.  Project Labor Agreements are negotiated for each job individually so that owners, contractors, community and labor concerns are met, some of these provisions are:

 

DISPUTE RESOLUTION

 Avoid delays by ensuring a fast dispute resolution procedure to settle common issues that arise on construction projects.

LOCAL HIRING/TRAINING 

Set requirements for hiring local residents to work on the project and to increase residents in apprenticeship programs in careers that provide for family supporting wages and benefits.  Using Apprenticeship Readiness Programs, we are able to recruit new people into the construction industry and by requiring the use of apprentices on the project, we are able to train more people entering the workforce. 

ENSURE COMPETITION/COST

Allow owners to set requirements to ensure competition on the project.

SMALL BUSINESS/LOCAL BUSINESS

Set standards to encourage local and/or small businesses to participate on the project and allow them access to training programs and a skilled workforce.

OTHER CONCERNS THAT ARE ADDRESSED

Skilled craftspeople, recruitment, prevention of wage theft, safety