Biden rule mandates Project Labor Agreements on major federal building projects

Washington – President Joe Biden and Acting Labor Secretary Julie Su on Dec. 18 announced a new game-changing federal rule that, according to the AFL-CIO, will not only benefit workers, but also make our tax dollars go further by making construction projects more efficient.

The rule mandates the use of Project Labor Agreements (PLAs) for large federal construction projects that cost $35 million or more. In expanding the use of PLAs, contractors and subcontractors will have to negotiate with unions to set terms for project construction – ensuring that the safety and dignity of workers are prioritized on the jobsites.

The AFL-CIO estimates the rule will give approximately 200,000 construction workers collectively bargained wages, benefits and safety protections, regardless of union membership status.

IMPROVE LIVES
Sean McGarvey, president of North America’s Building Trades Unions (NABTU), applauded the Biden administration’s move, emphasizing that “time and again, PLAs have proven to address labor supply issues, prevent work stoppages, protect workers’ classification, strengthen health and safety standards, and achieve substantial, direct cost savings by standardizing contract terms for highly skilled craft workers.”

According to 2021 figures, the PLA requirement could impact $262 billion in government contracting and improve the lives of 200,000 construction workers. The increased use of PLAs will benefit taxpayers by improving the efficiency, quality, and coordination of large and complex projects.

‘START OF SOMETHING BIG’
Acting Secretary Su joined General Services Administrator Robin Carnahan, Office of Management and Budget Deputy Director for Management Jason Miller, Rep. Shontel Brown, and Cleveland Mayor Justin Bibb in Cleveland on Dec. 18 to announce the final rule implementing President’s Biden’s Executive Order 14063 requiring Project Labor Agreements for most large-scale federal construction projects.

The delegation made the announcement at the Celebrezze Federal Building. Currently, the GSA is working to modernize the building to better serve the needs of veterans, students, retirees and other communities seeking federal supports. Contractors and unions have entered into a PLA for the project that creates equitable workforce development pathways into the trades and Registered Apprenticeships.

“First and foremost, this new rule is good for the government’s bottom line,” Su said.

“Today is the start of something big. We’re proving that what makes good sense for government is also good for workers. It’s good for businesses. It’s good for our country.”

STRONGER MIDDLE-CLASS
Brent Booker, General President of LIUNA – the Laborers’ International Union of North America – commended the Biden-Harris administration on finalizing the new rule.

“The announcement today with Acting Labor Secretary Julie Su, Labor leaders, and union tradesmen and women in Cleveland who are working on a federal building project being done under a Project Labor Agreement, only further underscores how an expansion of Project Labor Agreements can advance the interests of government and contractors in partnership with the skilled construction workers who build America,” Booker said.

“LIUNA commends the White House on the continued commitment to building a stronger Middle Class by fostering the creation of good quality jobs and, we look forward to working with the White House on the rollout of the PLA order.”