The Prince William Board of County Supervisors recently demonstrated sound judgment when they chose to study project labor agreements (PLAs) instead of buckling to criticism by anti-union contractors about their decision.
Analysis of construction data refutes the frequent claim that PLAs make projects more expensive. This is false. For example:
A research study that evaluated 99 California community college construction projects found that PLAs did not affect construction expenses after researchers controlled for project dimensions, complexity and site locations.
Research also showed that in 70 Massachusetts school construction projects, PLAs did not affect the overall project expenses.
Researchers found that in 319 Ohio schools with responsible contractors, these policies did not create any measurable effect on construction bid prices.
Critics claim that PLAs shut out nonunion companies from the bidding process. This is patently false. Nothing precludes nonunion contractors from bidding on a PLA project. Federal law prohibits employers from discriminating against employees based on union membership.
Rather than offer a weak argument for outlawing PLAs as a procurement method, we should ask why nonunion contractors don’t compete for those projects.
One reason might be that the compensation levels of union construction workers often exceed those of nonunion workers, and they also receive better health care benefits. The 2023 data shows union construction workers received $1,424 weekly while nonunion workers received $1,007 – a 41% difference.
The higher earnings of union construction workers result in higher tax payments and reduced need for government assistance programs, including the Supplemental Nutrition Assistance Program and Medicaid, thereby saving money for taxpayers. And don’t forget, union members generally live in the communities where they work, a welcome financial boost to the local economy.
The implementation of PLAs produces actual advantages for construction projects. PLAs have been in use since the 1930s. They remain popular for a simple reason: They’re effective. That’s why public and private construction sectors with major companies use them, including Apple, Walmart, Disney, Intel and the National Football League. The use of PLAs by these well-known organizations flies in the face of criticism that PLAs drive up construction costs.
Their use answers critics who charge that a PLA slows down construction. This is simply not accurate. Research shows that construction projects under PLA agreements finish their work 19% faster than projects without PLA agreements. The MetLife Stadium in New Jersey completed its construction four months ahead of schedule through a PLA agreement, while US Bank Stadium in Minnesota finished its work six weeks early.
The construction projects in Prince William will achieve their deadlines and financial targets through skilled workers who receive adequate compensation. County leaders shouldn’t fall for the frequent myth that points to PLAs as political favors. They’re not.
The board’s decision to spend $300,000 on research funding isn’t wasteful. Relying on current data and not false rhetoric is the most informed and fairest way to safeguard Prince William taxpayers.
It is important to ask yourself why someone would be against project labor agreements. They are ultimately a transparent agreement between all stakeholders, the community, the workers and the contractors. The groups that oppose them are opposing transparency and are the same ones taking advantage of taxpayers and workers. Project labor agreements do not exclude anyone but bad actors from working on local projects.
Cyndie Williams is executive director of the Carpenter Contractor Trust.