PLAs
Project Labor Agreements, commonly referred to as PLAs, are codified agreements between contractors and unions to ensure important infrastructure projects are finished on time and under budget.
This means the bridges, schools, and transit lines we pay for are built by trained, local workers who earn a fair wage and go home safe at the end of the day. PLAs keep big public projects on time and on budget by heading off labor disputes before they start, and they make sure our tax dollars stay in our communities while building the skilled workforce our state will need for the next generation.
up to
19%
Faster completion with PLAs, up to
34%
Fewer OSHA violations at union worksites
23%
Approximate labor share of total construction costs
01
Projects Are Completed On Time and On Budget
Studies show that projects covered by PLAs are completed on time and within budget.
A PLA is an insurance policy for taxpayers, guaranteeing that infrastructure is built by competent workers trained to deliver the highest standards of safety and craftsmanship.
Projects built with PLAs have been found to be completed up to 19% faster than those without PLAs.
02
PLAs Boost Training, Improve Safety, and Combat Labor Shortages
PLAs boost investment in apprenticeship training for the next generation of skilled construction workers.
Programs have 31% lower injury rates and union worksites have 34% fewer OSHA violations.
PLAs make contractors less likely to experience project completion delays due to worker shortages.
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03
PLAs Expand Local Hire and Opportunities to Workers from Disadvantaged Backgrounds
PLAs can increase local hire and expand opportunities to workers from underrepresented communities at a time when the industry is facing a historic labor shortage and contractors need new workers.
PLAs promote the hiring of veterans and facilitate the hiring of registered apprentices.
Union employers are twice as likely to offer diversity and inclusion training programs and twice as likely to have policies in place to recruit people of color and members of the LGBTQ+ community.
Project labor agreements are risk minimization tools that can enable America to follow through on infrastructure promises.
A strong America is built with project labor agreements.
04
PLAs Promote Stability and Efficiency on Infrastructure Projects
The purpose of a PLA is to promote predictability, coordination, and efficiency on infrastructure projects.
PLAs include clauses that ban strikes and lockouts to ensure an uninterrupted supply of qualified labor.
PLAs are valuable construction management tools for planning projects, controlling costs, and ensuring workforce stability.
PLAs have a long history in both the public and the private sector—including at Apple, Wal-Mart, Disney, Intel, Ørsted North America, Dominion Energy, Micron Technology, and in the National Football League.
05
Project Labor Agreements Stabilize Public Construction Costs and Promote Competitive Bidding
Peer-reviewed studies find that PLAs do not affect total construction costs.
Labor costs are a low and historically declining share of total construction costs—approximately 23%.
PLAs do not alter the level of bid competition—an important determinant of project costs.
Both union and nonunion firms are able to bid on PLA projects.
By using skilled tradespeople who deliver superior craftsmanship, safety, and productivity outcomes to the jobsite, PLAs are an insurance policy that helps project owners and developers control construction costs.
06
Project Labor Agreements Deliver Job Quality for Workers and Strengthen Public Budgets
PLAs establish market-competitive wages and safe working conditions that attract skilled workers.
Workers covered by PLAs earn higher wages and are more likely to have healthcare coverage.
PLAs result in fewer construction workers living in poverty.
PLAs strengthen public budgets, because they mean workers are contributing more in income taxes and sales taxes and are less likely to rely on government assistance programs like food stamps and Medicaid.
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