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Chamber testifies before legislative panel on project labor agreements
Explains cost, competitiveness concerns with state House policy makers At a House Republican Policy Committee hearing this week, the PA Chamber presented its members' concerns about the use of project labor agreements for public construction projects. The committee heard from construction industry representatives, labor union members and other business associations about how PLAs impact their membership. PLAs typically are a strategy for organized labor to secure public construction projects by reducing competition through effectively excluding merit or "open" shop contractors. A union-only PLA is a pre-hire contract that requires projects be awarded only to contractors and subcontractors that agree to recognize unions as representatives on that job, use the union hiring hall to obtain workers or take on apprentices exclusively from union apprenticeship programs, and adhere to that union's work rules, including changing work hours for non-union employees. PA Chamber Manager of Chamber Relations Jim Willshier told the legislative panel that PLAs limit competition and increase project costs. He cited several studies that supported the argument that their use leaders to higher costs. Legislation (H.B. 2010) sponsored by state Rep. John Bear, R-Lancaster, would essentially prohibit any requirement to have successful bidders be represented by a union. This would allow more competition in the bidding process for projects by allowing both merit shops and union represented firms to bid on such projects. Known as the Open Contracting Act, the bill would apply to all state and local contracts, and any corresponding agencies or authorities. A complete copy of the PA Chamber's testimony is available here. More information from the hearing is available here. House Bill 2010 is pending in the House Labor Relations Committee. |
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