PA Chamber Statement on Gov. Shapiro’s PLA Directive HARRISBURG – Today, PA Chamber Senior Vice President for Government Affairs Alex Halper released the following statement in response to Gov. Josh Shapiro’s recent announcement of a new directive for the use of Project Labor Agreements (PLAs) for state projects. PLAs typically require private companies to commit to using unionized labor as a prerequisite to be considered for contracts to work on a public construction project. “We will carefully review the details of this directive and how it’s implemented, and we appreciate the governor stating that bidding processes will be open to both union and non-union contractors,” Halper said. “In our experience, however, PLAs have historically been used to force companies whose employees are not members of a union to either forgo bidding on a project or be forced to replace their own employees with a union. This type of mandate is unfair and it discriminates against a significant portion of private sector workers who opt to not be represented by a union.” “The Commonwealth ought to consider bids for public projects based on merit and cost effectiveness,” Halper continued. “Project labor agreements, on the other hand, have been shown to raise projects costs with no discernible benefit to safety, or keeping projects on-time and on-budget.”
PA Chamber Celebrates Supreme Court Ruling on Prevailing Wage Act HARRISBURG – Today, the Pennsylvania Chamber of Business and Industry hailed a recent state Supreme Court ruling as a significant victory for taxpayers and employers in the ongoing debate over the application of the Commonwealth’s Prevailing Wage Act. The decision, which upheld a 2022 Commonwealth Court ruling in the case of Ursinus College v. Prevailing Wage Appeals Board, reinforces the longstanding interpretation of the law. In response to this ruling, PA Chamber President and CEO Luke Bernstein issued the following statement: “This ruling reaffirms our position that the Prevailing Wage Act should not be applied more broadly to private projects. The decision helps maximize private sector investment and growth while providing clarity for businesses operating in Pennsylvania.” The PA Chamber previously coordinated a coalition of leading industry associations in submitting amicus curiae briefs to both the Commonwealth Court and Supreme Court, arguing that the Prevailing Wage Act applies exclusively to “public works” projects in which a government entity has a close relationship to a project, either as a contracting party or funder. Other associations joining the brief included the PA Municipal Authorities Association, the PA Waste Industries Association, the PA Council of General Contractors, and LeadingAge PA, which represents providers of senior services. In the Ursinus case, where the municipal authority in question had no active involvement beyond facilitating the project’s financing, the brief argued that applying prevailing wage requirements would constitute an unjustified expansion of the law’s scope, contrary to established legal precedent. Bernstein also emphasized the PA Chamber’s commitment to advocating for policies that promote economic growth and fiscal responsibility: “We will continue to champion sensible interpretations of Pennsylvania’s labor laws that balance protections for workers and maintaining a competitive business environment. With the clarity that this ruling provides, employers can continue to use this type of financing model without risking triggering the Prevailing Wage Act, which can complicate project delivery and significantly increase costs.”
UPS Opens New Harrisburg Regional Hub PA Chamber President and CEO Luke Bernstein attended the Grand Opening of UPS’ new, state-of-the-art 24/7 East Zone Regional Hub in Harrisburg last Wednesday and presented the company with honors recognizing its substantial investment into Pennsylvania’s economy. Strategically located within a day’s drive of nearly two-thirds of the major population centers in the United States, UPS’ Harrisburg hub is the fourth-largest hub in the company’s network. The new 775,000 square-foot facility, now fully operational, employs 1,700 people and is equipped with advanced automation and other innovations that enable it to process more than one million packages per day. As reported by PennLive: “Inside the massive facility with high ceilings sits conveyors processing packages, which go through camera tunnels that will scan the packages. That in turn communicates with the system to tell that package where to go, ultimately heading to an individual trailer that will take it to its final destination.” Pennsylvania Department of Community and Economic Development Secretary Rick Siger also attended and spoke during the event. “The economic impact of this project is massive,” he said. “When this project was first announced a few years ago, it was part of a statewide investment by UPS of about $1.4 billion into their operation.” Following the event, Bernstein spoke to the board of the Harrisburg Regional Chamber, where he emphasized the important partnerships that bolster pro-business advocacy across the state. Bernstein recognized Harrisburg Regional Chamber CEO Ryan Unger and his team for their tireless work promoting economic growth in the region and fighting for policies that will strengthen business development in central Pennsylvania. Bernstein also outlined the PA Chamber’s key legislative priorities for the fall session: tax reform, permitting reform, and workforce development. Together, these initiatives constitute a comprehensive framework for making Pennsylvania a more competitive state for business, which he says is critical to attracting additional investment and jobs into the Commonwealth.