Undercutting Workers in Charlotte

The Democratic National Convention Committee has let it be known that non-union construction workers and companies need not apply as they have made favoring their union allies a key critieria to get work on the convention.

The DNCC’s Sept. 13 request for proposal for construction managers and event architects states that the DNCC will enter into a labor agreement with the construction manager, who will be obligated to ensure that nearly all work at the site be covered by union monopoly bargaining agreements to the “maximum extent possible.”

Republican candidate for Mayor of Charlotte Scott Stone wants to see exactly what is in these agreements.  He issued a letter requesting the DNCC release the actual project labor agreements and also issued a press release on October 26 calling on the  DNC Host Committee to release the project labor agreements that vendors will be required to sign. At a press conference in Charlotte, Stone presented a formal letter addressed to Mayor Foxx and the DNC Host Committee asking for the labor agreements to be made public.

Stone expressed his concern that at a time when other states around the country are outlawing project labor agreements, Charlotte and North Carolina – at the hands of the DNC – are heading toward them and down a slippery slope. “As project labor agreements are going away in Michigan, here in the Right-To-Work state of North Carolina they’re actually popping up.”

PLA’s DOA in Louisiana

The state of Louisiana proved it is serious about protecting taxpayer money on their construction projects when Gov. Bobby Jindal signed S.B. 76, a bill to prohibit government-mandated project labor agreements (PLAs).

The bill protects taxpayers by ensuring that they get the highest quality work at the best possible price. PLAs, on the other hand, force taxpayer to pay inflated union wages often driving up the price of construction by nearly 25%.

In addition, the law demonstrates Louisiana’s commitment to its Right to Work law by guaranteeing that workers are not forced to pay union dues as a condition of accepting a job in Louisiana. This preserves a worker’s choice on whether or not to join or pay dues to a labor union.

We say Amen to that!

Virginia’s stalwart Attorney General Ken Cuccinelli is monitoring attempts by the Washington DC airports authority to require union-only labor and will file suit if a “project labor agreement” were put in place, contrary to Virginia’s Right to Work laws.

Obama Pushes Back For Union Bosses

The Obama Administration goes to bat for Big Labor – again. The Hill’s John T. Bennett reports:

The White House said it “strongly opposes” a provision in the House Appropriations Committee’s military construction and Veterans Affairs appropriations bill that would block the administration from encouraging the use of so-called “project labor agreements” (PLAs). Such pacts allow government contracts to be awarded exclusively to unionized companies.

The Obama administration says the use of these arrangements “can provide structure and stability to large construction projects,” according to the policy statement. “The coordination achieved through PLAs can significantly enhance the economy and efficiency of Federal construction projects.”

That wording is similar to a February 2009 executive order stating it was the administration’s policy to encourage “executive agencies to consider requiring the use of project labor agreements in connection with large-scale construction projects in order to promote economy and efficiency in federal procurement.”

The House panel’s language would prohibit future use of that order.

“The vast majority of contractors and their employees — more than 80 percent — have voluntarily opted against unionization,” according to the National Right to Work Legal Defense Foundation. “Because most contractors and employees choose to refrain from unionization when they have the free choice, Big Labor turned to politicians to remove that choice and impose union representation on employees from the top down.” (more…)

Lawmaker Calls for Conflict of Interest Probe

Virginia delegate Tim Hugo is calling for an investigation into the Dulles Metrorail project and the Metropolitian Washington Airport Authority’s demand that the project be governed by a wasteful Project Labor Agreement (PLA) that will drive up the price of construction unncessarily.

In a letter to Virginia Attorney General Ken Cuchinelli, Hugo claimed that the airports authority appears to have violated its own ethics code as well as state conflict-of-interest statutes by allowing board member Dennis Martire, vice president of the Laborers’ International Union of North America, to vote for the agreement. Hugo charged that the union Martire represents would “reap a financial windfall” as a result of the agreement, the Washington Examiner reports. “Should MWAA move forward with this ill-advised measure, it will discriminate against nonunion construction firms and the 96 percent of construction workers in Virginia who have chosen to not belong to a union,” Hugo wrote. It will also “discourage competition; and ultimately greatly increase the overall cost of the project.”

Should contractors win the bid, the agreement would require them to provide union wages and benefits and hire union workers even though the construction will take place in Virginia, a right-to-work state — which means an employee can’t be forced to join a union to get a job.

Critics of the labor agreement, citing studies from the Boston-based, free-market think tank Beacon Hill Institute, said it will increase project costs by 12 percent to 18 percent. The cost of the second phase, originally estimated at $2.5 billion, has already jumped by over $1 billion, most of which will be paid by Loudoun and Fairfax counties and Dulles Toll Road users.

PLA’s DOA in Tennessee

Project Labor Agreements (PLAs), kickbacks to Big Labor unions that drive up the cost of construction projects by nearly 25% have been banned in Tennessee thanks to legislation signed into law by Gov. Bill Haslam. Tennessee is the fourth state to ban PLA’s in 2011, joining another four that had previously banned PLA’s on projects funded by the taxpayers.

In an age of belt-tightening, there is no reason to pay inflated dollars for construction contracts all to please Big Labor.