More Progress on PLA’s

First, the New York Times wrote an article detailing how even some liberal Democrats are tired of the union bosses continued squeezing of the taxpayers; and now the Boston Globe has weighed in against the enactment of an anti-competitive Project Labor Agreement (PLA) on a three-quarters of a billion dollar improvement project for the University of Massachusetts:

Project labor agreements clearly limit the number of firms that can compete for work, at both the contracting and subcontracting level, and that deprives the project of potential low bidders. But defenders of such labor agreements tout the economic benefits of a smooth-running, on-time project, insisting that the pacts help maintain “labor peace’’ — a term with vaguely threatening intimations.

Maintaining labor standards is laudable. Restricting bids simply to promote unions, without a strong rationale for doing so, is not. Unfortunately, the UMass decision, and Patrick’s support for it, seems more the latter than the former.

Tagged with:
Posted in: PLA

Big Labor Contracting

The Wall Street Journal weighs in on the Obama big labor contracting kickback scheme to hand government contracts to unionized companies:

There’s almost a direct correlation these days between the Obama Administration’s complaints about “special interests” and its own fealty to such interests. Consider its latest decree that federal contractors must be union shops.

The federal rule, which went live yesterday, implements an executive order President Obama signed within weeks of taking office. It encourages federal agencies to require “project labor agreements” for all construction projects larger than $25 million. This means that only contractors that agree to union representation are eligible for work financed by the U.S. taxpayer.

Only 15% of the nation’s construction workers are unionized, so from now on the other 85% will have to forgo federal work for having exercised their right to not join a union. This is a raw display of political favoritism, and at the expense of an industry experiencing 27% unemployment. “This is nothing but a sop to the White House’s big donors,” says Brett McMahon, vice president at Miller & Long Concrete Construction, a nonunion contractor. “We’ve seen this so many times now, and how many times does it have the union label? Every time.” (more…)

By signing Executive Order 13502, the president is using taxpayer dollars to give big labor union bosses an expensive kickback that will drive up the cost of federal construction by as much as 20% and dramatically expand the number of construction workers under union monopoly control – not to mention the union dues and fees.  When it comes to helping his Big Labor buddies, cost to the taxpayers or rank and file workers doesn’t seem to matter.

Tagged with:
Posted in: PLA

Look for the Union Payoff

This editorial from the Pittsburgh Tribune says it all when it comes to the President and his friends, the labor union bosses:

Rewarding Big Labor for political support, the Obama administration is virtually shutting nonunion contractors out of federal construction projects worth at least $25 million — and sticking taxpayers with untold millions in higher costs.

Just weeks after taking office, President Obama signed an executive order encouraging use of project labor agreements (PLAs), which require contractors to agree to union representation and work rules. A federal rule implementing that order took effect May 12, benefiting the 15 percent of construction workers who are unionized — and hurting the 85 percent who aren’t.

This, in an industry with 27 percent unemployment. And with study after study showing PLAs hike costs 10 percent to 20 percent — and the rule essentially ending open, competitive bidding for federal construction contracts — taxpayers will feel plenty of pain, too.

But never mind. This White House has major political backers to pay off — by giving organized labor a stranglehold on federal construction contracts that, by the way, practically guarantees increased contributions to union retirees’ underfunded pension plans.

This new rule is, as The Wall Street Journal put it, “a raw display of political favoritism.” And a sickening one at that. [Emphasis added]