On June 16, 2011, the Senate passed SB 165, which will forbid what are typically called union-only project labor agreements (PLAs) on taxpayer-funded construction projects. The House is expected to take up the legislation before the end of the month.
“Members of the Senate are sending a clear message that they realize that it’s wrong to pick winners and losers based on status instead of merit,” says ABC of Michigan President Chris Fisher. “Anti-competitive, government-mandated PLAs are special interest kickback schemes that prevent open, fair and competitive bidding on construction projects. It’s time to end this unfair and costly practice once and for all."
Under PLAs, only firms and workers that are subject to union agreements are allowed to perform work on a public construction project. The restriction greatly limits the pool of contractors eligible to seek the work, and the decreased competition tends to drive up the costs of projects – wasting tax dollars. The policy also discriminates against the 75 percent of Michigan construction workers who choose not to belong to a union by denying them the opportunity to work on projects funded by their own tax dollars. The legislation passed by the Senate would prohibit such practices by ensuring a level playing field for public contracting.
“PLAs limit competition by exclusively awarding construction work to contractors that subject themselves and their employees to the terms of union collective bargaining agreements in order to work on agovernment-funded construction project. Instead of deals that either mandate or forbid union agreements, all workers and contractors, union and nonunion alike, should be treated equally, and all taxpayers deserve the accountability that results from competitive bidding that is open to all qualified contractors.”