A new survey conducted by the Washington-based Associated Builders and Contractors shows overwhelming opposition on the part of contractors to federally imposed project labor agreements.
The numbers could not get much greater: according to the survey, 98% of responding contractors said they were against such agreements, many arguing that they result in increased project costs.
Earlier this year President Biden signed an executive order requiring the imposition of project labor agreements in all federal building contracts with a dollar value of $35 million or more.
Labor unions have generally supported such agreements, with the AFL-CIO contending that they ultimately protect taxpayers by “eliminating costly delays due to labor conflicts or shortages of skilled workers.”
Respondents to the Associated Builders and Contractors survey, however, said they thought such agreements decrease economy and efficiency in government contracting, while also reducing competition from subcontractors.
A nearly unanimous 99% of respondents declared that they were not likely to bid on projects governed by those agreements.
In a statement, Ben Brubeck, vice president of regulatory, labor and state affairs with ABC, said the agreement mandates “undermine inclusive workforce development, hiring and small business subcontracting practices and hinder the ability of the best contractors to safely deliver taxpayer-funded construction projects on time and on budget.”
It is thought that Biden’s project labor agreements order could ultimately impact up to $262 billion in federal projects.
The agreements historically tend to see new life depending upon who is in the White House: President George W. Bush signed an executive order prohibiting agencies from requiring them, an order that was subsequently revoked by President Barak Obama.
Although President Trump never officially rescinded Obama’s order, he voiced opposition to them. No such agreements were imposed during the four years of Trump administration.
By Garry Boulard
