Project Labor Agreements
PLAs Gaining Popularity in Central Ohio
A Project Labor Agreement (PLA) is a prehire, collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project.
PLAs allow employers and unions to negotiate terms of employment, including pay, benefits, hours, leave and safety policies. Employers can resolve issues at the bargaining level rather than through conflict, which ensures labor peace and reduces employee turnover by promoting open communication and job security.
Who Uses PLAs?
For decades, Project Labor Agreements have been used in both the private and public sectors.
In Central Ohio, they have become a popular tool to ensure projects are finished on time and on budget.
PLAs and similar Community Benefits Agreements (CBAs) have been used on many of the region’s megaprojects, including Intel, H-L Battery Company, Facebook, Google and Amazon. But they are not just a tool for projects that cost billions of dollars, they can be used on projects of any size and scope.
PLAs have been used to build everything from industrial and manufacturing facilities to hospitals, stadiums, high-rises, recreation centers and safety centers.
What are the Benefits of PLAs?
Academic research has shown that PLAs are good for both public and private-sector construction projects, particularly larger projects.
The validity of PLAs has consistently been upheld in both federal and state courts.
PLAs do not adversely affect the costs of construction projects; rather, they positively influence project timeliness, quality, safety, training, minority employment, employee benefits and labor peace.
They are an excellent tool to use when combined with Prevailing Wage to ensure quality construction of the project.
There is no better option than entering into a PLA to ensure a project finishes on time and on budget.
PLA Studies
The Impacts of Project Labor Agreements on Costs, Competition and Contractors in Illinois
Evidence from Capital Development Board Projects
Frank Manzo IV, MPP
Robert Bruno, Ph. D.
Commissioned by the Illinois Capital Development Board, the study found that PLAs enhanced bid competition in Illinois, helped to lower construction costs for taxpayers and increased business for firms owned by people of color, women and veterans.
Project Labor Agreements: A Research Review
Russell Ormiston
Kevin Duncan
The Institute for Construction Employment Research study reviews the economic research performed on PLAs, including how they affect bid competition and costs on public construction projects. The study reveals the most recent academic studies show PLAs do not have a statistically significant impact on school construction costs or bid competition. This contradicts the findings of older and less developed studies mostly published outside of academic journals.
The Impacts of Project Labor Agreements on Competition, Costs, Apprenticeships and Diversity
Frank Manzo IV, MPP
Robert Bruno, Ph. D.
The Illinois Economic Policy Institute study looked at important aspects of PLAs, such as mechanisms that ban strikes and lockouts during construction and deliver access to skilled labor. It also showed that PLAs have no effect on bid competition or construction costs while boosting apprenticeship training and expanding opportunities to people from historically underrepresented communities.