Associations strongly oppose executive order involving project labor agreements

The American Pipeline Contractors Association (APCA) and the Power and Communications Contractors Association (PCCA) both strongly object to President Joe Biden’s executive order (EO) that encourages the use of project labor agreements on federal construction projects.

The EO, while intended to help alleviate the management and coordination challenges that can stymie progress on major construction projects, will only exacerbate the already formidable workforce capacity challenges facing the nation’s construction industry.

The EO will apply to provisions in the Bipartisan Infrastructure Law that are under direct federal procurement, which excludes construction projects financed through grant dollars to non-federal entities. Still, APCA is concerned with the precedent set by the Biden White House. PLA requirements essentially exclude the majority of construction firms bidding on contracts that include federal financing assistance. APCA’s primary concern lies with the expected confusion faced by state and local governments, who may be interested in contracting with qualified merit-shop contractors and a local workforce that could provide quality services at lower costs for taxpayers.

“APCA has worked for the past several years to educate policymakers about the importance of natural gas and the critical role pipelines will play in ensuring America’s energy future,” APCA President Taylor Dacus said. “The vast majority of pipeline construction firms are merit-shop entities. The Biden Administration needs to understand that, and APCA will continue to educate policymakers at all government levels to ensure the recognition of these harmful policies that will undermine the projects included in the infrastructure bill passed last year.”

PCCA believes that ensuring broadband service must remain a national priority. Recognizing the overwhelming amount of broadband construction work expected in the coming years and the fact that our industry already faces significant workforce capacity challenges, the last thing the Biden Administration should do is encourage policy that would cut out the majority our workforce – specifically, nonunion construction workers. Industry research has demonstrated that government-mandated PLAs increase construction costs by up to 20 percent, resulting in fewer construction projects.

Because approximately 88 percent of the construction workforce is unaffiliated with a union and the construction industry faces a skilled labor shortage of more than 430,000 people, public policy should welcome all construction companies to bid on the countless projects to rebuild American infrastructure. PCCA opposes PLA schemes, and the association continues to encourage lawmakers to cosponsor fair and open competition legislation (H.R. 1284/S. 403) related to taxpayer-funded construction projects.

“PLA requirements essentially exclude the majority of construction firms from competing on contracts that include federal financing assistance at a time when we need to create opportunities for all employers and employees who have been severely affected by the Covid-19 pandemic and increasing problems with the supply chain,” PCCA Chairman Bob Breeden said. “PCCA is concerned that even the encouragement of PLAs could lead to discouraging state and local governments from contracting with qualified nonunion contractors and local workers who could provide the best quality and cost for taxpayers.”

The Order will apply only to provisions in the Bipartisan Infrastructure Law that are direct federal procurement, which excludes construction projects financed through grant dollars to non-federal entities but the PCCA and APCA still do not support this decision.

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