Oversight Subcommittee: Does the Administration's "Mandate" on Project Labor Agreements Cost Construction Jobs and Taxpayers Money?

Press Release

Tomorrow, the House Committee on Government Reform will continue its examination of the regulatory burdens placed on private sector job creators.

By Executive Order, President Obama created a preference for government contractors willing to enter into pre-hire, collective bargaining agreements known as "Project Labor Agreements" or PLAs. PLAs establish the terms and conditions of employment for a specific construction project with one or more labor organizations. The President's preference has translated into an award bonus essentially locking non-union competitors out of the market for federal construction work. Industry witnesses are expected to testify that PLAs result in increased costs to job creators and taxpayers because of payouts necessary to secure union cooperation.

"When you force union rules on all private sector construction firms, you are essentially locking over 80% of contractors out of the market for federal construction contracts. Even some labor unions have pointed out that PLAs disrupt government-mandated labor agreements already in place between unions and contractors," Oversight Subcommittee on Regulatory Affairs Chairman Jim Jordan, R-Ohio, said. "That means big labor wins, but taxpayers and private sector businesses lose."

Chairman Jordan said he intends to seek answers from the administration witnesses: the head of the President's office of procurement policy, the top public building official at the General Services Administration, and the Labor Department's OSHA chief.

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