Senator Ayotte Expresses Concerns about Labor Requirement for Manchester Job Corps Project

Statement

US Senator Kelly Ayotte (R-NH), a member of the Senate Commerce and Small Business Committees, today expressed concerns regarding the Department of Labor's (DOL) plan to require a Project Labor Agreement (PLA) for the construction of the Manchester Job Corps Center. DOL announced last week that it would move forward with construction, but subsequently indicated that a PLA was appropriate for the project. PLAs mandate that the contracting company have a collective bargaining agreement with its workers; an Executive Order issued in 2009 by President Obama essentially mandates that federal agencies contract with union firms on large construction projects.

Senator Ayotte is concerned that the President's PLA directive favors unionized contractors from out-of-state and will discourage competition from qualified local firms. Additionally, a PLA has the potential to drive up the overall cost of construction for the project. The project had previously been delayed in response to opposition to the PLA by members of New Hampshire's contracting community.

"The Administration's plan to keep in place the PLA represents yet another senseless government mandate that could put New Hampshire businesses and workers at a competitive disadvantage. A PLA effectively gives unionized firms an unfair advantage over non-union firms, making it less likely that New Hampshire contractors would be able to bid successfully for the work," said Senator Ayotte. "This is a New Hampshire project, and local contractors should be able to compete for it on a level playing field."

Mark Holden, President of the Associated Builders and Contractors of New Hampshire/Vermont said: "It is important for all New Hampshire taxpayers to understand the impact of this decision. Requiring non-union contractors to execute union agreements for the project, agreeing to replace their employees with union workers, pay into union funds and abide by union work rules and conditions creates unknown costs that are impossible to plan and bid for and are conditions that make it non-competitive for non-union contractors. To suggest that a non-union contractor's ability to compete would not be impacted by this PLA is untrue. A PLA requirement will have a chilling impact on competition from non-union contractors and will dramatically inflate the construction cost of this taxpayer funded project. At a time when a challenging economy is dependent on real solutions for job creation and accountability for every taxpayer dollar, this decision is unbelievable."

The Bureau of Labor Statistics shows that only 8.8% of private construction workers in New Hampshire belong to unions. If a PLA requires contractors to hire workers through a union hiring hall, contractors may not be able to use their own workers. To satisfy the PLA, a non-union contractor's workers would have to join a union and pay union dues. If a contractor has to pay into a union pension plan, employees may not be on the project long enough to vest in the plan. Under such an agreement, the majority of New Hampshire construction workers would effectively be prevented from working on the Manchester Job Corps Center.

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