CLEVELAND – The Joe Biden administration has announced a new rule implementing a presidential executive order requiring Project Labor Agreements (PLAs) for most large-scale federal construction projects.
The measure gives construction workers collectively bargained minimum standards on wages, benefits and safety regulations but allows both union and non-union contractors to bid on work.
A Dec. 18 statement said the rule will help ensure construction projects are completed on time while supporting workers and implementing Biden’s agenda to rebuild U.S. infrastructure.
The rule requires the use of PLAs — a pre-hire collective bargaining agreement used by the construction sector — for federal construction projects where the total estimated cost to the federal government is $35 million or more, with limited exceptions. All parties including contractors and unions will be required to negotiate set terms that govern project construction.
The statement said the rule will ensure labor certainty and minimize unrest, offer dispute resolution procedures for labor-management cooperation on matters like safety, support workers from underserved communities and small businesses, and promote competition on government contracts.
As required by the executive order, the administration is also publishing a companion document to provide information to federal agencies responsible for executing the policy.
It is estimated that the rule will result in the federal government requiring PLAs on a majority of large federal contracts, with nearly 200,000 workers benefiting.
The announcement was made by administrator Robin Carnahan of the General Services Administration, acting secretary Julie Su of the Department of Labor, and deputy director for management Jason Miller of the Office of Management and Budget. They were onsite at a Cleveland project where a PLA is in place.
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