1. Owners, Contractors & Construction Users
    • Project Labor Agreements reduce uncertainty inherent in large-scale
    • construction projects by establishing all terms and expectations up
    • front and creating a framework for cooperation among all groups working
    • on the project. By adopting a labor-management model that fosters
    • jobsite efficiencies and ensuring an uninterrupted supply of qualified
    • workers, PLAs keep a project on schedule, avoiding costly delays. This
    • also allows parties to more accurately predict labor costs and
    • production timetables, which means more accurate bidding and lower
    • overall costs. PLAs also offer direct cost savings through streamlined
    • safety procedures, avoiding renegotiations, setting work schedules to
    • keep costs low, and using expedited dispute resolution procedures.
  2. PLA users
    • PLA users also highlight the economic benefits of having immediate
    • access to a highly trained, highly productive workforce. Workers who
    • have gone through the joint union-contractor apprenticeship programs
    • have top-notch training in safety and the crafts, leading to
    • higher-quality work and fewer job-site accidents, which saves money in
    • the long run. With a PLA in place, contractors and subcontractors must
    • compete on the basis of who can best train, equip and manage a
    • construction crew to create the highest-quality product, instead of who
    • can find the cheapest workforce. Contractors and owners also note that
    • PLAs increase the accuracy of bids by weeding out low-quality and
    • inconsistent subcontractors.
  3. Opponents of Project Labor Agreements
    • Opponents of Project Labor Agreements have argued that PLAs increase
    • project costs, but studies by UCLA, Cornell and other leading academics
    • have concluded that there is simply no evidence to back up this
    • conclusion . In fact, most PLA users speak to the economic benefits of
    • using PLAs that contractors and owners have recognized for the past
    • three-quarters of the century. PLAs have since been used regularly by
    • both private and public entities since the great dam projects of the New
    • Deal. Today, large, companies such as Toyota, Disney, and Bechtel
    • choose to use PLAs for their private construction projects, recognizing
    • that emphasizing quality workmanship is a profitable and socially
    • responsible business plan.
  4. Examples
    • For example, Bechtel Construction has utilized project labor agreements
    • on over 100 large construction jobs nationwide in the last twenty-five
    • years, 85 percent of which have been in the private sector. Toyota has
    • built every one of its North American manufacturing facilities under a
    • Project Labor Agreement, and report that their per foot construction
    • costs are one-third less than those of the competitors who eschew the
    • use of Project Labor Agreements.
Card Set