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What is a Project Labor Agreement?
In general, Project Labor Agreements (PLAs) are contracts that are executed in
connection with large, complex, public works construction projects whereby
signatories to the agreement consent to forego strikes, work stoppages or job
actions and provide a guaranteed flow of skilled labor. In exchange, a set of
schedule of wages, work hours and work rules for all non-union and union
contractors is established.
These agreements are usually written in a manner to accommodate non-traditional
union practices so as to welcome diversity to the work site and promote public
policy.
Timelines
On July 18, 2000, the New Jersey Educational Facilities Construction and
Financing Act was signed into Law. It provides for full funding by the state of
all school construction and renovations in 31 special needs districts, known as
the Abbott School Districts (now known as SDA Districts). In addition, funding was provided for the state
share of eligible construction costs on projects in other districts.
 On January 17, 2002
Executive Order 1 was signed, which provides that:
On a project-by-project basis, a state department, authority, or
instrumentality shall include a PLA in a public works project where it has been
determined that the agreement advances the state's interests of cost
efficiency, quality, safety, timeliness, skilled labor force, labor stability,
and the state's policy to advance minority and women-owned businesses.
On July 30, 2002 legislation A1926 was signed authorizing the use of Project
Labor Agreements on major public works projects.
The New Jersey Schools Development Authority, created in 2007, is continuing
uninterrupted with the use of Project Labor Agreements, which its predecessor
agency, the New Jersey Schools Construction Corporation, implemented upon being
established in 2002.
Key Points in PLA Legislation
PLAs are authorized when project costs exceed $5 million.
PLAs must contain guarantees against strikes and lockouts as well as binding
procedures for resolving disputes, jurisdictional and/or labor.
A PLA must be binding on all contractors and subcontractors but "may include"
provisions that permit non-union contractors to participate and retain a
percentage of their workforce.
Every contractor and sub-contractor on a PLA governed project must have a
registered apprentice program.
A PLA must include a publicly available plan regarding the shares of employment
and apprenticeship positions for minority group members and women.
A PLA must require the contractor to provide "whatever resources necessary" to
prepare for the apprenticeship of the number of women and minorities as set
forth in the publicly available plan.
The Commissioner of Labor shall make annual report on the overall effectiveness
of PLAs in meeting the legislations' purposes, including information regarding
minority and women employment on PLA projects.
The Commissioner of Labor shall make annual report on the overall effectiveness
of PLAs in meeting the legislations' purposes, including information regarding
minority and women employment on PLA projects.
What You Need to Know About the SDA Project Labor Agreement
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