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 schedule of wages, work hours and work rules are established for all non-union and union contractors.
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.
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.
Key Points of the SDA Project Labor Agreement (PLA)
The Commissioner of Labor shall make an annual report on the overall effectiveness of PLAs in meeting the legislations' purposes, including information regarding minority and women employment on PLA projects.