Biden mandates PLAs on large federal contracts

The Biden administration announced on Monday a final rule implementing an executive order that will require project labor agreements on federal construction projects costing $35 million or more. It will likely result in PLAs being required on a majority of large federal jobs. As a result, the White House estimated as many as 200,000 workers on federal construction jobs could see boosted “wages, benefits and safety protections regardless of union membership.” Part of the goal of the executive order, according to the White House fact sheet, is to increase efficiency by having all stakeholders — contractors, subcontractors, unions or other labor groups — negotiate the terms of each project ahead of time. On Monday, Sean McGarvey, president of North America’s Building Trades Unions, praised the implementation. “With this latest action to strengthen economic security, labor-management relations and family-sustaining job opportunities, President Biden is yet again demonstrating his rock-solid commitment to American taxpayers and all workers — union and non-union — across the country,” McGarvey said.

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