Obama signs PLA executive order

[medeak]

Source: ABC National


President Obama Signs PLA Executive Order

An Executive Order was just signed by President Obama on Project Labor Agreements

ABC National is in the process of carefully analyzing the language but their initial read is that it is similar in spirit and intent to the Clinton Era order with one notable change: unlike Clinton era policy which had a project threshold of $5 million for applying this order, this order raises that threshold to only apply to projects valued at $25 million, or more.

ABC’s General Counsel Maury Baskin is reviewing the order and we will provide you with more information and guidance. In addition, communication is ensuing with ABC National and the Senate to make sure they are aware this has happened that they understand its major implications as it relates to the stimulus package. The EO is attached.


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Am disappointed as Obama said he would wait on this due to economy. This hurts contractors like self who pay the same wages and have even better benefits than unions and don't want to be told who to hire

[Windy]

1. He raised the threshold to 25 mil. My husband is a non-union electrical contractor

He does a lot of big jobs, but not many at 25 million. I think the ceiling will prevent businesses like my husbands from getting hit.

[medeak]

5. I wonder if this would apply to subs

bidding on a large project by general?

[medeak]

11. how are you doing business wise btw?

we have reverse economy and doing ok..

[Windy]

15. Terrible. We live in Michigan. The economy here is so depressed. nt

[medeak]

17. am so sorry

we are anticipating housefull of friends moving in with us as out of work out of town. So glad we can help out. Feel so very fortunate. I ache for you and employees

edited to say...just was told that this would affect subcontractors on federal projects so the 25 million doesn't mean anything. And your state needs federal projects more than anyone I know.

[Romulox]

2. If you don't want to be told who to hire, then don't take government money.

Simple.

[medeak]

3. who takes govt money?

we certainly don't and we do bid big jobs

[Romulox]

6. People subject to the executive order.

"we certainly don't and we do bid big jobs"

Hard to understand what you're complaining about then. :shrug:

[medeak]

4. analysis....granted by ABC general

Administration’s Executive Order on Project Labor Agreements
Analysis prepared by ABC General Counsel, Maurice Baskin

On February 6, President Obama issued an executive order declaring that executive agencies awarding contracts on
"large scale construction projects" having a total cost to the federal government of $25 million or more "may, on a
project-by project basis, require the use of a project labor agreement" by a contractor (binding all subcontractors). The
agency must find that such an agreement will "advance the federal government's interest in achieving economy and
efficiency in federal procurement, producing labor-management stability, and ensuring compliance with laws and
regulations governing safety and health equal employment opportunity, labor and employment standards, and other
matters, and be consistent with law." The Order sets forth a series of policy justifications for these provisions that are
demonstrably false. Significantly, no PLAs have been imposed on federal construction projects for at least the last eight
years, and none of the adverse effects identified in the policy statement have occurred.

While the Obama Order directly imposes PLAs on large scale construction projects, equally important is that the Order
revokes President Bush's Executive Order 13202, which had barred any recipient of federal financial assistance, i.e.,
state and local governments, from imposing PLAs. As a result of the new order, state and local governments in some
parts of the country will undoubtedly start imposing PLAs where they previously had not done so because of the
federal ban.

The Obama Order goes into effect immediately, but will only apply to solicitations for contracts issued on or after the
effective date of implementing regulations to be issued by the FAR Council, which is ordered to occur within 120 days.
The Order further directs OMB to assess whether even broader use of PLAs should be directed.

The Obama Executive Order exceeds the President's statutory authority. Whether and when a court challenge should
be filed is under review at the national level. The Order will result in widespread discrimination against the many
construction workers who do not belong to unions, and denies their right to Freedom of Association and Equal
Protection. The Order will cause money to be unfairly taken from such workers and funneled into under-funded union
pension plans, from which the workers can receive no benefits. The Order will increase costs to the federal taxpayers
by arbitrarily limiting competition for federal construction work.

[proud2BlibKansan]

7. Do you do $25 million jobs?

[medeak]

12. mechanical contractor

we don't do jobs in that category but our general contractors do and it sounds like it may affect the subcontractors on the job. Need more info. As for govt projects everyone is federally mandated to pay prevailing wages

[proud2BlibKansan]

19. I support prevailing wages

Union member here :)

[medeak]

23. so do I n/t

[fasttense]

8. Funny, When Clinton did it, it didn't destroy the economy.

In fact, the bush did destroy the economy and he never did this. So all you gloom a doom repuke-like complaints are Not supported by history.

[fasttense]

9. So.....

"This hurts contractors like self who pay the same wages and have even better benefits than unions."

Since you are paying Union like wages anyway, why not get a Union started in your business and then you wont have any problems.

[medeak]

13. union hall is 300 miles away

we live in remote area with large projects going on. It's taken 27 years to get the quality employees we have and don't ever want to go through union hall again. We also have our own apprentice program and welcome even our competitors employees to learn and be more qualified which is overseen through the state.

Expected to be hated on .... there are some of us that are really good guys!

[fasttense]

21. Oh yeah right.

If you are keeping the Unions out it is because you know you will have to pay your workers a decent salary. I don't believe you.

[Psephos]

30. you're insulting a quality guy...the world is more complex than ideology can fathom n/t

[Windy]

16. There are rules with unions that are not compatible with small business

Its too involved to get into here.

[fasttense]

22. Yeah, like paying a decent salary, no more slave wages and that sort of thing. n/t

[Windy]

25. My husband's business pays exactly what the union does and provides full benefits

He has control though over who he calls back if there is a lay off and who he lays off. Ours is a small company. Some of his best electricians are ones that were recently hired... He can't afford to have to go through the union hall to get workers for jobs when he calls someone back with the uncertainty regarding quality that is involved.

Facts are facts.

[drm604]

10. Can someone explain this?

What is a Project Labor Agreement? What is this order trying to achieve?

[medeak]

14. I want more info as well n/t

[ogneopasno]

26. A project labor agreement is generally seen as a pro-labor agreement.

If a project receives government (federal, state or city) money and the government body has a project labor agreement, the contractors receiving government money on that project are required to pay the prevailing wage of that area to their employees while employed on that project. The prevailing wage is often, but not always, union scale. This is seen as good for unions because it upholds wage standards.

[drm604]

29. Makes sense.

The whole point of stimulus is to get money into the hands of working people, so it makes perfect sense to set pay standards.

[mentalslavery]

18. ABC sounds like a Free Market front

But check it out for yourself

specifically vitter the prositute loving congressman is a supporter and that makes me suspicious.

111th Congress
Jan. 9, 2009 Senator David Vitter (R. La.) introduced the Government Neutrality in Contracting Act (S. 90), a measure to codify into law President Bush's Feb. 17, 2001 Executive Order 13202 barring federal agencies from requiring union-only project labor agreements on federal and federally funded construction projects. S.90 has been referred to the Senate Committee on Homeland Security and Governmental Affairs.


that link is from
http://www.abc.org/Government_Affairs/Issues/ABC_Priority_Issues/Project_Labor_Agreements.aspx

But the big clue 4 me is

Vision

Associated Builders and Contractors will lead the construction industry, promoting and defending the guiding principles of the merit shop and free enterprise whereby anyone can succeed solely on merit.

that is linked from

http://www.abc.org/about_abc.aspx

Don't like the sound of merit shop or free enterprise.

Yeah, I get the picture, you want to pay people by the piece, discount as many as you can as defected, eliminate any set-up or shut down shop labor and promote "free enterprise" such as the the ability to undercut a living wage by using the surplus labor force to drive down cost.

The big criticism you here from this organization is that these contracts drive up the cost of government projects. WELL-THATS WHAT HAPPENS WHEN YOU PAY PEOPLE A SALARY THEY CAN LIVE ON.

[ogneopasno]

27. The ABC is the contractors' anti-union arm. Their are as anti-union as they can get.

[mentalslavery]

28. Yeah, I think we got a troll here-poster brings it up as if we should be "concerned"

but a quick google search reveals what ABC is about.

[pasto76]

20. First of all, PLAs are not exclusively Union

ANYONE can enter the negotiations.

ANYONE CAN WORK ON THE PROJECT.

The real truth is, most contractors will not agree to the total package (hourly wages + benefits) that most PLAs end up having.

again, about 88% of the workforce is not union. Unions do not have a stranglehold on anything (as a union member, when I have to travel past a dozen closer-to-home-than-my-job projects, I wish we did)
Truth is, most locals in most trades are constantly fighting for relevance and survival.

So heres the heads up to the above non-union contractors. If you guys DONT suck, if you DONT try and screw your workforce, then they probably will never try to organize. Try and screw them, and they will. Theres nothing wrong with that.

[Zhade]

24. Oh boohoo, Mr. Anti-Union.

:nopity: