Nysdot Project Labor Agreement

Clearly, the department wanted a PLA mandate for this project. You don`t need to look any further than the fact that they have launched an offer from a qualified contractor for nearly $5 million more than the lowest offer to determine the intent of NYS DOT. Proponents of PLA say they provide more stability and structure for construction projects and increase project efficiency by reducing the likelihood of labour disputes that would delay the project. Although PL supporters argued that President Bush`s executive orders were contrary to the National Labor Relations Act, the Supreme Court ruled in favor of President Bush`s executive orders in the Department of Building and Construction, AFL-CIO et al., ahead of Joe M. Allbaugh, Director, Federal Emergency Management Agency, et al. On March 1, an Albany County Supreme Court ruled that the government-mandated PLA by NYS DOT violated state procurement laws. The Tribunal found that NYS DOT did not demonstrate that the decision to require a PLA advanced the state`s interests in the acquisition of construction services. The court ordered NYS DOT to re-propose the project. During President George W. Bush`s tenure, he signed two executive orders (13202 and 13208) that prohibited the federal government or any authority working with federal assistance from nadier or prohibiting contractors from signing a union agreement for federal or federal projects. In 2009, President Obama rescinded executive orders and adopted Executive Order 13502, which encouraged federal authorities to hire LTCs for large construction projects worth more than $25 million. A PLA is a collective agreement that was approved prior to a particular construction project between one or more labour organizations and the employer.

The objective of a PLA is to create conditions of employment in order to reduce friction on the ground that could lead to labour disputes. «The verdict does mean that DOT was defective in its decision to accept a project employment contract, which would cost taxpayers an additional $4.5 million,» said Mark Galasso, President of Lancaster Development, Inc. «As a contractor and taxpayer, I welcome today`s decision. On February 6, 2009, President Obama signed An Executive Order 13502 entitled «Use of Project Labor Agreement for Federal Construction Projects.» This executive order encourages executive agencies to consider the use of LTOs in major direct-construction projects in the Confederation (defined as a project with a total cost of $25 million or more). In particular, Section 3 allows agencies to require the use of a PLA in federal contracts when such use becomes: «. . . (i) to promote the federal government`s interest in federal economic and effective procurement, to ensure the stability of labour management, to ensure compliance with health and safety laws and regulations, equal employment opportunities, labour and employment standards and other matters, and (ii) to comply with the law.» Under its terms, Section 3 applies only to the awarding of federal contracts, not to contracts awarded under federal support programs. With respect to projects receiving federal financial assistance, Section 5 states: «This contract does not require an agency to use a project work contract for a construction project and does not exclude the application of a project work contract in non-market circumstances, including leases and projects receiving federal financial assistance.» Although the Sagb was not instructed by the executive to use the PLA, states have strengthened their use of collective agreements through federally funded and federally supported projects and wasted more taxpayers` money.