What is a Project Labor Agreement (PLA)?
A PLA is a pre-hire collective bargaining agreement with one or more labor organizations. It establishes the employment terms and conditions for a specific construction project. PLAs are commonly negotiated between the Building Trades and Awarding Agencies/Project Owners or Prime Contractors and exclusively apply to the Project and Scope of Work called out in the PLA. Lower tiered union and non-union subcontractors agree and are bound to the terms of the PLA via the execution of a “Letter of Assent” prior to commencing work on the project.
What are the Benefits of a PLA?
PLAs have been used on projects utilizing multiple procurement methods, including Design-Build projects, small and large scale public building projects, and on highway and transit projects. Their benefits include:
- “No-Strike/No-Lock Out”
- Provisions Dispute Resolution (Defined Grievance Process)
- Uniform Wage and Employment Standards
- Constant Dispatch of Skilled Labor
- Allows Equal Access to Union and Non Union Contractors
- Awarding Body Exemption to DIR CMU for Design-Build and Bond Funded Projects
Can PLAs be applied to Federal Projects?
Executive Order 13502, entitled “Use of Project Labor Agreements for Federal Construction Projects,” was signed by President Barack Obama on February 6, 2009 and was published, following a public comment period. The Executive Order allowed federal agencies to consider and enter into PLA’s in large-scale federally assisted construction projects and explained that the use of a PLA may ensure a steady supply of labor, prevent labor disputes and uncertainty about the terms of conditions of employment, and promote the efficiency and timely cooperation of construction projects. The Executive Order further established requirements and standards that federal agencies must meet when using PLAs.
Why Padilla & Associates, Inc. is the best choice to negotiate and administer your PLA?
As a leader within the California construction industry in providing Project Labor Agreement, Local Hire and Construction Careers Policy program development, compliance monitoring and outreach initiative for over sixteen (16) years, the Padilla & Associates, Inc. team has established strong working relationships with the California Building Trades Council and their local affiliates, the Southwest Regional Council of Carpenters, Job Placement Centers, and various Apprenticeship Training Programs.
Padilla & Associates, Inc. has successfully assisted the following Public Entities with the facilitation and negotiation of Project Labor Agreements and Construction Careers Polices:
- Assisted with the Negotiation, the City of Long Beach’s Section 3 PLA for the Long Beach Airport Terminal Project valued at $25 million.
- Facilitated and Negotiated the Upper San Gabriel Valley Municipal Water Districts PLA with the Los Angeles/Orange Counties Building Trades Council.
- Facilitated and Negotiated the Exposition Metro Line Authority’s (EXPO) PLA for the Phase 2 Construction Project.
- Drafted the Exposition Metro Line Authority’s (EXPO) Construction Careers Policy for the Phase 2 Construction Project.
- Facilitated three (3) amendments to the Los Angeles Community College Districts PLA for its $6 billion building program.
- Assisted the San Gabriel Unified School District in identifying and adopting a four tiered local hire goal for its PLA.
- Drafted the “PLA White Paper” for the California High Speed Rail Authority.
Additional PLA Accomplishments
All PLA’s under Padilla & Associates, Inc.’s administration are currently meeting or exceeding established local hire goals.
Firm selected to perform audit of Expo Phase I contractors Local Hire implementation plan and provide contractor with corrective action procedures and guidance of meeting of Local Hire Goals.
Established the Riverside Community College Districts PLA Administration infrastructure in thirty (30) days from P&A’s award date due to the first PLA projects release for bid.
The local hire database developed by Padilla & Associates, Inc.’s for the Los Angeles Community College Districts $6.6 billion dollar Sustainable Building Program has been recognized in publications by the UCLA Center for Labor Research.
Developed Riverside Community College District Fact Sheets for dissemination to the contracting community.