Gov. Shapiro looks to increase construction efficiency through project labor agreements
CLINTON TWP — State agencies will begin pursuing project labor agreements for certain construction projects, to increase efficiency, workplace safety and the hiring of Pennsylvanians following a directive signed by Gov. Josh Shapiro on Wednesday, March 27, in Butler County.
A project labor agreement, or PLA, is a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project, according to the U.S. Department of Labor.
Shapiro explained during a visit to the Pennsylvania Laborers’ Training Center that project labor agreements between workers and a developer agency improve project efficiency.
“They guarantee a steady, consistent supply of workers with the right skills to get the job done,” Shapiro said. “They include no strike provisions that ensures work will continue without interruption, and they set wages and benefits for all workers up front, and they can even include things like workforce development.”
Shapiro was surrounded Wednesday by leaders of labor organizations and contracting companies, who lauded the governor’s support of organized labor and focus on local workers.
Dennis Martire, vice president and mid-Atlantic regional manager of Laborers’ International Union of North America, also attended the conference, and said region administrators have found that jobs completed under project labor agreements are usually done on time.
“There is no cost to the taxpayer because it’s on the prevailing rates,” Martire said. “Whether you are union or nonunion, it doesn’t matter — everyone is paying the same rates because it’s covered under Pennsylvania prevailing rate.”
The directive will take effect April 1, and introduces new criteria for state capital projects that would qualify for a project labor agreement, including a particular need and urgency; complexity of the project; and lack of available qualified labor.
“Agencies will use PLAs on future projects every time,” Shapiro said. “Agencies will evaluate every single capital project to determine if it meets those new criteria, and if it does, now they will use a PLA here in the commonwealth.”
The conference featured speeches from Philip Ameris, president of the Pennsylvania Laborers’ District Council; Reggie McNeil, secretary of the Pennsylvania Department of General Services; Vince Tutino, president of Lindy Paving; Kenny Broadbent, business manager of Steamfitters Local 448; and Mandy Daughtry, an apprentice at the laborers training center.
Martire also said the use of project labor agreements could recruit more people to labor jobs and careers, because people will know what they are being paid ahead of time. He added that this is needed, especially in Pennsylvania where the labor workforce is aging.
“If you look at the graphs, everyone in the construction industry is getting a little older,” Martire said. “The workforce is getting older, and in the construction industry you have to keep replenishing it. You can’t be pouring concrete at 70 years old, it’s very hard work.”
Jordan Grady, president of the Butler County Chamber of Commerce, said the governor’s directive bodes well for Butler County, where there are a number of labor unions at numerous contracting companies.
“We have a very strong presence of organized labor in Butler County, and it definitely will provide more opportunities,” Grady said. “These are high-paying jobs, great health care — it opens up a great opportunity.”
Shapiro said at the conference that he hopes to see the Pennsylvania General Assembly introduce legislature further supporting organized labor, following in the footsteps of his new directive.
He also said the new directive doesn’t lock companies out of bidding for state project contracts, but it could help to employ more Pennsylvanians in the awarding process.
“They can require local hiring, even for out-of-state contractors, so we will know that the people doing the work here in Pennsylvania are Pennsylvanian,” Shapiro said.
