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Construction
Newsletter - Second Quarter 2001
 
In this Issue...
Boston’s Central Artery Project Avoids a "Bush-whack" of Its Project Labor Agreement
 
 May 29, 2001
 
Paul M. James- Boston

On February 17, 2001, President George W. Bush signed an Executive Order that generally prohibits the use of Project Labor Agreements (PLAs) on federal construction projects (or federally funded or assisted projects). This could have affected labor relations on Boston’s $14 billion Central Artery/Tunnel Project which has an existing PLA. Pleas to grandfather projects with existing PLAs were successful. On April 6, 2001, President Bush amended the executive order exempting projects with existing PLAs from the earlier prohibition.

PLAs typically require all bidders, both union and non-union, to agree to use union labor and to abide by wage and benefit agreements between the awarding authority and unions. PLAs effectively eliminate non-union contractors from bidding. Non-union contractors argue PLAs are discriminatory and violate the basic tenets of federal and state procurement statutes. (For more on PLAs, see Holland & Knight LLP Construction & Design Law Letter, Vol. 6, Issue 1.)

Under President Bush’s Executive Order, the head of a federal procuring agency is granted only limited discretion to allow PLAs in very specific circumstances. An agency may exempt a particular construction project if the agency head determines "that special circumstances require an exemption in order to avert an imminent threat to public health or safety or to serve the national security." (emphasis added). The Executive Order specifically states, however, that the potential for a labor dispute is not a "special circumstance." Clearly, this is a significant blow to proponents of PLAs.

In a recent development, a union filed a lawsuit, challenging President Bush’s Executive Order. The AFL-CIO’s Building and Construction Trades Department sued in federal district court complaining the executive order violates the National Labor Relations Act. See additional PLA stories on pp. 4, 7.

For more information please call 617- 523-2700.