PLAs and the Non-Union Contractor: a Q&A

The Construction Broadsheet has published a Q&A on project labor agreements (PLAs) and non-union contractors, featuring questions from readers and answers from James J. Terry, a partner at Zetlin & De Chiara, who specializes in the resolution of construction management disputes.

Following is a highlight. Read the rest of the story in The Construction Broadsheet.

Q. I run a large subcontracting firm, and we would like to bid on a project that is covered under a PLA negotiated between the owner and a local union. We are not union members and don’t want to be. Do we have to join the union and hire union workers to bid or perform work on the project?

A. Joining the union and hiring union workers is not a prerequisite to bidding or performing work on a PLA project. The Executive Order issued by the Biden Administration in February provides that any PLA must allow all subcontractors to compete for subcontracts "without regard to whether they are otherwise parties to collective bargaining agreements."

A project labor agreement is a one-off contract with a labor organization that will require adherence to certain work rules and compensation standards. However, it would not require a wholesale change in the manner in which a participating subcontractor conducts its business.

(The information provided here does not, and is not intended to, constitute legal advice but is for general, informational purposes. Please consult a qualified construction attorney in your state for advice specific to your situation.)

Source: The Construction Broadsheet