Executive Order Mandates Use of Union Workers in Pennsylvania by Gov. Shapiro
The state of Pennsylvania is set to undergo a significant change in its construction projects as Governor Josh Shapiro issues an executive order mandating the use of project labor agreements (PLAs). These agreements, negotiated between construction unions and contractors, establish the terms and conditions of employment for construction projects. The order mirrors President Joe Biden’s executive order from earlier this year, which requires the use of PLAs for federal construction projects.
While the intention behind the executive order is to ensure timely completion of projects and address concerns about qualified labor availability, it has raised concerns within the Pennsylvania Chamber of Business and Industry. The Chamber worries that non-union businesses may be cut out of government contracts due to the criteria set by Governor Shapiro. Although non-union companies will still be able to bid on projects, the likelihood of them being awarded contracts is diminished under the new guidelines.
Governor Shapiro’s directive instructs all agencies under his jurisdiction to examine contract solicitations and determine if the use of a PLA is appropriate and allowed. The bidding process remains open to both union and non-union contractors, with non-discrimination against non-union labor. However, the proactive attachment of PLAs to solicitations raises concerns about fair competition for non-union businesses.
The Department of General Services (DGS) and the Pennsylvania Department of Transportation (PennDOT) are specifically instructed to attach PLAs to solicitations if certain criteria are met. These include the need for urgency, complexity of the project, or concerns over qualified labor availability. Governor Shapiro believes that this process will strengthen the economy, infrastructure, and labor standards for all Pennsylvania residents and visitors.
The Pennsylvania Chamber of Business and Industry has expressed concern about the potential exclusion of non-union businesses from government contracts. Senior Vice President for Government Affairs, Alex Halper, states that PLAs typically require private companies to commit to using unionized labor as a prerequisite for consideration. This, in turn, puts non-union businesses at a disadvantage or forces them to replace their own employees with union labor, which is seen as unfair and discriminatory.
The Chamber suggests that bids for public projects should be based on merit and cost-effectiveness rather than mandating the use of PLAs. They argue that project labor agreements have been shown to raise project costs without providing any discernible benefits in terms of safety, timeliness, or budget adherence.
It is worth noting that labor unions heavily supported Governor Shapiro during his election campaign. Contributors included the Laborers Union, Carpenters & Joiners Union, the International Brotherhood of Electrical Workers, the Sheet Metal Workers Union, Plumbers & Steamfitters Local 449, Bricklayers & Allied Crafterworkers Local 1, and the Teamsters Union.
As the executive order takes effect on April 1, it remains to be seen how its implementation will impact the construction industry in Pennsylvania. Non-union businesses will be watching closely to see how bidding processes unfold and whether they are given a fair chance to compete for government contracts. The outcome of this order could have far-reaching implications for the state’s economy and the future of construction projects in Pennsylvania.
