Dive Brief:

• The Government Neutrality in Contracting Act (H.R. 1671), introduced by Rep. Mick Mulvaney (R-SC), has been reported out of the House Committee on Oversight and Government Reform as favorable, according to the Associated Builders and Contractors. "Reporting out" signals that the committee has issued a report to a full chamber recommending that the bill be considered further, and the addition of "favorable" indicates the committee recommends passage.
• The bill would prevent federal agencies from requiring contractors to sign project labor agreements (PLAs) as a condition of winning federal or federally funded construction contracts. The ABC said this will increase fair and open competition on federally funded projects.
• The ABC also said the bill would save taxpayers some money, as studies have shown that government mandated PLAs increase the cost of many construction projects by 12%-18%, versus similar non-PLA projects.

Dive Insight:

A PLA, according to the ABC, typically requires companies to recognize unions as the representatives of employees on that job. The association said PLAs also require companies to use union workers at the expense of existing, qualified employees; take on apprentices through union apprenticeship programs; follow inefficient union work rules; pay into union benefit and multi-employer pension plans; and require workers to pay union dues and possibly join a union as a condition of employment.

PLA proponents claim they are a way of controlling costs and quality on the job, and they reject the idea that they place an undue burden on non-union contractors and employees.

After President Obama issued Executive Order 13502 in 2009 encouraging the use of government-mandated PLAs on federal and federally funded construction projects, 20 states enacted legislation or executive orders restricting PLA requirements on state and local projects, according to the ABC.

Additionally, West Virginia and Arkansas enacted bills to outright prohibit PLA mandates last year, and Nevada now restricts PLA mandates on state and state-funded projects.

ABC Director of Labor and Federal Procurement Ben Brubeck said in a release, "By removing federal agencies' ability to require these discriminatory agreements, Rep. Mulvaney’s common-sense legislation will increase competition on taxpayer-funded construction projects and ensure that taxpayers get the best possible construction at the greatest value."

Industry associations like the ABC and the Associated General Contractors of America have long opposed government-mandated PLAs, and state judicial attitudes about them have run hot and cold over the years, with some courts killing any attempts to require PLAs and some shooting down any move to restrict them.