Project Labor Agreements

What is a Project Labor Agreement?

A Project Labor Agreement (PLA) is a bargaining agreement with one or more labor organizations that establishes the employment terms and conditions for a specific construction project. PLAs typically require that employees hired for the project are referred through union hiring halls, that nonunion workers pay union dues for the length of the project, and that the contractor follow union rules on pensions, work conditions and dispute resolution.

ABC of Metro Washington supports fair, competitive and open bidding practices on public works projects. For that reason, we do not support PLAs as they discourage, or even prohibit, merit construction companies from working on these projects.

PLAs drive up the cost of construction by reducing competition and effectively excluding merit shop contractors and their skilled employees from building projects paid for by their own tax dollars.

Did You Know…

PLAs Discriminate Against Local Hiring

90% of Maryland and the District of Columbia’s construction workforce chooses not to belong to a union. When a PLA mandates that all workers be hired through a union, it eliminates the vast majority of the local workforce and hurts local businesses.

PLAs Mean Higher Costs for Taxpayers

PLAs restrict the bidding process — which means less competition, leading to higher costs. If the project is local- or state-funded, it’s financed by local taxpayers. That means YOU are paying for inflated, and unnecessary, construction costs.

PLAs Are Bad for the Economy

Costs increase an average of 15–20% on public projects with PLAs — which means instead of building 5 schools, we can only build 4. It also means our unemployment rate increases, spending goes down, and tax revenue is wasted instead of funding new programs.