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Big labor deals are slow to emerge

By: Justin Carinci//August 31, 2009//

Big labor deals are slow to emerge

Justin Carinci//August 31, 2009//

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A major remodel of the Edith Green-Wendell Wyatt federal building in Portland could be the first Oregon project built using a project labor agreement under an executive order signed by President Barack Obama in February. The agreements are now encouraged, although not required, on projects using $25 million or more of federal money.
A major remodel of the Edith Green-Wendell Wyatt federal building in Portland could be the first Oregon project built using a project labor agreement under an executive order signed by President Barack Obama in February. The agreements are now encouraged, although not required, on projects using $25 million or more of federal money.

Nearly seven months after President Barack Obama signed an order encouraging on big construction projects, no such agreement has surfaced in Oregon. As more projects begin, however, the state could be among the first to use the agreements.

Project labor agreements, or PLAs, set bargaining terms with labor organizations in advance. The executive order, signed Feb. 6, promotes the agreements on projects receiving $25 million or more in federal money.

Construction projects of that size are rare during the recession, said Bob Shiprack, executive secretary of the Oregon State Building and Construction Trades Council. 鈥淔irst we have to get some projects,鈥 Shiprack said.

In Oregon, the $133 million remodel of the Edith Green-Wendell Wyatt Federal Building in Portland could be the first to use a PLA since Obama’s order. Tony Costa, the acting commissioner of the General Services Administration‘s Public Buildings Service mentioned the project in congressional testimony on July 31. Costa referred to 10 big projects in seven states where the agreements may be used.

No GSA projects in the Northwest have used project labor agreements, regional spokesman Ross Buffington said. The agency is considering using one for the Green-Wyatt building, Buffington said, but the decision probably won’t be made until around the time a contract is awarded, in December.

The fact that PLAs haven’t bloomed since Obama’s order doesn’t mean opponents of the agreements have let up. Associated Builders and Contractors has made the issue a top priority in its lobbying.

鈥淭his is not a today issue,鈥 said John Killin, president of ‘s local chapter. 鈥淭his is an ongoing, decadelong argument.鈥

Democratic and Republican presidents since George H.W. Bush have either banned or promoted PLAs in federal contracting. Open-shop advocates such as ABC dislike the agreements, claiming they force nonunion workers into joining a union or paying dues. Union groups say PLAs reduce strife and speed up projects.

Killin said ABC’s lobbying has achieved some success, at least. The federal government will bid its big projects with and without project labor agreements to compare the approaches, he said.

鈥淲e’d prefer they not bid the PLA version at all,鈥 Killin said. 鈥(But) we’re forcing them to toe the line and do due diligence.

鈥淥bama’s order could have said 鈥榰nion-only,’ period,鈥 he said. 鈥淭he agencies could say everything is union-only, but they didn’t, and they haven’t and we don’t think they’re going to.鈥

The federal government appears to be taking the agreements slowly, Shiprack said, and rules on how best to put them into effect could be released later this month.

鈥淚 thought there would be the executive order and 鈥榖oom,’ that’s it,鈥 Shiprack said. 鈥淏ut it looks like there’s some extensive rule-making going on.鈥

The executive order doesn’t directly affect non-federal projects. Some energy projects, including the proposed Bradwood Landing natural gas project on the Columbia River, will use a PLA, Shiprack said, once they get started.

But private projects draw less fire from opponents than do public ones. 鈥淚f that person feels that’s the best use of their money, that’s their decision,鈥 Killin said.

鈥淲ith big developers, it’s frustrating, but at least it’s not public money being used.鈥



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