This training is provided for educational, compliance and loss-prevention purposes only and, absent the express, prior agreement of DWK, does not create

This training is provided for educational, compliance and loss-prevention purposes only and, absent the express, prior agreement of DWK, does not create or establish an attorney-client relationship. The training is not itself intended to convey or constitute legal advice for particular issues or circumstances. Contact a DWK attorney for answers to specific questions.

© 2013 Dannis Woliver Kelley

Project Labor AgreementsSan Joaquin Delta Community College

Board of Trustees

May 7, 2013

Mark KelleyDannis Woliver Kelley

© 2013 Dannis Woliver Kelley 2

What Is a Project Labor Agreement?

•An agreement between the District and all construction contractors/subcontractors on specified projects, to incorporate union requirements for employers and employees on the projects.

•Also called Project Stabilization Agreement.•Note: all California public works projects are

covered under state prevailing wage laws and apprenticeship requirements.


Typical Key Terms of PLAs

• Apply either to listed projects only, or minimum contract amount, or all.

• Allow non-union contractors and workers to participate; they must pay benefits and dues.

• No-strike clause, and skilled labor force provision.• Include dispute resolution process and

mediator/arbitrator.─ Also periodic meetings and pre-job conferences.

• (Possible) utilize students on projects via apprenticeship/internship programs.

• “Core employees” provisions.• Local hire focus/best efforts clause.


The District’s PLA History

•Considered pilot projects in 2004 and 2010.─ Public meetings and positions presented by both

sides of the issue.

•Apparently never entered into a PLA.


Current Thinking About PLA’s

• Key dispute is whether they increase cost/reduce competition.

• Some of the studies of cost impacts:─ National University System Institute for Policy Research

(NUSIPR), July 2011: 13% to 15% cost increase in California school projects attributed to PLAs.

─ UCLA Labor Center: critical of NUSIPR methodology and conclusions.

─ Building and Trades Council (Santa Clara/San Benito) report October 2012: no cost impact.

• Recent anecdotal information is that PLA’s have not materially affected cost.


General Comments

• Evidence of cost impact/no cost impact of PLA’s is either under question or anecdotal.

• Projects with a PLA in place do not need to pay for State wage enforcement process.

• Another factor to be considered is the effect of construction market, now showing first signs of inflation in several years:

─ Assume there will not be a material reduction in the bidding pool in the short term; but

─ Assurance of quality workers under PLA could come into play as the construction market (and skilled labor supply) tightens over the years.


Questions


Mark W. [email protected]

San Francisco

THANK YOU!!

Documents

This training is provided for educational, compliance and loss-prevention purposes only and, absent the express, prior agreement of DWK, does not create