President Biden Mandates PLAs on Large Federal Projects

President Joe Biden has signed an executive order that will require project labor agreements on federal construction projects over $35 million.

"The executive order … is going to help ensure that we build a better America, we build it right, we build it on time and we build it cheaper than it would have been otherwise," Biden said before signing the order on Feb. 4.

A PLA is a multiemployer contract that covers an entire construction project or projects and creates a uniform and stable labor relations system by setting terms like wages, employment conditions and dispute resolution. PLAs are used in both the public and private sectors to help ensure that large-scale projects are completed on time, with the highest degree of quality and in a cost-effective manner.

"These agreements … they ensure that major projects are handled by well-trained, well-prepared, highly-skilled workers, and they ward off problems. They resolve disputes ahead of time, ensuring safer worksites, and avoiding disruptions in work stoppages that can cause expensive delays down the line. And that makes a big difference for the American taxpayer," Biden said.

The White House said the order would apply to $262 billion in federal construction contracting and impact nearly 200,000 workers. It comes on the heels of the passage of the $1 trillion infrastructure bill. While much of that funding will go to non-federal projects, billions are still expected to go to federal spending on waterways, military bases and other areas.

Click here to read an in-depth Electrical Worker article on the PLA order.