Project Labor Agreements
A reliable tool for successful building

QUICK FACTS ABOUT
PROJECT LABOR AGREEMENTS (PLAs)
• PLAs are contracts between owners and labor organizations for a specific construction project. In the public sector, union and non-union contractors can bid on a PLA project. All contractors, union and non-union alike, must abide by the terms and conditions of the PLA.
• PLAs deliver the best possible schools to students. Parents, administrators and taxpayers have less to worry about regarding faulty construction, leaky roofs, heatless rooms and other building problems that interfere with learning and result in additional repair costs.
• PLAs are an excellent way to stimulate local and state economies. More local contractors bid and win work under PLAs and employ more workers who are state residents. Local contractors and workers pay local and state taxes and purchase local goods and services.
• Since all public construction projects are subject to prevailing wage regulations in New Jersey – whether built under a PLA or not – true labor costs will be essentially the same, with or without a PLA in place.

The NJ Schools Construction Corp. and the NJ Building & Construction Trades Council have approved a Master Project Labor Agreement that applies to school construction projects costing over $5 million, which are evaluated as being appropriate for use of a PLA

PROJECT LABOR AGREEMENTS:
WHAT YOU NEED TO KNOW

Project Labor Agreements are normally enacted on projects that are large and complex with many different trades involved, or where a compelling need exists such as strict schedule and budgetary constraints, or exceptional work site safety concerns. Contractors who are successful bidders under a PLA must recognize signatory unions as the sole and exclusive bargaining agent for all craft employees performing on-site project work. Contractors agree to pay area prevailing wages, as well as appropriate contributions on behalf of all employees covered by the agreement to established benefit funds.

Project Labor Agreements are evaluated and agreed upon on a project-by-project basis. PLAs prohibit strikes, sympathy strikes, picketing, work stoppages, slowdowns, hand billing, lockouts, demonstrations, or other disruptive activity at the project by any union or employee against any contractor or employer. As a result, public projects are completed in a timely manner, at a reasonable and affordable cost to taxpayers.

Project Labor Agreements are designed to:
• Ensure a reliable source of well-trained, skilled and experienced labor.
• Standardize terms and conditions governing the employment of labor and settlement of work disputes.
• Permit flexibility in work rules, scheduling and staffing requirements.
• Promote labor harmony and avoid costly work delays and disruptions.
Improve employment opportunities for minorities, women and the disadvantaged.