NC Governor Signs Anti-PLA Bill into Law

North Carolina Governor Pat McCrory signed House Bill 110, which will prohibit government entities in the state from requiring contractors to sign a project labor agreement (PLA) or other agreements with labor unions as a condition of performing work on public construction projects.

“This new law will ensure that public construction contracts will be awarded to firms that provide taxpayers the best construction at the best price,” said ABC Carolinas Chapter President & CEO Doug Carlson. “There is no question that construction labor union bosses in other states are using these types of mandates to steer public construction projects to contractors who are willing to accept their onerous demands and this new law will protect North Carolina taxpayers from this kind of abuse.”

A PLA is a special interest scheme that discourages competition from nonunion contractors and their workers by requiring a construction project to be awarded only to contractors and subcontractors that agree to recognize unions as the representatives of their employees on that job; use the union hall to obtain workers; obey the union’s restrictive apprenticeship and work rules; and contribute to union pension plans and other funds in which their nonunion employees will never benefit unless they join a union.

When a government entity requires a PLA on a construction project, they are essentially tilting the playing field in favor of contractors that agree to use organized labor. On government-funded or assisted projects in North Carolina, this means that the 99 percent of the state’s private construction workforce that chooses not to join a labor union cannot compete on an equal basis for projects funded by their own tax dollars. Additionally, numerous studies show that PLA mandates can increase construction costs by nearly 20 percent or more.  Read More.