Biden Cements Labor Agreement Rules for Federal Projects (1)

Federal construction contractors will soon have to negotiate pre-hire collective bargaining agreements with unions in order to work on large-scale federal infrastructure projects, under new requirements announced by Acting Labor Secretary Julie Su and other Biden administration officials today.

A final rule released Monday by the General Services Administration effectuates President Joe Biden‘s executive order last year calling on federal agencies to require these project labor agreements for federal construction projects that cost more than $35 million. PLAs are negotiated with a union to set the terms and conditions for all workers on specific federal projects.

“This means that projects funded by my Investing in America agenda will move faster and without delays, giving taxpayers better bang for their buck,” Biden said in a statement. “Workers will have the security and peace of mind that collectively bargained wages and benefits bring, better pathways to good-paying jobs, and stronger health and safety protections.”

The rule will help ensure efficient and timely government procurement and provide a mechanism to resolve potential labor disputes, according to the administration. Biden also said, when announcing his executive order, that requiring PLAs would result in federal construction projects being staffed with “good-paying union jobs.”

The GSA’s rule amends the Federal Acquisition Regulation—which sets rules for federal agency contracts—to include the PLA requirement for work orders valued at $35 million or higher.

Business groups and Republicans who oppose the requirement say it will discriminate against non-union contractors and drive up prices on federal projects.

The Associated Builders and Contractors in particular said it will be considering legal options as it reviews the final version of the rule.

“The Biden administration’s burdensome, inflationary and anti-competitive PLA mandate rule will needlessly raise costs on taxpayer-funded construction projects and steer contracts to unionized contractors and workers,” said Ben Brubeck, ABC vice president of regulatory, labor, and state affairs.

But unions representing the building trades applauded the rule as an effort to ensure taxpayer dollars are used responsibly.

“Time and again, PLAs have proven to address labor supply issues, prevent work stoppages, protect workers’ classification, strengthen health and safety standards, and achieve substantial, direct cost savings by standardizing contract terms for highly skilled craft workers,” North America’s Building Trades Unions President Sean McGarvey said in reaction to the rule.

The new requirement will go into effect 30 days from when it publishes on the Federal Register Friday, according to the White House.