Dulles Rail construction. Photo credit: Washington Post
The Virginia Chamber of Commerce has endorsed a bill that would prohibit state agencies from requiring labor union agreements as a condition for participating in a public works project.
The Fair and Open Competition Act in Government Contracting “ensures a level playing field” by preventing mandatory labor agreements, said the Chamber in a press release issued Wednesday. “These agreements typically discourage competition and exclude qualified Virginia businesses and their local construction workforce from working on taxpayer-funded construction projects.”
The bill would directly impact a proposal by the Metropolitan Washington Airports Authority (MWAA) to make mandatory a Project Labor Agreement on Phase 2 of the Rail-to-Dulles project. Although MWAA is not a state agency, financing for Phase 2 requires the injection of $150 million in state funds, for which the McDonnell administration is seeking approval from the General Assembly. The bill filed by Tim Hugo, R-Centreville, and Barbara Comstock, R-McLean, would restrict the ability of the state to “issue grants” or “provide financial assistance” to MWAA as long as it made the PLA a condition of bidding on the project.
The bill would not prevent project bidders from voluntarily signing a PLA or working with labor unions. Some large public-works contractors prefer working with unions. But open-shop companies would be severely disadvantaged by a mandated PLA, which would force them to change their business model in order to bid on a project, thus reducing competition.
“Research indicates public construction projects subject to PLAs are 12 to 18 percent more expensive,” said Barry DuVal, president of the state Chamber. “HB 33 will reduce costs, increase competition and create jobs for qualified Virginia businesses and local craft workers. Everyone wins when Virginia’s construction projects are procured free from discrimination and are based on the free enterprise system.”
Heh. Heh. And people thought I was stuck on a bizarre tangent by agitating against MWAA’s mandatory PLA. I guess I’m not the only one who has a problem with it. Heh. Heh.
— JAB
