Project Labor Agreements
Project Labor Agreements (PLAs) are single-site craft labor agreements, unique to the construction industry, which have the potential to facilitate timely, cost-effective construction. Under a PLA, concessions off the individual trades’ Collective Bargaining Agreements (CBA) may be negotiated on work rules and schedules, over time, shift differentials, apprentice labor, and the like.
On public projects employing a PLA, it is typically mandatory that both union and non-union contractors accept the PLA as a condition of being awarded the contract. With few exceptions, terms and conditions negotiated as part of the PLA supersede individual unions pre-existing CBA stipulations.
PLAs typically provide for standardized work practices, work hours, holidays and overall labor/management harmony for the duration of the project. PLAs often result in economic concessions on labor cost and include provisions which preclude strikes, lockouts, work stoppages and/or any other disruption of work. Materials and other construction costs, such as engineering fees and contingencies, are not part of the PLA’s scope.