PLAs require all contractors — regardless of whether they are unionized or not—to hire through union halls and follow union rules, and workers must pay union dues and benefits. This framework makes it extremely difficult for nonunion contractors to participate. In practice, many simply opt out of bidding altogether. That means fewer bidders, less competition and higher costs for taxpayers.
The impact is especially harmful to minority, women and veteran-owned businesses, which are more likely to be nonunion contractors. These small businesses have worked hard to build their reputations and deliver quality results—but under a PLA mandate, they face an artificial barrier to entry. Public contracting should be about performance and value, not union membership. Yet government-mandated PLAs effectively disqualify qualified businesses from doing the very work their tax dollars help fund.
Reduced competition also hits taxpayers in the wallet. Across the country, studies consistently show that PLAs increase construction costs by 12% to 18% compared to projects bid without them. Those extra costs are not buying better quality, they’re the direct result of limiting the bidding pool and mandating higher labor costs through union rules.
In a time when every public dollar counts, Dayton cannot afford to overpay for its critical infrastructure. Higher costs mean fewer projects completed, delays in critical repairs and diminished services for residents. And for what? To benefit a narrow slice of politically connected contractors?
When competition is restricted and public contracts are steered toward a favored group, it fosters an environment ripe for favoritism and backroom deals. Government-mandated PLAs create the conditions for political patronage to take root—where contracts are awarded based not on merit, but on connections. It’s a system that undermines public trust and squeezes out small, local businesses.
The recent decision by Dayton’s city commission to require PLAs on public works projects over $5 million is already drawing concern. While framed as a way to support workforce development and community benefits, it will, in practice, lock out 74% of Ohio’s qualified construction workers who don’t belong to a union. That’s not progress — it’s protectionism.
Open, competitive bidding processes that welcome all qualified contractors — union and nonunion alike — is the best path to deliver the highest quality work at the best possible value, using the most experienced workforce available. That’s why 18 national and regional organizations — including the U.S. Chamber of Commerce, the National Black Chamber of Commerce, the Small Business and Entrepreneurship Council and Associated Builders and Contractors — oppose government-mandated PLAs. They recognize that these agreements don’t promote fairness; they institutionalize discrimination.
Rejecting government-mandated PLAs isn’t about being anti-union. It’s about standing up for equal opportunity, fiscal discipline and transparency. It’s about ensuring that public projects serve the public with a procurement process based on merit, value and inclusion — not political interests.
Unfortunately, city leaders have made the wrong choice for Dayton’s small businesses and taxpayers.
Bryan C. Williams is president of Associated Builders and Contractors of Ohio.
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