Supporters say project labor agreements ensure that taxpayer dollars remain in the local community, while also helping hold down costs. But critics — which include some non-union business and industry groups — say these agreements limit competition, can increase project costs and favor unionized contractors.
Under the new ordinance, contractors will have to participate in “pre-meetings” where they will negotiate a project labor agreement with representatives from the city, relevant trades unions and the Dayton Building and Construction Trades Council. The Council is made up of 18 local construction unions that represent 7,000 skilled union construction employees across the greater Dayton region.
Project labor agreements are supposed to be negotiated after the bid opening but before the formal award of a contract. Subcontractors also will have to sign these agreements.
The ordinance says the agreements will cover subjects like worksite conditions; mitigating the impact of construction on residential and commercial areas; source of labor from local union hiring halls, including consideration of regional hiring and labor force diversification; and inclusion of apprenticeship programs.
A memo from Dayton’s law director Barbara Doseck says these agreements are supposed to help ensure fair wages are paid on construction projects; level the playing field for union and non-union contractors; increase local employment for projects; and provide programs to train workers.
David Cox, executive secretary and treasurer of the Dayton Building and Construction Trades Council, said project labor agreements are a key tool to help control construction costs and reduce labor disruptions.
Cox said project labor agreements will result in greater use of construction trades apprentices. He also said the ordinance still allows all union and non-union contractors to bid on city projects, but it will help standardize work conditions and job site procedures.
He said the ordinance will give non-union contractors access to a skilled union workforce.
Groups like the Associated Builders and Contractors Inc claim that project labor agreements are anti-competitive in nature and “discourage quality contractors and the more than 89% of the U.S. construction workforce who are not members of a union from bidding and working on projects in their own communities funded by their tax dollars.”
Critics say these agreements can make projects more expensive and reduce the number of bidders.
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