ABC - PLA Bans on State-Funded Work Now in 11 States, with Addition of Michigan and Maine

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Home Page >> Newsroom >> Industry News >> Volume 2011 >> Issue 1 >> PLA Bans on State-Funded Work Now in 11 States, with Addition of Michigan and Maine

PLA BANS ON STATE-FUNDED WORK NOW IN 11 STATES, WITH ADDITION OF MICHIGAN AND MAINE (07/20/2011)

Associated Builders & Contractors

In a victory for merit shop contractors, two more states, Michigan and Maine, banned the use of government-mandated project labor agreements (PLAs) on state-funded construction projects this month.

Michigan Gov. Rick Snyder (R) July 19 signed into law SB 165, which prevents the state and local units of government from requiring companies that want to bid on construction, repair, remodeling or demolition projects to participate in a collective bargaining agreement and prevents discrimination against those that do not.

"This legislation is important because it gives everyone equal opportunity to compete for jobs," Snyder said. "Governments need to make decisions based on competitive bidding and value for taxpayer money. Union and nonunion companies and their work forces are all valued and will continue to be able to partner on projects."

SB 165 has already required local officials to remove a PLA requirement from the bid specifications on upcoming construction of the Clio Service Station in Central Michigan.

“The end to anti-competitive picking of winners and losers means the beginning of a new era of fiscal accountability on construction projects paid for by public tax dollars,” said Chris Fisher, president of ABC of Michigan.

Maine Gov. Paul LePage (R) also guaranteed government neutrality with regard to labor affiliation in construction contract bidding July 13 when he signed LD 1257. The law means that the more than 9 out of ten construction workers in Maine that choose not to join a union will be free from government-mandated PLAs until at least October 2015.

"Maine's construction industry is very pleased that the Legislature decided to prohibit the use of government mandated PLAs,” said James Cote, president and CEO of ABC’s Maine Chapter. “The era of government give-aways to special interests based upon labor affiliation is over, and this bill marks merit shop's commitment to higher quality projects and a more affordable and responsible government."

Michigan and Maine joined 9 other states that have state PLA bans, more than half of which were enacted this year.

For more information on PLAs, visit The Truth About PLAs.