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President Joe Biden responds to a reporter's question after signing executive orders in the State Dining Room of the White House, Jan. 21, 2021, in Washington. © Alex Brandon / AP Photo

Electrical Contractors Welcome Biden Administration’s Proposed Rule on Project Labor Agreements (PLAs) Over $35 Million

NECA is currently analyzing the proposed rule and will issue public comments in response by the October 18 deadline

Published on August 23, 2022

The National Electrical Contractors Association (NECA) welcomes the publishing of a new Notice of Proposed Rulemaking that would implement President Biden’s February 4 Executive Order requiring Project Labor Agreements (PLAs) on federal construction projects valued at or above $35 million. PLAs have proven to be a time-tested method for ensuring that projects exceed quality construction standards, are completed on time and under budget and save taxpayer dollars.

NECA has long championed the use of PLAs and is pleased the Biden Administration swiftly moved forward to craft this proposed rule. All contractors and subcontractors on construction projects will be able to compete fairly for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements. Additionally, the PLAs would provide guarantees against strikes, lockouts, and similar job disruptions; set forth effective, prompt, and mutually binding procedures for resolving labor disputes that may arise during the term of a project; and provide other mechanisms for labor-management cooperation on critical matters of mutual interest and concern, including productivity, quality of work, safety, and health.

“President Franklin Roosevelt instituted PLAs for his New Deal infrastructure plan,” said Marco Giamberardino, NECA Vice President of Government and Public Affairs. “Some of the resulting projects included the Shasta Dam, Hoover Dam, Kitsap Naval Base, Beaver Valley Nuclear Power Plant, LAX Airport, and countless educational institutions. Furthermore, private businesses such as Disney, the NFL, Walmart, and Toyota have all used PLAs on their signature projects. NECA is excited to translate these benchmarks to perform on a federal level for government buildings, construction, installation, maintenance, and more. The order provides a pathway for increased job opportunities that NECA contractors of all sizes are willing and able to perform at the highest level.”

Newsdesk Staff