Project labor agreements only benefit the unions calling for them

Renewed efforts by the Building and Construction Trades Council of Nassau and Suffolk Counties to expand project labor agreements follow a very recognizable pattern: when one of their members loses a bid on a project to a local, qualified competitor, they respond with lawfare.

Recently a nonunion contractor won an open bid. The lowest responsible bidder won the job, and the building trades are crying foul because they felt entitled to it. When they cannot compete on the merits, they try to change the system and exclude most of the competition.

Through legislation in Albany, they are now trying to impose PLAs on all Long Island school construction projects over $1 million, effectively ending competition in favor of unions. This comes despite the fact that, based on our survey, 85% of open-shop construction workers live on Long Island and more than half identify as non-Caucasian. These exclusionary PLAs would be devastating for local workers, Long Island schools and, most importantly, the students who rely on those schools.

Local trades leaders claim PLAs are necessary to curtail wage theft. In reality, PLAs will do little to prevent it. What will make a difference are the actions New York State has already taken, as it has strengthened its tools to crack down on wage theft in construction in recent years. A new contractor and subcontractor registration requirement requires firms performing public work to register with the Department of Labor and disclose their compliance history. Prevailing wage enforcement has been strengthened, and a law holding general contractors responsible for wages owed by their subcontractors ensures workers have a clear path to recover unpaid wages. Together, these measures create multiple checkpoints, making it much harder for bad actors to cheat workers and avoid accountability.

PLAs also drive up costs, placing a significant financial burden on Long Island taxpayers and limiting school districts' ability to complete necessary projects. A 2020 Beacon Hill Institute study of Connecticut school construction found that PLAs increased base construction costs by $89.33 per square foot, nearly 20% higher than comparable non-PLA projects.

New York's lowest responsible bidder law provides a far better approach than project labor agreements because it keeps school projects fair, open and affordable. The law simply requires the government to select a qualified contractor who can do the job for the best price while still following safety and labor rules. By keeping competition open, the lowest responsible bidder system protects taxpayers, avoids unnecessary spending and ensures projects are completed safely and correctly.

The reality on Long Island is that hundreds of local contractors, many of them open shop, have spent decades successfully building our schools and public facilities. Responsibility should be measured by a contractor's track record of delivering quality work, following the law and paying workers properly, not by whether they belong to a union.

Research supports this point. A study by engineer Paul Carr examining more than 300 New York projects found that PLAs reduce the number of qualified bidders and drive up project costs, a trend that could discourage proven local contractors from continuing to build Long Island schools.

PLAs benefit no one except the unions calling for them. When competition does not go their way, the answer should not be rewriting the rules to shut others out. Instead, everyone should compete fairly under the laws that already protect workers, taxpayers and our schools.

This guest essay reflects the views of Brian Sampson, president of Associated Builders and Contractors' Empire State Chapter.