The Wall Street Journal published an outstanding editorial this week on Project Labor Agreements or PLAs, and how state and local budgets are squeezed by what amount to “sweetheart deals” with labor unions. Only 13% of construction workers currently belong to unions. However, unions use PLAs on government projects to apply their considerable political muscle to what amounts to temporary forced unionism. And according to the Journal, “Proponents argue that PLAs ensure the speed and quality of construction plans. But PLAs are one of the reasons that Boston’s Big Dig was estimated at $2.8 billion but eventually cost $22 billion. Studies show that projects under PLA contracts on average cost 12% to 18% more than projects awarded by open, competitive bidding. Taxpayers pick up much of this tab.” The editors conclude, “PLAs are a form of political bid-rigging that robs taxpayers even in good economic times. Amid today’s limited fiscal resources, PLAs steal money from the likes of education and law enforcement to reward politically-connected companies and their unions. They deserve to be outlawed.”
