The Connecticut First Coalition

"It's all about how our tax dollars are used and invested within the state to fuel our economy.  No doubt, by hiring Connecticut companies we are strengthening the health and welfare of all of our families in the state."

John Farnham
Connecticut Construction Industries Association

Why Public Projects Need Public Scrutiny

Building projects with taxpayer dollars is an awesome responsibility.  At Connecticut First, we believe that protections like Responsible Contractor Laws, Project Labor Agreements and licensed tradespeople on the job will ensure that our schools, libraries, college and municipal buildings are built with the utmost quality and stand the test of time.  State and municipal procurement systems that foster the lowest bid without looking at the contractors ability to do the job are just not working.

As a result we have had fly-by-night out-of-state contractors low balling their bids just to get the work and delivering shoddy workmanship that must be repaired at the taxpayers expense. Hard working Connecticut contractors who bid realistically and deliver a quality project on time and on budget should be rewarded - not undermined by the process.

Top 10 Benefits of Working with a Project Labor Agreement (PLA)
1. Allows contractors to bid with labor as  a constant - by standardizing working conditions, wages and benefits.

2. Eliminates uncertainty with respect to labor costs for the life of the project(s).

3. Binding procedures to resolve all labor disputes assures productive labor relations.

4. Allows owners to tailor agreement to local conditions and the special needs of a project.

5. Encourages hiring a representative workforce from your community.

6. Encourages communities to meet local workforce goals by hiring minorities and women.

7. Offers contractors immediate access to a skilled workforce.

8. Workers are trained in apprenticeship programs adding to the quality of the overall project.

9. Well-trained workers keep costs down by knowing and following safety procedures.

10. PLA's are fully open to all union and non-union contractors

A Proven Track Record

PLA’s have been used successfully on many major Connecticut projects. Here are just a few you will recognize:

Adriaen’s Landing - $488 million

St. Francis Hospital - $35 million

Learning Corridor - $100 million

WestFarms Mall - $20 million

Killingly Power Plant - $250 million

Waterbury Wastewater Treatment - $80 million

Yale University Congress Avenue - $175 million

Yale University Power Plant Modernization - $47 million

Yale University Branford Saybrook College - $42 million

UConn Information and Technology Bldg. - $27 million

Lincoln Bassett School - $18 million

Katherine Brennan School - $14 million

James Hillhouse High School - $66 million

Rentschler Field - $490 million

Aquaculture Sound School - $28 million

Wexler-Grant School - $24 million

Conte West Hills School - $20 million

New Prince Welch - $35 million

Truman School - $35 million

Old Betsey Ross School - $25 million

Nathan Hale School - $31.5 million

Celantano School - $29 million

Wilbur Cross School - $57 million

Understanding the "Project Labor Agreement" or PLA
Project Labor Agreements (PLA) are pre-negotiated, pre-hire collective bargaining agreements that cover working conditions and standards on large and/or complicated building projects.  Project Labor Agreements are contractual instruments used as a tool by many owners and developers to set out specific terms for dealing with labor issues.

The PLA is a mechanism for managing the large number of trades and crafts needed to complete a significant size project.  It does that by standardizing decisions, leadership and dispute management.  The PLA sets clear expectations for all parties and encourages a team atmosphere so essential to coordinating today’s large construction projects.

The process agreed upon by the parties to the PLA seeks to ensure an open flow of communication among all the parties involved in the project.  This can be extremely helpful in reducing the risk of time lost or cost overruns when a project is delayed to solve a labor issue.  In addition, the PLA ensures that all workers can count on fair wages and safe working conditions.

Adding to the benefits for workers and management alike is access to an immediate supply of skilled craft workers who are trained in apprenticeship programs jointly administered and funded by labor and management.  A well-trained workforce only enhances the bottom line of any project by reducing mistakes, cost overruns, on-the job injuries and delays by making sure the job is built correctly the very first time.  Another important aspect of the PLA for public owners (municipalities, states, etc.) is that provisions for hiring local talents can be added to the agreement creating a win-win situation for the entire community.

“Not only have these PLA’s provided good jobs that pay fairly for area residents, but they have allowed municipalities to meet workforce goals for minorities, for women and for New Haven residents.” (319,584 resident workforce hours to date on school construction)
John DeStefano, Jr.
Mayor of New Haven

They do an excellent job of providing employers with trained workers, enabling owners to meet preference goals, prevent work disruption on large public projects, control project costs and keep complex projects on schedule.”
D’Arcy Didier
Director of Labor Services and Human Resources
Connecticut Construction Industries Association

Q. Who benefits from a PLA?
A. Since PLAs are designed for maximum efficiency, all parties involved benefit. Specifically: Workers benefit from fair wages and benefits, a safe work environment and job security.  Project managers benefit from a guaranteed skilled workforce, no unnecessary work force interruptions that drive up the cost, good articulation with other teams on the project, fair arbitration and happy workers. Lenders and insurers benefit from lower risk.  Owners and taxpayers benefit when projects come in on time and under budget.

Q. Are PLAs something new?
A. PLAs have been tried and tested since the Great Depression. In the 1930s they were used to jumpstart the economy and get America back to work, without paralyzing strikes and lockouts. The Shasta Dam project six decades ago utilized California's first PLA.

Q. How do PLAs improve articulation and workplace cooperation?
A. A single job site might have several different unions and managers for each aspect of the construction process. A PLA sets the ground rules, and everyone agrees to specific terms and conditions before the project begins. Group leadership meetings, schedules and cooperation can be optimized for an efficient operation and limited strife, with no walkouts or lockouts.

Q. How are labor delays avoided?
A. Everyone working on the project signs a "no strike, no lockout" contract at the start, so if they do not agree to the terms, they can leave before the project starts. This provides for a cooperative, agreeable team. In addition, a system of arbitration is created to quickly resolve problems that arise.

Q. Isn't it true that strikes and cost overruns can happen even with a PLA?
A. There is not a single documented case of a cost overrun associated with a labor dispute or worker shortage being caused by a PLA. In fact, most projects realize cost savings because PLAs ensure a skilled labor force and a timely project completion.

Q. Does a PLA add value to a project?
A. Absolutely. PLAs guarantee a skilled and abundant workforce, operational efficiency and prevent costly interruption. Lenders feel safer, and so do owners.

Q. Can PLAs provide for community outreach and other benefits?
A. The beauty of a PLA is that it may include any terms agreed upon before the project. If a community wants youth apprentice training or community outreach, it can be included. In fact, anything from all employees wearing yellow hard hats to "24/7" around-the-clock shifting may be included, as long as all parties agree and sign the contract.

Q. How can PLAs stimulate the economy?
A. PLAs ensure efficiency of operation and timely project completion, creating increased cost efficiency for project managers. Cost-effective management makes budgeting stable and specific, minimizing cost overruns and labor stoppages, which stretches building dollars. PLAs also offer job security to employees, which promotes consumer spending. The creation of jobs under PLAs stimulates sales and services in the area, while improvement of the infrastructure brings business to the community and improves the quality of life.