Article by Paul M. James and Matthew C. Bouchard
In past issues, we’ve tracked the applicability and enforceability of Project Labor Agreements (PLAs), pre-bid collective bargaining agreements between labor and management groups that effectively eliminate non-union contractors from bidding publicly financed construction work. In Volume 7, Issue 1, we noted that President Bush issued an Executive Order prohibiting the use of PLAs in federally funded construction projects. That Order was permanently enjoined in early November by the Federal District Court for the District of Columbia, which held that the President lacked the constitutional and statutory authority to issue it. Specifically, the D.C. District Court considered the Order a legislative act beyond the scope of the President’s executive powers. The court also ruled that because the Order altered the balance of bargaining power between labor and management groups, it was preempted by the National Labor Relations Act. Building and Construction Trades Department, AFL-CIO v. Allbaugh, 2001 WL 1381197 (D.D.C. Nov. 7, 2001).
The D.C. District Court’s decision, unless overturned on appeal or by federal legislation, renders the inclusion of PLAs in federally financed construction contracts a project-by-project determination. We will continue to closely monitor developments in this case as it inevitably climbs the appellate ladder.
The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.
