In Subcommittee Hearing, Oversight Democrats Highlight How Project Labor Agreements Ensure A High-Skilled Workforce, Effective and Timely Construction

Washington, D.C. (June 28, 2024)— Rep. Gerald E. Connolly, Ranking Member of the Subcommittee on Cybersecurity, Information Technology, and Government Innovation, led Subcommittee Democrats in examining the Biden-Harris Administration’s Project Labor Agreement (PLA) Mandate.

“I applaud the pro-worker policies of the Biden Administration.  Last week, the Administration issued a final rule to address the workforce skills shortages within the construction industry.  The final rule requires that infrastructure projects funded through the Inflation Reduction Act pay prevailing wages to the workers on the projects.  This means good-paying, high-quality jobs for local workers in communities across this nation,” said Ranking Member Connolly in his opening statement. 

The hearing included testimony from Mr. J. Jacob Snyder, Chief Operating Officer of Enerfab;  Mr. Glenn P. Ledet, Jr., Executive Director of the Louisiana Coastal Protection and Restoration Authority;  Mr. Aric Dreher, Vice President and General Manager of Cianbro;  and Mr. Ben Brubeck, Vice President of Regulatory, Labor, and State Affairs of Associated Builders and Contractors, Inc.

Subcommittee Democrats detailed how Project Labor Agreements (PLAs) ensure that diverse and highly skilled workforces earn competitive wages while effectively completing construction projects.

• Rep. Ayanna Pressley highlighted the importance of investing in workers, saying: “Valuing and affirming workers does not have to come at the expense of profits.  In fact, a study found that projects with PLAs reduce costs compared to projects without such agreements.  At the same time, these agreements can serve as economic justice documents, as gender equity documents, and as racial equity documents—by investing in our most valuable infrastructure, which is our people.”
   
• Ranking Member Connolly reinforced how PLAs fortify local workforces, adding, “PLAs offer real investments into workers and communities while completing construction jobs to the highest quality.”
   
• Mr. Snyder spoke to the importance of PLAs to build a strong middle class, saying: “Workforce development is part of almost every PLA I’ve ever seen, but they also set the standards for wages that help build the middle class, but also benefit packages that help to do that as well—those are retirement vehicles, health and welfare contributions that allow people to take care of their families and grow that wealth.”  He went on to say, “We see many, many small businesses that are grown out of the trades that develop as a result of PLAs, that bring underrepresented populations into the workforce, teach them how to do it.  And then there are additional vehicles that help them even start businesses.”

Subcommittee Democrats highlighted how federal PLA projects are open to both union and non-union bidders.

• Ranking Member Connolly confirmed with Mr. Snyder that his company prefers to use PLAs.  Mr. Snyder explained that PLAs have made the company more efficient and that they have been able to operate successfully even in right-to-work states, stating: “We compete on a daily basis with open shop contractors.  That doesn’t prevent us from bidding.  We compete in right-to-work states and work in them every day.  It is our preferred method of performing work.  We have found it to be the most efficient and cost-effective way to do work.”

Committee Democrats explained how PLAs are effective and help federal construction projects finish on time and on budget.

• Ranking Member Connolly discussed the successful history of PLAs, which have been part of the nation’s rich labor history for generations, offering:  “In December of 2023, the Biden Administration finalized a rule to ensure that large-scale federal construction projects have PLAs in place to make sure they’re completed on time and on budget.  That’s because PLAs have a proven track record of success, which is why they were created during World War II.  PLAs promote worker safety and guarantee a well-trained, highly skilled workforce.”
  
  
• In response to Republican claims that PLAs are an impediment to business, Mr. Synder explained:  “I certainly can’t speak for any other business, but we have found through the process of doing this, that there is a step that goes into this collective process of finding out what works best for the project and working with partners that are going to be representing employees in the workforce to come in and weigh in on what those issues are that are going to make that successful.  I’m not sure why it would be more difficult for someone else to go and do the exact same thing.”