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Final Rule Issued on Obama PLA Executive Order

4/16/2010
 
The Federal Acquisition Regulatory (FAR) Council released on April 13 a Final Rule guiding the implementation of President Barack Obama’s Executive order encouraging Project Labor Agreements (PLAs) for federally funded construction projects in excess of $25 million.

Contrary to the claims by those who criticize President Obama’s support for PLAs – and who subscribe to a “race to the bottom” mentality where success is predicated on the ability to assemble a low-wage, easily exploitable workforce – such agreements have proven over and over that they are a valuable, market-based tool that ensures superior jobsite management, project efficiencies, and workforce productivity and development.

Those are the reasons that have driven numerous cost-conscious and profit-oriented private corporations – such as Disney, Toyota, Southern Company, NRG Energy, and Constellation Energy, to name just a few – to embrace the benefits of PLAs.  These companies, just like a growing number of state and local governments, utilize these agreements to not only ensure an “on-time, on-budget” return on their investments, but to also create career training opportunities for local citizens.

America’s Building Trades Unions look forward to working with all federal agencies in implementing the Executive Order and using PLAs to bring economy and efficiency to federal projects and using PLAs to promote greater opportunities for workforce development where such projects are being constructed.
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