In a recent video, Steve Sandherr, CEO of the Associated General Contractors of America (AGC), voiced his opposition to President Biden’s proposed rule mandating Project Labor Agreements (PLAs) for federal construction projects over $35 million. Sandherr emphasized that while AGC does not oppose PLAs in the private sector when contractors choose them voluntarily, the federal mandate imposes unnecessary constraints. He argued that the rule lacks evidence and data to support its broad application and forces contractors into agreements that might not be in the best interest of the project or the taxpayer.
Sandherr highlighted several key concerns with the mandate. He noted that it disregards the availability of union labor in certain regions, potentially disrupts local collective bargaining agreements, and forces contractors to use trades they typically wouldn’t employ. Furthermore, the mandate compels contractors to negotiate under terms dictated by labor unions, putting them at a disadvantage. Sandherr concluded that the rule contradicts federal procurement laws aimed at enhancing efficiency and economy in government contracting. AGC has filed a lawsuit in Louisiana challenging the mandate’s legality and its alignment with federal procurement laws. Sandherr remains confident that the courts will rule in favor of AGC’s position, advocating for a fair and competitive construction industry.