Rep. Ted Budd (R-N.C.) and Sen. Todd Young (R-Ind.) introduced the Fair and Open Competition Act (H.R. 1858/S. 907), which prevents federal agencies and recipients of federal funding from requiring contractors to sign project labor agreements as a condition of winning federal or federally assisted construction contracts.

Associated Builders and Contractors strongly supports the “common-sense” legislation, calling it a “win-win for taxpayers and the U.S. economy because it creates an inclusive policy allowing all Americans and all qualified companies to fairly compete to rebuild America’s infrastructure.”

Additionally, ABC states the bill ensures taxpayers get the best possible construction projects at the best possible price by increasing competition, reducing construction costs and eliminating favoritism in the procurement process of public works projects because governments can neither require or prohibit project labor agreements.

When mandated by a government agency on a taxpayer-funded project, a PLA typically ensures construction contracts are awarded only to companies that agree to recognize unions as the representatives of their employees on that job, use union hiring halls and apprenticeship programs to obtain most or all construction workers and apprentices at the expense of existing qualified employees, and follow inefficient union work rules. In addition, PLAs require payments into union benefit and multi-employer pension plans that workers will never benefit from unless they meet vesting requirements and pay union dues and/or join a union as a condition of employment.

“Government-mandated PLAs discriminate against the 87.2 percent of the private U.S. construction workforce that chooses not to join a labor union and drive up the cost of taxpayer-funded construction by 12 to 18 percent compared to projects not subject to PLA mandates,” according to ABC Vice President of Legislative & Political Affairs Kristen Swearingen. “ABC supports this bill because it will create jobs for veterans, minorities, women and local workers not affiliated with unions, and will create opportunities for small businesses and qualified contractors hurt by PLA requirements.”

A coalition of 12 construction industry and business associations joined ABC in sending letters to Congress in support of the bill.