National Right to Work staff attorneys have filed a formal amicus curiae brief supporting an appeal in US District Court that challenges a California project labor agreement (PLA) that gives construction union officials new tools to coerce employees and employers who look to bid and perform state-funded construction projects.

Arguing that a PLA between the Rancho Santiago Community College District and a union illegally discriminated against construction workers who exercise their right to refrain from union membership, Foundation attorneys are defending the interests of the vast majority of construction employees in California who have opted against unionization.

Rancho Santiago and the Los Angeles/Orange Counties Building and Construction Trades Council (CTC) union entered into the PLA in 2004, which effectively precluded nonunion apprentices and contractors from working on over 50 construction projects funded by the public agency worth over $300 million. The Foundation-supported appeal challenges this and similar policies to open up the bidding process to all construction workers and contractors.

Right to Work President Mark Mix appeared on "The Gary Nolan Show" to explain how Project Labor Agreements enrich union bosses. Click here to listen or use the embedded player below:

As always, you can also listen to the Foundation's podcast via iTunes or manually subscribe to the feed.  

On Tuesday, the Obama Administration implemented a new policy -- initiated by an early executive order signed by President Obama -- encouraging federal agencies to adopt so-called "project labor agreements" (PLAs) on large-scale federal construction projects.

Some of the typical conditions demanded by unions in PLAs include monopoly bargaining, forced dues and fees for all “represented” workers, exclusive union hiring halls, and inflexible union work rules which strictly separate job functions into exclusive union jurisdictions based on craft.

The Wall Street Journal strongly criticized the new policy, which effectively discriminates against the 85 percent of all construction workers who are not under union monopoly control. Moreover,

It's also a rotten deal for taxpayers. White House economist Jared Bernstein blogged that these agreements "significantly enhance the economy and efficiency of Federal Construction projects." In fact, the carve-outs put an end to open, competitive federal bidding, which means higher project costs. They also mean taxpayers must finance the benefits and work rules of union members.

...

Boston's Big Dig, Seattle's Safeco field, Los Angeles's Eastside Reservoir project, the San Francisco airport, Detroit's Comerica Park—all were built under PLAs marked by embarrassing cost overruns. We'd list more, but newsprint is expensive.

The White House went out of its way to note that the Supreme Court has upheld such agreements in the past, suggesting it has a guilty conscience. In fact, the High Court has never ruled on the legality of these agreements under federal competitive bidding laws. Industry groups are now threatening legal action to defend the rights of workers who will be denied employment for the crime of not sporting Obama-Biden bumper stickers. It's a fight worth having.

The Washington Examiner likewise denounced the discriminatory policy, noting the National Right to Work Foundation's objections:

"The Obama administration's policy is a slap in the face to the vast majority of construction workers who have chosen not to unionize," said Mark Mix, president of the National Right to Work Legal Defense Foundation."Qualified nonunion contractors whose workers have opted against unionization will be locked out from large-scale construction projects. The true purpose of so-called project labor agreements is simple: To impose unwanted union boss control on workers from the top down."

Another factor helps explain Obama's willingness to sign an executive order that will put millions more tax dollars in union coffers. Mix points out that unions under PLAs typically exact agreements that include requiring contractors to make payments to union pension funds. This is an increasingly urgent issue, as the Washington Examiner's Mark Hemingway has recently detailed in these pages. According to Labor Department filings, the average union pension has only enough money on hand to cover 62 percent of the benefits it has promised to union members. Pension plans with 80 percent funding are considered "endangered" by federal auditors, while those with less than 65 percent funding are put on the "critical" list. With this latest executive order, it's clear that Obama intends to give unions on the critical list a massive dose of federal tax dollars to cure what ails them.

New Obama Administration Contracting Policy "Nothing More Than Payback" to Big Labor

So-called "project labor agreements" discriminate against the 85 percent of construction workers who have opted against unionization

Washington, DC (April 13, 2010) – Today, the Office of Management and Budget (OMB) approved a policy initiated by President Barack Obama’s Executive Order 13502, encouraging federal agencies to discriminate against nonunion workers and employers by adopting so-called “project labor agreements” (PLAs) on all federal construction projects costing the taxpayers over $25 million. Mark Mix, president of the National Right to Work Legal Defense Foundation, released the following statement about the policy.

“The Obama Administration’s policy is a slap in the face to the vast majority of construction workers who have chosen not to unionize. Qualified nonunion contractors whose workers have opted against unionization will be locked out from large-scale construction projects. The true purpose of so-called project labor agreements is simple: to impose unwanted union boss control on workers from the top-down.

“Rather than encouraging a competitive and open bidding process to ensure the American taxpayers get the best deal, the White House favors using federal contracts to reward Big Labor’s political machine. The policy is nothing more than payback for the billion dollars the union bosses spent electing Barack Obama and other forced-unionism proponents in the last election cycle.”

Click here to read more.

Nonunion Worker Challenges San Diego’s Discriminatory School Construction Scheme

Right to Work attorneys argue pact between San Diego school district and
union officials intends to illegally coerce workers into union ranks

San Diego, CA (October 7, 2009) – National Right to Work Legal Defense Foundation attorneys today filed federal unfair labor practice charges against local area unions for establishing a discriminatory, union-only construction scheme with the San Diego Unified School District. The agreement enriches union officials, punishes nonunion workers and employers, and sticks taxpayers with the bill.

The discrimination against nonunion construction workers is facilitated by a so-called “Project Labor Agreement” (PLA) – essentially a collective bargaining agreement signed by contractors as a condition of performing work on a government-funded construction project. Arguing that the PLA between the school district and various unions (including the Southwest Regional Council of Carpenters and San Diego Building & Construction Trades Council, AFL-CIO) illegally discriminates against construction workers who exercise their right to refrain from union membership, Foundation attorneys are defending the interests of the vast majority of construction employees in California who have opted against unionization.

(Read the full press release)

Regular Freedom@Work readers may remember the now-infamous Executive Order 13502, which pressures all federal agencies to use discriminatory "Project Labor Agreements" (PLAs) to freeze out non-union contractors and workers from any opportunity to work on government projects.

Once adopted, PLAs require all companies - unionized or otherwise - to agree to unionization as a condition of receiving a government-funded contract. Project labor agreements usually require contractors to grant union officials monopoly bargaining privileges; use exclusive union hiring halls; force workers to pay dues to keep their jobs and work under wasteful union work rules.

Foundation attorneys have now filed formal comments with the Department of Labor urging the Administration to rescind Executive Order 13502. The Foundation argues that the directive is illegal under the the National Labor Relations Act, and that imposing discriminatory PLAs on federal contractors violates workers' rights, passes along higher costs to taxpayers, and serves no purpose other than to enrich Big Labor's coffers.

To download a copy of the Foundation's comments, click here. 

A few months ago, Foundation VP Stefan Gleason appeared on CNN to discuss the Administration's new directive:

The Philadelphia Inquirer today reports:

Accusing trade unions of standing in the way of minority hiring objectives, City Council yesterday declared the $700 million Convention Center expansion open to nonunion contractors and workers - an unprecedented gesture in a city dominated by organized labor.

Union officials commonly shut out minority and nonunion contractors from such projects through so-called "project labor agreements." These cynical pacts require all contractors, whether they are unionized or not, to subject themselves and their employees to unionization in order to work on a government-funded construction project.

For more information on the harmful effects of PLAs, see this study from the National Institute for Labor Relations Research.