WASHINGTON, D.C. (July 15, 2002) — The U.S. Court of Appeals for the District of Columbia Circuit has upheld the Bush Administration’s Executive Order 13202, which bans discriminatory union-only contracts, also known as project labor agreements (PLAs), on federally funded construction projects.

In support of the Bush administration, the National Right to Work Legal Defense Foundation filed an amicus curiae (Friend of the Court) brief with Associated Builders and Contractors and the U.S. Chamber of Commerce. The three-judge panel unanimously agreed with the arguments that the executive order was not preempted by the congressionally enacted National Labor Relations Act and that President Bush acted within his constitutional authority by issuing the Executive Order banning union-only contracts.

“The court’s decision is a step toward protecting workers and taxpayers from higher costs and other abuses that flow from compulsory unionism,” said National Right to Work Foundation Vice President Stefan Gleason.

A PLA is a scheme which requires that all contractors, whether they are unionized or not, subject themselves and their employees to unionization to work on government-funded construction projects. PLAs usually require contractors to grant union officials monopoly bargaining privileges over all workers; use exclusive union hiring halls; force workers to pay dues as a condition of employment; and pay above-market prices resulting from wasteful work rules and featherbedding.

More than 80 percent of American contractors and their employees have refrained from unionization.

A coalition of union officials filed Building and Construction Trades Department, AFL-CIO, et al. v. Allbaugh, et al. after President Bush issued the order in February 2001 to establish a policy of non-discrimination on federal contracting. The appellate court’s decision overturns an injunction issued by the U.S. District Court last year.

“PLAs are nothing more than a shakedown — union officials use them to demand taxpayer handouts and government-granted special privileges in exchange for not ordering strikes or causing other disruptions,” said Gleason.

The National Right to Work Legal Defense Foundation is a nonprofit, charitable organization providing free legal aid to employees whose human or civil rights have been violated by compulsory unionism abuses. The Foundation, which can be contacted toll-free at 1-800-336-3600, assists thousands of employees in more than 250 cases nationwide per year.