The existing Project Employment Contracts (PLA) law allows public entities to enter into APLs for construction projects over $5 million. Under the new law, public entities are allowed to enter into project employment contracts for any public utility project subject to new Jersey`s applicable wage law and costing $5 million or more, including highways, bridge pumping stations, water and wastewater treatment plant projects. The new law also contains provisions to promote workforce diversity in public construction projects. An APL is a project-specific collective agreement that is specific to the construction industry. Typically, LPAs force contractors to recognize unions as their employees` representatives on a particular project, which discourages merit shop contractors from bidding for taxpayer-funded construction activities. According to the United States Bureau of Labor Statistics (2019) represents only 17.8% of construction workers in New Jersey by a union. A project employment contract exists between an owner of a particular construction project and the trade unions concerned. It was agreed that union rules must be respected throughout the project, making participation very difficult for non-unionized contractors. Union wages, union-level medical benefits, union dues and pension dues must all be paid, even by a non-unionized contractor, although this money is not credited to non-unionized workers. Typically, APLs are only used for local, state, and federal projects because private companies find them unnecessary and too expensive.

According to the United States Bureau of Labor Statistics (2019) represents only 17.8% of construction workers in New Jersey by a union. Trenton, NJ – March 22, 2021 – Later this week, the New Jersey Assembly will vote on Bill S-3414/A-5378, which revises the definition of “public labor projects” to allow state-mandated project labor agreements for additional job classes. If a public works contract under the Existing Project Employment Contracts Act is for the construction, reconstruction, demolition or renovation of buildings over $5 million, it is subject to a government-mandated Project Employment Agreement (LPA). S-3414/A-5378 will extend the PLA requirement to any public works contract over $5 million. The bill requires that any project work agreement for projects to which this new directive applies “include all measures and programs that must be undertaken to achieve the objectives. as regards members of minority groups, members of disadvantaged communities and women, which may include measures that give them priority in guidance and placement in the recruitment rooms of signatory trade unions, public relations and training programmes in the workplace or outside the workplace, and programmes to encourage their recruitment and employment or otherwise facilitate their attitude and employment. “Opponents of state-mandated LPAs argue that these controversial deals end fair and open competition and discourage non-unionized local contractors from working on projects in their own communities, effectively restricting competition during the bidding process and increasing construction costs,” said David G. Tuerck, President of the Beacon Hill Institute and co-author of the report. Based on our research, we are confident that taxpayers will pay more for construction projects subject to government-mandated LPAs. “It is more than disappointing that our lawmakers continue to support this exclusion law that excludes 80 percent of construction workers in New Jersey, many of whom are minority- and women-owned businesses,” said Samantha DeAlmeida, second vice president and liaison officer for government affairs. “The Law on Project Employment Contracts required the preparation of an annual report that analyzes the effectiveness of project employment contracts and compares the performance of public construction projects with PLA with those of PLA with those without PLA.

New Jersey has not been compliant for 13 years and has only followed its law once. Yesterday, the New Jersey State Assembly voted to pass S-3414/A-5378, which revises the definition of “public labor projects” to require a government-mandated project work agreement for every $5 million public works contract. The bill has now passed the State Senate and Assembly, bringing the legislation to Governor Murphy`s office. Because of preference – some call this favoritism – insiders have become bigger by devouring taxpayers` money and doing only about half the work. With New Jersey expected to bring in $17.5 billion in benefits to the American Recovery and Reinvestment Act, and expectations are high for the Biden administration`s long-awaited infrastructure package, it`s no surprise that everyone is preparing to get their piece of the pie. Under the new legislation, the same rules as Pac Man would be expanded to encompass many more occupational classifications, including work on highways, bridges, pumping stations, water and wastewater treatment plants. A 2019 study by the Beacon Hill Institute looked into this issue and looked at the 107 schools built in New Jersey since 2002, when then-Governor Jim McGreevey ordered that APLs be used in public school construction, which turned out to be a rather costly debacle. The PLA rules stipulate that all project bidders can only recruit workers in certain union offices.

The “most favoured trade union status” immediately eliminates 75% of potential bidders, regardless of skills, ethnic or gender diversity or competitiveness of tenders. The bill, S3414/A5378, has already been passed by the Senate and sent back to the Assembly, where it was referred by the committee and is to be considered by the entire House. This is the second attempt in as many years, with plaus terms with Governor Phil Murphy vetoing S1370/A2607 in August 2020. In 2013, Sweeney and his allies tried to extend the People`s Liberation Army`s mandates for reconstruction projects in Hurricane Sandy, without success. It should make sense to ensure that taxpayer-funded construction projects can be carried out by all the workers who pay for these projects with their own taxpayers` money. Most importantly, disadvantaged minority and women`s businesses and communities should not be used in mundane political games to support support for bad policies to distribute union coffers. We hope that New Jersey lawmakers and Governor Murphy will heed this latest appeal from Harmon and the AACCNJ and make the right decision by ending this latest PLA charade. STATEMENT BY THE PRESIDENT OF THE NJBCTC THE PLA`S EXPANSION EFFORTS BECOME LAW. On 25 July 2002, the Project Employment Contract Act entered into force. Section C:52:38 of the Act required that an annual report be submitted to the Governor and the Legislative Assembly detailing the effectiveness of all LPAs registered under the Act.

The parameters of the required report were described, including the requirement that the first report be published on September 31. December 2003 and every year thereafter. In addition, the law requires that the 2006 report include an analysis of the overall effectiveness of the law. The only study conducted so far took place in 2010, based on 2008 data. Update: On March 26, 2021, the African American Chamber of Commerce of New Jersey and the associated New Jersey Chapters issued this joint statement on the unfortunate vote of the New Jersey Assembly, which passed Bill S-3414/A-5378. The bill was sent to Governor Murphy`s office. The African American Chamber of Commerce of New Jersey and its builders and associated contractors New Jersey Chapter issue a statement on the State Assembly`s passage of S-3414/A-5378 There have also been similar statements from other minority groups involved in their own struggles in other Places of Reproduction of the People`s Liberation Army, such as John Macklin, former president of the Philadelphia chapter of the National Association of Minority Contractors. . “This is simply unacceptable. Until the state complies with its own law, it should not create additional laws to expand LPAs without understanding the impact on the state. Our organization, which represents more than 450,000 workers in the state, vehemently rejects this action. We demand on behalf of our members, the taxpayers of the State of New Jersey and the entire construction workforce that the majority of the construction industry has a fair chance to work on these public projects,” DeAlmeida continued.

Some members of the government have been led to believe that LPAs aim to protect ALL unionized workers and provide quality wages and benefits. That`s not true. Instead, it`s about protectionism and the affiliation of these 15 elite unions. Imagine what the state could have done with that additional half a billion dollars. . The study, which looked at construction costs and other variables related to these projects, showed that APLs increased the final construction costs of schools by 16.25 percent. According to their estimates, Garden State taxpayers would have saved $565.1 million, or more than $7.1 million for each school, if APL had not been used. More: How the recovery will help New Jersey: Unemployment, $1,400 checks, tax credits “Despite the efforts of various construction unions to diversify their membership over the years, they simply don`t recruit enough African-American members for the trade. In addition, the claim that an APL can be a tool to ensure that construction workers and minority businesses are used in a public project is a farce.

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