Federal Contractors: Beware Project Labor Agreements

Law360, New York (November 12, 2010, 11:21 AM EST) -- Proponents of project labor agreements (PLAs) claim that the agreements avoid cost overruns by eliminating unexpected wage demands or disputes during the life of the project. Opponents of PLAs assert that their requirements unnecessarily drive up the cost of construction projects and discriminate against nonunion contractors and workers.

Although there are several recent examples where local governments have prohibited the use of PLAs in contracting, the federal government has taken a position clearly in favor of their use. As a result, employers considering performing work on...
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