Longtime readers know I’ve been a longtime advocate for ending Project Labor Agreements (PLAs) on government construction projects for roads, schools and everything in between. Mandatory PLAs were imposed on Nevada taxpayers in 1994 by an executive order issued by then-Gov. Bob Miller.
For those not familiar with the term, CityLife editor Steve Sebelius explains that PLAs “are collective bargaining agreements between governments and unions that stipulate all contractors will adhere to certain rules, and in exchange, unions won’t strike.”
In other words, PLAs are a form of legal extortion by Big Labor.
They also jack up the cost of taxpayer-funded construction projects by requiring builders to pay higher union wages and benefits than a competing, market-driven non-union construction firm might pay. A true taxpayer rip-off.
So on January 23rd of last year, following Gov. Jim Gibbons’ inaugural State-of-the-State address, I wrote that if the governor “wants to get more bang for our highway construction bucks, he ought to push for the elimination of union-only project labor agreements and…allow non-union construction companies paying market labor rates to compete for highway projects. That’ll allow us to build and repair miles of additional roads for the same money.”
That recommendation was followed-up on February 5th with a letter from a coalition of pro-business, free-market Nevadans urging Gov. Gibbons “to rescind Gov. Miller’s executive order mandating PLAs on government construction projects.” And again on February 20th I wrote that “Before even considering any kind of tax hike to fund highway construction, the use of mandatory union-only Project Labor Agreements, which drive up the cost of construction projects, needs to be ended. This can be done by a gubernatorial executive order.”
Which Gov. Gibbons has now issued.
“Whereas, the government has an obligation to all Nevadans to ensure that tax dollars are used economically, efficiently, and in a non-discriminatory manner,” the new Executive Order on January 3, 2008, reads, “and whereas, one way to accomplish these goals is by and through a process that ensures open and fair competition for state construction projects; and whereas, the process for bidding on and awarding state construction projects should not discriminate against government contractors on the basis of labor affiliation or lack thereof…I, Jim Gibbons, Governor of the State of Nevada…do hereby order that the Executive Order issued by the Governor of Nevada regarding project labor agreements, dated April 14, 1994…is revoked.”
Amen and hallelujah.
As Mr. Sebelius notes, though he opposes the action, the result of revoking Gov. Miller’s sop to Big Labor “is that taxpayers will save money, because project labor agreements drive up the cost of construction.” The only problem is that Gov. Gibbons’ executive order revoking Gov. Miller’s executive order only applies to construction projects funded by the state. Local governments are free to continue socking taxpayers with higher costs for building local roads and schools. But maybe, just maybe, Gov. Gibbons’ leadership on this issue will give local elected officials something to think about.
Free-market competition works. So let it be written; so let it be done.
Posted on January 26th, 2008 by Chuck Muth
Filed under: Nevada
How much government money do you think will now go from the State, to LV Paving to illegal immigrants and straight to Mexico?
Not that long ago these contracts were written, knowingly, in order to continue to create a strong middle class. The money these workers made stayed in the community. These workers knew they were buiding for their family and country, and their was US citizen pride in the product…now, it’ll be hired foreign labor who may not have the same pride that our fathers and uncles did in building America.
So, yes, PLA’s were more expensive. However, as long as government has their hand all over the rudder of the “free market” at least this flow of money “trickled down” into the community (housing, vehicles, restaurants et.al….now, I question how much (more) will flow over to Mexico, where fully 21% of their GDP is from US dollar inflows into their country from our ‘guest’ wokers sending home their paychecks.
Well, it was great while it lasted….soon (now) we are a subsidiary of China, Japan and Germany, who hold our debt and now Dubai, Taiwan, UAE are begining to own our banks and thus control of our use of our own lendable capital.