• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Groundbreak Carolinas

MENUMENU
  • News
  • Careers
  • Resources
    • 2020 ABC of the Carolinas EIC Awards
    • AEC Industry Blogs
    • AEC School Directory
    • Asbestos Resources
    • Content Marketing
    • Coronavirus Resources
    • Diversity and Inclusion
    • Economic Forecasts
    • GroundBreak Carolinas Newsletter Archive
    • Health and Wellness
    • New Silica Standard Resources
    • Workforce Development Resources
  • Subscribe

GroundBreak Carolinas

Your source for construction industry news in the Carolinas

MENUMENU
  • Featured
  • Business
    • Accounting
    • Government Affairs
    • Management
    • Human Resources
    • Finance, Bonding, & Insurance
    • Leadership
    • Marketing & BD
    • Operations Management
    • Legal
    • Risk Management
    • Technology
  • Markets
    • Commercial
    • Distribution / Warehouse
    • Government Facilities
    • Health Care
    • Hotels / Hospitality
    • Industrial/Manufacturing
    • Mission Critical / Data Centers
    • Residential/Multi-Family Residential
    • Office Buildings
    • Power / Energy
    • Retail / Shopping Centers
    • Roads, Bridges and Highways
    • Schools (K-12 and Higher Education)
    • Strategy
  • Workforce
    • Apprenticeships
    • Education
      • Colleges
      • High Schools
      • Technical Schools
    • Recruiting
    • Safety
    • Training
    • Veterans Programs
  • Operations
    • Architecture
    • Contracting
    • Energy
    • Engineering
    • Equipment
    • Facilities
    • Products
  • Projects
  • People
  • Economic Development
  • Partners
  • News
  • Events
  • Careers
  • Resources
    • AEC Industry Blogs
    • AEC School Directory
    • Asbestos Resources
    • Content Marketing
    • Coronavirus Resources
    • Economic Forecasts
    • GroundBreak Carolinas Newsletter Archive
    • New Silica Standard Resources
    • Workforce Development Resources
  • Let’s Talk Construction

Uncategorized

Association Sues to Block Biden Administration’s Unlawful Effort to Mandate Project Labor Agreements for Major Federal Construction Projects

by Associated General Contractors on January 10, 2024

The Associated General Contractors of America and its Louisiana AGC chapter filed suit today in federal court to block the Biden Administration’s unlawful effort to mandate project labor agreements for major federal construction projects. Association officials noted that President Biden lacks the legal and constitutional authority to impose such sweeping labor policies that undermine current labor agreements for union firms and discriminate against open shop contractors.

“This new regulation is an unlawful solution in search of a nonexistent problem,” said Stephen E. Sandherr, the chief executive officer of the Associated General Contractors of America. “Current law prohibits the president from unilaterally imposing labor and employment terms that would disrupt existing agreements for union contractors and exclude open shop firms from competing for federal projects.”

The association and its chapter filed the lawsuit in the U.S. District Court for Western Louisiana in response to the administration’s efforts to implement the new project labor agreement regulation. This regulation seeks to impose what are known as project labor agreements for all federal construction projects that are valued at or above $35 million. Government-mandated project labor agreements require a contractor to negotiate with unions – regardless of whether they have ongoing relationships with those unions – and gives the unions immense leverage to set the terms and conditions of agreements because the contractor is required to have an agreement as a condition of being awarded the project. This allows unions to impose more costly work rules and practices.

In its legal filing, the association noted that the president’s project labor agreement regulation is beyond the scope of executive authority. Current laws governing federal procurement do not provide the president with the authority to impose labor policies as a precondition for securing projects. The complaint also notes that the regulation contradicts, among other things, the Procurement Act, the Competition in Contracting Act and the National Labor Relations Act in terms of limits that can be placed on competing for federal work and decisions of requiring union participation in the workforce.

The association also noted that an analysis it conducted of federal procurement data since President Obama issued an executive order required federal agencies to “consider” imposing project labor agreements found that federal procurement officials disfavor PLAs. Specifically, in 99.4 percent of federal defense-related construction projects, procurement officials found no benefit to mandating a project labor agreement. This analysis is backed up by the administration’s own analysis, stating that only 12 PLAs were used out of a possible 2,000 eligible federal projects.

The association is seeking to have the court order the administration to halt its efforts to impose the president’s new project labor agreement mandate. In requesting the court action, the association noted that, without legal intervention, the new and unlawful regulation would undermine existing collective bargaining agreements for union contractors, prohibit open shop construction firms from competing for federal projects and reduce efficiencies in the delivery of federally funded infrastructure projects. The association does not oppose project labor agreements that are voluntarily negotiated between employers and unions, however.

“This regulation punishes firms that have already entered into a collective bargaining agreement with construction unions, discriminates against open shop firms and their employees and deprives taxpayers of the benefits of open competition,” Sandherr added.                 

Topics: Uncategorized
Labor, PLA

Primary Sidebar

What We’re Reading

  • Point Taken: Clark Nexsen designs an innovative space for the Air Force Academy.
    Source: Business North Carolina Published on May 31, 2025
  • Heddle Hill rezoning denied: Greenville County Planning Commission notes
    Source: Greenville Journal Published on May 30, 2025
  • N.C. lowers revenue forecast amid recession concerns
    Source: Business North Carolina Published on May 29, 2025
  • New toolkit highlights rural N.C. community college partnerships in advanced manufacturing
    Source: Business North Carolina Published on May 29, 2025
  • Truist names ex-Morgan Stanley exec to board
    Source: Business North Carolina Published on May 29, 2025

Recent Posts

  • Clemson’s Nieri Family Challenge to Elevate Construction and Real Estate Development Education
  • ECU Brinkley-Lane Scholar Chooses Construction Management Path
  • AIA South Carolina: Winners of Design Awards 2025
  • The Mid-Year Roller Coaster Economy
  • Design-Build for Manufacturers: Collaboration is King
  • Search
  • News
  • Careers
  • Resources
    • 2020 ABC of the Carolinas EIC Awards
    • AEC Industry Blogs
    • AEC School Directory
    • Asbestos Resources
    • Content Marketing
    • Coronavirus Resources
    • Diversity and Inclusion
    • Economic Forecasts
    • GroundBreak Carolinas Newsletter Archive
    • Health and Wellness
    • New Silica Standard Resources
    • Workforce Development Resources
  • Subscribe

Footer

  • About GBC
  • Contact Us
  • Submit Editorial
  • Submit Event
  • Partnerships/Contributors

Sponsorship Opportunities

Join Our Mailing List

"*" indicates required fields

Name*
By clicking Submit you agree to our Privacy Policy and Terms of Use.
This field is for validation purposes and should be left unchanged.

Copyright © 2025 GroundBreak Carolinas LLC.

  • Privacy Policy
  • Terms of Use