A debate has arisen over the use of project labor agreements (PLAs) on the construction of six new schools in Prince George’s County. But PLAs, which require union construction crews, are not the solution for Prince George’s County.
PLAs are government mandates that exist exclusively as a method for public officials to steer tax dollars to organized labor.
Most local businesses, particularly those owned by racial minorities, cannot work on projects covered by PLAs. These businesses risk financial ruin in the form of exorbitant pension withdrawal liabilities by agreeing to the terms of PLAs. Consider the case of a trucking company in New Jersey that unwittingly agreed to work on a PLA project and, years later, was hit with a demand from the union’s pension fund for $700,000 — more than twice what the company earned on the project.
The National Black Chamber of Commerce has long opposed PLAs because they “greatly reduce the number of minorities, women and minority businesses working on a project.” In Prince George’s County, more than 40 Black-owned businesses recently objected to the proposal to mandate a PLA on all six school construction projects.
