Special Report
Closed Shop
The president’s executive order could lock out non-union construction companies.
Non-union construction workers could be locked out of new federal projects thanks to an executive order President Obama signed back in February on the sly as part of a payback to organized labor.
The election of Republican governors in Virginia, and especially New Jersey, who are both opposed to union-only favoritism in contracting, could complicate the administration’s efforts, at least on the state level. The loss of New Jersey must be viewed as a particularly acute setback, given how active labor bosses and White House operatives were in their failed effort to secure re-election for a long-time ally.
Industry leaders have responded vociferously to Obama’s order in detailed press releases that fault the administration for advancing discriminatory procurement practices in violation of competitive bidding laws. The directive received scarce media attention for months, even after the Office of Management and Budget (OMB) issued a memorandum to federal agencies in July encouraging them to implement the new rule.
In his order, Obama calls for project labor agreements (PLAs) to be used, when the cost to the federal government exceeds $25 million. PLA’s are set up as multi-employer, multi-union, pre-existing agreements designed to harmonize labor relations between construction trade unions and contractors.
The July memorandum is of particular concern to representatives with the Associated Builders and Contractors (ABC) because it was issued before the public comment period had expired and did not include any meaningful criteria or data that could be used to assess the merits of PLAs.
The proposed rule itself contains many serious flaws, particularly with regard to the impact statement, the absence of any meaningful criteria for agencies to use in deciding whether to impose PLAs, and the absence of any empirical justification for PLAs on federal projects,” said Geoff Burr, ABC vice president of government affairs.
The U.S. Department of Labor’s Bureau of Labor Statistics shows only 15.6 percent of America’s private construction workforce is unionized. This means PLAs could be used to discriminate against the more than eight of out of 10 construction workers who are not part of a union, ABC officials have observed.
In his analysis of the order, Maurice Baskin, the legal counsel for ABC, wrote:
The Order will result in widespread discrimination against the many construction workers who do not belong to unions, and denies their right to Freedom of Association and Equal Protection. The Order will cause money to be unfairly taken from such workers and funneled into under-funded union pension plans, from which the workers can receive no benefits. The Order will increase costs to the federal taxpayers by arbitrarily limiting competition for federal construction work.
Obama’s executive order 13502 claims that PLAs would heighten efficiency and alleviate labor disputes that prevent projects from being completed on time. The order reads in part as follows:
The use of a project labor agreement may prevent these problems from developing by providing structure and stability to large-scale construction projects, thereby promoting the efficient and expeditious completion of federal construction contracts, the order says. “Accordingly, it is the policy of the federal government to encourage executive agencies to consider requiring the use of project labor agreements in connection with large-scale construction projects in order to promote economy and efficiency in federal procurement.
But the ABC takes issue with the idea that PLA’s are necessary to ensure labor cooperation to keep projects running on time.
“This is a particularly disingenuous argument that flirts with blackmail, because unions cause many project delays through illegal organizing and jurisdictional disputes on jobsites,” according to an analysis posted on the ABC website. “Merit shop workers do not strike, yet they are excluded from working on PLA projects.
Moreover, there are a number of studies that show PLAs will increase the cost of construction projects, Brett McMahon, an ABC representative explained in an interview.
Decades of studies have shown that PLAs increase the cost of construction,” said McMahon, who is also vice-president of Miller and Long, a Maryland-based concrete construction company. That’s a bad idea during good economic times, but it’s utterly foolish when we are already financially upside-down as a nation. We are financing these projects with debt that is underwritten by taxpayers — many of whom are not going to be able to work on these projects without paying union dues.
About the Author
Kevin Mooney is an investigative reporter with free market think tanks associated with the Franklin Center for Government and Public Integrity. He has also written for the Daily Caller, the Washington Times, the Washington Examiner, NetRightDaily.com and NewsBusters.
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Pingback| 11.12.09 @ 7:05AM
Twitter Trackbacks for The American Spectator : Closed Shop [spectator.org] on Topsy links to this page. Here’s an excerpt:
Northern Rebel| 11.12.09 @ 9:15AM
After more than 30yrs as a tool and die maker, I am out of work, probably forever in my chosen field.
The difference is, so are my union brethren. They are the ultimate parasites, in that they've managed to consume themselves!
Between the unions, and illegal immigration, working men's wages have been driven down by over 25%, and there is no end in sight.
I guess I'll go to work at WalMart, or Home
Depot, until the unions destroy them.
WalMart has put more money into the hands of the average American, than any politician in history.
"President" Anti-Christ can't stand the thought of any money being in the private sector, so he won't rest until he has it all in his "Obama stash", as a Detroit welfare queen called it.
Stan Redmond| 11.12.09 @ 1:30PM
I think the future of this country are people like you starting up garage shops running on cash. Many people I've worked with over the years were in exactly the same position when the large companies closed shop. Don't despair and keep looking for opportunities.
Anastasia Mather| 11.12.09 @ 9:16AM
Well, I guess that means that my husband's top-flight nonunion steel fabrication shop in NJ and Pennsylvania is screwed.
It's not enough that their hours have been cut because in this economy there are fewer construction and renovation jobs.
Le Cracquere| 11.12.09 @ 1:27PM
Major Pinkerton, at last I'm willing to forgive your war record--this country needs you. Let a million Haymarkets bloom!
Stan Redmond| 11.12.09 @ 1:33PM
I run as fast as I can from unions. Anyone who has ever set up (attempted to that is) a display at a major trade show knows the innefecient jokes unions have become. This executive order clearly admits President Obama knows exactly how to ruin the economy and he wants it that way. He knows unions CAN NOT COMPETE IN THE FAIR OPEN MARKET! He knows card check will wipe out small non union shops.
alyeska| 11.13.09 @ 4:13AM
do you like your weekends? how about paid sick leave and vacation time? did you like your pension benefits and health insurance? how about overtime pay? how do you feel about osha?
all these things that you take for granted were fought for by union men -- men who were beaten, killed and black listed by their robber baron employers.
thank you stars for unions. you've benefited immeasurably from them.
Patriot Bonanza| 11.13.09 @ 4:26AM
If it wasn't for unions this guy would be earning 5 cents an hour.
Joe the Plumber| 11.13.09 @ 1:00PM
The above claims of what benefits unions have delivered to the U.S. workplace are debatable. But pretend they are all correct. The premise that Executive Order 13502 and project labor agreements are good public policy because of all of the "great" things unions have done for this country is a classic Appeal to Tradition fallacy.
This fallacy consists of attempting to persuade others of a point of view by appealing to their feelings of reverence or respect for some tradition instead of to evidence.
The evidence in opposition to this sop to labor unions at the expense of quality competitors (and probably taxpayers too) is pretty strong.
If it walks like a duck and quacks like a duck...it is bad public policy.
alyeska| 11.13.09 @ 5:57PM
did you go to school in america? is it possible you were not taught american history? blather all you want, facts are facts. i can recommend a number of books on the subject if you ever want to lose you sad, benighted view of history.
victor| 11.13.09 @ 7:41PM
I miss having a president that knew what to do with reclacitrant and upstart union leaders.
Arrest them and put them in jail.
Strikes against the good of the nation?
Bust them and take there industries over with federal troops.
Tell them what they should settle for and make them take it.
Ahh, for the good olde days.
Nick| 11.13.09 @ 7:36PM
"[...] union men -- men who were beaten [...]"
Ahhh....To be able to beat on union thugs again. What a magical age.
Unfortunately, they didn't beat enough of them.
Unions- commie scourge of the Earth.
Pingback| 11.12.09 @ 2:49PM
Thursday Links « Nebraska Redneck links to this page. Here’s an excerpt:
victor| 11.12.09 @ 10:11PM
Just one more example to show that elections have consequences.
New Jersey's unemployment is in the top ten of bad states and this is going to make us number one with a bullet.
I'm not a fan of Christie, I would have prefererred Lonegan, but at least he is a Republican an dis not scared of corrupt union or elected officials.
I truly wish him well.
victor| 11.12.09 @ 10:14PM
I forgot to mention that all those who complained about McCain, and either sat home or voted for someone else, wound up electing Obama.
And they will "elect" him in 2012 as well. And be proud of their "vote".
Elections have consequences,
Vote Republican!
P. Revere| 11.15.09 @ 7:26PM
This is just one small part of Obama's overall strategy to create a soviet state. ALL workers will be unionized in the future, as Obama will, after he negates or prevents the elections next year and seizes power, eliminate all private capital. Over the last year, he has carefully, behind the scenes, created the machinery to "switch on" a soviet state. The seizure of power will be fast, bloody, and violent. Remember, he has a vast network of muslim/communist operatives at his command. I would expect him to direct an NBC attack or a total economic collapse in order to make his move. Stock up, plan, and be ready to die or become a slave.
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