By Patrick Dean / Associated Builders & Contractors – Va Chapter • Gordon Dixon / Virginia Transportation Construction Alliance • Brandon Robinson / Associated General Contractors of Virginia
Something smells in Fairfax County, and it’s not just the stench of wastewater. The board of supervisors is experimenting with Virginia’s first-ever project labor agreement (called a PLA) on the planned rehabilitation of the Accotink Wastewater Pump Station. The irony is inescapable, given that government-mandated PLAs are notorious for flushing taxpayer dollars right down the drain.
Predictably, one of the state’s top union bosses applauded the board’s move, trotting out the usual feel-good PLA claims, including that they ensure “labor peace.” Don’t be fooled; government-mandated PLAs are political payoffs dressed up with good intentions, designed to reward union leaders for their political support by steering public contracts to favored union firms. But this pay-to-play scheme comes with steep costs, and Fairfax taxpayers, workers, and businesses will get stuck with the bill.
That’s because government-mandated PLAs are designed to stifle bid competition, as seen with the Accotink project, which drew just two bids. Studies show this lack of competition inflates costs by 12 to 20%, sometimes more. A landmark study published in August by the RAND Center on Housing and Homelessness found that PLAs increased the cost of new affordable housing projects by 21%. For Fairfax residents, that means an extra $9 to $14 million in higher sewer charges.
And what are you getting in return? Certainly not “labor peace.” There hasn’t been a significant construction labor strike in Virginia in the past 30 years since the U.S. government began tracking these incidents. And there is not a greater likelihood of project certainty either. Contrary to the un-supported claims that PLAs keep projects on time, the RAND study also found that PLAs delayed projects by 27% compared to non-PLA projects. Instead, the science and evidence show that the board’s PLA folly simply means that Fairfax residents—you—will pay more to get less, as inflated project costs eat into funding for schools, affordable housing, and other priorities.
Just ask parents in Prince George’s County, Md., which considered cuts to academic programs because a PLA mandate drove up school construction costs beyond budgeted levels. Los Angeles was forced to slash 800 units from an affordable housing initiative due to a $140 million PLA premium. Even California Governor Gavin Newsom (D) and D.C. Mayor Muriel Bowser (D) have opposed PLAs because they drain resources from essential public investments. Newsome vetoed SB 984, and Bowser chastised the D.C. council over an unfunded PLA mandate. Supervisors should take note.
Despite union spin, government-mandated PLAs are anything but “open to all contractors.” They function as de facto union-only mandates and, in the process, shut out nearly all Virginia-based firms and workers. For the Accotink project, Fairfax County had to bring in a New Jersey contractor because Virginia firms cannot work on PLA projects without exposing themselves to enormous unfunded pension liabilities. What’s worse, minority- and women-owned businesses—already underrepresented in union membership—are often excluded entirely from PLA projects. The National Black Chamber of Commerce has aptly labeled PLAs “a license to discriminate.” Recently, Maine Governor Janet Mills (D) recognized these issues when she vetoed LD 1847 in April, citing the harm PLAs cause to the state’s businesses and workers.
And what about workers? PLAs don’t boost wages or benefits—prevailing wage laws typically set those. Worse, some PLAs require workers to forfeit up to 34% of their earnings to union benefit funds, including pensions they’ll never vest in. These funds pad union coffers while workers get nothing in return. And for the 95.7% of Virginia construction workers who aren’t unionized? Joining up—and paying dues—is often their only option to work on PLA projects. That’s forced unionization, courtesy of the board of supervisors. It appears that values like “freedom of choice” only matter when it fits their agenda.
The board’s embrace of pay-to-play contracting disguised as “progress” is Orwellian. Fairfax’s PLA scheme stinks and is a raw deal for everyone but union bosses and the politicians they back. Only those who want higher costs, fewer local jobs, and funds diverted from vital community needs could call this a “historic milestone.” Don’t let local politicians' gaslight you. PLA schemes aren’t the future of construction—they’re a costly mistake that should be flushed for good.
Virginians for Fair Contracting & Employee Protection is a 501c(4) organization comprised of taxpayers, business leaders, and workers united in the belief that government-mandated Project Labor Agreements (PLAs) in Virginia undermine fair competition and inflate public costs.