The White House has finalized an Executive Order that promotes the use of Project Labor Agreements (PLAs) on federal contracts, giving federal agencies the authority to now require contractors be unionized to bid on large federal construction projects. PLAs are pre-hire, collective-bargaining agreements with unions that establish the terms of a large contract.
PLAs require that all bidding contractors to pay union wages and benefits while preventing non-union contractors from participating in the bidding process. While the ruling is not a mandate, it does encourage agencies to require unions on projects with more than $25 million of federal funding.
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