Executive Order No. 1 directs each state department, authority or instrumentality to either negotiate project labor agreements with labor organizations or require the project manager or general contractor to negotiate with union organizations as a condition of public contracts.

"Without so much as one public hearing on the issue, Governor McGreevey has gift wrapped billions of taxpayer dollars and given it to the labor unions," Stoller said. "This order will create a virtual monopoly for labor unions. It will effectively shut out hundreds of qualified contractors and thousands of nonunion workers from participating in state public contracts. Every public works project impacted by this order will cost taxpayers more."

"Frankly, this undermines McGreevey's credibility," Stoller said. "While he is asking everyone else to cut spending, he is giving his big union supporters a sweetheart deal funded on the backs of taxpayers."

The negative impact of project labor agreements is well documented:

The New Jersey Supreme Court has struck down project labor agreements in the past for being in violation of competitive bidding laws. In 1994, the Court said "bidding statutes are for the benefit of the taxpayers. . . . their aim is to secure for the public the benefits of unfettered competition." (George Harms Const. V. Turnpike Authority)

Project labor agreements, as a practical matter, bar hundreds of qualified nonunion contractors from participating in public works contracts. This order virtually hands the contracts to labor unions, who know they can charge higher rates without worrying about nonunion competition.

Project labor agreements deny jobs to thousands of nonunion workers whose firms will not get to participate in public contracts. These workers pay taxes to finance school construction projects and the Transportation Trust Fund, but will not be able to work on them.

Major construction projects undertaken with project labor agreements-from Boston's notorious Central Artery project to the San Francisco Airport expansion-have been severely over budget and behind schedule.

While McGreevey is asking each cabinet member to cut spending by 5 percent and warning of even deeper cuts to come, union-only deals will only increase the costs of public contracts across the state.

"Our nonunion contractors have a tradition of doing good work at a responsible cost to the public," Stoller said. "Apparently, Governor McGreevey thinks that these contractors and their employees are good enough to pay taxes, but not good enough to work on public projects. Frankly, this is an insult."
 

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