Unions got a sweetheart deal at the expense of taxpayers when Governor James E. McGreevey signed legislation providing for union-only project labor agreements (PLAs) in the construction of public buildings, New Jersey Business & Industry Association Executive Vice President Philip Kirschner said today.

Under the new law, quietly signed by the Governor on July 25, state and local government entities can sign PLAs with unions for the construction of schools, libraries and other public-building projects, effectively barring nonunion contractors from participating in these projects. Eliminating nonunion competition raises the cost of projects, preventing taxpayers from getting the best deal.

"This is a sweetheart deal for unions, but taxpayers get it in the neck," Kirschner said. "These union-only agreements will increase the cost of multi-million-dollar school construction projects. They will exclude thousands of nonunion contractors and their employees simply because they do not belong to the right club."

NJBIA led a coalition of businesses, contractors, minority contractors, school boards and municipalities that vehemently opposed PLA legislation because it will give unions a virtual monopoly on public-building contracts.

The new law will also undermine the state's competitive bidding statutes, which are designed to protect taxpayers by ensuring that construction contracts go to the lowest responsible bidders, regardless of their union or nonunion affiliation.

"It's one thing to be pro-union. It's another thing to be pro-union at the expense of taxpayers and everyone else," Kirschner said. "This law says that the quality of the work, the cost of construction, and the ability to meet deadlines doesn't matter. The only thing that matters in getting a contract is using union labor."

For more information, contact Steve Wilson at 609-393-7707, ext. 245.
 

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