KemLaw

Are Connecticut’s towns and cities paying too much for new schools?

A number of studies suggest they are.

The cause?

Project Labor Agreements (PLA).

Project Labor Agreements essentially require that municipal and state construction projects be built using union labor.

According to the conservative think tank, the Beacon Hill Institute, in the last 18 years, project labor agreements have cost Connecticut’s taxpayers an extra $500 million in school construction costs (or between $8.9 and $26.7 million more per project).

That’s almost 20% more than each job would have cost if the projects had been open to both union and non-union companies.

Do other states have similar problems?

Yup.

Boston’s infamous “Big Dig” tunnel project was built under a PLA and came in 190 percent over budget and eight years late.

A New Jersey Study found that PLAs increased the cost of school construction by 30 percent in that state.  A large study in California by the National University System Institute for Policy Research found PLAs increased school construction costs by 13 to 15 percent.

Chris Fryxell, president of the Connecticut Chapter of the Associated Builders and Contractors, recently had this to say about PLAs:

“Government-mandated PLAs discriminate against the roughly 85 percent of Connecticut workers and contractors who have chosen not to join a union. You’re restricting the bidding process, so you’re eliminating a lot of competition, you are also dictating a lot of rules that I would say are uncommon in most construction projects.”

Interestingly – Governor Lamont wants to aggressively repair the state’s crumbling infrastructure.   Much needed to be sure…

But just imagine the savings if PLAs were set aside.

If you’re an employer and have questions about labor and employment law, consider calling on the attorneys at Kainen, Escalera & McHale in Connecticut.  We do one thing and one thing only – we are an employer defense law firm – in fact, we are one of the largest employer defense law firms in the region.  What’s more, each of our attorneys has over 25 years of experience in employment law and labor law matters and can provide your business with comprehensive legal counsel ranging from assistance with necessary preventive measures to trial advocacy.  Please contact us if we can help you.

Please Note: We do not represent employees. We only work with employers.

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