WASHINGTON — Associated Builders and Contractors and its Florida First Coast chapter filed suit today in federal court to stop the Biden administration’s plan to mandate project labor agreements on construction contracts procured by federal agencies. ABC’s complaint asserts that President Joe Biden lacks the legal and constitutional authority to impose a new federal regulation injuring economy and efficiency in federal contracting and illegally steering construction contracts to certain unionized contractors, which employ roughly 10% of the U.S. construction workforce.
ABC estimates the Biden pro-PLA policy will affect at least 180 federal construction contracts valued at $16 billion across America on an annual basis, including several federal construction contracts for projects in Jacksonville and dozens of projects in Florida and the Southeast.
“ABC seeks a national injunction against President Biden’s executive overreach, which makes a mockery of federal procurement laws and rewards powerful special interests with government construction contracts at the expense of taxpayers and the principles of fair and open competition in government procurement,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “ABC has heard from large and small federal contractors—including firms signatory to union agreements—and concerned federal agency contracting officers that the Biden administration’s controversial PLA policy has already stifled competition and raised costs on federal construction contracts in Florida and across the country. This policy will continue to do so absent a successful legal challenge.”
“When mandated by government agencies, PLAs needlessly increase construction costs by 12% to 20%, reduce opportunities for qualified large and small contractors and their craft and non-craft employees, and exacerbate the construction industry’s worker shortage of more than half a million people by discriminating against the nearly 90% of the industry workforce that is not unionized,” said Brubeck. “PLAs discourage competition by forcing contractors to sign union collective bargaining agreements, which require them to follow inefficient and cumbersome union work rules, hire most or all workers from union halls and apprenticeship programs, accept compulsory union representation on behalf of any remaining members of its existing workforce and expose them to union wage theft of up to 34% of their compensation unless they join a union and vest in union benefits plans.”
ABC and its Florida First Coast chapter filed the lawsuit in the U.S. District Court for the Middle District of Florida in Jacksonville in response to the Federal Acquisition Regulatory Council’s Dec. 22, 2023, final rule—and the related Dec. 18, 2023, White House Office of Management and Budget Memo—implementing President Biden’s Feb. 4, 2022, Executive Order 14063, which mandates PLAs on federal construction projects of $35 million or more.
In its legal filing, ABC asserted that the Biden administration’s PLA rule is beyond the scope of executive authority and violates the Constitution, the First Amendment and the Administrative Procedure Act. The complaint also notes that the rule violates the Federal Property Administrative Services Act, the Competition in Contracting Act, the National Labor Relations Act, the Office of Federal Procurement Policy Act and the Regulatory Flexibility Act, among others, by limiting competition and forcing large and small businesses to sign union agreements as a condition of winning a federal contract for construction services.
ABC members won 54% of the $205.56 billion in federal contracts worth $35 million or more during fiscal years 2009-2023 and built award-winning projects safely, on time and on budget, without unnecessary government-mandated PLAs.
Learn more at abc.org/bidenplafaqs and the Build America Local coalition website at BuildAmericaLocal.com.
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Maybe, just maybe, Unionized construction companies don’t hire illegals. But, non-union companies know they can hire illegals and pay them less… just saying.
I have worked both union jobs and non union jobs. I think the union is not worth working for, better to work for open shop. Biden needs to be voted out of office. He is not a good leader or person. His goal seems to destroy our country and democracy
This article is clearly anti union. Which means its anti worker and against workers. what it covers up is that this is about winning more contracts by means of lower wages and benefits for workers by keeping unions out. More profits off the backs of a workforce with no seat at the table of collective bargaining. We are not all asleep to this Manipulation of the truth in this article.
Don’t like working for a non-union shop Joe? Get another job. Unions force up the cost of any job. And unions are so great why is it that only 16 percent of non-government employees are union?
Someone needs to make an example of the Biden administration and why not the construction industry. I believe in free enterprise and it should be protected at all costs 🙌 🙏 ✨️ ❤️ 👌 👏 🙌. My prayers will be with all the contractors in this fight in which I think will definitely be a big one and will definitely have coverage even though I think from the mainstream and social media will be bias against it.
You may have a good argument, but you are also lying in your first sentence….
Have “channel” in scripted right over your acronym “ABC”, which gave me the first impression that the news agency “America Broadcasting Company” was sueing the Biden Administration; but the fallacy is that you know the impact of this “impression”.
Can’t trust your reporting.
I think, that this is a prime example, of the corruption that exists in our current administration! To force companies that are non-union, to unionize, in order to win government contracts is outlandish! Clearly, President Biden has overstepped his authority by doing such an act! If this is what we have to experience, for the next 4 years, under a Biden second term, then we are truly in deep trouble! This also means, that our constitution would be destroyed under that very same administration! You talk about other political parties, threatening the Democratic process in this country? Take a look at the Democrats and what they’re doing to democracy today! This pla, must not be allowed! As a union member, through ATU and laborers union, I recognize the fact that, the rest of the United States should not be forced to cowtow, to a president that over reaches his authority! It’s time to put a stop to all of it! Use the law, to stop these kind of practices! Use the law, to protect our constitution! After all, our constitution is the law of the land and should be upheld at all times! I think, that our current presidents, has lost sight of that! The people who are pulling his strings, have not lost sight of that, but are working towards distorting and destroying our constitution! This is a fight well worth fighting.