In a surprise move, California Democratic Gov. Gavin Newsom recently vetoed legislation requiring anti-competitive and costly project labor agreements (PLAs) on taxpayer-funded construction projects procured by the state. Newsom admitted mandating PLAs “could result in additional cost pressures” not accounted for in his budget.
PLAs are controversial because they typically force all construction contractors on a project to recognize unions as the representatives of their employees, use union hiring halls to obtain most or all trade labor, exclusively hire apprentices from union-affiliated apprenticeship programs, follow inefficient union work rules, and pay into union benefit and multiemployer pension plans.