Thursday, June 30, 2011

BNA, June 23, 2011, Thursday

BNA

June 23, 2011, Thursday

BNA

Cornell University Study Supports Use of Project Labor Agreements

ALBANY, N.Y.—Project labor agreements in New York give rise to social and economic benefits to the state, while saving money and avoiding delays on major construction projects, according to a study from the Cornell University School of Industrial and Labor Relations.
The study found that PLAs currently govern labor relations on projects involving “tens of billions of dollars’’ throughout New York state, but primarily in the New York City area. The study said one of the key advantages of PLAs, aside from the no-strike agreement, is the use of a common contract expiration date for various craft agreements.

“This is especially significant for projects now underway in metropolitan New York City: up to fifteen craft agreements will expire in the New York City area during 2011,’’ according to the study, which was written by Fred B. Kotler, a lecturer and research associate at the ILR school. “Projects covered by PLAs are shielded from the potential disruption that may develop from any single contract dispute.’’

The study said PLAs provide cost savings by standardizing contract terms among the various craft agreements; obtaining an exemption from New York's so-called Wicks Law requirements; reducing costs for shift work and overtime; and prohibiting strikes.

Joshua Reap, vice president of government affairs for the Associated Builders and Contractors Empire State Chapter, told BNA that the study was “pro-union propaganda” and did not present an objective view of the facts involving PLAs.