Massachusetts Governor Maura Healey has signed an executive order requiring state agencies to consider project labor agreements (PLAs) for public construction projects exceeding $35 million, a move that has both supporters and critics.

The order, which was signed on Tuesday after Governor Healey's address at a Massachusetts Building Trades Union convention, aims to streamline larger construction projects while ensuring a skilled and reliable workforce. PLAs typically mandate that unionized labor be used for construction work, a stipulation that has sparked both support and opposition from various stakeholders.

Governor Healey explained the reasoning behind the executive order, stating: “There are so many critical construction projects underway all across the state – upgrading our roads and bridges, improving infrastructure for small businesses and more. We know that it's really important that these projects are set up for success. This means ensuring that contractors have a trained and ready workforce to turn to and a plan for meeting deadlines, staying within budget and keeping everyone safe. In many cases, PLAs can help make that happen, while promoting good job opportunities for workers of all backgrounds, including veterans, women, and minorities.”

Under the new mandate, all state executive department agencies must evaluate each public construction project estimated to cost more than $35 million to determine whether a Project Labor Agreement would be in the best interest of the Commonwealth or the respective agency. Factors for consideration include the project's scope, complexity, workforce requirements, and how a PLA could impact project costs and efficiency.

Massachusetts' approach to PLAs is not entirely new. According to Healey’s office, PLAs have already played significant roles in major projects such as the new Holyoke Veterans Home and Gillette Stadium. Additionally, a recent analysis from the Illinois Economic Policy Initiative found that the use of PLAs in Illinois increased competition and did not raise overall construction costs. The report suggests that such agreements could potentially lower costs for taxpayers.

While the order promotes the use of PLAs, it does not mandate union labor on every project. Instead, the order gives officials the discretion to determine whether a PLA is the best approach for each specific project. "The state could require the use of a PLA on a project 'if, and only if,' officials conducting the review determine such a deal would be in the best interests of the state or executive agency," Healey’s office stated.

Support for the Executive Order

‍The executive order received widespread praise from organized labor leaders, including Massachusetts AFL-CIO President Chrissy Lynch and Massachusetts Building Trades Union President Frank Callahan. Industry leaders also backed the policy, with Suffolk Construction Company CEO John Fish offering strong support: “By promoting the strategic use of project labor agreements on large, sophisticated construction jobs in the Commonwealth of Massachusetts, the Governor and her Administration are taking action to help ensure the most complex projects are built by a cohesive, well-trained workforce with the knowledge and experience to enhance project safety and prevent cost overruns and schedule delays."

Opposition from Non-Union Contractors

‍Despite the support from labor groups, the executive order has faced criticism, particularly from non-union contractors. Greg Beeman, CEO of the Associated Builders and Contractors of Massachusetts, called Healey's executive order a “solution in search of a problem.” He argued that large construction projects are successfully completed every day using a combination of union and non-union labor. "The premise is as though there's some problem that needs to be solved and PLAs will solve it. But I believe large projects are getting done successfully through a mix of union and non-union contracts every day,” Beeman said.

Beeman and other opponents contend that PLAs limit competition by requiring unionized workers, thereby narrowing the pool of potential bidders. He further emphasized the concern: “If 80-plus percent of the workforce isn't in unions, yet only unions can work on a PLA job, you've got a huge problem there with the ability of most of the industry to participate.” Critics argue that such a policy could result in increased costs for taxpayers, as fewer contractors would be able to compete for these large projects.

Future Outlook

‍The executive order marks a significant step in Governor Healey's efforts to ensure that major infrastructure projects in Massachusetts are executed efficiently, safely, and with a skilled workforce. However, the debate over project labor agreements is likely to continue, with both sides presenting compelling arguments about the balance between workforce quality and cost-effectiveness.

Economic and Social Impact of PLAs

‍Supporters of PLAs often highlight the economic and social benefits of unionized labor. Proponents argue that these agreements ensure higher quality workmanship, safer job sites, and better wages and benefits for workers. Unions have long advocated for PLAs as a way to ensure that large-scale public works projects employ highly skilled labor, which in turn reduces the risk of accidents and delays.

In contrast, opponents argue that such policies may limit opportunities for non-union workers and contractors, many of whom believe they can deliver similar levels of quality and efficiency. Critics also argue that mandatory union labor could drive up costs for public projects, as unionized workers tend to receive higher wages and benefits compared to non-union counterparts.

As Massachusetts continues to face a growing number of infrastructure needs, the debate over PLAs will likely shape the future of public construction projects in the state. It remains to be seen how the executive order will impact both the construction industry and taxpayers in the long term.

Governor Healey's Broader Agenda

‍Governor Maura Healey's executive order reflects her broader commitment to improving Massachusetts' infrastructure while promoting economic fairness. Her administration has emphasized the importance of ensuring that all workers, regardless of background, have access to good jobs with fair wages. While the use of PLAs is a step in this direction, it is also part of a broader effort to modernize the state's infrastructure, address pressing needs, and promote workforce diversity across all sectors of the economy.

Conclusion

‍Governor Healey's push for project labor agreements on large public construction projects has sparked a significant debate in the Massachusetts construction industry. While unions and supporters of the policy argue that PLAs ensure high-quality, safe, and efficient construction, critics maintain that these agreements could stifle competition and increase costs. As the state moves forward with implementing the executive order, it will be crucial to monitor the impacts on both the construction industry and taxpayers.

Originally reported by Chris Lisinski in Cape Cod Times.