Project Labor Agreements (PLA)
A Project Labor Agreement (PLA), is a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project. The agreement between an owner and local trade unions provides for the hiring of qualified construction workers and guarantees labor stability on a construction project.
A PLA requires all employers to sign collective bargaining agreements with the appropriate trade unions for all work on the project. Collective bargaining enables working union members to negotiate with employers on terms of employment, including pay, benefits, hours, leave and safety policies. Employers are able to resolve issues at the bargaining level rather than through conflict, which reduces employee turnover by promoting open communication and job security.
Academic research has shown that PLAs are good for both public and private-sector construction projects, particularly larger projects. The validity of PLAs has consistently been upheld in both federal and state courts. PLAs do not adversely affect the costs of construction projects; rather, they positively influence project timeliness, quality, safety, training, minority employment, employee benefits and labor peace.
Some of the successful Cleveland Building & Construction Trades Council Projects that used PLAs:
Cleveland Clinic Taussig Cancer Center-Cleveland
Size: 377,000 square feet
Construction costs: $276 million
Employed 2,000 construction workers
Workers spent 1 million hours on the project.
Recognition wall installed for workers, preserved as permanent art
Church + State Project
Size: 2 buildings: 11-Story and 6-Story
158 apartments; 20,000 square feet of retail and a 10,000 square foot park
First LEED mixed-use building on Cleveland’s west side and is also the largest market-rate HUD project in the region in the past few decades.
Project Labor Agreement ensured 100 building trades jobs
CWRU/Cleveland Clinic School of Dental Medicine-Cleveland
Size: 126,000 square feet
Construction costs: $62 million
Provides low-cost dental services to community
19,000 annual visits each year
MetroHealth System: Hospital
Size: 11-floor, 270-room hospital on West 25th St.
Construction costs: nearly $1 billion
Project Labor Agreement created more than 1,000 construction jobs
Completion expected in 2022
Downtown Hilton Hotel-Cleveland
Size: 32 floors, 600 rooms
Construction costs: $272 million
Project Labor Agreement: employed 2,800 [26% minorities, 40% from Cuyahoga Co, 20% Cleveland]
Came in $20 million under budget
2018 Progressive Field Improvements-Cleveland
Construction costs: $2.9 million
Major capital repairs; renovated the concourse, seating, Club lounge
First time a formal Project Labor Agreement was signed for a renovation project. The original construction of the ballpark 20 years ago, then known as Jacobs Field, was covered by a PLA.
Used revenues from tax on beer, wine, liquor, cigarettes
Cleveland Convention Center-The Global Center for Health Innovation
Size: 410,000 square feet
Construction costs: $465 million
Project Labor Agreements ensured employment of 100% union construction workers
Rocket Mortgage Arena-Cleveland
Size: 152,950 square feet [up from 95,380]
Construction costs: $185 million
2,700 workers on the project
600,000+ hours logged
Diversity and inclusivity goals within the Community Benefits Agreement