Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Labor And Construction topic
No spam. Unsubscribe anytime.
Commerce panel hears bill to ban government-mandated project labor agreements on state contracts
Summary
Sen. Regina Birdsell told the Senate Commerce Committee that Senate Bill 88 would bar state agencies from requiring project labor agreements on state-funded construction work; union and contractor groups gave contrasting testimony on costs, competition and worker access.
Sen. Regina Birdsell, sponsor of Senate Bill 88, told the Senate Commerce Committee on Feb. 11 that the bill would prevent state agencies from requiring project labor agreements (PLAs) on state-funded construction projects.
Birdsell said the measure is narrowly targeted to state government procurement and would not prevent contractors from negotiating PLAs privately. "This bill will protect New Hampshire's construction business," she said as she opened the hearing.
The hearing drew sharply divided testimony. Alan Rath of the New Hampshire AFL-CIO told the panel the bill would amount to a ban on PLAs and said PLAs are a market tool that can keep projects on time and on budget while supporting family-sustaining wages and training. "This bill is simply understood as a ban on project labor agreements," Rath said.
Representatives of merit-shop trade groups and contractors urged passage. Joshua Reap, president and CEO of Associated Builders and Contractors of New Hampshire, said SB 88 would preserve open competition and prevent a government mandate that he said disadvantages nonunion firms. "SB 88 ensures that state public work contracts are awarded through fair and open competition," Reap said.
Owners of local construction firms said PLAs can exclude nonunion contractors and raise labor costs. Daryl Lueder, president of Fulcrum Associates in Amherst, testified that his company invests heavily in training and safety and that mandatory PLAs would limit workforce access and increase project costs. Michael Guillemette, operations manager of Rose Steel, testified that merit-shop firms provide long-tenured employment, benefits and safety training and argued for equal access to public work.
Opponents pointed to examples of PLAs used on large-scale projects around the country but said New Hampshire has not historically had state-mandated PLAs. Proponents of the bill criticized federal grant language and executive-branch policy as creating pressure to use PLAs on some publicly funded projects.
The committee heard questions about how PLAs interact with prevailing-wage rules. Senator Reardon asked how PLAs relate to Davis-Bacon prevailing wages; Reap said union-negotiated rates on PLA jobs are commonly at or about Davis-Bacon levels because federal surveys often rely on collective-bargaining agreements.
The committee closed the hearing on SB 88 with no immediate vote recorded.
Why it matters: State policy on PLAs affects which contractors can compete for public work and can influence project cost, hiring patterns and local economic impacts when large state-funded construction projects are procured. The bill would limit state agencies' ability to require PLAs while allowing private parties to enter PLAs voluntarily.
For now, the committee took testimony and closed the hearing; no recommendation was recorded during the Feb. 11 session.
