Vermont committee weighs 20% density bonus tied to union labor in S.328; industry and labor disagree on near‑term capacity
Loading...
Summary
Lawmakers, contractors and union leaders debated Section 12 of S.328, a proposal that would offer a 20% density bonus for projects using union labor or project labor agreements. Contractors warned it could raise costs and exclude rural builders; union leaders said PLAs and apprenticeship pipelines would stabilize supply and boost quality.
The Senate Economic Development, Housing and General Affairs committee on Tuesday discussed Section 12 of S.328, a housing bill that would provide a density incentive for projects built with union labor or under project labor agreements (PLAs).
Committee members opened the session by calling witnesses to testify about whether the 20% density bonus in Section 12 would increase housing production and who would benefit. The chair said the committee is considering clarifying language to limit the incentive to multiunit residential developments and exploring a prevailing-wage tie to the bonus.
Richard Mobi, identified in committee introduction as the executive vice president and director of safety, training and member services for the Associated General Contractors, cautioned that the proposal risks "creating incentives or favoring a distinct group of contractors." He told lawmakers that the relatively small share of unionized craft workers in Vermont construction would make a 20% union threshold hard to meet and could prompt developers to bring in out‑of‑state contractors. "We are going to slow down the build out of housing," he said, and small family contractors could be placed at a disadvantage.
Labor leaders pushed back. Larry Baldwin, business manager for Laborers Local 668 and a vice president of the Vermont building trades who also identified himself as president of AFL‑CIO Vermont, said union contractors often face fewer delays and have apprenticeship systems that supply trained workers. Baldwin cited a 2022 analysis by the Association of General Contractors of America comparing union and nonunion contractors and urged the committee to consider apprenticeship pipelines and financing tools that support union-built projects. He described the AFL‑CIO Housing Investment Trust as a large, long-standing financing vehicle that typically finances union-built affordable housing.
Matt Galvin, introduced by the chair as president of the Vermont Building and Construction Trades Council and speaking about PLAs, said project labor agreements do not exclude nonunion bidders but set standards and help assure project stability, safety and local hiring, including veteran recruitment through national programs such as "Helmets to Hardhats." Galvin said PLAs can reduce delays and improve predictability on large projects.
Committee members asked whether Vermont currently has enough union labor to meet the demand if the incentive were enacted immediately. Witnesses said capacity varies by craft: some specialty trades (plumbing, electrical) are tight, and while apprenticeship and recruitment efforts can expand capacity over time, they stressed that "we need housing today." The committee chair noted those tradeoffs and said staff would work with members and witnesses on language that narrows the bonus to "substantial multiunit residential dwellings" and considers prevailing wage references.
No formal votes were taken on Section 12 during the hearing. The committee asked witnesses to submit written testimony and promised further review. The panel then moved to its next agenda item in the Senate Natural Resources committee calendar.
