Senate Bill 1049 expands freedom to charter cities by eliminating the requirement to enter into a Project Labor Agreement (PLA), and by allowing the cities the option to choose to enter into Project Labor Agreements and not be penalized against receiving funding.
PLAs are a great way for organized labor to arrange an agreement prior to starting a project that will keep their higher bid rates the competitive ones in the market. This bid process artificially increases the costs of the projects, and usually requires more time, which costs charter cities exponentially more than original estimates. These agreements can be voted on by a majority of the governing board and if a charter city decides to go against the governing board and not enter into the PLA they have all the funding withdrawn from that project and are at a disadvantage. This stipulation also goes against the idea of local government control and allowing cities to decide the best course of action. A charter city needs to have the freedom to decide what course of action and economic negotiating is right for their city.
- STUDY: Measuring the Cost of PLA on School Construction – National University System Institute
- Infrastructure Will Grow Faster Without PLAs – Econ 21 02.12.2018
- Port of LA Approves 10 Year PLA – American Shipper - 09.08.2017