Project Labor Agreements Influence Corruption

It has been said that, “power tends to corrupt and absolute power corrupts absolutely.” Nobody knows that better than the residents of New York state.

In a state where big government reigns supreme, many of our elected and appointed leaders have taken full advantage of their power to benefit themselves politically, and, in some cases, personally. In the latest and most notorious case of alleged brazen corruption, state-government leaders used their influence to send construction and development work to their preferred vendors, who coincidentally happen to be large campaign donors.

But what if I told you there was a legal, and often used, process for government to award construction work to their allies at your expense? And what if that legal process was utilized on the very same projects, and many others, that are part of the recent corruption charges. Would that surprise you? Well, get ready to be surprised.

The projects contained a PLA, or project labor agreement. These discriminatory agreements typically propose “cost savings” and mandate that workers come from a union hall. As you can imagine, with this caveat, merit shop, or non-union contractors, whose workers make up 75 percent of the construction workforce, won’t bid on jobs with PLAs. Regrettably, PLAs drive up the cost of construction by restricting efficiencies and stifling competition.

So how are PLAs and the recent allegations linked? Why should you as a taxpayer be concerned? That started in April, when Governor Cuomo was in Washington, D.C. speaking to the North American Building Trades at its annual meeting.

While there, he made no qualms about his intention to exclude merit-shop contractors and workers every chance he gets saying, “And my friends, every project we build is going to be built with organized labor — every project. That’s why Gary LaBarbera and Jimmy Cahill are all smiles. They have work for the next three generations, and all they have to do is sit at their desk.”

The governor was quite clear about why he was going to exclude taxpaying merit-shop workers from competing on projects they cover with their tax dollars. He decried that, “Without the friendship, the support, and the kindness of the people in this room, I don’t believe I would be Governor of the state of New York. They’ve had my back every step of the way and I will never forget it.”

And he continues to back up his promise. From Solar City in Buffalo to the new Norsk Titanium plant in Plattsburgh, to the proposed Athenex project in Dunkirk, to Penn Station in New York City as well as Department of Transportation and Office of General Services projects across the state, PLAs are popping up everywhere. And they’re all in an effort to reward those close to the governor.

This type of political payback is what the people in New York loathe. It’s a blight on our economy and an embarrassment to our psyche.

There’s only one solution to this issue. It’s time for government, and its affiliated agencies, to shed its shady practices and tainted reputation. New York state must bid construction work openly and honestly with no provisions, legal or otherwise, to not directly benefit one group over another. Increased competition will always result in a win-win for taxpayers. It’s time to follow processes that are inclusionary and make sense for everyone, not just a select few.

Jeff Albert is chief operating officer at the Associated Builders and Contractors, Inc. (ABC) - Empire State Chapter in DeWitt. ABC is a national construction industry trade association established in 1950 that represents nearly 21,000 members.