Project Labor Agreements (E.O. 13502)

Summary

Promotes using project labor agreements for large government building projects to help them finish on time and save money.

What problem does this solve?

Big government building projects can have delays when different worker groups have disagreements. This order encourages using one main labor agreement for the whole project to prevent fights and keep work going.

What does this order do?

Encourages project labor agreements (PLAs)

Allows federal agencies to require contractors to use a project labor agreement for large construction projects to improve efficiency and stability.

Defines a 'large-scale construction project'

Specifies that a large-scale project is any construction project where the total cost to the government is $25 million or more.

Sets rules for labor agreements

Requires that any project labor agreement must prevent strikes, set up ways to solve disputes quickly, and apply to all contractors on the job.

Allows all contractors to compete

States that all contractors and subcontractors can compete for projects, whether or not they normally use union labor.

Cancels previous executive orders

Revokes Executive Order 13202 and Executive Order 13208, which had different rules about labor agreements on federal projects.

Who does this affect?

Federal construction contractors
Labor unions
Government agencies

What is the real world impact?

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Makes big projects run smoother

Creates a single set of rules for all workers on a large federal construction site. This helps prevent strikes and disagreements, making it more likely the project will finish on time and on budget.

When does this start?

This order is effective immediately, with new rules for contracts starting after government buying regulations are updated.

Update to federal buying rules

The Federal Acquisition Regulatory Council must update its rules to match this order within 120 days of February 6, 2009.

Report on broader use of PLAs

The Director of the Office of Management and Budget must give the President recommendations on using these agreements more widely within 180 days of February 6, 2009.