Sunday, December 27, 2009

Obama union push stymies contractors

The Washington Times reports:
President Obama's plan to force contractors to hire union workers for large government construction projects is proving easier said than done, confusing and costlier than expected.

It's been more than a decade since a federal project required bids that include union representation of workers, known as a "project labor agreement" or PLA, and a $100 million project to modernize the 12-story Lafayette Building that houses federal agencies is highlighting the kinks that need to be worked out.

The General Services Administration (GSA), for example, first called for PLAs to win bids to rehabilitate the Washington office complex, but earlier this month backtracked, saying the solicitation was in error and it would instead ask contractors to submit two bids, one with a PLA and one without - a highly unusual and costly requirement.

"It's crazy to try to do that. ... It is just pure confusion on their part," said Brett McMahon, vice president of business development for Miller & Long Co. Inc., the country's largest concrete subcontractor and the largest employer of construction workers in the Mid-Atlantic region.
Higher wages to unions means more campaign dollars for pro-union politicians.