PLAs and CWAs Support Infrastructure Investment

TL/DR -

The Biden administration's infrastructure laws, including the Infrastructure Investment and Jobs Act (IIJA), the CHIPS and Science Act, and the Inflation Reduction Act, promise to boost the economy, create numerous high-quality jobs, and invest billions in the country's infrastructure. The administration is encouraging the use of Project Labor Agreements (PLAs) and Community Workforce Agreements (CWAs), pre-hire collective bargaining agreements that promote high-quality labor and fair work conditions, and have been found not to increase project costs. To maximize labor benefits, President Biden issued an executive order requiring PLAs for large-scale construction projects with federal contracts of over $35 million.

Overview of Biden Administration's Industrial Investment Laws

The Biden administration has introduced significant industrial investment legislation, including the Infrastructure Investment and Jobs Act (IIJA), the CHIPS and Science Act, and the Inflation Reduction Act. These laws are designed to fortify the economy, stimulate middle-class growth, and support millions of quality jobs for American workers. The laws offer vast investment into the country's infrastructure, from rebuilding roads and bridges to supporting the electric vehicle ecosystem and revitalising U.S. leadership in semiconductor manufacturing. These laws continue to receive billions of dollars in public, private investments and government subsidies. Visit WhiteHouse.gov for more details on these investments.

The Role of Project Labor Agreements (PLAs) and Community Workforce Agreements (CWAs)

The effective use of PLAs and CWAs is essential for ensuring value for public investments and delivering on job creation commitments. These agreements, typically underutilized, can help secure federal investments get completed on time and budget by qualified workers. They also support labor stability and create job opportunities for people historically excluded from construction. These collective bargaining agreements establish wages, benefits, and other working conditions. Learn more about PLAs and CWAs by visiting the official Department of Labor website.

The Impact of PLAs and CWAs on Federal Funding

PLAs and CWAs can positively affect public investments by improving outcomes, highlighting Biden administration investments, detailing past successes with these agreements in the public and private sectors. Indeed, these agreements have been shown to reduce racial and gender pay gaps by ensuring equal compensation regardless of race or gender. Refer to the Center for Automotive Research for more information about the productivity and cost-effectiveness of union labor.

Encouraging the Use of PLAs and CWAs

The Biden administration is encouraging the use of PLAs and CWAs in large-scale construction projects, particularly those funded under the IIJA, CHIPS and Science Act, and Inflation Reduction Act. Departments such as Transportation and Energy are educating their staff and offering technical assistance to state and local officials.

Examples of Successful PLAs and CWAs

Examples of successful PLAs and CWAs can be found in cities like San Diego, Oakland, and Minneapolis. These agreements have led to successful outcomes on construction projects, such as the U.S. Bank Stadium in Minneapolis, where the project exceeded its employment targets for women and workers of color. Refer to the Bureau of Labor Statistics for more data on the impact of PLAs and CWAs on labor markets.

The Importance of PLAs and CWAs

PLAs and CWAs are pivotal tools for creating value on taxpayer-funded projects, ensuring fair wages and benefits, and increasing job accessibility for all workers. Federal agencies awarding grants, loans, and incentives from infrastructure investment must make use of PLAs and CWAs. For more information on how the Biden administration's industrial policy is creating quality jobs, visit the Brookings Institution.

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