Timeline  

April 9 – The North American Building  Trades Union (NABTU) filed a lawsuit against the Trump administration for violating a previous executive order requiring the use of PLAs.  

February 7 – The Office of the Undersecretary of Defense issued a memo to immediately end the use of project labor agreements for large-scale constructions projects. 

Description 

On February 7, the Department of Defense issued a memorandum directing all contracting officers to immediately end the use of project labor agreements (PLAs) on all large-scale construction projects.  

Project labor agreements (PLAs) are used primarily in the construction industry to establish the terms of employment for all workers on a project. Generally, PLAs specify workers’ wages and fringe benefits and may include provisions requiring contractors to hire workers through union hiring halls, otherwise establish a unionized workforce, or develop procedures for resolving employment disputes. PLAs often include language that prevents workers from striking during the project, while also preventing employers from locking workers out.  

President Biden issued Executive Order 14063, Use of Project Labor Agreements for Federal Construction Projects, which led to new regulations requiring the use of PLAs in government construction projects that would cost more than $35 million. This was part of an initiative under the Biden administration to ensure that wherever possible, government funds go toward creating good jobs with positive benefits for the workers and communities where the projects are located. President Trump has not yet overturned EO 14063, and the related final regulation is still technically in effect, despite the Department of Defense’s order.  

Research has shown that PLAs improve efficiency, reduce costs, ensure projects are completed in a timely manner, promote workers’ well-being, and are a positive way to engage local communities in large-scale government projects.  

Impact The Defense Department spends hundreds of billions of dollars on construction projects each year that require hiring thousands of non-military civilian workers to complete the projects. Removing the requirement for PLAs means that workers on Defense Department construction projects will no longer have the guarantee of negotiating PLAs that include higher pay or that incentivize local or union hiring.