Philadelphia, November 29, 2011- Mayor Michael A. Nutter signed an executive order today to re-establish project labor agreements (PLA) for the bidding process of public works projects saving taxpayer dollars and ensuring the timely completion of these public projects. A PLA is a contract that sets forth the terms and conditions of employment for workers on a project prior to hiring with a labor organization. The PLA ensures that certain new goals will be met regarding the hiring of minorities and Philadelphia residents.
Mayor's Executive Order Re-establish Project Labor Agreements
Thursday, December 01, 2011
November 29, 2011
The agreements will also prevent the risk of work stoppages and allow for cost savings. A PLA will be automatically considered for public works projects with estimated construction costs of at least five million or that require multiple construction trades to complete.
“PLAs will help the City to complete public works projects on time and on budget,” said Mayor Nutter. “This new PLA policy will aim to ensure stability, efficiency, quality and diversity for every major public works project in the city. These contracts will also have provisions to ensure that city residents, minorities and women are included in all of the City’s major construction projects. Diversity is vital as we put our city’s residents back to work with these projects that improve the quality of life for all Philadelphians.”
The diversity and residency goals will be monitored by a third party mutually agreed to by the City, trade unions and contractors. The City’s project labor agreements require 50 percent of craftsmen and laborers are Philadelphia residents. At least 32 percent of those hired must be male minority and at least seven percent female.
City departments and agencies will refer projects appropriate for a PLA above five million in estimated construction costs to the Mayor’s Office, which will determine the feasibility of a PLA. The executive order establishes the Advisory Committee for Project Labor Agreements, which will monitor and review all PLAs and will make periodic evaluations of the use of PLAs. The members of the Committee are the Mayor’s Chief of Staff, the City Solicitor, Managing Director, Director of Finance, Deputy Mayor for Transportation and Utilities, and Deputy Mayor for Economic Development.