The Facts About PLAs in Loudoun County

PROJECT LABOR AGREEMENTS THE FACTS ABOUT

IN LOUDOUN COUNTY

CONSTRUCTION CONTRIBUTES $3.2 BILLION TO THE GDP OF LOUDOUN COUNTY. THAT’S $1 FOR EVERY $10 OF ECONOMIC ACTIVITY IN THE COUNTY.

A LOT OF LOUDOUN JOBS & TAXES! THAT’S

FACT 1: PLAS INCREASE COSTS

All credible research shows that PLAs significantly depress bid competition on public procurements. On average, this lack of competition increases project costs by 12% to 20%, sometimes more. That can equal tens or hundreds of millions of dollars more for the same project.

DID YOU KNOW?

The non-partisan Rand Corporation found that affordable housing units subject to a PLA cost 21% more and took 27% longer to build than units not subject to a PLA.

FACT 2: PLAS REDUCE PUBLIC BENEFITS

The higher costs of PLAs must be paid for by either raising taxes or by cutting or reducing the scope of Loudoun’s other capital projects. That means fewer improvements to roads, schools, and other important public infrastructure projects.

DID YOU KNOW?

Prince George’s County Maryland recently considered cutting academic programming to pay for the costs increases caused by a PLA placed on the construction of six new schools in the county.

FACT 3: PLAS BENEFIT OUT-OF-STATE BUSINESS

It’s hard to conceive of a more self-defeating economic development policy for supporting Loudoun County businesses than government-mandated PLAs. Nearly all local construction firms are non-union firms that cannot work on PLA projects. Virginia construction firms know that signing a PLA puts their business and their workers at great risk and will NOT sign PLAs.

DID YOU KNOW?

In practice, PLAs exclude nearly all minorityand woman-owned construction firms. The National Black Chamber of Commerce has called them “a license to discriminate.”

FACT 4: PLAS ALLOW UNIONS TO EXCLUDE LOUDOUN WORKERS

With rare exception, PLA’s grant unions the power to decide who gets to work on a project and who doesn’t. In Loudoun County, that means allowing unions from as far away as Philadelphia to deliberately exclude the 95% of local construction workers because they are not members of a labor union.

DID YOU KNOW

95% of construction workers in Virginia have chosen not to join a union. These workers will be effectively excluded from working on PLA projects that their tax dollars pay for.

PUTTING PLA COSTS

IN PERSPECTIVE

A SIMPLE RULE OF THUMB IS THAT THE USE OF A PLA INCURS A COST EQUAL TO 1 OF EVERY 5 AFFORDABLE HOUSING UNITS THAT COULD BE PRODUCED THROUGH FUNDING PROGRAMS WITHOUT A PLA.

JASON WARD,

RAND CORPORATION (2024)

THAT MEANS LOUDOUN WOULD ONLY GET 80 AFFORDABLE UNITS FOR THE PRICE OF 100 UNITS IF IT MANDATES A PLA.

DEMOCRATIC EXECUTIVES ARE INCREASINGLY SPEAKING OUT AGAINST PLA COSTS

VETOED SB 984

REQUIRING PLAS ON STATE PROCUREMENTS [PLAS] RESULT IN

CHASTISED D.C. COUNCIL OVER UNFUNDED PLA COSTS

VETOED LD 373

REQUIRNG PLAS ON OFFSHORE WIND PROJECTS

HOW

PLAS REALLY WORK

(and why unions push for them)

NOTES ON ON HOW TO SELL PLAS TO PUBLIC OFFICIALS

CAUTION: DO NOT DISCUSS!

1. PLAs steer public contracts to a small handful of out-of-state union contractors.

2. With rare exception, PLAs let unions exclude local workers in favor of their own members on public projects.

3. PLAs let unions force non-union workers to contribute to their pension and benefit plans and pay union dues. (i.e., PLA Wage Theft)

BUT CAN’T NON-UNION CONTRACTORS ALSO WORK ON PLA PROJECTS?

PLAs are de facto ban on non-union contractors because signing a PLA would subject them to uncapped financial penalties in the form of

“withdrawal liability” from multi-employer pension funds. This liability can run into the tens of millions of dollars depending on the size of the project. Non-union firms that sign PLAs are practically inviting bankruptcy.

VIRGINIANS FOR FAIR CONTRACTING & EMPLOYEE PROTECTION

is a 501c(4) organization comprised of taxpayers, business leaders, and workers united in the belief that governmentmandated Project Labor Agreements (“PLAs”) in Virginia undermine fair competition and inflate costs to the public. Our mission is to advocate for open, competitive bidding processes that serve the best interests of all Virginians. We stand for transparency, accountability, and equal opportunity on public construction projects.