[US] President signs executive order reinforcing rights of 200,000 construction workers

On February 4, US President Joe Biden signed an executive order requiring "project labor agreements" in federal construction projects over $35 million, Reuters reports.

The order offers a potential boost to workers and the unions that negotiate these deals, the administration claims the change will speed up building times.

The order will apply to $262 billion in federal construction contracting and impact nearly 200,000 workers, the White House announced on February 3, confirming news first reported by Reuters.

Project labour agreements are collective bargaining agreements between building trade unions and contractors, which set wages, employment conditions, and dispute resolution on specific projects. In the past, Democratic presidents have typically supported applying such agreements to the massive U.S. federal contracting budget and Republican presidents have rescinded them.

The order has gone into immediate effect, it follows a $1 trillion infrastructure bill signed into law by President Biden that invests in the country's roads, ports and bridges.

A large proportion of that money will flow through federal agencies to states and local governments. The new executive order excludes projects funded by grants to non-federal agencies, a senior administration official reportedly said, they added that will make up for a bulk of the projects under the bill. However, it will apply to billions of other federal spendings on waterways, military bases and other areas.

President Biden visited Ironworkers Local 5 in Upper Marlboro, Maryland, on Friday to sign the new executive order. He was joined by Vice President Kamala Harris and Labor Secretary Marty Walsh.

The US construction industry - including its workers, owners, developers, contractors - has been one of the hardest-hit sectors during the COVID-19 pandemic, as a result of a slowdown of available goods and labour and the termination of entire projects.

The President has vowed to strengthen unions and increase membership in the United States after years of steady decline and to increase salaries for hourly workers in construction, health care and other jobs.

According to a draft viewed by Reuters, the order says, "Contractors who offer lower wages or hire less qualified workers will need to raise their standards to compete with other high-wage, high-quality companies." 

Earlier executive action by President Biden requires federal contractors in new or extended contracts to pay a $15 per hour minimum wage.

The President's move earned praise from some contractors.

Daniel Hogan - chief executive of the Association of Union Constructors, representing 1800 contractor companies - told Reuters, "This streamlines the negotiation process and gives employers access to a highly-skilled pool of craftworkers."

Source: Reuters

(Quotes via original reporting)

On February 4, US President Joe Biden signed an executive order requiring "project labor agreements" in federal construction projects over $35 million, Reuters reports.

The order offers a potential boost to workers and the unions that negotiate these deals, the administration claims the change will speed up building times.

The order will apply to $262 billion in federal construction contracting and impact nearly 200,000 workers, the White House announced on February 3, confirming news first reported by Reuters.

Project labour agreements are collective bargaining agreements between building trade unions and contractors, which set wages, employment conditions, and dispute resolution on specific projects. In the past, Democratic presidents have typically supported applying such agreements to the massive U.S. federal contracting budget and Republican presidents have rescinded them.

The order has gone into immediate effect, it follows a $1 trillion infrastructure bill signed into law by President Biden that invests in the country's roads, ports and bridges.

A large proportion of that money will flow through federal agencies to states and local governments. The new executive order excludes projects funded by grants to non-federal agencies, a senior administration official reportedly said, they added that will make up for a bulk of the projects under the bill. However, it will apply to billions of other federal spendings on waterways, military bases and other areas.

President Biden visited Ironworkers Local 5 in Upper Marlboro, Maryland, on Friday to sign the new executive order. He was joined by Vice President Kamala Harris and Labor Secretary Marty Walsh.

The US construction industry - including its workers, owners, developers, contractors - has been one of the hardest-hit sectors during the COVID-19 pandemic, as a result of a slowdown of available goods and labour and the termination of entire projects.

The President has vowed to strengthen unions and increase membership in the United States after years of steady decline and to increase salaries for hourly workers in construction, health care and other jobs.

According to a draft viewed by Reuters, the order says, "Contractors who offer lower wages or hire less qualified workers will need to raise their standards to compete with other high-wage, high-quality companies." 

Earlier executive action by President Biden requires federal contractors in new or extended contracts to pay a $15 per hour minimum wage.

The President's move earned praise from some contractors.

Daniel Hogan - chief executive of the Association of Union Constructors, representing 1800 contractor companies - told Reuters, "This streamlines the negotiation process and gives employers access to a highly-skilled pool of craftworkers."

Source: Reuters

(Quotes via original reporting)