Union Bosses Win Special-Interest Kickback From Obama Administration At Taxpayers' Expense

Press Release

Union Bosses Win Special-Interest Kickback From Obama Administration At Taxpayers' Expense

Yesterday, in yet another example of the relentless job-killing agenda that out-of-touch Washington Democrats are pursuing, a final rule was released on President Obama's executive order which will "require that contractors on large-scale public construction projects agree to union representation for workers," the Wall Street Journal reported this morning. This new rule, requiring the use of "Project Labor Agreements" (PLAs) in federal construction projects, will reduce competition, drive up costs for taxpayers, and reward union bosses -- who just so happen to be a major pillar of the Democratic machine.

This executive order may not have gotten much attention in the media, but it's a dramatic departure from current law. According to the Journal:

The executive order, which will become effective next month, is the latest in a series of moves by the administration that are favorable to unions, whose members could play a critical role in the upcoming midterm elections as Democrats try to hang on to seats in Congress.

The rule doesn't mandate that federal agencies require contractors to bargain with unions on all jobs, but it clears the path for government agencies to make such agreements a requirement for contractors on jobs costing $25 million or more….Building trade groups said pushing contractors to agree to such agreements with unions could drive up the costs of public construction by nearly 20% and discriminate against what they said are more than the 85% of the U.S. construction workforce members who choose not to join a union….

This is the latest win for unions in their tug-of-war with employers. Unions recently welcomed Mr. Obama's recess appointment of former union lawyer Craig Becker to the National Labor Relations Board after the nomination failed to win enough Senate votes.

The new executive order will generally require federal contract bids to adhere to union work rules and wage scales and to pay benefits into union pension funds even when non-union workers - who will never benefit from these funds - participate in the project.

Rep. John Kline (R-MN), the House Education and Labor Committee's senior Republican member, commented on the President's job-killing move yesterday:

Project Labor Agreements reduce competition, increase costs for taxpayers, and add layers of bureaucracy and red tape to federal construction projects. Creating a formal federal process for imposing these Depression-era mandates on construction projects may be a win for special interests, but it's a loss for workers, taxpayers, and small businesses hoping to compete for federal jobs. PLAs are an antiquated approach to federal contracting designed to favor large, unionized contractors at the expense of smaller employers. The likely consequence of this new federal regulation will be higher costs for taxpayers and far less competition among job creators trying to get the American economy back on track.

Americans are asking "where are the jobs?" but out-of-touch Washington Democrats aren't listening. The President's decision to reward his union allies - whatever the cost to job creation for the vast majority of American workers - is just the latest example of an Administration that seems bent on defying the will of the American people.

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