Big Labor Payoff Wastes Millions of Taxpayer Dollars

How much does a government-mandated union-favoring project labor agreement (PLA) add to a $52.3 million construction project funded by the American Recovery and Reinvestment Act of 2009 (ARRA) in Washington, D.C.? At least $3.3 million.

That’s the cost of a change order the U.S. General Services Administration (GSA) paid to a federal contractor to ensure renovations to the Lafayette Federal Building in Washington, D.C., are conducted subject to a union-favoring PLA, according to a column by Mark Hemingway in The Washington Examiner (“Mark Hemingway: Mandatory PLAs put tax dollars into union coffers,” Dec. 5).

PLAs Are Political Payoffs to Big Labor Bosses
The Lafayette Building PLA is a clear example of government waste and crony contracting. In return for political dollars and support from Big Labor that helped get President Obama elected to the White House, President Obama signed Executive Order 13502, just 16 days after he took office. The order repealed a prior executive order in effect since 2001 that prohibited government-mandated PLAs and ensured fair and open competition on federal and federally-assisted construction projects.

The Obama order also encourages federal agencies to require PLAs on federal construction projects exceeding $25 million in total cost. The White House rabidly promotes the use of PLAs through Vice President Joe Biden’s Middle Class Task Force in consort with political appointees posted in federal agencies and members of Congress beholden to union special interests. More government-mandated PLAs mean more money flowing back into Big Labor’s coffers. This money later supports pro-PLA politicians  through campaign donations “voluntarily” deducted from the paychecks of rank and file union members by Big Labor bosses.

Government-mandated PLAs feed the endless cycle of corruption in the federal government (here is an obvious example) and in local and state governments across the country (for starters, evidence here, here and here).

The administration justifies the use of PLAs because they allegedly produce “economy and efficiency” in government contracting. The problem is that there is no credible evidence to support this claim. PLAs are an earmark for Big Labor bosses masked as a solution to a problem that doesn’t exist in federal contracting.

Only Congress can Halt The Assault on federal contractors and cure the sickness of PLA waste and favoritism infecting federal agencies by the White House’s special interest agenda. 

Learn more about the PLA on the Lafayette Building and the GSA’s absurd and discriminatory preference for PLAs over at here.


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