On October 19, 2022, the Water Authority Board of Directors approved a Project Labor Agreement (PLA) that applies to select Capital Improvement Program projects with an estimated construction cost of $1 million or greater through April 2028. The agreement mitigates labor-related construction disruptions; encourages a local, veteran, and disadvantaged construction workforce; and helps create employment and training opportunities. The current list of projects covered by the PLA can be accessed here.
Contractors working on Covered Projects may employ a certain number of their own employees, who are required to register with the appropriate union hiring hall for the life of the project but are not required to become union members or pay union dues. These employees, known as Core Employees, must have been on the contractor’s payroll for 60 out of the last 120 working days; all other employees must be employed through a referral from the appropriate union hiring hall. The PLA accommodates the use of additional Core Employees for qualifying Small Contractors. Core Employees must be identified before performing work on a Covered Project.
The PLA includes goals to promote employment of veteran, local, and disadvantaged workers on Covered Projects. The first goal is for 60 percent of construction craft hours worked on each Covered Project to be performed by Local Workers. The PLA also identifies a goal of 15 percent of construction craft hours worked on each Covered Project to be performed by Targeted Workers. Definitions for Local Workers and Targeted Workers can be found here. Hours worked by Targeted Workers who are also Local Workers can be applied to both goals.
Prime contractors and all subcontractors, of every tier, are required to sign and submit a Letter of Assent prior to the execution of a construction contract covered by the PLA. Each contractor is required to conduct a pre-job conference with the unions not less than 10 calendar days before the start of work to review items such as craft manpower needs, the work schedule and rules, and preliminary union work assignments. Contractors must also attend periodic labor/management cooperation meetings.
Contractors shall pay fringe benefits and other required contributions for employees performing Covered Work to the established union employee benefit funds in the amounts required by applicable prevailing wage laws. Contractors shall also require applicants or employees to undergo drug and alcohol testing in accordance with the PLA. Contractors are also required to participate in the Construction Careers Pipeline Program and collaborate with the Center for Military Recruitment, Assessment and Veterans Employment to attract veterans interested in working on Covered Projects through the Helmets to Hardhats program.Project Labor Agreement Fully Executed