On Tuesday, November 3, 2009, Orange County Supervisors voted against the already strained middle class when they made it illegal to agree to a Project Labor Agreement (PLA) on any County project. Lead by Supervisor John Moorlach who placed the ordinance on the agenda, the Supervisors voted 5-0 to enact the ordinance. Court action can be taken against any Orange County agency or entity which engages in a PLA.
PLA's are commonly used in both private industry and government as a tool for managing large projects. Before construction work starts, project management and the craft trades agree to work schedules, extending contracts if necessary, and work out potential problems which can cause a project to slip schedule and come in over budget. Recently, the Northern California Power Agency (NCPA) voted to use a PLA for the construction of a $432 million power plant in Lodi. In Anaheim, Kaiser Permanente is using a PLA to construct a new 262 bed, 6 story, 434,000 square foot medical center.
Twenty three members of the public including members of craft trades, Orange County Communities Organized for Responsible Development (OCCORD), and the West Contra Costa County School Board reminded the Supervisors that this ordinance was unnecessary legislation, would reduce oversight of contractors, and would cause long term harm to the already struggling Orange County economy. There was also a shocking admission from Jackie Nutting, Government Affairs Director for Associated Building Contractors (ABC.)
Several speakers pointed out that not using PLA's has been County policy for several years, and there is no legal need to codify County policy. The move to make PLA's illegal was seen as a purely political move, with no real change to policy being implemented. Speakers questioned if using County staff to create this ordinance was the best possible use of taxpayer money in these hard economic times.
Construction is an unstable business, with the majority of craft workers following the work around. Some companies choose not to pay their workers, and it can be difficult to track down the companies to get wages paid. Doug Mangione, Business Representative for IBEW Local 441, talked about several OCTA projects where workers were not paid over $150,000 in wages and action is being taken against the contractors. Carl Ritola, an organizer with the Plumbers and Steamfitters Local 582, reminded the Supervisors that making PLA's illegal in Orange County now allows denial of safety protections for workers and can lead to increased inspection failures caused by poorly trained workers. He added that project costs can rise because work that was not done correctly the first time would need to be redone at increased cost.
Glen Nolte, Business Manager for the the Plumbers and Steamfitters Local 582, reminded the Supervisors that making PLA's illegal "does nothing to help the hardworking people of Orange County." Nolte also pointed out that some contractors are bidding a little as 50% of the architect's estimated costs, an indicator that the contractor is not planning to pay the legally required prevailing wage. Robert Nothoff from OCCORD said, "This is setting Orange County back. Stable middle class careers which are provided thru PLA's are being replaced by temporary, deadend, dangerous jobs." Other speakers asked if it was in the best financial interests of the County to "hamstring economic development in your county" and to allow out of state contractors from as far away as Texas to win construction contracts and take Orange County dollars to Texas.
In a statement which shocked the room, Jackie Nutting, Director of Government Affairs for the Associated Building Contractors (ABC) said her father was living on a pension from the Plumbers and Steamfitters. Nutting also stated, "Unions set the standard", referring to wages and benefits offered by the unions.
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