In addition to increased project costs, studies have shown that PPPs can result in higher costs for non-union contractors and reduce the compensation of their home employees. A 2009 study was conducted by John R. McGowan of St. Louis University, who found that non-unionist workers earn lower wages in government projects with a PLA compared to what they would get to work on a non-governmental PLA project. In addition, non-unionized employers should pay additional benefits for which their employees are not eligible and which could be liable for the liability costs of withdrawal of pension funds if the conditions of the AEPs mean that they must contribute to a union pension fund during the duration of the project.  A “project employment contract” is when the government awards public works contracts exclusively to unionized companies. The PTAs are under the National Labor Relations Act (NLRA), 29 U.S.C. Sections 8 (e) and f) of the NLRA, 29 U.S.C No. 158 (e) and f) make specific exceptions to other NRL requirements to allow employers to enter into pre-lease agreements with construction unions.  PPs can also influence competition by discouraging non-union offers, as shown by studies conducted by Ernst and Young in September 2001 on behalf of Erie County, New York.
This study analyzed the impact of AEPs on public works and concluded that the number of bidders for projects with a PLA has been reduced, as “the use of PLA severely impedes the participation of non-union contractors in public procurement.”  The Worcester Municipal Research Bureau prepared a report in 2001 based on a series of studies on the use of PLA. The report found that the AEPs reduced the number of bidders for construction projects and resulted in lower savings than would be possible if contractors were able to work within their usual employee rules.  In March 1995, an ABC study on the cost of taxpayers for the Roswell Park Cancer Institute in Buffalo, New York, evaluated bids for the same project, both before and after the temporary introduction of a PLA in 1995. It turned out that there were 30% fewer bidders to do the job, and that costs increased by more than 26%.  Studies have shown that LAPA project owners and local communities have advantages and penalize contractors and non-union workers. A 2009 study by Fred B. Kotler, J.D., associate director of Cornell University School of Industrial and Labor Relations, found that there was no evidence that PMAs discriminate pending employers and workers, limit the number of bidders and increase construction costs.  In a 2009 report by Dale Belman of Michigan State University; Matthew M.
Thursday, April 15th, 2021
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