General Assembly Sends Fairness in Public Construction Act to the Governor

Measure Addresses the Problems of Union-Only Project Labor Agreements

JEFFERSON CITY— The Missouri General Assembly gave final approval to the Fairness in Public Construction Act that creates an open and fair environment when it comes to building schools, libraries, and other public buildings.  Earlier this session, the Senate passed Senate Bill 182, sponsored by Sen. Bob Onder, R-Lake St. Louis.  Last Thursday, by a vote of 104-52 the Missouri House sent the bill to the governor for his signature.  With the governor’s signature, this law will address the unfair practice of union-only Project Labor Agreements (PLAs) imposed by political subdivisions.

“Union-Only Project Labor Agreements represent unfair public policy and bad governance by eliminating competition,” said Sen. Onder.  “Passage of SB 182 will allow non-union workers to compete fairly for public projects and protect taxpayer dollars by making sure they get the best product for the best cost.”

Union-only PLAs are requirements imposed by political subdivisions that public construction projects be performed only by union contractors or by contractors who agree to labor union demands. In theory, a non-union contractor could bid on a PLA project, but then that contractor is essentially required to become a union shop for that project.  Senate Bill 182 ensures all contractors will get a chance to bid on the projects funded with the public’s tax dollars.

The House Sponsor, Rep. Rob Vescovo, R-Arnold, said in a statement: “This is a pro-taxpayer bill.  It is not an anti-union bill.  All it does is put an end to the discriminatory practice that is inherent in the PLA system that keeps non-union workers from having a fair shot at public works projects like construction of new schools, police department and fire stations.”

Senator Onder added that “PLAs discriminate against the 87 percent of Missouri workers who work for merit shop contractors.  On average PLAs raise the cost of construction 18 percent, which means that instead of building five schools, a district can only afford four.  Senate Bill 182 ends this waste and unjustified discrimination while using the free market to save taxpayer dollars.”

The bill now heads to the governor, he has 15 days to sign the bill into law.

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Ryan Nonnemaker – Chief of Staff

816-213-7926 ryan.nonnemaker@senate.mo.gov