Governor Signs Labor Reform Bill
Missouri lawmakers went into the 2017 session committed to passing legislation that would create jobs and grow our state and local economies. Critical to accomplishing these goals was overhauling some of the labor laws that have been holding us back from the type of economic development opportunities other states have enjoyed. In addition to passing Right to Work early on in session, we also approved a measure to address the discriminatory practices of union-only Project Labor Agreements, or PLAs.
Union-only PLAs require public construction projects to be performed by union contractors or contractors who agree to meet union working conditions. In theory, a non-union contractor can bid on a PLA project, but the contractor is then essentially required to become a union shop for the duration of the project.
Current state law allows local governments to require non-union contractors to meet union working conditions — and pay their employees union-level wages — in public construction projects that are less than 50 percent funded by the state. Signed by the governor May 30, Senate Bill 182 removes the 50 percent state funding threshold. In addition, any entity that violates the provisions of SB 182 will not be eligible for state funding or state-issued tax credits for two years.
Missouri taxpayers deserve the best product for the best price, but PLAs, on average, drive up the cost of construction by nearly 20 percent. They also exclude non-union contractors and their skilled employees (roughly 75 percent of Missouri construction workers) from being able to build projects funded by their own community’s tax dollars, including schools and libraries. In short, union-only PLAs are a detriment to the free market, and they pick winners and losers based on whether you happen to belong to a labor union. Senate Bill 182 will ensure all contractors get a chance to bid on the project.
The provisions of SB 182 will take effect Aug. 28, 2017.
To view a list of all legislation passed by the Missouri General Assembly during the 2017 session, please visit the Senate website at www.senate.mo.gov or click here.
Finally, I want to remind residents of the 8th Senate District that Flag Day and the anniversary of the birth of the United States Army will be observed Wednesday, June 14. Flag Day commemorates the adoption of the first United States flag by the Second Continental Congress on June 14, 1777. Today, countless Americans celebrate Flag Day by proudly flying the Stars and Stripes in front of their homes and businesses. Communities also hold parades and ceremonies to ensure the symbol of our nation continues to be honored and respected. June 14 is also when the U.S. Army celebrates its birthday as it was on this date in 1775 that the Second Continental Congress adopted the Continental Army. George Washington formally took command a few weeks later on July 3.
Join the conversation and follow me on Twitter @SenWillKraus. Please feel free to contact me with any questions or concerns at any time. We look forward to hearing your comments and suggestions and will try to answer any questions you may have. You can reach us by phone at (573) 751-1464, or email at Will.Kraus@Senate.Mo.Gov.
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Senator Will Kraus serves Eastern Jackson County in the 8th State Senatorial District.