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Aug. 18, 2009
Copyright © Las Vegas Review-Journal

County moves toward project labor agreements

By SCOTT WYLAND
LAS VEGAS REVIEW-JOURNAL

Union contractors bidding for Clark County construction projects could have a distinct edge over nonunion rivals and such projects could cost the county as much as 20 percent more under a system that one commissioner proposes.

Commissioner Chris Giunchigliani asked today that building contracts estimated at $100,000 or more be run under project labor agreements, a national system for ensuring union participation.

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    • Her fellow commissioners reacted cautiously to the proposal. And two opponents on the issue debated the merits in an auditorium packed with a spirited nonunion contingent.

    Giunchigliani said these agreements would enable the county to put skilled tradespeople on the job and avoid wrangling with contractors and unions.

    “It’s accounting for taxpayers’ dollars,” Giunchigliani said. “We probably wouldn’t have any lawsuits if we were under a PLA.” The agreements wouldn’t be a radical step, as they’ve been used for a decade at McCarran International Airport and the Southern Nevada Water Authority, she said.

    Commissioners told county staff to form a panel made up equally of contractors and labor representatives who will spend a month working on a compromise to bring before the commission.

    Warren Hardy, representing a builders’ group, said the agreements could drive up project costs by as much as 20 percent because they discourage competition from nonunion contractors.

    Hardy estimates that 80 percent of contractors in the valley are nonunion, so to exclude them would hurt the labor market and local economy.

    He said it was futile to oppose the agreements given that most commissioners seemed in favor of them.

    He asked that the county dispense with national guidelines that he argued were unfair.

    One of the national rules requires a nonunion company to hire one worker from a union labor pool for each employee it uses on a project, Hardy said. This contractor is limited to using seven of its own employees and after that must hire only union workers.

    A nonunion shop also must pay premiums on the union’s benefits even if it already offers benefits to its employees, Hardy said. That typically results in a company cutting its workers’ benefits because it can’t afford to pay both.

    Workers wind up with no health care because the employer hasn’t paid into the union’s medical plan long enough for the workers to qualify, he said.

    Contractors should be able to use their own workers without pulling from a union pool, Hardy said. And they should be allowed to augment medical benefits so they’re on par with a union’s, rather than paying double premiums, he said.

    Steve Ross, a regional labor spokesman, agreed that double premiums were a disincentive for nonunion contractors. That method was created back when nonunion shops typically offered little or no worker benefits.

    Ross said he would speak to his national union office in Washington, D.C., and see if officials would loosen a few of the rules. County Commissioner Rory Reid noted that the two opponents had a conciliatory tone in their dialogue. He agreed that no labor guidelines should lead to workers losing benefits.

    Commissioner Larry Brown said he needed more information. He questioned why the county should shift away from a system that’s been in place for decades.

    “We have competitive bidding,” Brown said. “That system has worked pretty darned well.”

    After the meeting, Hardy said a compromise was crucial for local contractors.

    “We’re hoping the county commissioners say, 'We want a PLA that makes sense to our community,’ ” he said.

     

    Contact reporter Scott Wyland at swyland@reviewjournal.com or 702-455-4519.

     

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    TK wrote on August 19, 2009 11:05 AM: The golden goose has been killed and now the liberals are picking the bones clean.


    Should be voted out! wrote on August 19, 2009 09:11 AM: Read this carefully! They state that under a PLA these jobs would cost the tax payers 20% more. Why in this economy would the Commissioners do this? We simply can't afford it. It is crazy to even consider it unless they have a debt to pay back.


    TS wrote on August 19, 2009 12:06 AM: This is a transient town.The nonunion companies hire out of staters and our tax money goes away with them.Most every cent paid to union workers stays right here.With a neutral gate system the union needs every job it can get.The american dream is not about backstabing and undercuting.It's about all who want to work being able to.Corporations who employ incompetant workers always fail.


    Jeff Peaco wrote on August 18, 2009 11:48 PM: Buying votes, too bad the union will be shrinking soon and you'll be voted out of office. Incompetency in the union trades is unbelievable, and illegal aliens are rampant in some trades, they need to do E-VERIFY at the same time they do drug testing.


    Duane wrote on August 18, 2009 11:04 PM: The Commission Chambers is the same whorehouse it has been for years, only the names on the beds have been changed.


    Rvrrvr wrote on August 18, 2009 10:58 PM: Look at it this way, are you in it for the money or to help the community? Selfish or integrity?


    Rvrrvr wrote on August 18, 2009 10:55 PM: You firefighters get off your high horse, you guys make a lot of money already, so if you don't like your pay GO FLY A KITE!


    GH wrote on August 18, 2009 10:51 PM: How can anyone defend this?

    We have a huge budget deficit and they want to enter into an agreement that would up construction costs by 20%?

    This is the most blatant pay back for election contributions (aka bribery) I've ever seen.


    Hope N. Change wrote on August 18, 2009 09:30 PM: Good to see that our all-Democrat County Commissioners are being careful stewards of public money.


    lol wrote on August 18, 2009 09:01 PM: You guys knew exactly who chris G was when you elected her. Don't complain now that you are being soaked with more wasted money you have to pay for.


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