Project Labor Agreements Are Once Again Part of the Public Bidding Process in Philadelphia

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On November 29, 2011, Mayor Michael Nutter signed Executive Order No. 15-11, which provides, effective immediately, that the City of Philadelphia may incorporate into its instructions to bidders, and other relevant bid documents, the absolute right to require that a potential bidder execute and comply with a project labor agreement ("PLA"), as a condition to the award of a public construction contract. Every project with an expected construction cost in excess of five million dollars will be reviewed specifically to determine whether a PLA is appropriate. In addition, city agencies are encouraged to review each project with construction costs less than five million dollars to determine whether those projects are also appropriate for PLAs.

A PLA is a project-specific collective bargaining agreement between the contractor, as an employer, and a labor organization or trade union. By executing the PLA, the contractor agrees to the terms and conditions therein, including work rules, no-strike clauses and jurisdictional determinations.

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Published In: General Business Updates, Construction Updates, Government Contracting Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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