President Issues Executive Order Encouraging the Use of Project Labor Agreements on Federal Construction Projects

Contributor: Duane Morris LLP

SUMMARY: In a sharp reversal of existing federal policy, and yet another move signaling the Obama Administration's policy shift to a stance that is far more friendly to unions than that of his predecessor, on February 6, 2009, President Obama issued Executive Order 13502, which encourages the use of project labor agreements (PLAs) on federal construction projects. Pursuant to an Executive Order issued by President Bush in 2001, the federal government had not been permitted to require any contractor on a federal construction project to enter into a PLA, or any other agreement, with one or more labor unions. The Executive Order is effective immediately, and its ramifications may be significant.

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