Bureaucrats Are Letting Biden Edict Stand

Denying Fairness to Independent Hardhats Costs Taxpayers Billions

At the time this Newsletter edition goes to press, Right to Work members are being urged to contact the White House to encourage the President to override his Office of Management and Budget (OMB) director’s recent memo on so-called “project labor agreements” (PLAs). 

Among all the radical steps former President Joe Biden and his appointees took to promote compulsory unionism, perhaps the most radical of all was an edict — known as Executive Order 14063 — issued by Mr. Biden in February 2022. 

This power grab effectively mandated that tens of billions of dollars spent by the federal government on construction projects be offered to union-only workers and firms. 

Under E.O.14063, proudly observed Mr. Biden at the time he signed it, “Every single project that we’re talking about [that] is paid for with federal dollars…is going to be union jobs.” 

Now, according to a memo issued by OMB Director Russ Vought, this discriminatory edict will remain in place.

Right to Work Attorneys Challenge PLA Mandate

The Vought memo states that “the Trump Administration supports the use of PLAs when those agreements are practicable and cost effective . . . .” 

At the same time, it admits that a union-only agreement can cost taxpayers up to 10% more than a non-PLA deal would and still be required under administration policy. 

“By virtually mandating PLAs on all federal construction projects over $35 million, the Biden Administration gave a massive gift to politically connected building trades union officials, while hanging the 90% of the construction workforce that chooses not to be unionized out to dry,” said National Right to Work Committee Vice President Greg Mourad. 

“It is deeply disturbing that the OMB, which is charged with making the government more efficient, has abruptly chosen to leave that edict in place with only modest changes. Allowing this memo to stand will drive up costs for taxpayers. 

“On a multi-billion dollar federal project, a PLA could add hundreds of millions of dollars to taxpayer costs.”

E.O.14063 faces an ongoing court challenge from a coalition of independent-minded construction workers who argue it wrongly denies them the opportunity to bid on government projects simply because they’ve chosen not to seek Organized Labor’s so-called “representation” in the workplace.  

National Right to Work Legal Defense Foundation attorneys have submitted a brief in support of that challenge, arguing that the PLA executive order unconstitutionally forces workers into a relationship with union bosses. 

“There is no legitimate legal or policy basis for forcing employees and contractors to abide by union-only PLAs to work on major federal construction projects,” the brief argues. 

The Biden executive order forces non-union companies wishing to participate in public works of any substantial size to impose union monopoly bargaining on their employees and hire new workers through union boss-controlled hiring halls.

Committee Supports Legislation to Ban PLAs

“If E.O.14063 survives pending legal challenges, to even submit a bid for a taxpayer-funded PLA contract,” explained Mr. Mourad, “a union-free firm will have to agree to use the union hiring hall to obtain workers at the expense of current qualified employees. 

“Apprentices will have to be obtained from Big Labor-operated apprenticeship programs.

“Instead of following their normal guidelines for working safely and speedily, hardhats will have to submit to inefficient union work rules. Moreover, independent employees hired for federal projects will be forced to contribute to union boss-controlled ‘multi-employer’ pension plans [MEPPs] that are, in many cases, grossly underfunded. 

“And in states without Right to Work laws in effect, PLAs even force union nonmembers to join or pay union fees as a condition of employment!” 

A growing number of senators and congressmen support an across-the-board ban on PLAs for federal public works. 

The Fair and Open Competition Act (S.1064/H.R.2126), which bans the use of PLAs on most federal projects, was introduced this year with 106 original cosponsors in the U.S. Senate and House of Representatives. 

Committee staff members are working with allies on Capitol Hill to build support for the legislation.

“Project labor agreements waste taxpayer money, and they lock the majority of construction workers out of the lucrative opportunities afforded by federal contracts,” said Mr. Mourad. 

“If Joe Biden’s executive order requiring PLAs isn’t tossed out in court, as it deserves to be, the Trump Administration has a duty to protect American workers and taxpayers by revoking it.”

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This article was originally published in our monthly newsletter. Go here to access previous newsletter posts.

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