Project-labor agreements in construction industry

Project-labor agreements are often used in the construction industry to provide labor peace on construction sites as well as more flexible work-rule restrictions within each craft designation working on the project sites. Project agreements are usually negotiated on an individual-project basis for large-scale, long-duration construction projects with heavy ongoing manpower demands. Project agreements have proliferated in use in part due to the fragmented and multifaceted bargaining taking place in the local unions' jurisdictions. Project agreements have been designed to overcome the inefficient nature of local labor agreements and consequently improve the competitiveness of unionized construction for large-scale projects. Project agreements have been actively opposed by local union and nonunion contractor groups. Local contractor groups have challenged the legality of project agreements on the grounds of: (1) Alleged violations of the federal antitrust laws; and/or (2) alleged violations of the federal labor laws. This paper provides useful research information on project agreements and highlights important legal considerations in the negotiation of project agreements.