• VCTA.org

Ventura County Labor Agreement Would Cost Taxpayers Millions

Recently, the Ventura County Board of Supervisors was told that a proposed Community Workforce Agreement (CWA) on county projects would likely increase project costs more than $75 million over the next five years.  Their own staff recommended that the Board reject the proposed CWA.

Staff indicated the revised study of alternatives would be ready by early 2021, but outgoing Supervisor Zaragoza cannot wait.  He wants the Board to direct staff to immediately negotiate a “pilot” Project Labor Agreement for six County of Ventura Capital Projects totaling $90 million with the Ventura County Building Trades. Ventura County Taxpayers Association would like to remind the Board that six projects is not a pilot.  Should the first project not work out under the PLA the County would be stuck with five additional projects covered by a failed PLA.   Why is Supervisor Zaragoza in such a rush to waste taxpayer dollars? The CWA, also called a Project Labor Agreement (PLA), requires that all contractors, whether they are unionized or not, subject themselves and their employees to unionization in order to be eligible to work on county-funded construction projects. This particular PWA includes a union collective bargaining agreement for Ventura Countyconstruction project bid specifications. In order to receive a contract, the contractor must sign the agreement and subject the employees of that contract to union control without choice. Staff concluded the PLA will result in more than $75 million of added costs over the next five years, which would materially delay public safety projects, pause communication infrastructure upgrades, and cancel much needed projects at our airport and harbor.   Staff recommended that the Board of Supervisors reject the PLA because “the advantages of the proposed PLA are not proportional to the estimated additional cost”. What is going on?  Staff is against the PLA. Taxpayers are against wasting $75 million. And the Board of Supervisors rejected a similar agreement in 2012 that would have required contractors to sign a project labor agreement oriented toward the demands of the Tri-Counties Building and Construction Trades Council in order to work on a $250 million county hospital project. Yet Supervisors Zaragoza, Long and Bennett are again pushing for this. Why? Unions tout PLA benefits as guaranteeing greater quality workmanship from a better-trained workforce along with guaranteeing more jobs for local workers. However, these same unions produce no evidence or track record to support any of these claims.  With a PLA, qualified, non-union contractors who wish to make lower-cost bids, and employees who wish to work non-union, will be effectively locked out of these projects. These limiting factors will discourage bid submissions, as concluded by staff, resulting in less competition and inevitably raise the price of construction.  In Ventura County, at least 80 percent of the workforce is non-union, which means that a small number of contractors are likely to bid on any project, although out-of-county contractors are free to bid.  Most non-union contractors are unwilling to become de facto union contractors simply to get some public-works dollars, especially when the private economy is booming, which means fewer bidders and higher prices. But the reason unions try to lock out non-union companies from competing for public works projects is not because the non-union firms pay their workers less. Prevailing wage agreements — which can be completely independent of PLA’s – already prevent that. The reason unionized firms drive costs up in projects is because of their work rules, rules which prohibit skilled workers from doing anything that is outside of their governed skill set, even if it is far more convenient for them to do so.   Additionally, the logic employed by PLA advocates borders on the sinister. The County can enjoy “labor peace” and “job stability” if only they are enlightened enough to enter into a PLA before they put a project out to bid. A failure to sign up could invite “costly delays.” The threat to shut down a project or otherwise cause trouble lies just below the surface of the high minded appeals for cooperation that come from the unions and their advocates. The problems with a PLA are well known to many policymakers. But while construction unions can’t elect their company’s management team, they can clearly fund campaigns to elect local politicians and keep them in power.  Unions are not concerned about the $75 million wasted by the inefficiencies and higher costs they produce. Special interest favoritism that rewards union contractors and workers at the expense of nonunion contractors and workers should have no place in public policy. The better policy would be one that abandons costly and discriminatory PLA’s in favor of fair and open access to public construction projects to foster robust competition, reduce costs and increase public value that favors taxpayers. Ventura County Taxpayers Association urges the Board of Supervisors deny the proposed CLA along with the six-project “pilot” PLA program suggested by outgoing Supervisor Zaragoza as fiscally irresponsible and an unnecessary waste of more than $75 million taxpayer dollars.