Ban on Project Labor Agreements Upheld

Two unions in Michigan filed a complaint for an injunction against the Fair and Open Competition in Governmental Construction Act (Public Act 99, 2011) (Act), which restricted the use of project labor agreements (PLAs) on publicly funded construction projects. Project labor agreements, which lay out terms and conditions of employment on specific construction projects, can be entered into by governmental units, or by a contractor hired by the government, and a labor organization. The U.S. District Court for the Eastern District of Michigan granted the injunction and ruled that the Act was preempted by the National Labor Relations Act. On appeal, the U.S. Court of Appeals for the Sixth Circuit vacated the injunction and held that Michigan could take across-the-board action to prohibit government-mandated PLAs on state, local and publicly funded projects. To date, eighteen states have banned government-mandated PLAs.

For more information please look at Mich. Bldg. & Constr. Trades Council v. Snyder, Nos. 12-1246 & 12-2548 (6th Cir. September 6, 2013).