Napa-Solano Project
Labor Agreement
Terrance Davis
Assistant City Manager
What is a PLA?
• Project Labor Agreement (PLA):
– Pre-hire contracts between project-
owner and local construction unions
– Used for larger, more complex
projects
– By their terms do the following:
• Require worker representation by
labor unions
• Set basic terms and conditions of
employment
– Primary purpose: ensuring that only
unionized labor is used
• Community Workforce Elements
(CWA)
– Part of a PLA to include targeted
hiring goals
Legal Basis for PLAs
• California Public Contract Code
section 2500, et seq., governs a
public entity’s use of PLAs
– PLA must include at minimum:
• Prohibition on
discrimination
• Permission for all qualified
contractors and
subcontractors to bid
(whether they are union or
non-union)
• Guarantees against work
stoppages, strikes, lockouts
Related Provisions
• Vallejo Local Hiring Preference
– Section 3.20.230
• Provides 5% bidding bonus
for Vallejo businesses
• California Prevailing Wage Law
– Labor Code requires contractors
to pay specific wage rates on
public works projects
– The rates are published by the
State’s Department of Industrial
Relations (“DIR”) on County
basis
Benefits of PLA
• Make large projects easier to
manage by placing unions under
one contract
• Community Workforce provisions
to require participation in
apprenticeship, and training
programs for women, minorities,
veterans, and other
underrepresented groups
• May mean a larger percentage of
construction wages stay in the
City/Region
Value of Community Workforce
Elements
Regional PLA Examples
• Cities
– City/County of San Francisco
– City of Concord
– City of Elk Grove
– City of Martinez
– City of Santa Rosa
• Education
– Vallejo Unified School District
– Solano Community College
District
– Fairfield-Suisun School District
Proposed Vallejo PLA Terms
• Length: Five years
• Threshold:
– $750,000 project valuation
• Coverage:
– Citywide
– Not applicable to private
development
• Exclusions (not inclusive):
– Emergencies, work performed
by City staff, grants that prohibit
PLAs
• Community workforce elements
– 30% local hire goal
– Quarterly reports
Who will the PLA Impact
• Construction Purchasers & Labor
Organizations that are signatory to
the agreements
• Contractors who have workers
covered by prevailing wage
• Workers who perform work covered
under prevailing wage laws
• Community & Training Partners
who commit to provide support
services and interact with the project
Union Recognition / Non-
Union Inclusion
• No contractor or worker will need
to become a union member to
participate, but …
• Every worker will be represented
by the recognized craft union
during the life of the project.
• Non-Union Contractors &
Workers NOT required to join
unions
• Unions NOT allowed to organize
on the project
Contact/Questions
Terrance Davis
[email protected]
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