President Obama Signs Fourth Executive Order Concerning Unions


On February 6, 2009, President Barack Obama signed his fourth executive order concerning federal contractors and labor matters. This order (the “Order”) encourages federal agencies contracting with private businesses for large-scale construction projects to mandate project labor agreements (“PLA”) for the entirety of the project. The Order, which specifically revokes a contrary executive order issued by former President George W. Bush in 2001 and reinstates a Clinton-administration rule, applies to government-funded projects providing for “construction, rehabilitation, alteration, conversion, extension, repair or improvement of buildings, highways or other real property” where the total cost to the federal government is $25 million or more. The Order primarily encourages widespread use of PLAs for construction projects generated by the funds provided for in the American Recovery and Reinvestment Act of 2009.

Under the terms of the Order, which is effective immediately, executive agencies may now require the use of a PLA on a project-by-project basis, which would bind all contractors and subcontractors on the project. The Order, however, does not require executive agencies to insist upon PLAs, nor does it require contractors or subcontractors to enter into a PLA with any particular labor organization.

To read the full alert, click on the PDF linked below.


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