In late December 2018, the Philadelphia Inquirer published an article about lobbying by the Philadelphia Building Trades for the Montgomery County commissioners to approve a project labor agreement (PLA) for a courthouse renovation project in Norristown. The article reported as follows:
The labor group, which comprises 50 unions and is run by the politically powerful electricians union head John “Johnny Doc” Dougherty, is lobbying the Montgomery County commissioners to approve a project labor agreement for courthouse renovation in Norristown, a major part of a 10-year project whose estimated costs have increased to more than $400 million. The work includes renovating One Montgomery Plaza, constructing a new justice center, and expanding a nearby public park. A PLA, as it is known, sets standards for wages, includes local hiring requirements, and regulates how disputes are resolved. PLAs, common in the city but not in the suburbs, also require that contractors use union labor.
On January 11, 2019, in a case brought by two nonunion contractors contesting the use of a PLA on a PennDOT project, the Commonwealth Court struck down the use of PLAs on public projects, except in extraordinary circumstances. My post on that groundbreaking decision is here.
Given the breadth of the Commonwealth Court’s ruling against the use of PLAs, absent a showing of extraordinary circumstances, the use of a PLA on the Montgomery County project seems doomed from the start and is almost certain to be challenged in court if the Montgomery County Commissioners seek to use one on the project even in the face of the Commonwealth Court’s decision. For now, until there is a decision from the Supreme Court overturning the Myers and Eckman decisions (which is not a foregone conclusion), the use of PLAs on Pennsylvania public projects is at a standstill.
If you need assistance with a public contracting issue, feel free to call or email me. I’ll be happy to assist in anyway possible.
Christopher I. McCabe, Esq.
