New York Project Labor Agreement

At the behest of owners and developers facing rapidly rising project costs, contractors and unions in New York City came together on a project labor agreement (PLA) that is expected to significantly increase productivity and reduce costs.

Owners and developers had threatened to hire open shop contractors if the city's Building Trades Employers Association (BTEA) and the Building & Construction Trades Council (BCTC) couldn't cut costs by 25 percent. In subsequent meetings, the parties agreed to a combination of work rule changes and other concessions that an independent study says could save close to 20 percent. Twelve projects representing more than 10,000 jobs have already applied for and recieved approval under the new PLA.

(Follow these links to view the Project Labor Agreement or the PLA application in their entirety. There have been slight changes with some trades since these were published.)

Some developers are reportedly unhappy with the agreement, stating that there aren't enough savings and debating the exact value of the deal's cost reduction measures. However, the PLA has been finalized and there are already applications to use it on new and existing projects. Labor interests have agreed to an open-ended PLA, allowing either party to re-open negotiations if the market continues to slide.