Arenas And Politics

As you now know, I am involved in Fair And Open Competition Sacramento - a group that is sponsoring a ballot initiative to remove Project Labor Agreements (PLAs) from taxpayer funded projects in the City and County of Sacramento.  PLA's mandate that all construction workers pay union dues (even if they have chosen not to be union), be dispatched from a union hiring hall, and pay their benefit and pension money to the union (even though they don't use the benefits and don't vest in the pension).  Our group thinks PLAs are discriminatory against non-union workers and cost taxpayers billions of dollars (since reduced competition equals higher construction prices) and should not be legal.

A couple of weeks ago I was at an industry event and spoke to an unnamed Mayor of an unnamed City that will be building an unnamed sports complex.  I introduced myself to the Mayor and explained that I am with Royal Electric Company, the second largest electrical contractor in Sacramento. 

Mayor:  "That's great!"

Me:  "You know, if you have a PLA on the arena project, we won't be able to bid it because we have non-union employees.  We need to keep that project free of a PLA."

Mayor:  "It's too late, that's already a done deal."

Me:  "You realize a comprehensive study just came out that shows PLA's increase the cost of construction by 13 to 15%?"

Mayor:  "You don't have to tell me.  I get it.  But politics are too strong in this City." 

And there you have it folks.  Even though something like a PLA doesn't make any sense, on a project that may not ever even be fully funded as it is, taxpayers will be forced to pay 15% more for no other reason than the construction unions have a hold on the politicians in our community.  This is why our initiative is needed, because politicians can't make the right choices for taxpayers when their re-election dollars come from special interests. 

What does this equate to in dollars?  The arena is said to cost around $340 Million.  With a PLA on the project, that cost could rise to $391 Million - over $50 Million more. 

How many teachers, firefighters and police could $50 Million keep employed?

Unions say a PLA is needed for several reasons:  ensure local labor, ensure trained labor, ensure higher pay for the workers, ensure legal citizens, and to keep the project on budget and on time.  But public projects already mandate worker pay (our employees would actually make much less on a PLA project than we currently pay them because their benefits and pension would go to the union and not to the worker), and the other items can be mandated by contract without regard to union affiliation.  For example, our company uses e-verify (a federal program) to make sure our employees are all legal workers.  The unions do not verify their members unless a project has this as a contractual requirement.  Many contracts also require goals for hiring local workforce, without regard to union affiliation. 

And the part about on time and on budget is ridiculous.  As long as companies are prequalified for a project (meaning the Owner reviews the contractor's history of past performance) it makes no difference whether a company is union or non union. 

Seventeen of the top twenty five electrical contractors in the Sacramento area are not union.  A PLA on the arena (or any other project) would keep these companies from bidding on the project.  That leaves only two electrical contractors big enough to handle a project the size of the arena.  What do you think it would do to their pricing if they knew they were bidding against only one other company instead of ten? 

Is that really how you want your tax dollars being spent? 

For more information, please see the website for our ballot initiative at Fair And Open Competition Sacramento, and please sign our petitions if you see them at retail centers near you.  (And don't worry, the signature gatherers are not paid felons as the union-sponsored radio ads suggest!)