During a House Oversight Committee hearing last week, Rep. Eric Burlison (R-MO) spoke about the Biden Admin's Project Labor Agreement policies.
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NewsTranscript
00:00I would like to recognize Congressman Burleson for five minutes.
00:04Thank you, Madam Chair. Thank you for hosting this wonderful, very important committee meeting.
00:12Mr. Brubeck, most construction workers do not belong to the union. I think the statistics
00:18are something in the area of only close to 11 percent are members of a labor union. In
00:26fact, and it's only getting smaller. Fewer and fewer people are choosing to be members
00:32of a labor union. Could you expand on how the requirement will pressure contractors
00:39to reverse course and then unionize, despite the fact that their employees may not want
00:46to be a member of a union?
00:48So typical PLAs say that you have to get most or all of your employees from a union hiring
00:53hall and follow union work rules and pay into union pension and benefit programs. And
00:59so what that does is that forces contractors to be unable to use their existing employees.
01:04Any of their own employees they're able to use, they have to send to the union hiring
01:08hall or through some sort of arrangement where they're allowed to work on. In our industry,
01:14if you want to join a union, you can just go down to the local union hiring hall and
01:18join. The barriers to unionization are very low. What we have here is the government forcing
01:23this on contractors in order to get taxpayer-funded construction contracts. And that's a problem.
01:29We heard earlier about voluntary PLAs, contractors entering into them voluntarily without undue
01:35course of pressure. But we're talking about government-mandated PLAs. That's the issue
01:39here. That's what this executive order does. That's what all the Biden administration policies
01:43do. They try to force contractors to bargain with unions and sign a union agreement as
01:47a condition of winning a taxpayer-funded construction contract. That increases costs,
01:52that reduces competition, and that reduces the number of workers that are able to bid
01:55on these projects. We have a skilled labor shortage of half a million people.
01:59And I'm glad you said that it reduces, that it increases costs and it reduces competition.
02:06I can't see how anyone with a straight face can say that requiring this, requiring a project
02:14labor agreement, is somehow going to reduce costs and give more options.
02:19Well, in theory, it might reduce costs when your only option is a unionized contractor base. But
02:27that's not the case anywhere in this country. There's plenty of competition from nonunion
02:30contractors. In my experience, PLAs are voluntarily entered into by contractors without
02:36government coercion because it provides them some sort of exemptions from problematic terms
02:42and collective bargaining agreements that make them less efficient and more expensive. So we're
02:46talking about government-mandated PLAs, not voluntary PLAs.
02:49Let's also talk about the exemptions, the supposed exemptions to the PLA requirements. The OMB memo
02:59implementing the new rule mentions a process for federal agencies to follow in order to secure an
03:05exemption or exception to the Biden administration's new blanket PLA policy. Are you aware of any
03:13federal agencies who have successfully sought an exemption or an exception?
03:18No, sir, I'm not.
03:21There's no reports. In fact, and I think you have from your own personal observation, but yet
03:27when you go and also when you go to the federal government's own website, it does not list any
03:33agencies receiving an exception. So it's clearly the exception policy is a joke. Would it be safe to say
03:44that the new rule is reducing competition, that it's reducing the number of applicants for these jobs?
03:51Yeah, absolutely. I hear both from contracting officers in federal agencies and our own members who say
03:56they want to pursue these contracts, but they can't because of the PLA requirement on there. I'm aware of a
04:01number of projects where they've already had a reduction in bidders who are pre-qualified for
04:05phase one of the solicitation, and they dropped out the minute the PLA was added during phase two of
04:10the solicitation. So there's going to be real-world examples coming out, and projects are going to have
04:14to be rebid, and that's going to delay more construction projects that we all need.
04:20I also think there's another aspect to it. You know, just this week, in a hearing, we learned that the United
04:25Auto Workers Union was protesting on a college campus to make sure that they had the rights
04:33to be basically anti-Semitic in their protests. I can't imagine how someone who just wants to work,
04:41just wants to be employed, is now going to have to pay dues to something that's
04:48getting politically involved in something they may totally disagree with.
04:52Yeah, that's certainly one of the reasons why a lot of construction workers and contractors
04:56decide not to affiliate with unions, and that's their choice. They want to make sure that they
05:00can deliver projects on time and on budget. And before my time expires, I just want to ask,
05:04what can Congress do? I know that we have Resolution 132 sponsored by the Higgins from
05:11Louisiana. What bills are on your radar that would help remedy this?
05:17The Chairman Comer has got an excellent bill called the Fair and Open Competition Act that
05:22restricts government-mandated PLAs on federal and federally-assisted projects, and Congressman
05:26Higgins has a CRA resolution striking down the Biden administration policy.
05:30Thank you. All right. I would like to recognize Mr. Gosar for five minutes.
05:37Thank you, Madam Chair. Since January 2021, the Biden administration has implemented