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Project Labor Agreements (PLAs) are simply pacts that spell out wages and benefits contractors must pay based on current community standards. This prevents an influx of public investment from driving down community standards. A PLA facilitates the smooth completion of a project by allowing stakeholders to agree to ground rules and synchronize expectations before the project starts.
Typically with a PLA, wages are higher, benefits are better, jobsites are safer, the workforce is more highly skilled, and work is more efficiently coordinated. PLAs also encourage use and training of local workers. This results in higher quality, on-time and on-budget projects, and also saves taxpayers money in the form of reduced costs for public health care and caring for pension-less retirees.
PLAs usually prohibit all work stoppages through a project-long no-strike, no lockout commitment, with binding procedures to resolve disputes.
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