Jobs Corps Center project going forward
By GARRY RAYNO
New Hampshire Union Leader
MANCHESTER — A project labor agreement, which delayed construction of New Hampshire's Job Corps Center for 21 months, will be a project requirement according to the U.S. Department of Labor.
The department announced last week it would move forward with the long-delayed $35 million project off Dunbarton Road. A New Hampshire contractor challenged the requirements two years ago, delaying project construction.
U.S. Sen. Kelly Ayotte said in a press release Friday she is concerned that the PLA favors out-of-state unionized contractors over local firms and could drive up the project's cost.
"The administration's plan to keep in place the PLA represents yet another senseless government mandate that could put New Hampshire businesses and workers at a competitive disadvantage. A PLA effectively gives unionized firms an unfair advantage over non-union firms, making it less likely that New Hampshire contractors would be able to bid successfully for the work," said Ayotte. "This is a New Hampshire project, and local contractors should be able to compete for it on a level playing field."
Project labor agreements usually require companies working on a construction project to provide health care, retirement benefits and apprenticeship programs. And PLAs usually include work rules, safety provisions, dispute resolution and a no-strike clause.
Contractors balked when the Job Corps agreement called for experience with three or more PLAs. North Branch Construction of Concord filed a protest with the Government Accountability Office and that brought the bidding process to a halt.
Manchester Mayor Ted Gatsas said Friday his concern with the original PLA was the prior PLA experience. That meant no New Hampshire firms could qualify to do the work, because no firm had experience with three PLAs, he said.
"My understanding was that was not going to be in there," Gatsas said. "It should be New Hampshire people doing this project."
Gatsas said he has not seen the documentation, but noted "This is a project we need to move forward. It's 300 construction jobs to the city and 135 permanent jobs."
In response to a request from Ayotte asking to clarify the PLA issue, the DOL wrote that in keeping with a January 2009 executive order by President Obama, construction projects over $25 million should use PLAs. A PLA is appropriate for the $35 million Job Corps project, the department wrote.
Mark Holden, president of the Associated Builders and Contractors of New Hampshire/Vermont said: "It is important for all New Hampshire taxpayers to understand the impact of this decision. Requiring non-union contractors to execute union agreements for the project, agreeing to replace their employees with union workers, pay into union funds and abide by union work rules and conditions creates unknown costs that are impossible to plan and bid for and are conditions that make it non-competitive for non-union contractors.
"To suggest that a non-union contractor's ability to compete would not be impacted by this PLA is untrue. A PLA requirement will have a chilling impact on competition from non-union contractors and will dramatically inflate the construction cost of this taxpayer funded project. At a time when a challenging economy is dependent on real solutions for job creation and accountability for every taxpayer dollar, this decision is unbelievable."
Joe Casey, president of the New Hampshire Building and Construction Trades Council, said Ayotte and Holden are making a lot of assumptions about the PLA and what it will require. "It all depends on what the project labor agreement is and I have yet to see one for this project," Casey said. "This is a debate we should have once the Department of Labor releases the project (documents)."
He noted the DOL hired an independent group, Hill International, to determine if a PLA is feasible for the project, but he had not seen the study. "We should all take a step back and see the actual contents of the project labor agreement," Casey said. "The provisions could benefit New Hampshire contractors and New Hampshire workers."
He noted the last major federal construction project in New Hampshire was the Berlin prison and the contractors and almost all of the workers came from out-of-state. That prison has yet to open because the federal government has not released operation money.
"That is the type of thing the project labor agreement addresses," Casey said. "If federal money is coming to the state of New Hampshire, why shouldn't it stay in New Hampshire with the New Hampshire workforce. At the end of the day, that is what we are looking for."
Dick Anagnost, a Manchester developer who is chairman of the Job Corps Task Force, told the New Hampshire Union Leader last week that the project will take about 18 months.
He said the Labor Department should take a month to prepare bid specifications. Another month will be needed to solicit bids, and a final month will be needed to review them.
A Job Corps Center will help train economically disadvantaged youth to enter high-growth industries. New Hampshire is among the last states to have a Job Corps Center. The state began efforts 10 years ago to land a center of its own.
