Home Republicans worry Biden’s government order boosting labor unions will improve building prices

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“Republican Lawmakers Eye Pro-Union Regulation From the Biden Administration”
Republicans in the House of Representatives are investigating a regulation now being finalised by the Biden administration that would favour labour unions and enhance their use on government building projects. To ensure that all federal construction projects over a certain size use project labour agreements, President Joe Biden issued Executive Order 14063 in February 2022. The ruling specifies that these contracts must be “”pre-hire collective bargaining agreement with numerous labour organisations that stipulates the terms and conditions of employment for a particular construction project”” valued at $35 million or more.
This presidential order was put into draught form by the Department of Defence, the General Services Administration, and the National Aeronautics and Space Administration in August 2022. Republican lawmakers argue that this approach will prevent local workers and firms from taking on federal projects in right-to-work states, increase construction prices for taxpayers, and eliminate most construction companies and workers from the competitive bidding process.

Building staff standing earlier than the Manhattan skyline, in Brooklyn on January 24, 2023. (Photograph by Ed JONES / AFP) (Photograph by ED JONES/AFP by way of Getty Pictures) ((Photograph by ED JONES/AFP by way of Getty Pictures) / Getty Pictures)

A total of 119 federal construction projects topped $35 million from fiscal years 2019 through 2021, and the average contract was $114 million, according to the Federal Procurement Data System. In a letter sent on May 16 to officials in the Biden administration, Republicans on the House Oversight and Accountability Committee asked for a briefing.
Oversight Chairman James Comer, R-Ky., and seventeen other Republicans wrote a letter stating, “”This directive threatens to increase taxpayer expenses, exclude non-union workers from federal projects, and push right-to-work states to keep local workers out of federal programmes.” House Republicans said that project labour agreements lead to increases in taxpayer-funded construction costs of up to 20%, may decrease chances for competent contractors, and exacerbates the construction industry’s worker scarcity.

Project labour agreement cost and benefit analyses, as well as assessments of the potential economic impact on the United States, were also requested by Republicans.
In the letter, Comer and the other Republicans pointed out that the GOP had first asked for a briefing on the order back in June 2022, when they were in the House minority and could do little to get their way.”You did not provide this briefing, but ultimately treated Committee Republicans’ request letter as a public comment,” The document goes on to say that “”This briefing should include comprehensive information on whether and how our concerns were considered in consideration of the proposed rule and production of the draught final rule as well as how they are being examined today.””

In his executive order, Vice President Biden warns that “”lack of coordination among businesses and confusion over the employment of diverse individuals”” can “”cause friction and disagreements in the absence of an agreed-upon settlement process.””
The presidential order states that “”project labour agreements are typically successful in preventing these concerns from occurring”” since they provide structure and stability to large-scale building projects. “”Such agreements prevent delays in construction by preventing work stoppages like strikes and lockouts and requiring the use of dispute resolution mechanisms to settle disagreements on the job site. They guarantee that everyone involved in a building project will stick to their end of the bargain and prevent delays.