Governor’s Executive Order Targets Public Construction Projects

The Case for Project Labor Agreements

Gov. Maura Healey recently signed an executive order requiring that administrators of state-funded construction projects with budgets over $35 million take steps to ensure on-time, on-budget delivery of the jobs — including through the consideration of project labor agreements (PLAs), which have been demonstrated to reduce costs and ensure timely completion.

“There are so many critical construction projects underway all across the state — upgrading our roads and bridges, improving infrastructure for small businesses, and more,” Healey said. “We know that it’s really important that these projects are set up for success. This means ensuring that contractors have a trained and ready workforce to turn to and a plan for meeting deadlines, staying within budget and keeping everyone safe. In many cases, PLAs can help make that happen, while promoting good job opportunities for workers of all backgrounds, including veterans, women, and minorities.”

The order calls for the state to sign a PLA if it is in the best interest of the project, workers, and community. The state analysis will be based on the project’s scope, complexity, proposed schedule, site conditions, and the size and nature of the construction workforce required.

Healey signed the order at the Massachusetts Building Trades Unions’ (MBTU) 106th annual convention at MGM Springfield, surrounded by local construction workers and labor advocates, including workers who were employed as part of the construction of the new Massachusetts Veterans Home in Holyoke.

“This executive order will make a huge impact on the quality of life for current and future workers in the construction industry,” MBTU President Frank Callahan said. “It will contribute to ensuring fair competition for all contractors while creating opportunities for great careers and opportunities for workers. Every worker in the construction industry deserves the opportunity to earn good wages and benefits with safe working conditions that ensure they return to their loved ones each day after work. By signing this executive order, Governor Healey is helping to expand those opportunities for construction workers all across Massachusetts.”

A PLA is a collective bargaining agreement, executed between contractors and labor organizations, that establishes the terms and conditions of employment for all contractors, subcontractors, and craft labor employees performing work on a specific construction project.

Advocates say PLAs help deliver high-quality jobs for a diverse workforce and maintain competitive costs and project timelines. Studies have also found that PLAs do not add costs to construction projects, and in fact lower them. A recent analysis of a similar policy in Illinois found that PLAs increased competition and helped lower costs for taxpayers.

“Project labor agreements have been proven to result in successful construction projects in the public and private sectors, from the new Holyoke Veterans Home to Gillette Stadium and TD Garden,” Lt. Gov. Kim Driscoll said. “We’re proud to take this action today that will make sure our agencies are paying close attention to ways in which they can maximize the success of their projects while supporting our incredible, diverse workforce in Massachusetts.”

Matters of Compliance

The executive order lays out the process for implementing PLAs on public-works projects to comply with a measure in the state economic-development bill signed by Healey last year, which called for agencies to require a PLA when in the best interests of Massachusetts. The order does not require a PLA for any construction project and allows for union and non-union bids.

“Our administration looks forward to leveraging this as a tool, when applicable, complemented by efforts to build a more diverse pool of apprentices and reduce barriers to attract more women and people of color as we work collaboratively with the industry to grow the workforce,” said Secretary of Labor and Workforce Development Lauren Jones, who joined the governor at the order signing at MGM.

Andrew DeAngelo, Executive Director of the Greater Boston Plumbing Contractors Assoc., which represents more than 70 union plumbing businesses in Massachusetts, added that “the contractor community applauds Governor Healey for this executive order. Project labor agreements not only make sense for worker safety and job-site protections, they also make business sense for both the contractor and the end user. By leveling the playing field for those bidding and ensuring an efficient and on-time completion, more subcontractors bid on the work competitively — and the end user gets the best finished product achievable.”

Chrissy Lynch, president of the Massachusetts AFL-CIO, argued that “project labor agreements guarantee good wages and benefits, safe working conditions, and sustained investment in the local economy and workforce.

“These agreements ensure that projects create meaningful opportunities for workers across the board,” she added. “Currently, unions train 80% of all apprentices of color and 88% of all women apprentices in our state, and they have been critical to achieving the Commonwealth’s diversity goals for construction. PLAs also have a proven track record in Massachusetts, where they keep projects moving and costs low. The Massachusetts AFL-CIO applauds this executive order for doing better by workers, the community, and taxpayers across the Commonwealth.”

More Statements of Support

Karen Courtney, executive director of the Foundation for Fair Contracting of Massachusetts, called the executive order “a major step forward in ensuring that public projects not only deliver high-quality infrastructure but also uphold the principles of fairness, transparency, and opportunity for workers across Massachusetts. By strengthening oversight and accountability on projects exceeding $35 million, we are reinforcing the state’s commitment to equitable access, ensuring that skilled workers receive fair wages and providing a level playing field for all contractors.”

Ziquelle Smalls, senior organizer with Community Labor United, called the executive order “a monumental step toward an equitable and sustainable future for Massachusetts. Committing to strong project labor agreements across sectors will create family-sustaining careers, advance opportunities for women and communities of color, and build the infrastructure our state urgently needs.”

Cindy Luppi, national field director with Clean Water Action, characterized the executive order as “a pivotal moment for both climate justice and public health. By focusing on sustainable infrastructure, we have the chance to address urgent environmental needs — improving our water system, reducing pollution, and creating green careers that support our communities. It’s essential that, when Massachusetts invests in major projects, we not only tackle climate change, but also safeguard the well-being of those most impacted, ensuring clean, safe environments for future generations.”

Mimi Ramos, executive director of New England Community Project, called the announcement a game-changer for New England communities, especially for those seeking access to green careers and childcare opportunities. “At the New England Community Project, we know that a just transition means creating pathways to family-sustaining careers as well as building more green, affordable, equitable, and accessible housing.”

Finally, Dwaign Tyndal, executive director of Alternatives for Community & Environment, noted that, “for frontline communities across New England, and especially in Massachusetts, the executive order on PLAs for state-funded projects over $35 million presents a pivotal opportunity to create green transit infrastructure that addresses both the climate crisis and long-standing inequities. This investment provides a chance to build transit systems that not only reduce carbon emissions but also ensure that working-class communities have access to reliable, sustainable transportation.”