Plan would require Long Island districts to employ union-level wages and protections on projects

ALBANY — Long Island school districts would be required to enter into labor agreements to employ union-level wages and protections under a bill in the State Legislature that opponents say could inflate costs and increase taxes.

The proposed legislation would require school districts in Nassau and Suffolk counties starting next year to enter into what’s known as a project labor agreement, or PLA, for any construction or improvement projects costing $1 million or more. The agreement lays out employment terms and conditions for the project before it goes out to bid and workers are hired.

While the bill doesn’t specifically require districts to contract with union shops, the collective bargaining agreements are negotiated with labor organizations, so nonunion shops competing for the same job would have to meet the agreed upon stipulations.

The main concern is the safety and welfare of students and faculty, Sen. Monica Martinez (D-Brentwood), the bill’s sponsor, told Newsday, adding that it also would ensure "fair, living wages" and "fair labor practices."

Studies have shown that labor agreements bring projects in on time and on budget, and it would provide "accountability for our taxpayers," Martinez said. "This would be one way to keep those costs down by not having bad actors."

The bill, which has bipartisan support, is making its way through the state Assembly and Senate as lawmakers look to pass hundreds of bills before the scheduled end of the legislative session on June 12. The Assembly already is planning on staying through June 17.

The proposal comes as district attorneys in Nassau and Suffolk have brought numerous cases involving fraud and wage theft against contractors working on school district projects Islandwide.

"The corruption is out of control," Sen. Mario Mattera (R-St. James), who is cosponsoring the bill, told Newsday. Cases have involved not paying workers what they’re owed as well as hiring unskilled workers who may not do the work properly, leading to worksite injuries and in some cases projects having to be redone at a cost to taxpayers, he said.

Labor unions say the bill could lead to reduced costs due in part to union apprenticeship programs which allow some workers to be paid lower wages, all while creating a safer workplace and supporting a local workforce.

"It’s a crisis that needs to be addressed," said Josh Slaughter, Long Island political coordinator for the Mason Tenders District Council, a construction laborers union. Project labor agreements are a proven way to ensure a "fair, level playing field," he said, adding that in recent years many union shops have stopped bidding on projects because they were so underbid by independent contractors.

Education groups argue that labor agreements are typically more expensive than just using a bidding process and would increase costs to districts while limiting the number of contractors they can choose from.

"It’s a way to essentially force school districts to use what mostly would be exclusively union labor on these capital projects," Brian Fessler, chief advocacy officer for the New York State School Boards Association, told Newsday. "School districts right now have this statutory obligation of best work at the lowest possible cost."

Bidding vs. agreements

School construction projects go through a lengthy process involving multiple layers of planning and approvals from the state Education Department as well as voters. Districts are reimbursed by the state for a portion of the cost of capital projects through what’s known as building aid, and a local share comes from taxpayers.

Districts currently can choose whether to enter a project labor agreement if it's more cost effective, said Brian Cechnicki, executive director of Association of School Business Officials of New York.

Without an agreement, districts must abide by what’s known as the state Wicks Law, which requires separate contracts for plumbing, electrical work, and heating, ventilation and air conditioning, or HVAC, in an effort to ensure the work is done properly and independently.

Projects that have labor agreements are exempt from the Wicks Law, allowing districts to hire one general contractor that oversees the work and can hire subcontractors.

The bill would instead require labor agreements.

Project labor agreements ensure a professionally trained workforce and a safer worksite, which can reduce liability insurance costs, Slaughter said. With a general contractor overseeing the entirety of the work, it often ensures better communication between trade groups and that projects get done on time, he said.

Education groups, however, are skeptical of the alleged cost savings.

"The fact that the vast majority of projects are not PLA projects naturally shows that forcing districts to move to PLA projects would lead to cost increases," Fessler said.

And if districts are forced to use the agreements, nonunion shops may not be able to meet the requirements of the projects, meaning fewer and likely higher bids, Cechnicki said.

"I think we certainly understand the concerns about things like the wage violations and shoddy work and all that, but we also already have laws and processes in place," he said, listing state labor laws including prevailing wage that already require worker protections and that certain wages and benefits be paid. "Is the solution addressing the problem?"