1. This training is provided for educational, compliance and loss-prevention purposes only and, absent the express, prior agreement of DWK, does not create or establish an attorney-client relationship. The training is not itself intended to convey or constitute legal advice for particular issues or circumstances. Contact a DWK attorney for answers to specific questions. © 2013 Dannis Woliver Kelley Project Labor Agreements San Joaquin Delta Community College Board of Trustees May 7, 2013 Mark Kelley Dannis Woliver Kelley

2. © 2013 Dannis Woliver Kelley 2 What Is a Project Labor Agreement? An agreement between the District and all construction contractors/subcontractors on specified projects, to incorporate union requirements for employers and employees on the projects. Also called Project Stabilization Agreement. Note: all California public works projects are covered under state prevailing wage laws and apprenticeship requirements.

3. © 2013 Dannis Woliver Kelley 3 Typical Key Terms of PLAs Apply either to listed projects only, or minimum contract amount, or all. Allow non-union contractors and workers to participate; they must pay benefits and dues. No-strike clause, and skilled labor force provision. Include dispute resolution process and mediator/arbitrator. ─ Also periodic meetings and pre-job conferences. (Possible) utilize students on projects via apprenticeship/internship programs. “Core employees” provisions. Local hire focus/best efforts clause.

4. © 2013 Dannis Woliver Kelley 4 The District’s PLA History Considered pilot projects in 2004 and 2010. ─ Public meetings and positions presented by both sides of the issue. Apparently never entered into a PLA.

5. © 2013 Dannis Woliver Kelley 5 Current Thinking About PLA’s Key dispute is whether they increase cost/reduce competition. Some of the studies of cost impacts: ─ National University System Institute for Policy Research (NUSIPR), July 2011: 13% to 15% cost increase in California school projects attributed to PLAs. ─ UCLA Labor Center: critical of NUSIPR methodology and conclusions. ─ Building and Trades Council (Santa Clara/San Benito) report October 2012: no cost impact. Recent anecdotal information is that PLA’s have not materially affected cost.

6. © 2013 Dannis Woliver Kelley 6 General Comments Evidence of cost impact/no cost impact of PLA’s is either under question or anecdotal. Projects with a PLA in place do not need to pay for State wage enforcement process. Another factor to be considered is the effect of construction market, now showing first signs of inflation in several years: ─ Assume there will not be a material reduction in the bidding pool in the short term; but ─ Assurance of quality workers under PLA could come into play as the construction market (and skilled labor supply) tightens over the years.

7. © 2013 Dannis Woliver Kelley 7 Questions

8. © 2013 Dannis Woliver Kelley 8 Mark W. Kelley mkelley@DWKesq.com San Francisco mkelley@DWKesq.com THANK YOU!!