The Honolulu City Council has approved a project labor agreement (PLA) with the Hawaii Building and Construction Trades Council in tandem with the Hawaii Construction Alliance and their affiliated labor unions for certain “critical city projects.”
The ordinance, termed a “community workforce agreement,” will apply largely to road, wastewater, drainage and park improvement projects that the city needs completed in a timely, cost-efficient fashion. The official verbiage in the policy, Bill 37, describes eligible projects as “any large-scale public works … in which there is a contract for construction procurement in excess of $2,000,000.” Under this definition, nearly two-thirds of licensed contractors in the State of Hawaii will be prevented from fulfilling projects, driving up cost and preventing competition.
In spite of valid arguments by opponents of the bill, including ABC Hawaii, that it violates both state and federal laws, Mayor Kirk Caldwell allowed the bill to become law over the weekend of October 26-27.
