Project Labor Agreements (PLAs)

By Nicholas Kusnetz - Inside Climate News, May 22, 2024

On a pair of aging piers jutting into New York Harbor, contractors in hard hats and neon yellow safety vests have begun work on one of the region’s most anticipated industrial projects. Within a few years, this expanse of broken blacktop should be replaced by a smooth surface and covered with neat stacks of giant wind turbine blades and towers ready for assembly.

The site will be home to one of the nation’s first ports dedicated to supporting the growing offshore wind industry. It is the culmination of years of work by an unlikely alliance including community advocates, unions, oil companies and politicians, who hope the operations can help New York meet its climate goals while creating thousands of high-quality jobs and helping improve conditions in Sunset Park, a polluted neighborhood that is 40 percent Hispanic.

With construction finally underway, it seems that some of those hopes are coming true. Last month, Equinor, the Norwegian oil company that is building the port, signed an agreement with New York labor unions covering wages and conditions for what should be more than 1,000 construction jobs.

The Biden administration has been promoting offshore wind development as a key piece of its climate agenda, with a goal of reaching 30,000 megawatts of capacity by 2030, enough to power more than 10 million homes, according to the White House. New York has positioned itself as a leader, setting its own goal of 9,000 megawatts installed by 2035.

Officials at the state and federal levels have seized on the industry as a chance to create a new industrial supply chain and thousands of blue-collar, high-paying jobs. In 2021, New York lawmakers required all large renewable energy projects to pay workers prevailing wages and to meet other labor standards. The Biden administration has included similar requirements in some leases for offshore wind in federal waters to encourage developers to hire union labor.

While the last year has brought a series of setbacks to the offshore wind industry, including the cancellation of several projects off New Jersey and New York that faced rising interest rates and supply chain problems, many of the pieces for offshore wind are falling into place. New York’s first utility-scale project began delivering power in March, while two much larger efforts, including one that Equinor will build out of the new port, are moving toward construction. Together, they will bring the state about 20 percent of the way to its 2035 target.

By Veronica Wilson - Labor Network for Sustainability, March 1, 2024

Workers in California have allied with environmental, environmental justice, and community groups to move the state closer to a just transition to renewable energy. 

California has a strong movement for Community Choice Aggregation (CCA), which allows municipalities to bargain with electricity suppliers over both price and environmental responsibility. Nine Community Choice Aggregators are united in a joint power procurement agency called California Community Power. 

California’s Workforce and Environmental Justice Alliance has been pushing California Community Power to establish policies to protect workers in the transition to climate-safe energy. In a recent win, Ava Energy in the East Bay adopted these policies – the fourth member of California Community Power to do so. According to Andreas Cluver, Building Trades Council of Alameda County:

Any approach to climate action must also factor in the sustainability of our workforce. By passing this package of policies, Ava Community Energy uplifts local workers while fulfilling its obligation towards responsible environmental stewardship. We look forward to partnering with Ava on these important community projects. 

This marks a pivotal moment for workers and communities as the region looks to ramp up investments in green technology and decarbonization. Ava’s new policies underscore the positive impact CCAs can have on labor standards, environmental stewardship, and community well-being.

Learn more about the Alliance’s impactful work: https://action.greencal.org/action/wej 

By Alex Nieves - Politico, December 4, 2023

One of California’s most powerful unions is not loosening its grip on oil jobs.

Despite the Biden administration and California lawmakers pouring billions of dollars into new climate-friendly industries like electric vehicles, hydrogen and building electrification, a key player in state politics is still defending fossil fuel interests that provide thousands of well-paying jobs.

President Joe Biden’s investment in clean energy sectors through a pair of massive spending bills — which promise lucrative tax credits for projects that pay union wages — was supposed to speed up the labor transition away from oil and gas. That hasn’t happened in deep-blue California, home to the country’s most ambitious climate policies — and most influential labor unions.

“We believe we’re still going to be working in the oil and gas space for the foreseeable future,” said Chris Hannan, president of the State Building and Construction Trades Council of California, which represents nearly 500,000 members across dozens of local unions, from pipefitting to electrical work.

Unions’ longstanding — and well-founded — distrust of the renewable energy industry as a reliable source of labor-friendly jobs is slowing the “just transition” that Biden, Gov. Gavin Newsom and Democratic leaders around the country have pushed.

With federal officials trying to get clean energy funding out as fast as possible ahead of the 2024 election, and California politicians cracking down on the fossil fuel industry, unions’ reluctance to relinquish fossil fuel jobs undermines Democrats’ aggressive climate targets, according to a lawmaker who serves both a union- and oil-rich area of the state.

While the union embrace of fossil fuels is unique to California — one of the few blue states with significant oil production — the struggle highlights a larger question over how states can quickly build massive amounts of clean energy infrastructure without undercutting labor.

By Eli Lipmen - Move LA, November 30, 2023

As Californians, ARCHES will enable us to meet two major environmental priorities regarding the ARCHES proposal: abating climate change and potentially ending diesel air pollution. 

Renewable hydrogen, when used with fuel cell technologies, may be the only alternative that can do both.

Renewable green Hydrogen (H2), when used in fuel cells is a zero-emission source of power that creates the opportunity to reduce, perhaps even eliminate, the use of diesel fuel--a dangerous source of pollution that causes lung disease, heart disease, asthma, and cancer, devastating low-income communities along goods movement corridors.

Hydrogen has many applications in heavy-duty transportation--heavy-duty long-haul trucks, locomotives, airplanes, ocean-going vessels, off-road construction equipment--applications that can not easily be electrified.

Click here to learn more about OCED’s H2Hubs program and click here to read the White House’s H2Hubs press release. It is important to understand that this is the first in a multi-step process by which ARCHES can be awarded as much as $1.2 billion for the creation of a green Hydrogen Hub in California.

Move LA played a pivotal role in developing the application for this award, bringing together key allies in the Labor movement with government and nonprofit partners. The results are made clear in the White House announcement on the award to California, which is “committed to requiring Project Labor Agreements for all projects connected to the hub, which will expand opportunities for disadvantaged communities and create an expected 220,000 direct jobs—130,000 in construction jobs and 90,000 permanent jobs.”

By Diana DiGangi - Utility Dive, July 27, 2023

Dive Brief:

• The Maine legislature on Tuesday passed a bill requiring the state to procure 3 GW of offshore wind capacity by 2040, and establishing provisions regarding the construction and siting of future projects.
• LD 1895 supports the creation of a port facility designed for fabricating and launching the materials needed to establish floating offshore wind farms, as the waters in the Gulf of Maine are too deep to accommodate fixed-bottom wind turbines.
• The bill received broad-based support from state labor and environmental groups, as well as some fishing industry groups, who supported the bill’s provision to give priority to projects sited outside of a key fishing area known as Lobster Management Area 1, or LMA-1.

By Lee Harris - The Prospect, July 14, 2023

Last month, Maine Gov. Janet Mills (D) vetoed a bill requiring a project labor agreement (PLA) for Maine offshore wind ports, arguing that the prehire deal would restrict the labor pool narrowly to union construction workers.

After the legislative session dragged on for another month, the building trades are now approaching a compromise on a reworked bill with Mills, a prominent champion of states’ climate action. The bill, which was advanced late Wednesday night by the state legislature’s Appropriations and Financial Affairs Committee, is expected to move to Mills’s desk next week.

Instead of a PLA, it spells out a Community and Workforce Enhancement Agreement (CWEA), a list of labor standards for offshore wind development, including apprenticeship requirements and a ban on the use of independent contractors and temp staffing agencies. Most critically, it would require that all work happen at collectively bargained rates.

In other words, even non-union contractors on Maine’s offshore wind projects would be required to pay the statewide wage rates that unions agree upon with their contractors during collective bargaining.

“We want to be sure this industry is competing over things like technological innovation, as opposed to who can bargain down with workers,” Francis Eanes, director of the Maine Labor Climate Council, a coalition of state unions, told the Prospect.

The new bill combines two earlier pieces of legislation: the vetoed bill on ports, and a second bill on offshore wind energy procurement, which the governor had also threatened to veto due to its use of a PLA.

By Robert Collier, et. al - IBEW Local 1245, et. al., July 5, 2023

California’s offshore wind industry can fill its workforce training needs largely through negotiating labor contracts with unions, thus providing access to the state’s well-honed apprenticeship system. But some workforce gaps exist in the offshore marine services, caused mainly by legal and regulatory hurdles. These are some of the key findings of a new, state-funded report issued by an alliance of industry, labor and academia. Unlike many other desktop research reports issued in recent years about California offshore wind, this report was based on empirical, hands-on planning for California’s first offshore wind project: CADEMO in northern Santa Barbara County.

The new report was produced by the Offshore Wind High Road Training Partnership (HRTP), funded by the California Workforce Development Board. The HRTP members include: Floventis, CADEMO’s owner and developer; the State Building and Construction Trades Council; electrical union IBEW 1245; San Luis Obispo County Office of Education; SLO Partners; and Cal Poly San Luis Obispo.

CADEMO is a demonstration project comprising four full-size, 15-MW floating turbines in state waters off the coast of Vandenberg Space Force Base. It is expected to be operational in late 2027, years before the first larger-scale projects planned in federal waters.

By Naveena Sadasivam - Grist, June 29, 2023

Ever since Democrat Janet Mills was elected governor of Maine in 2018, she has been a strong advocate for renewable energy in general and wind energy in particular. The state has tremendous potential for wind production, given the high wind velocities off its coast, and it has committed to procuring 100 percent of its energy from clean sources by 2050. Earlier this year, in an attempt to supercharge wind energy production in the state, Mills proposed legislation to speed up permitting for wind ports, sites where wind turbines could be built before being deployed offshore.

That bill got the votes needed to pass in the state legislature — only to be vetoed by Mills herself earlier this week. At issue are amendments to the bill made in the state senate, which require the undertaking to incorporate Project Labor Agreements, or PLAs, a type of collective bargaining agreement in the construction industry that streamlines work on projects and establishes standards for wages and working conditions — standards that are typically more robust than those that would prevail in their absence. 

In a letter vetoing the bill, the governor said the provision would have a “chilling effect” on companies that are non-unionized, raise construction costs for the wind port which would eventually be borne by Maine taxpayers, and lead to out-of-state workers being bussed to Maine. The idea is that the PLAs will lead to fewer firms pursuing contracts for work on the wind project — or firms will increase costs to meet the PLA requirements — leading to a higher overall price tag and less employment for local residents. (Only 10 percent of construction workers in Maine are in a union.)

By Kenny Stancil - Common Dreams, June 28, 2023

Democratic Maine Gov. Janet Mills on Monday vetoed an offshore wind development bill because she opposed an amendment requiring collective bargaining agreements for future projects, drawing condemnation from the state's largest federation of unions.

"Maine's climate motto has been 'Maine Won't Wait.' With this veto, Gov. Mills is saying, 'Maine Will Wait'—for thousands of good jobs, for clean energy, and for the build-out of a new industry," Maine AFL-CIO executive director Matt Schlobohm said in a statement. "We will wait because the governor is opposed to fair labor standards which are the industry norm."

"The governor's ideological opposition to strong labor standards," said Schlobohm, "jeopardizes the build-out of this industry and all the climate, economic, and community benefits that come with it."

Mills supported an earlier version of Legislative Document (L.D.) 1847 that originated from her office. Last week, however, the governor made clear that she opposed the addition of an amendment requiring project labor agreements (PLAs)—pre-hire deals negotiated between unions and employers that establish wage floors and other conditions—for the construction of offshore wind ports as well as the manufacturing of turbines and other components needed for wind energy projects.

In a letter to state lawmakers, "Mills argued that mandating a PLA would create a 'chilling effect' for non-union companies, discouraging them from bidding on construction," The American Prospect's Lee Harris reported. "Supporters of the PLA provision say that is a far-fetched objection, since the agreements do not ban non-union contractors from vying for jobs. (In fact, that's one reason some more radical unionists say PLAs do too little to advance labor's cause.)"

The governor vowed to veto the bill unless the Legislature recalled it from her desk and revised it to the initial version or adopted "language that would ensure that union workers, employee-owned businesses, and small businesses could all benefit."

By Dan Neumann - Maine Beacon, June 19, 2023

A bill introduced by Gov. Janet Mills that would create visual impact standards for future offshore wind projects has passed the Maine Legislature and is on its way to her desk. 

Advocates are describing the amended version of the bill as “groundbreaking,” as it now includes requirements that any port facilities that are built to support offshore wind energy in Maine include strong labor, community benefit and environmental standards.

Proponents say the changes would put Maine in a strong position to attract federal funding for future ports as President Joe Biden signed an executive order last year prioritizing federal funding for large-scale builds that include project labor agreements (PLAs). PLAs ensure construction is done by union workers making a prevailing wage determined to be livable. 

However, it remains to be seen if Mills will support the final legislation. A conservative Democrat who has sided with business interests over workers on several proposals since taking office in 2019, Mills has so far been non-committal about her position on the proposed labor standards.

“A broad coalition of working people and environmental advocates have come together to support the creation of a new industry in Maine that can help us combat climate change, create good jobs and support coastal communities,” Francis Eanes, director of the Maine Labor Climate Council, said in a statement last week. “We are grateful for the strong support we’ve seen in the Legislature, and we are hopeful that Gov. Mills will support this groundbreaking step forward on one of her most high-profile priorities.”