Articles

Requirement for Project-Specific Collective Bargaining Agreement on Public Works Project Upheld

A Southern California Appellate Court has held that a bid specification requiring all successful bidders and their subcontractors be bound by a Project Labor Agreement ("PLA") is valid.

The Metropolitan Water District of Southern California began a publics work project to expand its water storage capacity. The District's project manager and labor unions representing construction workers in the area entered into the PLA which provided for labor-management dispute resolution procedures and a system for resolving workers' compensation claims. A bid specification required all successful bidders to agree to be bound by the PLA. Successful bidders were not, however, required to be unionized or work under a collective bargaining agreement at any other location.

The Associated Builders and Contractors ("ABC") is a trade association whose members are non-union and preferred not to work under collective bargaining agreements. ABC sought to eliminate the specification as violating the lowest-responsible bidder rule. This challenge was denied.

The Court held that the PLA does not exclude non-union bidders, does not impinge a bidder's right to free association and does not violate equal protection and is therefore valid.

Mr. Kershner is with Law Offices of Gary Kershner, a member of the Exchange since 1955. The law firm acts as general counsel in litigation and non-litigation matters for a variety of small and medium-size businesses. Mr. Kershner can be reached at (510) 832-6500.