Proposed City-Wide Project Labor Agreement Mandate: Look Before You Leap

Dear Mayor Steinberg and Councilmembers,

We write to urge you to postpone consideration of the proposal to mandate that all city projects of $1 million or more include a project labor agreement, which appears on your agenda for tomorrow evening.

The consideration of such a measure with zero public awareness and no opportunity of the public to adequately express their views would be an affront to any concept of open, transparent government or inclusive public engagement. Slamming this proposal through the city council without adequate time and opportunity for real public input would further undermine the public’s already attenuated trust in city government and city leaders.

This is not the way a participatory, inclusive democracy behaves. This is the way slick politicians who want to sneak things past the public behave. We trust that you wish to count yourselves among the former and not the latter.

The proposed mandate would have a huge and as yet unknown impact on the city’s budget and on the burdens of city taxpayers. We all know that project labor agreements serve to effectively restrict city contracts to union-only contractors, thereby reducing the number of eligible bidders on city contracts, thereby needlessly driving up city and taxpayer costs by 10% to 20%, according to the studies of independent analysts.

Such cost spikes will likely drive up taxpayers costs by tens of millions of dollars each year in Sacramento, depending on the volume and magnitude of city capital improvement projects each year. Over a 10-year span, such a mandate could drive up costs by as much as $200,000,000, all for the sake of benefiting a narrow special interest, the construction trades unions, while unfairly cheating the 90% of skilled trades workers who are not union members out of the opportunity to earn a living.

It would also especially harm minority and women-owned businesses, the great majority of whom are non-union businesses.

We also note that Sacramento residents will vote this fall on your proposal to double and make permanent the temporary Measure U one-half percent sales tax hike that expires in March.

As chair of the campaign to defeat the double-the-tax Measure U, it would behoove me to remain silent and even encourage you to approve such a budget-busting PLA mandate on city projects as it would hand our No on Measure U campaign a vivid example of how our city government is shoveling millions of dollars out to back door of City Hall into the pockets of politically connected special interests at the expense of average Sacramentans.

But I also happen to be a citizen who deeply cares about the long-term fiscal health of our city. I cannot stand idly by while the proponents of this deeply flawed proposal drive the city’s financial future into a ditch.

We urge you to do the right thing and direct staff to do a comprehensive, independent fiscal analysis of the long-term impacts of the proposed PLA mandate on future city budgets, non-union workers and minority and women-owned Sacramento businesses. If you are serious about restoring trust in city government, you must provide the public a reasonable opportunity to learn about this proposal, study it and then communicate with their representatives their views on it.

If you wish to discuss this matter, please do not hesitate to contact me.

Sincerely,

Craig Powell, President
Eye on Sacramento
Phone: (916) 718-3030

cc: Media Distribution List

Comments

  1. Olga Aguirre says:

    Let’s keep this simple. If there is money for a project, there should be money to pay workers a decent wage. Unions do just that for there members. If they make more money, they spend more money in the community. How is that bad for the economy? Non-union folks cheat themselves because they undercut unions. They make less and they spend less. How’s that good for the economy? What are we going for here…”Bracero wages”?!

    Also better wages make for a viable middle class. If unions were stronger like the good old days perhaps we’d have a trickle up effect giving more and more people a leg up to join the middle class. If we truly believe in decent wages, perhaps we should put our money where our mouth is.

  2. Joe Van Sickle says:

    Where might I obtain a “Craig Powell for Sacramento Mayor” front lawn placard ?

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