AIRPORT COMMISSIONERS SIGN PROJECT LABOR AGREEMENT; POTENTIALLY COVERS ALL MAJOR CONSTRUCTION FOR NEXT 10 YEARS

(Los Angeles, California -- May 1, 2000) Los Angeles Board of Airport Commissioners today unanimously approved a Project Labor Agreement (PLA) covering the modernization of the Tom Bradley International Terminal at Los Angeles International Airport (LAX), and potentially future major public construction projects at Los Angeles World Airports’ (LAWA) four airports during the next 10 years.

The PLA covers terms and conditions for major public works projects at LAX, Ontario International Airport, Palmdale Regional Airport, and Van Nuys Airport through December 31, 2010. It was negotiated with local, state and national craft unions. The agreement initially will cover renovation and improvement of the Tom Bradley International Terminal at LAX.

"There is a common recognition among all of the parties to this agreement that we need to proceed with a spirit of harmony," said Los Angeles Mayor Richard J. Riordan. "The commission’s decision today will ensure that the ongoing operations of our four airports will be smooth and efficient and suffer no inconveniences because of labor disputes." Board President John J. Agoglia said, "This agreement will guarantee that as we move forward with our modernization efforts, the airports will have a highly trained, efficient and productive workforce. The Project Labor Agreement will protect the City, the public, and everyone who want to see our facilities dramatically improved without delay or interruption."

Under the agreement, wages and benefits will be established in accordance with locally negotiated labor contracts, as well as state and federal laws. To ensure continuity and stability of work, as well as completion of projects in a timely manner, the agreement prohibits work stoppages, slow-downs or employer lockouts.

Richard Slawson, executive director of the Los Angeles/Orange County Building Trades Council, said, "This Project Labor Agreement makes sense for all of the airports operated by the City. Taxpayers will get the best project for their money, while we make sure workers get decent wages and benefits."

Another key element of the PLA is a commitment to recruit workers from the local communities for training and employment. "As part of this agreement, we wanted to make sure that local jobs will be filled by local people," Agoglia said. "Local workers, businesses and communities will benefit from this agreement. New people are going to gain access to good jobs in the construction industry."

LAWA Executive Director Lydia H. Kennard said, "The agreement is good for Los Angeles. It is fair to working men and women and is clearly a major step towards upgrading our airport facilities."

Project Labor Agreements are commonly used in both public and private sector construction projects to guarantee a skilled labor force and continuity of work. Other local and statewide projects completed under PLAs include the Getty Center, the Staples Center, the Los Angeles Convention Center expansion, the San Francisco International Airport, and more recently, all major projects approved by the Orange County Board of Supervisors. 

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LAWA Project Labor Agreement Q & A

Q1: What is the Project Labor Agreement?

A1: The Project Labor Agreement (PLA) is an agreement between the Los Angeles World Airports and local, state and national labor organizations that outlines the terms and conditions of major construction projects to be performed at LAWA’s airports with the goal of completing projects in a timely, efficient and productive manner.

Q2: What construction projects are covered by the PLA?

A2: The PLA will cover the $112-million modernization of the Tom Bradley International Terminal at LAX and all future major construction projects at airports owned by the City of Los Angeles. These include LAX, Palmdale Regional Airport, Van Nuys Airport, and Ontario International Airport. The contract covers construction work through December 31, 2010.

Q3: What are the key components of the PLA?

A3: The agreement ensures that construction work will be done in accordance with state and federal prevailing wage laws and locally negotiated labor standards. The PLA ensures the City and LAWA that major construction projects will be done by experienced, skilled and efficient craftspeople. The public is guaranteed that there will be no strikes, work slowdowns, or employer lockouts. The PLA is designed to ensure major public works projects will be completed on schedule and within budget.

Q4: Can any qualified contractor or subcontractor bid on construction work under the provisions of the PLA?

A4: Yes. Any qualified contractor or subcontractor can bid on LAWA construction work as long as they agree to the provisions of the PLA.

Q5: Can non-union contractors and subcontractors obtain this work?

A5: Yes. For example, the Eastside reservoir project of the Metropolitan Water District was completed under a PLA. In that project, non-union contractors did 57% of the work.

Q6: Can workers who are not union members be employed on these construction projects?

A6: Yes. Union membership is not a pre-condition for employment. However, everyone employed on major LAWA construction work must pay a fee to the respective craft unions for the administration of the terms and conditions of the contract. .

Q7: Will wages be higher as a result of the PLA?

A7: No. Since LAWA is a public agency and the prevailing wage laws cover the work, employers on the project must pay the established wage and benefit rates regardless of the PLA.

Q8: Are there provisions for hiring of local workers, minority-owned and women-owned businesses?

A8: Yes. The PLA supports the recruitment of residents of the geographic areas surrounding the airports to work on LAWA projects. Local unions have agreed to actively recruit local residents, women and minorities into their existing apprenticeship programs and thereby establish ongoing careers in the construction industry.

Q9: Are there other examples of local or statewide PLAs that have been implemented?

A9: Yes. Several have been utilized locally and statewide in recent years in both the public and private sector. Some recent examples are the Staples Center, the Getty Center, the Los Angeles Convention Center expansion, Santa Ana Unified School District, the $1.5 Billion Eastside Reservoir, and the San Francisco International Airport. In all of these cases, Project Labor Agreements have ensured that skilled, productive and efficient workers have been employed on the projects.

Q10: Does this PLA have to be approved by the Los Angeles City Council?

A10: Yes. Because the contract is for more than five years, the agreement must be approved by the Los Angeles City Council.

Q11: What are the benefits to the City of Los Angeles and Los Angeles World Airports of utilizing a PLA on construction work of this kind?

A11: The PLA ensures the City and taxpayers that local, skilled workers will be utilized on these construction projects. Money that is made here will be spent here by workers and their families, thereby helping the business community as well. Under this agreement, there will be a premium on safety, productivity, efficiency and cost containment. There will be no interruptions of work and new women and minority workers will be brought into the construction industry. Workers will be guaranteed a fair wage and health benefits to care for themselves and their families.

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