The U.S. Department of Defense has suspended the use of Project Labor Agreements (PLAs) on large-scale federal construction projects, a move critics say could jeopardize worker safety, delay project timelines, and increase long-term costs for taxpayers.
The announcement, made earlier this month, marks a shift away from labor agreements long used to establish consistent employment terms—such as wages, safety standards, and working conditions—on federally funded construction. PLAs have historically applied to large projects involving complex logistics, including military bases and critical infrastructure tied to national security.
“Project Labor Agreements help get the job done on time and within budget,” said a statement issued by PericPR, which represents construction industry stakeholders. “Suspending them threatens to undermine workplace safety, fair wages, and the timely completion of critical infrastructure projects.”
What are PLAs?
PLAs are pre-hire agreements negotiated between project owners and labor organizations that set uniform conditions for all workers on a project, regardless of whether they belong to a union. Supporters say these agreements streamline workforce management, reduce the risk of labor disputes, and ensure consistent safety and training standards across job sites.
The Government Accountability Office has previously reported that PLAs can improve workforce quality and reliability, especially on sensitive or complex infrastructure projects.
Critics warn of instability and security risks
Labor advocates and industry groups argue that ending the use of PLAs could weaken oversight, create an uneven playing field for contractors, and introduce unpredictability in the workforce—particularly for projects involving national defense.
“Removing these agreements could lead to a less stable workforce and open the door for questionable contractors to take on projects vital to our national security,” the statement said.
Historically, PLAs have been used on major federal projects such as the construction of the Hoover Dam and various military installations. Proponents say that without the structure provided by PLAs, projects could face increased delays, safety violations, and cost overruns.
Call for reversal
Those opposed to the suspension are calling on the Department of Defense to reconsider the decision, arguing that a commitment to high labor standards and efficient project delivery should not be abandoned.
“A genuine commitment to responsible spending and high-quality infrastructure demands that the federal government reverse this decision and restore PLAs,” the statement said.
