093_SB1573 LRB093 08807 RCE 09038 b 1 AN ACT concerning project labor agreements. 2 WHEREAS, the State of Illinois has a compelling interest 3 in awarding public works contracts so as to ensure the 4 highest standards of quality and efficiency at the lowest 5 responsible cost; and 6 WHEREAS, a project labor agreement, which is a form of 7 pre-hire collective bargaining agreement covering all terms 8 and conditions of employment on a specific project, can 9 ensure the highest standards of quality and efficiency at the 10 lowest responsible cost on appropriate public works projects; 11 and 12 WHEREAS, the State of Illinois has a compelling interest 13 that a highly skilled workforce be employed on public works 14 projects to ensure lower costs over the lifetime of the 15 completed project for repairs and maintenance; and 16 WHEREAS, project labor agreements provide the State of 17 Illinois with a guarantee that public works projects will be 18 completed with highly skilled workers; and 19 WHEREAS, project labor agreements provide for peaceful, 20 orderly, and mutually binding procedures for resolving labor 21 issues without labor disruption; and 22 WHEREAS, project labor agreements allow public agencies 23 to predict more accurately the actual cost of the public 24 works project; and 25 WHEREAS, the use of project labor agreements can be of 26 specific benefit to complex construction projects of large 27 scope such as road construction and repair; and 28 WHEREAS, project labor agreements are useful from a cost, 29 efficiency, quality, safety, and timeliness standpoint and in 30 eliminating potential for friction by ensuring that work is -2- LRB093 08807 RCE 09038 b 1 performed by trade unions that have traditionally performed 2 and have trade and geographic jurisdiction over the work 3 performed; therefore 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 1. Short title. This Act may be cited as the 7 Project Labor Agreement Act. 8 Section 5. Public works projects. On a 9 project-by-project basis, a State department, authority, or 10 instrumentality shall include a project labor agreement on a 11 public works project when it has been determined that a 12 project labor agreement advances the State's interests of 13 cost, efficiency, quality, safety, timeliness, skilled labor 14 force, and labor stability and the State's policy to advance 15 minority-owned and female-owned businesses. 16 Section 10. Negotiation of project labor agreement. When 17 it has been determined that a project labor agreement is 18 appropriate for a particular public works project, a State 19 department, authority, or instrumentality responsible for 20 implementing the project shall either (i) in good faith 21 negotiate a project labor agreement with labor organizations 22 engaged in the construction industry that represent 23 experienced and skilled construction workers or (ii) 24 condition the award of a project manager or general 25 contractor upon a requirement that the manager or contractor 26 negotiate in good faith a project labor agreement with labor 27 organizations engaged in the construction industry and, if 28 necessary, use the Department of Labor to reach a project 29 labor agreement. The State department, authority, or 30 instrumentality may reserve the right to approve the -3- LRB093 08807 RCE 09038 b 1 negotiated project labor agreement. 2 Section 15. Contents of project labor agreement. A 3 project labor agreement must: 4 (1) set forth effective, immediate, and mutually 5 binding procedures for resolving jurisdictional disputes, 6 labor disputes, and grievances arising before the 7 completion of work; 8 (2) contain guarantees against strikes, lockouts, 9 or other similar actions; 10 (3) standardize the terms and conditions of 11 employment of labor on the public works project; 12 (4) permit flexibility in work scheduling and shift 13 hours and times; 14 (5) ensure a reliable source of skilled and 15 experienced labor; 16 (6) further public policy objectives as to improved 17 employment opportunities for minorities, females, and the 18 economically disadvantaged in the construction industry; 19 (7) permit contractors and subcontractors to retain 20 a percentage of their current workforce in addition to 21 labor referred through the signatory labor organizations; 22 (8) permit the selection of the lowest qualified 23 responsible bidder, without regard to union or non-union 24 status at other construction sites; 25 (9) be made binding on all contractors and 26 subcontractors on the public works project through the 27 inclusion of appropriate bid specifications in all 28 relevant bid documents; and 29 (10) require all contractors and subcontractors on 30 public works projects to sign the applicable master 31 collective bargaining agreements with the labor 32 organizations having jurisdiction over the type of work 33 performed. -4- LRB093 08807 RCE 09038 b 1 Section 20. Justification for project labor agreement. 2 Any decision to use a project labor agreement in connection 3 with a public works project by a State agency, authority, or 4 instrumentality shall be supported by a written, publicly 5 disclosed finding by the agency, authority, or 6 instrumentality setting forth the justification for use of 7 the project labor agreement. 8 Section 25. Implementation. All State agencies, 9 authorities, and instrumentalities must ensure that all 10 public works projects are implemented in a manner consistent 11 with the terms of this Act and are in full compliance with 12 all statutes, rules, and executive orders. In complying with 13 this Act, all State agencies, authorities, and 14 instrumentalities are encouraged to implement project labor 15 agreements when consistent with the goals set forth in this 16 Act. 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.