SENATE, No. 1157

 

STATE OF NEW JERSEY

 

INTRODUCED MAY 16, 1996

 

 

By Senators McGREEVEY and KENNY

 

 

An Act requiring public works contracts to include project agreements with trade unions.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. The Legislature finds and declares:

    a. The United States Supreme Court held in Building Trades v. Associated Builders (Nos. 91-261 and 91-274; decided March 8, 1993) that state and local governments are, when acting as market participants, permitted under the National Labor Relations Act (29 U.S.C. 151 et seq.) to enforce project agreements with trade unions;

    b. The Supreme Court commented in that case that the use of project agreements "exemplifies" the purposes of the National Labor Relations Act;

    c. New Jersey has a compelling interest in carrying out public works projects at the lowest reasonable cost and the highest degree of quality;

    d. New Jersey must ensure that labor disputes are resolved without the disruptions of strikes, lock-outs, or slowdowns;

    e. Project agreements provide legally enforceable guarantees that projects will be carried out in an orderly and timely manner, without strikes, lock-outs, or slowdowns;

    f. Project agreements also provide for peaceful, orderly, and mutually binding procedures for resolving labor issues;

    g. The State also has a compelling interest in guaranteeing that public works projects meet the highest standards of safety and quality;

    h. A highly skilled workforce ensures lower costs over the lifetime of the completed project for repairs and maintenance;

    i. Project agreements provide the State with a guarantee that public works projects are completed with highly skilled workers;

    j. Project agreements allow public agencies to more accurately predict the actual cost of projects;

    k. Project agreements facilitate the efficient integration of work schedules among different trades on project sites;

    l. Project agreements also promote harmonious and productive work environments;

    m. New Jersey can best accomplish these goals by encouraging agreements between public works contractors and subcontractors and the appropriate building and construction trade unions concerning important issues of employment, including work hours, starting times, overtime rates, and procedures for resolving disputes; and

    n. Project agreements, therefore, advance the interests of efficiency, quality, and timeliness.

 

    2. Every State department, authority, or instrumentality authorized to implement a public works project shall ensure that each public works project, whenever possible, is implemented subject to a project agreement with the applicable building and construction trade union in whose jurisdiction the work is to be performed.

 

    3. In accordance with this act, every State department, authority, or instrumentality responsible for implementing a public works project shall either:

    a. Negotiate in good faith a project agreement directly with the applicable building and construction trade union or council in whose jurisdiction the project is to be performed; or

    b. Condition the award of a contract upon an agreement by the project manager or general contractor to negotiate in good faith a project agreement with the applicable building and construction trade union or council in whose jurisdiction the project is to be performed.

 

    4. Each project agreement reached pursuant to the provisions of this act shall:

    a. Advance the interests of the State of New Jersey including the interests in cost, efficiency, quality, timeliness, and safety;

    b. Contain guarantees against strikes, lock-outs, or other similar actions;

    c. Set forth effective, immediate, and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work; and

    d. Be made binding on all contractors and subcontractors on the public works project through the inclusion of appropriate bid specifications in all relevant bid documents.

 

    5. In addition, any project agreement made pursuant to this act shall fully conform to all statutes, regulations and executive orders, including Executive Order No. 84 of 1993, regarding the implementation of set-aside goals for women and minority owned businesses. The obligation to comply with Executive Order No. 84 of 1993 shall be expressly provided in the project agreement.

 

    6. This act shall take effect immediately.

 

STATEMENT

 

    This bill would require each State department, authority and instrumentality to ensure that each of its public works projects, whenever possible, be implemented subject to a project agreement with the applicable building and construction trade union in whose jurisdiction the work is to be performed. The public entity responsible for implementing a public works project would be required to either negotiate a project agreement directly with the applicable building and construction trade union or council or to condition the award of the contract upon an agreement by the project manager or general contractor to negotiate a project agreement with that trade union or council.

    Each project agreement entered into pursuant to the bill would be required to:

    1. Advance the interests of the State of New Jersey, including the interests in cost, efficiency, quality, timeliness, and safety;

    2. Contain guarantees against strikes, lock-outs, or other similar actions;

    3. Set forth effective, immediate and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work;

    4. Be made binding on all contractors and subcontractors on the public works project through the inclusion of appropriate bid specifications in all relevant bid documents; and

    5. Conform fully with all requirements of law regarding the implementation of set-aside goals for women and minority owned businesses.

 

 

 

Requires public works contracts to include project agreements with trade unions.