SENATE, No. 1255

STATE OF NEW JERSEY

INTRODUCED JUNE 3, 1996

By Senators SINAGRA and LESNIAK

An Act concerning project agreements with appropriate labor organizations in connection with public works contracts.

    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 & Constr. Trades Council v. Associated Builders & Contractors of Mass./R.I., Inc., 507 U.S.218 (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 labor organizations;

    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 project agreements between public works contractors and subcontractors and the appropriate labor organizations 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. For the purposes of this act:

    "Appropriate labor organization" means, with respect to a contracted work on a public works project, an organization which:

    (1) Represents, for purposes of collective bargaining, employees in one or more crafts or trades listed in N.J.A.C.12:60-3.2;

    (2) Has entered into one or more labor agreements with one or more employers in the building and construction industry;

    (3) Has represented employees employed in projects similar to the public works project; and

    (4) Has the present ability to refer, provide or represent sufficient numbers of qualified employees in the crafts or trades required by the contract to perform the contracted work.

    "Public entity" means the State, any of its political subdivisions, any authority created by the Legislature and any instrumentality or agency of the State or of any of its political subdivisions.

    3. A public entity or its representative may enter into a project agreement with one or more appropriate labor organizations. A public entity may include a project agreement in a public works project on a project-by-project basis, without limitation to the size, complexity or cost of the public works project, if it is determined by the public entity that the project agreement will promote labor stability and advance the interests of the public body in cost, efficiency, quality, safety and timeliness and a decision by the public entity to incorporate a project agreement requirement will not be deemed to unduly restrict competition if the public entity finds that the agreement is reasonably related to the satisfactory performance and completion of the public works project.

    4. Any negotiated project agreement between the public entity or its representative with one or more appropriate labor organizations shall be binding on all contractors and subcontractors on the public works project and may include provisions that permit contractors and subcontractors working on the public works project to retain a percentage of their current workforce and provisions that the successful bidder need not be a party to a labor agreement with the appropriate labor organizations other than for the public works project covered by the project agreement.

    5. Each project agreement executed pursuant to the provisions of this act shall:

    a. Advance the interests of the public entity, 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;

    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; and

    e. 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 which shall be expressly provided in the project agreement.

    6. This act shall take effect immediately.

STATEMENT

    This bill authorizes public entities to include project agreements in appropriate public works projects. The public entity or its representative may enter into project agreements with one or more appropriate labor organizations.

    Each project agreement entered into pursuant to the bill is required to:

    1. Advance the interests of the public entity, 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.

Concerns public works contracts and project agreements with labor organizations.