SENATE, No. 1437
STATE OF NEW JERSEY
INTRODUCED JULY 25, 1996
By Senators SINAGRA, LaROSSA and Lesniak
An Act permitting project labor agreements in connection with certain 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, because the use of project agreements "exemplifies" the purposes of the National Labor Relations Act;
b. New Jersey has a compelling interest in carrying out public works projects at the lowest reasonable cost and the highest standards of safety and quality;
c. Project agreements provide the State with a guarantee that public works projects are completed with highly skilled workers, thus insuring lower costs over the lifetime of the completed project for repairs and maintenance;
d. Project agreements provide legally enforceable guarantees that projects will be carried out in an orderly and timely manner, without strikes, lock-outs, or slowdowns and provide for peaceful, orderly, and mutually binding procedures for resolving labor issues;
e. Project agreements allow public agencies to predict more accurately the actual cost of projects, facilitate the efficient integration of work schedules among different trades on project sites, and promote harmonious and productive work environments;
f. New Jersey can best accomplish these goals, and advance the interests of efficiency, quality, and timeliness, 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.
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 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;
(3) Has represented employees employed in projects similar to the public works project; and
(4) Has entered into one or more labor agreements with one or more employers in the building and construction industry.
"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 entity 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. 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.
4. Each project agreement executed pursuant to the provisions of this act shall:
a. Advance the interests of the public entity, including the interests of cost, efficiency, quality, timeliness, and safety;
b. Set forth effective, immediate, and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work;
c. 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;
d. Contain guarantees against strikes, lock-outs, or other similar actions in connection with work performed under the agreement; 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.
5. 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 of cost, efficiency, quality, timeliness, and safety;
2. Set forth effective, immediate and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work;
3. 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
4. Contain guarantees against strikes, lock-outs, or other similar actions in connection with work performed under the agreement;
5. Conform fully with all requirements of law regarding the implementation of set-aside goals for women and minority owned businesses.
Permits project labor agreements in public works contracts.