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Project Labor Agreement

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Project Labor Agreement Powered By Docstoc
					This is an agreement between a construction project manager and a labor union for
labor on the construction project. This is a comprehensive pre-hire collective bargaining
agreement. The agreement sets out how employees are selected, how referral
programs are undertaken for the project, laying off procedures, disciplinary procedures,
union representations and grievance procedures. This document should be used by
project managers or project owners when entering into an agreement with a labor union
for the mass hire of labor employees.
                             PROJECT LABOR AGREEMENT



        This Agreement is entered into this ___________ day of ___________, 20____, by and
between _________________ (“Project Contractor and/or Construction Manager”),
______________________ (the “Owner”), and the _______________, acting on its own behalf
and on behalf of their respective affiliates and members whose names are subscribed hereto and
who have, through their duly authorized officers, executed this Agreement, hereinafter
collectively called the “Union or Unions,” with respect to the construction of the
____________________________________ ( the “Project”)

       The term “Project Contractor and/or Construction Manager” shall include all construction
contractors and subcontractors of any tier engaged in onsite construction work within the scope
of this Agreement, including the Project Contractor and/or Construction Manager when it
performs construction work within the scope of this Agreement. Where specific reference to
______________________alone is intended, the term “Project Contractor and/or Construction
Manager” is used.

                                                     RECITALS

       A. The parties desire to construct ___________ (the “Project”) for the purpose
of____________________________.

         B. The Owner, Project Contractor and/or Construction Manager and the Unions desire to
mutually establish hours of work and working conditions for the workers to the end that
satisfactory conditions and harmonious relations will continue to exist for the benefit of both
parties to this Agreement; and

       C. The Owner, Project Contractor and/or Construction Manager and the Unions agree
that, due to the particular nature of the work covered by this Agreement, there shall be no
lockouts, strikes, picketing and/or slowdowns or any interruption or disruption of any kind
during the life of this Agreement; and these provisions are made to achieve this end;

        IT IS THEREFORE AGREED by the undersigned Owner, Project Contractor and/or
Construction Manager in consideration of the mutual promises and covenants contained herein
that the Project Agreement be made as follows:


1.       PURPOSE

a. The purpose of this Agreement is to promote quality of workmanship and efficiency of
operations on the Project covered by this Agreement and provide for peaceful settlement of labor



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disputes without strikes or lockouts, thereby promoting the public and Owner's interests in
assuring the timely and economical completion of the work.

b.    The Parties also intend to establish uniform standard working conditions, with due
consideration for the protection of labor standards, wages and working conditions, to efficiently
commence and execute the Project and related activities, to establish
and maintain harmonious relations between all parties to the Agreement, to secure optimum
productivity and to eliminate strikes, lockouts or delays in the execution of the work.
2.     SCOPE OF AGREEMENT

a. This Project Agreement shall apply and is limited to the Project and all constructed related
activities such as renovation, demolition, dismantling and similar activities for continued or
future use under the direction of and performed by the Contractors, of whatever tier, which may
include the Project Contractor and/or Construction Manager, who have contracts awarded for
such work on the Project. Nothing contained herein shall be construed to prohibit, restrict or
interfere with the performance of any other operations, work or function which may occur at the
Site (the “Site”) or be associated with the development of the Project.

b. The scope of the work covered by this Agreement is restricted to work performed on the
Projects.

c. The Owner and Project Contractor have the absolute right to select any qualified contractor for
the award of contract(s) on any covered Project, provided, however, that such Contractor is
willing, ready and financially able to execute and comply with this Agreement; has or is eligible
to and will sign the applicable local collective bargaining agreement (s) which form the basis for
Schedule A; and that such Contractor executes, prior to commencement of work, this Agreement
or the Letter of Assent attached hereto as Exhibit 1.

d. This Agreement shall only be binding on the signatory parties hereto and shall not apply to
their parents, affiliates or subsidiaries.

e. Items specifically excluded from the scope of this Agreement include but are not limited to the
following:
______________________________________________________________________________
______________________________________________________________________________
___________________________________________________________

[Such As:

i.     Work of non-manual employees, such as supervisors, staff engineers, surveyors (except
where expressly covered by a current Schedule A), quality control personnel, timekeepers,
guards, and other professional, engineering, and administrative employees.
ii.    All off-site handling of materials, equipment or machinery and all deliveries to and from
any Project site, except for dedicated lay-down or storage areas and transfer between such
locations and a Project site.
iii.   All transportation systems between designated parking areas and sites.


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iv.    Any work performed by or under direction of the Owner which is not within the scope of
this Agreement, and any work performed on or near, or leading to or on to, a Site by state,
county, city or similar government bodies, or their contractors, and/or public utilities or
railroads, or similar organizations or their contractors. Traditional lines of demarcation shall
apply between work under the direction and control of a public utility and the continuation of
such work on site.]

f. The Owner, at its sole option, may terminate, delay and/or suspend any or all portions of the
Project at any time.


g. Contractors and the Unions shall be severally and jointly liable under this Agreement. The
parties to this Agreement are independent contractors; the Unions agree that this Agreement does
not have the effect of creating any joint employer status between or among the Owner and any
Contractor; provided, however, that this does not prevent the Unions from alleging or proving
such status based on other facts.

h. Any amendments or modification or additions to Projects shall be made during Term of this
Agreement upon the mutual consent of the Parties and by way of a written addendum attached to
this Agreement with specific details of each amendment and the effect on the Project result. All
Projects added to this Agreement all be subject to its provisions through that Project’s work
completion


3. UNION RECOGNITION; EMPLOYEES


a. Contractors engaged in performing work within the Scope of this Agreement are required to
comply with all provisions of this Agreement, and Contractors shall recognize the Unions as the
sole and exclusive bargaining representative of all trade employees working within the scope of
this Agreement.

b. The Contractors and signatory unions recognize that the Project may be subject to valid,
legally enforceable statutes, rules and or regulations affecting employment, including, not limited
to, local hire and/or other work force requirements. All parties will cooperate fully to assure that
the obligations established by such statutes, rules, or regulations are met .

{Describe how employment and referral programs are handled, how the number of employees
is determined, and how employees are selected and rejected. Grounds for laying off should
also be determined}


4. UNION REPRESENTATION




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a. Authorized representatives of the Unions shall have access to the Projects, provided they do
not obstruct the work of the Owner, the Owner’s employees or agents or the Contractor’s
employees and that they fully comply with the visitor, security, and safety rules of the Project.

b. Stewards.

[Describe how each local union is eligible to have a journeyman or steward on a non
supervisory capacity with roles and responsibilities, compensation, restrictions of authority,
and grounds of laying off and discharge being clearly determined.]

5. MANAGEMENT’S RIGHTS

a. The Owner, through its Project Contractors and/or Construction Manager, retains full and
exclusive authority for the management of its operation. Except as expressly limited by other
provisions of this Agreement, the Contractor retains the right to direct the workforce, including
the hiring, promotions, transfer and layoff, as well as discipline or discharge for just cause of its
employees; the selection of
forepeople; the assignment and schedule of work, the promulgation of reasonable work rules;
and, the requirement of overtime work, the determination of when it shall be worked, the
number and identity employees engaged for such work and ______________[Add additional
rights if applicable]. Contractor shall not permit any rules, customs, or practices which limit or
restrict productivity or efficiency of the individual and/or joint working efforts of employees.
Contractor shall be responsible for ensuring that the techniques of construction are consistent
with the Contractor’s agreement with the Owner.

b. The Contractors shall utilize the most efficient method or techniques of construction, tools, or
other labor saving devices. There shall be no limitations upon the choice of materials or design,
nor shall there be any limit on production by workers or restrictions on the full use of tools or
equipment. There shall be no restriction, other than may be required by safety regulations, on
the number of employees assigned to any crew or to any service.

c. The Contractor may, without restriction, install or otherwise use materials, supplies or
equipment regardless of their source. The on-site installation or application of such items shall be
performed by the craft having jurisdiction over such work; provided, however, it is recognized
that other personnel having special talents or qualifications may participate in the installation,
check-off or testing of specialized or unusual equipment or facilities.

d. ___________________________________(Add other management rights)

6. WORK STOPPAGES AND LOCKOUTS

a. During the term of this Agreement there shall be no strikes, picketing, work stoppages, slow
downs or other disruptive activity for any reason by the Union, its applicable local Union or by
any employee, affecting any employees, agents, guests or invitees of the Owner on work covered
by this Agreement for any reason, including disputes relating to the negotiation or renegotiation
of the local collective bargaining agreements serving as Schedule A, by the Unions or employees



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against any Contractor or the Owner, and there shall be no lockout by the Contractors. Failure of
any Union or employee to cross any picket line established by any Union, signatory or non-
signatory to this Agreement or by any group or any other organization, at or in proximity to the
Projects’ sites is a violation of this Clause.


b. Any party, including the Project Contractor, may institute the following procedure, in lieu of
or in addition to any other action at law or equity, when a breach of Section a, above, is alleged.

[Describe how proceedings may be instituted if breach of this Section is found]


c. The Contractor may discharge any employee violating Section a, above.



d. The Owner and Project Contractor are parties in interest in all proceedings arising under this
Clause and Clause 8, and shall be sent copies of all notifications required under these Clauses,
and, at their option, may participate as a full party in any proceeding
initiated under these Clauses.


7. DISPUTES AND GRIEVANCES

a. The Project Contractor, signatory Unions and the Council shall each assign a representative to
these Projects for the purpose of working together with the Contractors and
Unions on each Project to maintain labor management harmony and to peacefully resolve any
disputes among the parties.

b. Any question or dispute arising out of and during the term of this Project Agreement (other
than trade jurisdictional disputes) shall be considered a grievance and subject to resolution under
the following procedures:

                    [Describe how an aggrieved employee may report or address his/her
grievances through his/her representatives, how grievance procedure is undertaken at
different levels from good faith mediation to arbitration. It must be noted that grievances must
be reduced in writing to be taken to arbitrators. The body of arbitrators should set forth. The
participants in such grievance procedures should also be determined]

c. Failure of the grieving party to adhere to the time limits established herein shall render the
grievance null and void. The time limits established herein may be extended only by written
consent of the parties involved at the particular step where the extension is agreed upon. The
Arbitrator shall have the authority to make decisions only on issues presented to him or her, and
he or she shall not have authority to change, amend, add to or detract from any of the provisions
of this Agreement.




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d. The Project Contractor and/or Construction Manager and Owner shall be notified of all actions
at ___________________[describe the procedure] and shall, upon their request, be permitted to
participate in all proceedings at these steps.


8. JURISDICTIONAL DISPUTES


a. The Contractor with responsibility for the performance and installation of the work shall make
the specific assignment of the work which is included in its contract (the “Responsible
Contractor”); and such work assignments will be in accordance with the Plan for the Settlement
of Jurisdictional Disputes in the Construction Industry (the “Plan”) or any successor Plan.

b. All jurisdictional disputes on this Project, between or among Building and Construction
Trades Unions and employers, parties to this Agreement, shall be settled and adjusted in
accordance with the present Plan established by the Building and Construction Trades
Department or any other plan or method of procedure that may be adopted from time to time by
the Building and Construction Trades Department. Decisions rendered shall be final, binding
and conclusive on the Contractors and Unions parties to this Agreement.

c. There shall be no strike, work stoppage, or slow-down of any nature during the determination
of all jurisdictional disputes and the Contractor’s assignment shall be adhered to until the dispute
is resolved. Individuals violating this section shall be subject to immediate discharge.

d. A pre-job conference with the appropriate state Building and Construction Trades Council will
be conducted by each Contractor prior to commencing work. The Owner or the Project
Contractor will be advised in advance of all such conferences and may participate if they wish.


9. SUBCONTRACTING

No part of any work shall be subcontracted by the Project Contractor and/or Construction
Manager or any of its contractors or subcontractors except to a person, firm or corporation who
is or agrees to become party to this Agreement. Any contractor or subcontractor working on the
Project shall fall under the Scope of this Agreement and must become signatories.

10. WAGES AND BENEFITS

a. All employees covered by this Agreement shall be classified in accordance with work
performed and paid one hundred percent (100%) of the basic hourly wage rates for those
classifications as specified in Schedule A.

[Describe how wages may be set for different tiers of workers, employees, journeymen etc.]

b. The Owner and Contractor agree to timely pay contributions to the established employee
benefit funds in the amounts designated in Schedule A. The Project



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Contractor, upon timely notice from the Unions or the trustees of a recognized fund shall
withhold, in an appropriate amount, any funds due and owing to a sub tier Contractor who is
delinquent in his/her payments required under this Section; and shall not release such
withholding until notified by the appropriate trustees or administrator of the joint benefit fund.
The Owner, in the case of the Project Contractor withholding, and the Project Contractor and
Owner, in the case of sub tier Contractors withholding, shall be held harmless by the Unions for
any such withholding.


11. HOURS OF WORK, OVERTIME, SHIFTS AND HOLIDAYS

a. The standard work week shall consist of 40 working hours, Monday through Friday. Shifts
shall be for a minimum period of five days. _________________________________________[
Describe how many hours the Owner and Project Contractor must devote and how many
hours a day constitute a day’s work in the Project. It should also be mentioned if and how
Owner may change the standard work day hours].


b. Overtime rates shall be paid in accordance with the applicable Schedule A. The Unions agree
to perform overtime work as requested and further agree there shall be no pyramiding of
premium pay under any circumstances. Unions agree to perform overtime work as requested.

c. A Contractor may, in its reasonable discretion, suspend all or a portion of the job if its poses a
danger to the life and safety of an employee. In such cases, employees will be compensated only
for the actual time worked; provided, however, that where the Contractor requests employees to
remain at the site and available for work, the employees will be
compensated for the standby time at the rates of pay established by this Agreement.

d. Shifts. Shift differentials shall be paid on this Project in accordance with Schedule A.

e. Holidays. [Mention non paid Federal/State holidays] Work schedule for commencement
week shall be determined by the Owner. The Owner shall not incur costs for days not worked
during that week.


12. SAFETY, PROTECTION OF PERSON AND PROPERTY

a. In accordance with the requirements of the Occupational Safety and Health Act, it shall be the
exclusive responsibility of each Contractor on the Sites to ensure safe working conditions for its
employees and their compliance with any safety rules contained herein or established by any
Contractor or Project Contractor. It is understood that the employees have an obligation to use
diligent care to perform their work in a safe manner and to protect themselves and the property
of the Contractor and the Owner. Employees shall be bound by the safety, security and visitor
rules established by the Contractor and/or the Project Contractor in accordance with applicable
state and federal safety and health statutes and regulations. These rules will be published and
posted in conspicuous places throughout the Project.



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b. Contractor, in its sole discretion, shall authorize appropriate personnel to perform inspection
of incoming shipments of equipment, machinery and construction materials of every kind. All
employees shall comply with the security procedures established by the Owner and Project
Contractor.


13. NO DISCRIMINATION

The Contractors and Unions agree that they will not discriminate against any employee or
applicant for employment on any unlawful basis, including, but not limited to race, color,
religion, sex, sexual orientation, disability, national origin or age in any manner prohibited by
law or regulation. Any complaints regarding the application of this provision should be brought
to the immediate attention of the involved Contractor. The Unions shall cooperate with all
Contractors in complying with the Owner’s Equal Employment Opportunity guidelines

14. WORKING CONDITIONS

______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________________________

Subject to discussions between parties and applicable laws and regulations of the jurisdiction
that prevails.

15. DURATION OF THE AGREEMENT

This Agreement shall remain in full force and effect until __________ , and thereafter from year
to year unless the Union parties to the Agreement, or the Owner, notifies the other in writing of
the desire to terminate the Agreement on _________. Such written notice shall be provided to the
non-moving party on or before _____________.
b. Notwithstanding Section a, above, any Project where construction has begun, shall continue
to be subject to the provisions of this Agreement until completion is achieved as determined by
the Owner


16. SAVINGS AND SEPARABILITY

a. The parties hereto agree that in the event any provisions of the Agreement are finally held or
determined to be illegal or void as being in contravention of any applicable law, the remainder of
the Agreement shall remain in full force and effect unless the part or parts so found to be void
are wholly inseparable from the remaining portions of this Agreement. Further, the Contractors
and Unions agree that if and when any and all provisions of this Agreement are finally held or
determined to be illegal or void by a court of competent jurisdiction, the parties will promptly
enter into negotiations concerning the substance affected by such decision for the purpose of




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achieving conformity with the requirements of an applicable law and the intent of the parties
hereto.

b. Any dispute under this Agreement may be referred to an Arbitrator from the panel under
Clause 8 for resolution.




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SCHEDULE A

[Attach collective bargaining agreement(s)]




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EXHIBIT 1

LETTER OF ASSENT




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[Contractor’s Letterhead]
[Name]
[Project Manager]
[Street Address]

Re:
Construction, Renovation & Rehabilitation

[Name of Project]

The undersigned contractor hereby agrees that it will be bound by and comply with all terms and
conditions of the _____________Project Labor Agreement for ___________________(“the
Agreement”), for the life of the work it performs on the above referenced Project [which was
added to the scope of the Agreement on
____________, 20 __ (“the Project”)].

Contractor warrants that each of its subcontractors of whatever tier engaged to work on the
Project will execute this Letter of Assent prior to commencing work.

The undersigned contractor recognizes that, pursuant to Clause 2, Section c of the Agreement,
every contractor working on the Project must be signatory to and bound by the Agreement prior
to commencing work on the Project. The undersigned contractor further recognizes that this
letter is necessary and does provide the legal basis for the contributions to be made to the benefit
funds maintained pursuant to the Agreement. This Letter of Assent will remain in effect for the
duration of the Project, after which the understanding and commitments herein will
automatically terminate.


Sincerely,
[Name of Contractor]
By: ________________________
Title: _______________________




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Separate Signature Page




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DOCUMENT INFO
Description: This is an agreement between a construction project manager and a labor union for labor on the construction project. This is a comprehensive pre-hire collective bargaining agreement. The agreement sets out how employees are selected, how referral programs are undertaken for the project, laying off procedures, disciplinary procedures, union representations and grievance procedures. This document should be used by project managers or project owners when entering into an agreement with a labor union for the mass hire of labor employees.
This document is also part of a package Independent Contractor Starter Kit 21 Documents Included