The Federal Highway Administration (FHWA) Project Labor Agreement (PLA) is a contractual agreement between a project owner, typically a government agency or department, and a trade union or group of unions. The purpose of the agreement is to establish terms and conditions of employment for workers on federally funded construction projects.
The FHWA PLA is one of several types of PLAs used in the construction industry. It is specifically designed for highway and transportation projects that receive federal funding. The agreement sets forth the terms and conditions of employment for all workers on the project, including wages, benefits, hours of work, and working conditions.
The FHWA PLA is intended to promote labor stability and ensure that workers are treated fairly and compensated appropriately for their work. It also helps to ensure that projects are completed on time and on budget by providing a framework for labor-management cooperation and dispute resolution.
One of the key benefits of the FHWA PLA is that it can help to reduce the risk of labor disputes and work stoppages. By establishing clear terms and conditions of employment, the agreement can help to prevent disagreements between workers and contractors or project owners that can lead to delays and cost overruns.
Another benefit of the FHWA PLA is that it can help to promote the use of local labor. The agreement typically requires contractors to hire workers from the local area, which can help to support the local economy and create jobs for local residents.
In addition to these benefits, the FHWA PLA can also help to promote safety on construction sites. The agreement typically requires contractors to follow strict safety protocols and provide training and protective equipment to workers in order to ensure that they are able to work safely and avoid accidents or injuries.
Overall, the FHWA Project Labor Agreement is an important tool for promoting labor stability, fair treatment of workers, and efficient and effective completion of federally funded construction projects. By establishing clear terms and conditions of employment, the agreement helps to promote cooperation and prevent disputes between contractors, project owners, and workers, which can help to ensure that projects are completed on time and within budget.