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Sound Transit Project Labor Agreement Study Sound Transit Project Labor Agreement Study By Agreement Dynamics © 2011 Sound Transit - No Part of this document may be copied, altered or reproduced in any manner without the express written approval of Sound Transit. © 2011 Sound Transit - No Part of this document may be copied, altered or reproduced in any manner without the express written approval of Sound Transit. Sound Transit PLA* Study Table of Contents Study Sections Page Number A. Executive summary ......................................................................................................... 1 Summary of Study Conclusions .................................................................................... 20 B. Study purpose, background and questions to be addressed ........................................... 23 C. Study methodology........................................................................................................ 27 D. Introduction ................................................................................................................... 28 What is a PLA? Why are they used? What are typically cited advantages and disadvantages? Chronology of public PLAs and related events E. Responses to study questions......................................................................................... 36 Study Question 1 (Board Objectives) ............................................................................ 38 Study Question 2 (Cost Savings)................................................................................... 70 Study Question 3 (Major Issues) ................................................................................... 86 Study Question 4 (Impact on Non-Union and DBE Contractors) ............................... 100 Study Question 5 (No Strike Protections).................................................................... 104 Study Question 6 (Jurisdictional Issues)...................................................................... 115 Study Question 7 (Prevailing Wage) ........................................................................... 119 Study Question 8 (Community Representation).......................................................... 123 Study Question 9 (PLA Comparisons) ........................................................................ 126 Study Question 10 (Suggestions for Improvement) .................................................... 168 F. Study Conclusions....................................................................................................... 183 G. Key Policy Questions .................................................................................................. 186 H. Appendix ..................................................................................................................... 189 1. Acknowledgements and Study Submittals......................................................... 190 2. Prevailing Wage for Public work Overview...................................................... 197 3. PLA Use Considerations:................................................................................... 198 a. King County Executive Justification for a Brightwater PLA................................................................................... 198 b. Port of Seattle PLA/CWA Criteria ....................................................... 199 c. Washington State Executive Order 96-08 PLA Decision-Making Factors ............................................................. 201 4. U.S. Department of Transportation Letter (2/18/11) Encouraging Use of PLAs ................................................................................. 202 5. Survey Responses .............................................................................................. 203 6. Project Information for SR520 Bridge Replacement and HOV Program ............................................................................................. 233 7. Agreement Dynamics’ Study Team .................................................................. 235 8. Sound Transit PLA ............................................................................................ 237 *PLEASE NOTE: This study was conducted between October 2010 and April 2011. Drafts and final edits were submitted to Sound Transit between April 29, 2011 and November 29, 2011. © 2011 Sound Transit - No Part of this document may be copied, altered or reproduced in any manner without the express written approval of Sound Transit. FOREWORD This study of the Sound Transit Project Labor Agreement was conducted between October 2010 and April 2011. During that time frame, all data was gathered and analyzed, all interviews and surveys were completed, and the first draft of the report was submitted to Sound Transit on April 29, 2011. Clarifications and corrections to the report were submitted between July and November 2011 to Sound Transit. No updates to the report regarding events or stakeholder surveys subsequent to the April 2011 draft have been made. This PLA report was written by Agreement Dynamics, Inc. November, 2011 Published by Sound Transit 401 S. Jackson St. Seattle, WA 98104 © Sound Transit - 2011 - All Rights Reserved No Part of this document may be copied, altered or reproduced in any manner without the express written approval of Sound Transit © 2011 Sound Transit - No Part of this document may be copied, altered or reproduced in any manner without the express written approval of Sound Transit. Section A. Executive Summary Study Purpose, Background and Scope Sound Transit commissioned this study to objectively review the performance of its project labor agreement (PLA) for Sound Move and provide suggestions for improvement, based on information obtained from Sound Transit and project stakeholders. Background In May 1996, the Sound Transit Board adopted Sound Move, a comprehensive regional transit plan comprised of nearly 100 separate but interrelated capital and service transportation projects. In July 1999, the Sound Transit Board adopted Resolution No R99-21, establishing the intent to use project labor agreements on all of Link light rail construction contracts and Sounder commuter rail station contracts. The agreement was negotiated between Sound Transit and the national and local building and construction trades, and various local and international unions. Sound Transit agreed that all contractors (and their subcontractors) that would work on the contracts within the scope of the PLA would be required to sign on to the PLA as a condition of contract award. For its part, Labor agreed that the PLA is a stand alone agreement, and contractors who are not union signatory firms would only have to sign onto the PLA for the contracts under its scope and no other union agreements. Labor also agreed that there would be no strikes, picketing, work stoppages or other disruptions, and Sound Transit agreed there would be no lockouts by contractors. Study Purpose and Scope Sound Transit is seeking to assess how the PLA has worked in response to the Board’s objectives on the applicable contracts let under Sound Move. Data supplied by Sound Transit for this report is a subset of Sound Move projects and represents the PLA construction on the Central and Airport Links light rail system. Study authors were asked to address specific questions by seeking out the views and experiences of those stakeholder groups who were involved and/or impacted by the © 2011 Sound Transit - No Part of this document may be copied, altered or 1 reproduced in any manner without the express written approval of Sound Transit. PLA’s performance as well as by analyzing readily available data that is relevant to these questions: The purpose of this study is not to recommend whether a project labor agreement should or should not be utilized in the future. It is rather, to provide data, information, experiences and perspectives about how Sound Transit’s PLA has performed, compare its provisions with other designated local public project PLAs and identify suggestions for improvement. Study Methodology Information, experience and opinions about Sound Transit’s PLA were solicited from Sound Transit contractors (including primes, subcontractors, unionized, non-unionized, disadvantaged business enterprises (DBE), women and minority contractors), contractor associations, labor unions, building trades labor councils, community representatives, Sound Transit staff, PLA negotiators, Bechtel’s 1999 Sound Transit studies author, legal advisors, FAST Jobs Coalition members, Sound Transit Diversity Oversight Committee, and a Seattle Vocational Institute Apprenticeship Construction training program advisor. Individual and group interviews were conducted along with an online survey. The interviews were the intended primary source of information for the study because the interviewees were a representative sample of stakeholders and in many cases represented groups of stakeholders. The survey information was used to augment the study and to maximize input opportunities from members of all these groups and other interested parties. Over 141 individuals provided input for this study. All relevant diversity, financial and PLA-related records and data provided by Sound Transit were reviewed. Additional data regarding grievances, local collective bargaining agreements, area labor disputes, PLA operational history, jurisdictional issues and PLA models was mined and incorporated to more comprehensively respond to the study questions. Three area PLAs (Community Workforce
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