A proposed new law that would require the city to consider using Project Labor Agreements on all large construction jobs died in committee Tuesday as lawmakers questioned its necessity and impact on smaller, non-union contractors. The vote on the council’s Laws and Rules Committee was 3-2 with Bob Dennison (D-Ward 6) and Michele Hirsch (D-Ward 9) voting for the measure and council Majority Leader Rennie Scott-Childress (D-Ward 3) Teryl Mickens (D-Ward 5) and Sara Pasti (D-Ward 1) voting against it.

A Project Labor Agreement is a contract that lays out timelines, working conditions, wages and other elements on a construction job. PLAs also require workers to be hired through local union halls. Supporters of PLAs say that they can help ensure projects come in on time and on budget while keeping wages in the community. The law proposed by Dennison would mandate that the city hire consultants to carry out a feasibility study to determine if a PLA was likely to save money on a project if so, the city would be required to enter into one. The rule would apply to all projects where labor costs were expected to exceed $1 million.

The proposal enjoyed strong support from Mayor Steve Noble and local labor unions. But it encountered strong pushback from smaller, non-union contractors who argued it would effectively bar them from bidding on major municipal projects. While open-shop contractors are not explicitly prevented from bidding on PLA jobs, a number of factors make the prospect unappealing. For example, while a non-union contractor can send foremen to a job site, they would be required to hire union workers instead of their regular crew. Non-union workers on PLA jobs are also required to pay into union benefit funds for the duration of the job despite not having access to the benefits. Opposition to the new rule, led by Val Dwyer, owner of Kingston-based open-shop contractor Arold Construction, argued that it would drive up the cost of projects by limiting the pool of bidders on city projects.

The Laws and Rules Committee had been set to vote on the measure last month, but Mickens, Scott-Childress and Pasti sought to put off the decision for a month to allow more time to explore the issue. On Tuesday, Mickens said that based on her research, she could not support the measure. Mickens said she believes the feasibility studies would simply reflect the wishes of the entity paying them and would amount to a mandate to use PLAs on all eligible projects. Mickens added that she was concerned about the impact of the rule on non-union contractors and minority- and woman-owned businesses. She also pointed to projects like the Ulster County Jail and the recent renovation of Dietz Stadium as examples of PLA projects that did not deliver the promised cost savings or a reliable timeline.

“I can’t see voting for something that would inordinately burden taxpayers and local businesses,” said Mickens.

Scott-Childress, meanwhile, argued that the law was unnecessary. Childress noted that there was nothing preventing the city from commissioning PLA feasibility studies on major projects and thus no need for a mandate requiring it to do so. Scott-Childress added that no other community in New York State had such a mandate and that the proposed regulation ran counter to the council’s ongoing effort to simplify and eliminate duplicative language from the city code.

“My point is not to get rid of PLAs,” said Scott-Childress. “I just don’t see the need for a policy on it.”