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President Obama Issues Executive Order on Project Labor Agreements

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February 10, 2009

On February 6, 2009, President Obama issued an executive order reversing former President George W. Bush's prohibition on project labor agreements. The order, which restores much of an executive order issued by former President Bill Clinton, encourages federal agencies to consider using project labor agreements on large-scale construction projects of $25 million or more. It also requires the Director of the Office of Management and Budget to make recommendations to the President within six months about whether an expanded use of project labor agreements, including to all construction projects receiving federal financial assistance, would be appropriate.

Project labor agreements are defined as a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project. According to the executive order, project labor agreements should be encouraged on large scale projects, as they provide structure and stability to construction projects and allow for the expeditious completion of work.

Read the full text of the executive order here.

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