7. Project Labor Agreements

PLAs are agreements between contractors and their employees that establish employment terms and conditions for all persons and firms working on a project. PLAs are collective bargaining agreements negotiated between the owner of a construction project, the construction manager, and the labor unions who represent construction workers. PLAs typically include broad prohibitions on strikes and lockouts, requirements that hiring be conducted through union hiring halls, uniform work rules and hours, dispute resolution protocols, and the wages applicable to each craftsman. PLAs supersede inconsistent provisions in other collective bargaining agreements. They do not exclude nonunion contractors, although nonunion contractors and workers would be subject to the provisions of the PLA. State and federal agencies have used PLAs for large public works projects for more than 50 years and many states and local agencies require them. Private companies also use them, although state laws do not appear to compel private companies to use them.

SCDCL proposes that the Commission adopt a rule requiring that all utility construction projects be subject to PLAs. SCDCL states such agreements promote stable and cooperative relationships between labor and contractors by prohibiting strikes and lock-outs, and providing for mandatory grievance procedures. PLAs, according to SCDCL, supersede other bargaining agreements and may therefore simplify terms of employment by, for example, setting forth holidays and work periods. PLAs are usually limited to the duration of project construction.

PG&E, SCE, Verizon, SBC, and SDG&E/SoCalgas filed replies to SCDCL's proposals, strongly objecting to them². SBC, SCE, SDG&E/SoCalGas and PG&E object to the proposal asserting that it is untimely and outside the scope of the proceeding. Verizon adds that state entities are preempted by the National Labor Relations Act (NLRA) from regulating the substantive terms and conditions of employment and any activities within the jurisdiction of the National Labor Relations Board (NLRB). Verizon argues that the NLRA permits PLAs but does not provide any authority for an employer to be compelled to enter into such agreements.

We are mindful of the comments of the utilities that the specific circumstances under which we might require PLAs are unclear on this record. We decline to adopt a requirement to use PLAs for utility construction projects at this time.

² Mountain Utilities also filed what it titled "comments" to the SCDCL proposal. Its pleading, however, does not address the substance of the proposals but the suggestion by PG&E that the Commission should reconsider making small utilities respondents again to this proceeding if it agrees to consider SCDCL's proposals. The Commission does not herein change D. 04-04-038, which specified that only certain large utilities are respondents to this proceeding.