AGC challenges Commerce Secretary to work with the association to help actually address construction workforce shortages by significantly increasing federal investments in career and technical education, not more mandates for project labor agreements on CHIPS Act-funded semiconductor facility projects.

On March 6, AGC challenged the Secretary of Commerce to work with the association to take real steps towards addressing construction workforce shortages by significantly increasing federal investment in career and technical education, rather than putting forth new project labor agreement (PLA) requirements on projects.

The challenge comes in response to a February 28 announcement for funding opportunities under the CHIPS and Science Act to build semiconductor chip manufacturing facilities. In particular, AGC expressed its significant concerns over the Commerce Department providing applications with PLAs ostensibly preferred status, whereas it applies additional scrutiny for applications that do not include PLAs.

AGC neither supports nor opposes contractors’ voluntary use of PLAs on government projects, but strongly opposes any government mandates or preferences for contractors’ use of PLAs. If a PLA would benefit the construction of a particular project, the contractors otherwise qualified to perform the work are in the best position to decide whether a PLA should be used on a project and are the most qualified to negotiate such an agreement.