U.S. President Joe Biden will sign an executive order on Friday requiring “project labor agreements” in federal construction projects over $35 million, a potential boost to workers and unions that negotiate these deals, and a shift the administration says will speed up building times.
The order will apply to $262 billion in federal construction contracting and impact nearly 200,000 workers, the White House said late on Thursday, confirming news first reported by Reuters.
“Contractors who offer lower wages or hire less qualified workers will need to raise their standards to compete with other high-wage, high-quality companies,” the order says. Earlier executive action by Biden requires federal contractors in new or extended contracts to pay a $15 per hour minimum wage.
“This streamlines the negotiation process and gives employers access to a highly skilled pool of craftworkers,” Daniel Hogan, chief executive of the Association of Union Constructors, that represents 1800 contractor companies.