President Bush recently signed Executive Order 13202, revoking President Clinton’s 1993 Executive Order 12836 which authorized Project Labor Agreements on federally funded contracts.
The stated purpose of new Executive Order 13202 is to promote open competition on federal and federally funded or assisted construction projects; maintain government neutrality towards labor relations on federal and federally funded or assisted construction projects; reduce construction costs; expand job opportunities, especially for small businesses; and prevent discrimination based upon labor affiliation or lack of labor affiliation.
Pursuant to Executive Order 13202, effective February 17, 2001, executive agencies that award construction contracts or that obligate funds pursuant to a construction contract shall not:
“(a) Require or prohibit bidders, offerors, contractors, or subcontractors to enter into or adhere to agreements with one or more labor organizations, on the same or other related construction project(s); or
(b) Otherwise discriminate against bidders, offerors, contractors, or subcontractors for becoming or refusing to become or remain signatories or otherwise adhere to agreements with one or more labor organizations, on the same or other related construction project(s).”
However, Executive Order 13202 does not prohibit contractors and subcontractors from voluntarily entering into agreements with labor organizations.
Executive Order 13202 does allow an executive agency to exempt a particular project from the above requirements, “if the agency head determines that special circumstances require an exemption in order to avert an imminent threat to public or safety or to serve the national security.” However, Executive Order 13202 cautions that a finding of “special circumstances” may not be based on the possibility of a labor dispute caused by the fact that contractors, subcontractors, or employees are not affiliated with a labor organization.