Other Views
Other Views
FOR 40 years, the State of Hawaii has seen unfettered growth in the government sector and government intrusion into almost every aspect of our lives. Government micro-management has done the most damage in the business sector. Government
featherbeddingIn Hawaii, where government has traditionally dictated how business is to be conducted, the laws and regulations -- along with a policy drafted to appease labor unions at every turn -- has proved disastrous for both business and the average taxpayer.
The latest example of such egregious governmental intrusion is the introduction of project labor agreements (PLAs). PLAs are the creation of the Clinton administration and were originally designed to favor unions.
The Clinton version of the PLAs, issued in the form of an executive memorandum, obligates federal government contractors to agree to the terms of a pre-negotiated agreement between government and labor unions. Wage rates, work rules and working conditions are specified as part of a PLA.
The most convincing argument against the use of PLAs is that they are completely unnecessary. They merely increase red tape and inflate the cost of projects.
PLAs are redundant because, on every project, contractors are already bound by specifications that cover all wage, labor and safety laws, and regulations. In addition, PLAs discriminate against workers who choose not to be represented by a labor union.
On a project requiring PLAs, workers would not automatically receive their hourly fringe amounts. Instead, the money would be deposited into the union trust funds. Non-union workers would lose their fringe amounts because they would not be vested in the union benefit plans.
There would be less competition on the projects requiring PLAs, because the bids would be too costly for companies that must accommodate their non-union workers by contributing the fringe amounts twice -- once to the union trust funds and also to the workers current benefit plans.
The proposed benefits of PLAs are easily discounted. For instance, it is often argued that such agreements prevent strikes.
Yet, just recently, a $2.4 billion airport project in San Francisco was disrupted because of an unsanctioned strike. It occurred despite the construction unions signing a deal promising no strikes, pickets or work stoppages if the airport would hire only union employees.
The only time PLAs could possibly be justified is when they are applied to massive, emergency-type federal projects, but Hawaii does not undertake such projects.
Further, contrary to claims that PLAs guarantee that all workers on the project will be local residents, mainland workers could be allowed to work as long as they become signatories to the unions for the duration of the project.
On the other hand, even if workers do agree to become signatories, this does not act as a guarantee that they will be allowed to work since all labor would be controlled by the union halls.
We have often heard that the 1999 legislative session was the result of a do-nothing Legislature. While it is true that some very important bills weren't passed, some counterproductive bills did not make it through the process either.
Several Democratic state senators erroneously embraced the idea of PLAs and tried to have this union-sponsored boondoggle foisted on the people of Hawaii. Fortunately, the Senate bill -- designed to mandate PLAs in the islands -- died because of strong opposition from the construction community.
Three other House labor bills, into which the Senate inserted this dubious concept, were also defeated. Three cheers for the House!
ON the other hand, a draft governor's directive, similar to the Clinton memorandum, sits on Ben Cayetano's desk, awaiting action. It doesn't specifically mandate PLAs, but requests that the executive department take into consideration union contractors first. Of course, this is just a kinder, gentler way of requiring the use of PLAs for state contracts.
The last thing Hawaii needs is another anchor attacked to our sinking economy. PLAs may please the unions but they are unnecessary, counterproductive and inflate the cost of construction projects.
Mr. Governor, for the sake of the citizens of Hawaii, put the PLA directive in its rightful place: the round file under your desk!
State Rep. Colleen Meyer (R) represents
the 46th House District in windward Oahu.