Sacramento Municipal Utility District Board Had Been Warned about Project Labor Agreement Costs

Coalition for Fair Employment in Construction Header Image - UncroppedFrom: Eric Christen
Subject: We warned you what a PLA would do to your HQ renovation project costs
Date: May 5, 2016 at 3:21:53 PM PDT
To: Sacramento Municipal Utility District Board of Directors

SMUD Board,

For years we have warned you about the consequences of Project Labor Agreements (PLAs). Despite this your board has continued to be an oddity in the region by requiring PLAs on many of your projects despite the fact these discriminatory agreements reduce competition and increase costs. Most recently members of the contracting community, including contractors who would have otherwise bid the project, addressed you regarding why a PLA would reduce bidders and increase costs on your headquarter renovation project.

The results are now in. (Bids for SMUD Headquarters Overhaul Come in $30 Million Higher Than ExpectedSacramento Business Journal – May 3, 2016)

You can still avoid a catastrophe though by doing one thing: Rebid the project free of an exclusionary PLA. I promise that you will see a dramatic decrease in your bid numbers. Why? Because my members will bid it.

It’s your choice. Do you keep favoring big labor special interests or represent all your customers for a change?

It’s a $30 million question. Literally.

Eric Christen
Executive Director
Coalition for Fair Employment in Construction