Nandita Bose

WASHINGTON (Reuters] – U.S. President Joe Biden is expected to sign Friday’s executive order requiring project labor agreements in federal construction projects exceeding $35 million. This will provide a boost to unions and workers who are able negotiate these agreements and a move the administration believes will accelerate building times.

The $262 Billion federal construction contracting order will be applied to nearly 200,000 workers.

Collective bargaining agreements that are reached between contractors and building trade unions regarding project labor include wage and employment terms, as well as dispute resolution. In the past, Democratic presidents supported the application of such agreements to the huge U.S. Federal Contracting Budget. Republican presidents have repealed them.

This order will take effect immediately following the signing of the $1 trillion infrastructure bill by Biden, which invests in roads, bridges, and ports.

Many of the funds will be channeled through federal agencies to state and local governments. A senior administration official stated that the new executive order does not apply to projects funded through grants to nonfederal agencies. This will account for the bulk of projects covered by the bill. However, it will still apply to the billions of dollars spent by federal agencies on waterways, military bases, and other areas.

According to the White House, Biden will visit Ironworkers Local 5 (Upper Marlboro), Maryland on Friday, in order to sign the executive order. He will be joined by Vice President Kamala Hari and Labor Secretary Marty Walsh.

Because of a decrease in available labor and a reduction of goods, the U.S. construction sector – workers, homeowners, developers and contractors – was one of the worst affected sectors during the COVID-19 epidemic, it has also seen the end of entire projects.

Biden promised to build unions in America and boost membership after years of declining numbers. He also pledged to pay more for hourly workers in health care, construction, and other fields.

According to a draft viewed at Reuters, the order states that contractors who pay lower wages or employ less qualified employees will have to improve their standards in order to be competitive with high-wage and high-quality businesses. Biden previously ordered federal contractors to pay $15 an hour minimum wages in new and extended contracts.

Some contractors praised Biden for his move.

Daniel Hogan is chief executive of The Association of Union Constructors. He represents 1800 contract companies and said, “This simplifies the negotiation process, gives employers access to a highly skillful pool of craftworkers,” to Reuters.