WASHINGTON, (Reuters) – Sixteen organizations representing the U.S. building industry wrote a letter opposing a President Joe Biden’s recent executive order that required “project labor arrangements” for federal construction projects exceeding $35 million.

Biden’s earlier this month order is anticipated to affect nearly 200k workers. According to the White House, it could also offer an opportunity to unions and workers who negotiate such deals a boost.

The collective bargaining agreement between contractors and trade unions for project labor is a contract that sets wages, conditions of employment, and provides dispute resolution.

According to the White House’s Tuesday letter, “The flawed logic of the Administration justifying proPLA policies ignores market realities. There is broad opposition to PLAs mandated by the government within the construction sector.”

According to the groups, the Labor Agreements will worsen the shortage of skilled workers in the construction sector and hinder the Biden Administration’s ability meet its infrastructure goals and affordable housing as well as clean energy goals.

It was issued immediately following the passage of $1 trillion in infrastructure legislation by Biden. This bill invests heavily in bridges and roads across the country.

This executive order does not apply to projects that were funded with grants from non-federal agencies. These projects will account for the bulk of projects in the bill.

The groups that sent the letter include Associated Builders and Contractors, American Road & Transportation Builders Association, the National Association of Home Builders and the National Black Chamber of Commerce among others.