New York Announces Historic Labor Agreements Covering Over $1 Billion in Capital Projects

New York Announces Historic Labor Agreements Covering Over $1 Billion in Capital Projects

New York City Mayor Eric Adams has unveiled two Project Labor Agreements (PLAs) with the Building & Construction Trades Council of Greater New York (BCTC) in a move intended to enhance New York City's infrastructure and labor landscape.

These agreements, collectively exceeding $1 billion in construction projects, aim to streamline capital project delivery, foster local employment, and bolster opportunities for minority and women-owned business enterprises (M/WBEs), according to a press release.

A group of people pose for a photo around New York Mayor Eric Adams, who is holding a signed document.
New York City Mayor Eric Adams has unveiled two Project Labor Agreements (PLAs) with the Building & Construction Trades Council of Greater New York (BCTC) in a move to enhance New York City's infrastructure and labor landscape.

Accelerating Infrastructure Development

According to the U.S. Department of Labor, PLAs are pre-hire collective bargaining agreements negotiated between construction unions and construction contractors that establish the terms and conditions of employment for construction projects. The PLAs announced by Mayor Adams are intended to expedite a variety of critical infrastructure projects across the city. By adopting the design-build delivery method—which consolidates design and construction under a single contract—the city anticipates significant time and cost savings.

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A notable project under this initiative is the $270 million transformation of Willets Point. This endeavor includes the construction of resilient sewers, new streets, and 150,000 square feet of public open space, laying the groundwork for future developments in the area – including the city’s first-ever soccer specific stadium.

A rendering of a soccer stadium.
(Photo courtesy of New York City Football Club via Construction Dive) Conceptual rendering of the first-ever soccer-specific stadium in New York City in Willets Point, Queens.

Empowering the Workforce and Promoting Equity

Beyond infrastructure improvements, NYC’s new PLAs emphasize fair wages, comprehensive benefits, and stringent safety protocols for workers. They also introduce community hiring goals, prioritizing employment and apprenticeship opportunities for residents of New York City Housing Authority (NYCHA) developments and neighborhoods with poverty rates exceeding 15%.

"These agreements, covering more than a billion dollars in work, are a win-win-win,” Adams said. “Good union jobs for New Yorkers; faster, better, and more efficient capital projects; and billions of dollars of investment in communities that went ignored for decades."

Strengthening Minority and Women-Owned Businesses

According to the city’s press release, the agreements represent a significant commitment to M/WBEs, aiming to ensure these enterprises have substantial participation in the upcoming projects. This initiative aligns with the city's broader strategy to promote diversity and inclusion within its economic development plans.

Laying the Groundwork for Future Projects

In addition to the current agreements, the New York City Economic Development Corporation (NYCEDC) has signed a letter of intent with BCTC to negotiate further PLAs. These prospective agreements could encompass nearly $50 billion in future capital construction projects, including significant developments like the Hunts Point Produce Market, the Kingsbridge Armory redevelopment, and the Science Park and Research Campus (SPARC) Kips Bay projects.

"We are grateful for these historic commitments and collaboration from Mayor Adams and NYCEDC,” said Gary LaBarbera, president of BCTC. “We must ensure that our city's hardworking people, including our tradesmen and tradeswomen, are provided fair wages and accessible pathways to the middle class that will allow them to reinvest in their communities and support their families in the foreseeable future."

A Vision for Sustainable Growth

The PLAs are designed to facilitate the efficient completion of essential projects, such as green infrastructure enhancements and the repair of sewers, roads, and bridges. By integrating workforce development and community hiring provisions, the agreements aim to create a more inclusive and equitable labor market.

“Through our collaboration with the Building & Construction Trades Council on these Project Labor Agreements, we are not only investing in world-class infrastructure but also creating thousands of good-paying union jobs that will benefit New Yorkers for generations,” said New York’s First Deputy Mayor, Maria Torres-Springer.

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