U.S. Senator Chris Dodd

[Page: S3409]

Mr. DODD. Mr. President, let me briefly address these project labor agreements. Again, this is maybe confusing to some people because it sounds rather esoteric: Project labor agreement. There is nothing new about project labor agreements. They go back to the 1930's. They have been a very effective means by which governing bodies, States, cities and the Federal Government, where there have been major public works projects, have been able to bring people together to try to work out arrangements, in terms of wages, benefits, hours and so forth, in return for which there would be no work stoppages, strikes and the like.

I note Governor Pataki of New York has very effectively used project labor agreements on projects in the State of New York. Christine Todd Whitman, the Governor of New Jersey, has used project labor agreements on major public works projects in the State of New Jersey. There are numerous projects around the country, Federal projects--the Boston Harbor is the one I am most familiar with in New England--where there is a project labor agreement there.

I might point out it was noted by our colleague from Texas that these project labor agreements result in tremendous cost overruns. It is estimated right now, and the project is not complete--the estimated cost of the Boston Harbor project was $6.1 or $6.3 billion. It is estimated now, in no small measure because of the project labor agreement, that project may be completed for about $3.4 billion, substantially under the original estimates. So there is nothing inherent in this that says it is going to increase costs. In fact, it has worked very, very well.

The suggestion was also that nonunion businesses would be prohibited from bidding. Nothing could be further from the truth. That would be against the law. In fact, I think, as someone pointed out, in one of the Boston projects--102 of the 257 subcontractors were nonunion firms; 102 of the 257. So the notion that nonunion firms would be prohibited from being a part of these projects is unfounded.

As I noted earlier, in October of 1992, President Bush issued an Executive order which prohibited Federal agencies and Federal contractors from entering into these project labor agreements. So the outrage that is being expressed because an Executive order has been issued to reinstate them--as I said, I would be sympathetic if the outrage had been focused equally vociferously when President Bush banned these project labor agreements--as we now hear with this President's decision to issue or allow these project labor agreements to be used on Federal projects.

So, again on the Alexis Herman issue I hope she will go forward.

On these project labor agreements, I think it is important we

utilize what has been a very effective tool for being able to complete very, very important public works projects. As I said earlier, these are not just used by the executive branch at the national level, they have been used by Governors all across the country.