Project labor agreements limit AI bonanza for state’s construction workers
The Healey-Driscoll administration's framework for data center construction in Massachusetts requires project labor agreements (PLAs), mandating union labor. This policy is criticized by the Associated Builders and Contractors, Massachusetts chapter, for limiting competition, increasing costs, and excluding non-union, women-owned, and minority-owned construction firms. The organization advocates for a more transparent and equitable approach to data center construction.
The Healey-Driscoll administration's framework for data center construction in Massachusetts has come under fire for requiring project labor agreements (PLAs), which mandate that all construction work be performed by unionized labor.
The Associated Builders and Contractors, Massachusetts chapter, criticizes this approach, stating it would exclude the vast majority of the state's construction workers, as only 17.3 percent are union members. The policy is also reported to disproportionately affect minority- and women-owned construction companies, with 87.5 percent of minority-run business enterprises and 72 percent of women-run business enterprises certified by the state Division of Capital Asset Management and Maintenance being non-union.
The group argues that limiting competition through PLAs will inevitably lead to higher construction costs for data centers. They cite examples of Democratic governors in other states, such as Janet Mills of Maine and Gavin Newsom of California, who have vetoed bills imposing similar PLAs on state projects. The Associated Builders and Contractors calls for a comprehensive, transparent process to develop a sound and equitable approach to data center construction in Massachusetts that includes all qualified workers.