Memorandum in Opposition to S01672B (Martinez) and
A00756B (Solages) PLA’s on Long Island School Construction
Introduction
Construction Workforce Project (CWP) strongly opposes Senate Bill 1672 and Assembly Bill 756, which seeks to expand prevailing wage requirements. This legislation will have devastating consequences for minority workers, MWBE contractors, and the affordability of construction projects, including much-needed affordable housing developments. The bill threatens to undermine the opportunities, job stability, and economic advancement of the diverse workforce that plays a vital role in New York City’s construction industry.
About the Construction Workforce Project
Construction Workforce Project (CWP) is a 501(c)(3) advocacy organization whose partners include community and faith-based groups, public housing associations, industry leaders, and other local stakeholders. CWP is dedicated to educating New York City constituents and elected officials on the benefits of merit shop work for historically underrepresented multi-cultural communities in our region. By investing in merit shop-friendly policies and programs, we can help shape a more secure future for marginalized communities across New York City.
Merit shop workers have rapidly become the majority of New York City’s construction workforce, now representing approximately 70% of private-sector work. This workforce is truly representative of the city’s diversity, on average, more than 70% of merit shop workers are Black or Latino. CWP’s advocacy aims to provide these local communities with a stronger voice and greater opportunities for economic inclusion and growth.
Opposing S01672B and A00756B
PLAs require contractors to hire the majority of their workforce, typically three out of every four workers—from union halls. This is a major problem because, according to the Bureau of Labor Statistics, 80% of construction workers in New York State do not belong to a union. If this legislation passes, these skilled, non-union workers would be effectively barred from working on Long Island school projects, reducing competition and shutting out the vast majority of the workforce.
The harm caused by this bill extends beyond the sidelining of construction workers. PLAs have been repeatedly shown to drive up costs, placing a significant financial burden on Long Island taxpayers and limiting the ability of school districts to complete necessary projects. Proponents of this legislation rely on an outdated 2009 study to justify their position, failing to account for the dramatic changes in the construction industry over the past 16 years. More recent, data-driven studies paint a very different picture.
A 2020 study by the Beacon Hill Institute analyzed the impact of PLAs on school construction in Connecticut and found that these agreements increased final base construction costs by $89.33 per square foot (in 2019 prices), a 19.84% increase over non-PLA projects. In 2019, the Beacon Hill Institute conducted a similar study on school construction in New Jersey and found that PLAs increased construction costs by $57.84 per square foot (in 2018 prices), raising overall costs by 16.25%. These findings clearly demonstrate that PLAs drive up construction costs.
Adding to these financial challenges, rising tariffs on construction materials such as steel, aluminum, and lumber are already increasing the cost of building across the country. According to the Producer Price Index, construction material prices have risen 20% since 2022. New York is especially impacted as many essential materials, including lumber, are imported from Canada and subject to these tariffs. Higher import duties have led to price spikes, making it significantly more expensive for contractors to source the materials needed for school construction. With material costs already rising due to inflation and supply chain disruptions, imposing PLAs will only exacerbate the financial strain, making school projects even more unaffordable for taxpayers and local school districts.
Long Island schools are already struggling with overcrowded classrooms and aging infrastructure. Significant construction is needed to improve the learning environment for students, but this legislation would make those necessary projects up to 20% more expensive. The increased costs will force school districts to either scale back their projects or abandon them altogether, ultimately harming students and taxpayers alike.
Please see the following data that supports this memo.
The data above was pulled from unionstats.com
We appreciate your attention to this critical issue and welcome further discussion on how to support NY’s diverse and essential construction workforce.
Sincerely,
Construction Workforce Project
