ABC Criticizes Mayor Adams’ “Historic Labor Agreements” as Misleading and Harmful
In response to Mayor Eric Adams’ recent announcement of "historic labor agreements" covering $1 billion in capital projects, the Empire State Chapter of Associated Builders and Contractors (ABC) is highlighting the misinformation underpinning this decision and its detrimental impact on New York City’s construction workforce—predominantly minority workers living in the five boroughs.
Contrary to claims made by the Mayor and others, Project Labor Agreements (PLAs) do not ensure fair wages. Fair wages on government-funded construction projects are already guaranteed by New York State’s prevailing wage laws, which require both union and non-union contractors to pay identical wages and benefits for comparable work on public projects. Instead, PLAs impose discriminatory provisions that disproportionately harm open-shop (merit shop) contractors and their workers, sidelining 75% of the construction workforce.
Under PLAs, contractors are forced to hire the majority of their workforce from union halls—typically three out of every four workers. This requirement forces nonunion companies to sideline their loyal employees, whom they’ve invested in and trust, in favor of unfamiliar workers from union halls. Faced with this unfairness, almost all nonunion companies decline to bid on PLA-covered projects.
According to data from the Construction Workforce Project, 87% of open-shop construction workers in New York City are minorities. These individuals—the backbone of the city’s construction industry—will be excluded from participating in city-funded projects under the PLA mandate. What the Mayor has framed as a victory for labor equity will instead marginalize minority workers and exacerbate inequality in the workforce.
“PLAs create a false narrative of fairness while systematically shutting out a majority of the construction workforce, particularly minority workers,” said Brian Sampson, President of ABC Empire State Chapter. “This mandate does not benefit workers—it only serves the narrow interests of union leadership at the expense of taxpayers, businesses, and the diverse community of workers who call this great city home.”
By mandating PLAs, the Mayor’s office is also driving up costs on public projects. Research has consistently shown that PLAs increase project expenses, often resulting in delays, scaled-back scopes, or outright cancellations. At a time when affordability is a pressing concern for New Yorkers, the added financial burden of these agreements is unacceptable.
ABC calls on Mayor Adams to prioritize inclusive policies that support all workers—union and non-union alike—and ensure that taxpayer dollars are spent responsibly, without discrimination or favoritism.