If you are an organization doing business in Illinois, and are involved in any public works projects, or plan to bid on any public works projects, are you aware that in a wide variety of circumstances, the state can mandate that you contract with and hire union employees?

More specifically, in 2003, Governor Rod Blagojevich signed Executive Order 2003-13 which concerns project labor agreements. Project labor agreements are labor-management agreements giving labor unions exclusive rights to work and often by implication hire employees for publicly funded projects. Right now in the Illinois legislature, a bill which codifies and adds weight to Executive Order 2003-13 is pending. This is currently known as the Illinois Project Labor Agreement Act (House Bill 0915, introduced 2/2/05).

Of particular interest regarding Executive Order 2003-13 and House Bill 0915 is that subsequent to taking office in 2001, President Bush signed Executive Order 13202 which makes it illegal for public projects receiving federal funds to require project labor agreements.

Doesn’t President Bush’s order contradict Illinois’ current efforts? Yes to a great degree it does. Moreover, the rationales for both executive orders, the Illinois bill and federal court decisions contradict one another.

The federal executive and judicial branches have supported the President’s Executive Order and his rationale for implementing it. The President contends that project labor agreements discriminate against minority and female owned businesses. Illinois’ executive and legislative branches believe that project labor agreements enhance opportunities for minority and female owned business and help alleviate or even prevent discriminatory employment practices.

My own opinion, based on a reading of cases, the executive orders, the bill and other materials (e.g., statistical reports), is that any law which creates a closed union shop, in any sector of the economy, is anticompetitive in nature and serves to increase discrimination against minority and female owned businesses. I’m sure that we’ll be hearing more about project labor agreements shortly.

If you would like to access the actual documents I refer to then check out the following web pages:

  • President Bush’s Executive Order 13202
  • Amended 4/6/01 (Link no longer available)
  • Governor Blagojevich’s Executive Order 2003-13 – Pp. 48-49
  • Illinois Project Labor Agreement Act bill – P. A-10

I look forward to hearing your comments, criticisms, concerns and questions.

Chuck Krugel