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Legislation Document
SPONSOR:
Sen. Walsh & Sen. Townsend & Rep. Osienski & Rep. K. Williams
Sens. Hoffner, Mantzavinos, Pinkney, Seigfried; Reps. Cooke, Lambert, Morrison, Snyder-Hall
DELAWARE STATE SENATE
153rd GENERAL ASSEMBLY
SENATE BILL NO. 241
AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO PROJECT LABOR AGREEMENTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. § 6902, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:
§ 6902. Definitions [For application of this section, see 82 Del. Laws, c. 36, § 3].
For purposes of this chapter:
(24) “Project labor agreement” means a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project
. “Project labor agreement” includes community workforce agreements.
Section 2. Amend Subchapter IV, Chapter 69, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 6960B. Project labor agreements.
(a) If a public works project under this chapter has an aggregate cost of $5 million or more, a contract relating to that public works project must include a project labor agreement with the Delaware Building and Construction Trades Counci
l unless any of the following apply:
(1)
The public works project receives federal funding.
(2) The public works project is for highway construction or reconstruction.
(3) There was only 1 bid for the craft under the contract.
(b)(1)
A project labor agreement negotiated under this section is binding on all contractors and subcontractors working on that public works project
.
(2) All relevant bid documents must include the bid specifications necessary to make a project labor agreement binding on all contractors and subcontractors on the public works project.
(c) A project labor agreement under this section must advance the interests of the agency, including in regard to cost, efficiency, quality, timeliness, a skilled labor force, and safety
.
(1) A project labor agreement must include all of the following:
a.
That the provisions of the project labor agreement apply as follows:
1. To work done at construction sites of the
public works project and do not apply to work done outside of those sites unless paragraph (c)(1)a.2. of this section applies.
2. To custom fabrication work done for the public works project, regardless of where that work is performed.
b.
If a union trust fund covered by the terms and conditions of the project labor agreement has not adopted the building and construction industry exemption authorized under the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1383(b), the signatory employers are not obligated to hire employees covered by that fund.
c. Effective, immediate, and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work.
d. Guarantees against strikes, lockouts, or other similar actions.
(2) A project labor agreement may include provisions that do any of the following:
a. Permit contractors and subcontractors working on the public works project to retain a percentage of their current workforce.
b. Provide that the successful bidder, and any subcontractor of the bidder, are not a party to a labor agreement with the labor organization other than for the public works project covered by that project labor agreement.
Section 3. Section 6960B of Title 29 applies to public works contracts advertised after September 30, 2026.
SYNOPSIS
This Act requires that a contract advertised after September 30, 2026, relating to a public works project (project) with an aggregate cost of $5 million or more must include a project labor agreement with the Delaware Building and Construction Trades Council unless the project receives federal funding, the project is for highway construction, or there was only 1 bid for the craft under the contract.
A project labor agreement is a type of collective bargaining agreement in the construction industry that is generally negotiated before construction begins. Project labor agreements are intended to provide a legally binding and enforceable contract primarily related to labor conditions and labor-management relations.
Author: Senator Walsh