ST. PAUL, Minn., Nov 18 --Iowa Gov.-elect Terry Branstad (R) announced shortly after his election Nov. 2 that he intends to repeal the executive order issued just months ago that encourages local units of government to consider project labor agreements for projects costing more than$25 million.

Scott Norvell, president and chief executive officer of Master Builders of Iowa, told BNA Nov. 10 that Branstad's announcement is good news for both construction workers and taxpayers in the state.

While the executive order only asked governmental units to consider PLAs, to say Gov. Chet Culver's (D) order was "strong encouragement''would be an understatement, Norvell said. It was clear from the number of PLAs that followed the order, he said, that the order was important to Culver.

He said the projects in the state that now have PLAs in place total hundreds of millions of dollars. That amount is significant, he said, because of the recession's effect on construction in the state. As a right to work state, he said, 90 percent of construction workers are not unionized. That left a lot of workers out in the cold for PLA projects, he said.

Norvell said repealing the PLA order will mean more work for non-union workers and mean more savings for the state's taxpayers.

While the permissive language of the order would appear to indicate it would not be necessary for a repeal, Norvell said Branstad must repeal it to send a message to the construction industry. A repeal is also necessary, he said, since Branstad campaigned on the issue. He said the governor-elect needs to formally close the door on the executive order.

Could Remove Safety Net for Iowa Workers

Earl Agan, president of the Central Iowa Building Construction Trades Council, said it is too early to say how a repeal would affect construction workers in the state. However, he said, it is likely that Iowa construction workers will be affected.

According to Agan, the permissive language of the executive order came about after labor unions talked with Culver about the recession and its effect on the construction industry in the state. He said so few projects were being built nationwide that every Iowa project was drawing bids from out-of-state contractors. He estimated that 50 to 60 percent of the bidders on state projects were from outside the state.

The idea behind the PLA language, he said, was to ensure that Iowa construction workers got project jobs even if out-of-state contractors were awarded the projects. With PLAs, he said, the workers had to be hired through local hiring halls, thus keeping project jobs in Iowa workers' hands.

The most recent example, Agan said, was the recent awarding of the construction of a new prison in Fort Madison, Iowa. While a Chicago-based general contractor submitted the low bid, he said, the PLA that is in place for the project means that 85 to 90 percent of the construction jobs created will go to Iowans.

Without the PLA, he said, the contractor could have brought his Illinois workers to Iowa to do the job. The repeal of the PLA order could very well remove that safety net for Iowa workers when jobs are awarded to out-of-state firms, he said.

Agan said he was not surprised by Branstad's announcement. He said Branstad, Iowa's governor from 1983 to 1999, earlier told business leaders that any labor bills that came to his desk would be dead on arrival. The executive order repeal fits in with that message, he said, even if the order only asked governmental bodies to consider PLAs for large construction projects.

Officials with the Branstad campaign were unavailable for comment.

Branstad will take office Jan. 14.

By Mark Wolski