New Jersey Statutes Title 52. State Government, Departments and Officers 52 § 38-1

a. The United States Supreme Court held in Building & Const. Trades Council of Metropolitan Dist. v. Associated Builders & Contractors of Massachusetts/Rhode Island, Inc., 507 U.S. 218 (1993) that state and local governments, when acting as market participants, are permitted under the National Labor Relations Act (29 U.S.C. s. 151 et seq.) to enforce bid specifications requiring contractors to abide by project labor agreements with labor organizations for construction projects owned by those state and local governments;

b. The Supreme Court commented in that case that when a State or local governmental agency utilizes bid specifications containing a project labor agreement for a construction project owned by the agency, the agency “does not regulate the workings of market forces” in violation of National Labor Relations Act pre-emption of such regulation, but is acting as a market participant and “exemplifies” the workings of market forces, and therefore is not prevented from doing so by the National Labor Relations Act;

c. New Jersey has a compelling interest in carrying out public works projects at the lowest reasonable cost and the highest degree of quality;

d. New Jersey has a compelling interest in having labor disputes in connection with public works projects resolved without the disruptions of strikes, lock-outs, or slowdowns;

e. Project labor agreements make possible legally enforceable guarantees that projects will be carried out in an orderly and timely manner, without strikes, lock-outs, or slowdowns;

f. Project labor agreements also make it possible to provide for peaceful, orderly, and mutually binding procedures for resolving labor issues;

g. The State also has a compelling interest in guaranteeing that public works projects meet the highest standards of safety and quality;

h. A highly skilled workforce ensures lower costs for repairs and maintenance over the lifetime of the completed project;

i. Project labor agreements make it possible to provide the State with a guarantee that public works projects are completed with highly skilled workers;

j. Project labor agreements allow public agencies to more accurately predict the actual cost of projects;

k. Project labor agreements make it possible to provide the State with assurances that public works projects are completed with a diverse workforce;

l. Project labor agreements facilitate the efficient integration of work schedules among different trades on project sites;

m. Project labor agreements also promote harmonious and productive work environments in public works projects;

n. New Jersey can best accomplish these goals by encouraging, for suitable public works projects, project labor agreements between public works contractors and subcontractors and labor organizations concerning important issues of employment, including work hours, starting times, overtime rates, and procedures for resolving disputes; and

o. Project labor agreements, therefore, give the State an effective means to advance the interests of efficiency, quality, and timeliness of suitable public works projects.