Whatcom County wants to prioritize hiring local labor in some of its largest construction projects over the next few years. But early planning has led to criticism that the desire to prioritize laborers has the potential to hurt a local company’s chances of winning the bid.
County council members are looking for ways to build off current state law to ensure local workers are included in large-scale public works projects, such as the construction of a new jail and behavioral health facility as well as a 23-hour crisis stabilization center.
“Too many Whatcom County residents have to drive long distances for work, especially in the construction industry,” according to a memo sent by council members Kaylee Galloway, Jon Scanlon and Barry Buchanan. “Our county has an opportunity to improve the lives of workers by ensuring that County-run construction projects support local workers so that they can find work close to home.”
While the ordinance is still being drafted, an early version based on a Snohomish County policy garnered heavy criticism from the Associated Contractors group, small cities across Whatcom County and the Lummi Indian Business Council. Critics said the policy could increase project costs, disproportionately impact minority-owned businesses and mimics state law.
Meanwhile, supporters say that project cost increases are minimal and the agreements are meant to reflect county values, rather than a one-size fits all approach.
What’s on the table?
County council members are considering a number of labor agreements. The two more flashy agreements are called Community Benefit Agreements (CBAs) and Project Labor Agreements (PLAs).
When CBAs are implemented, it usually means a general contractor who wins a bid for a certain project will throw in something extra, said Daniel Villao, the CEO of Intelligent Partnerships. For example, if a transit station is being built, a CBA would authorize the contractor to include the addition of a public park or affordable housing.
Meanwhile, PLAs set the terms and conditions of labor, unionized and non-unionized, on public projects before construction begins. It does not require a construction deliverable. In 2024, Snohomish County passed an ordinance requiring PLAs for county projects over $5 million.
Under federal labor law, PLAs are considered legally binding pre-hire agreements, which outline employment terms such as wages and working hours.
PLAs are primarily administrative and can include no strike provisions, standard wages, recognition of union representation and access to apprenticeship training. It can also establish compliance reporting to ensure that construction workers are getting paid the prevailing wage.
“Oftentimes, opponents say it’s going to add 20 percent or 30 percent to the cost of your construction program,” Villao said. “I would be hard-pressed to figure out how to increase your cost by any significant portion for an administrative reporting process.”
The potential for project cost increases is one of the reasons why there’s opposition to the PLAs. Critics have given presentations to the Bellingham Port Commission, the Whatcom County Business and Commerce Committee as well as other groups in recent weeks.
Pete Dawson, CEO of Dawson Construction, told Bellingham Port commissioners in mid-February that “it’s not a matter of if, it’s a matter of how much more, your project will cost” when a PLA is put into place.
Lance Calloway, the Northern District Manager for the Associated General Contractors of Washington, added the agreements have the potential to exclude non-unionized construction companies when the language includes union recognition or requires construction companies to pay additional benefits to match what the labor union is providing.
“It is challenging for an open shop contractor to compete equitably in these types of environments when they’re having to pay double benefits for their workers in regards to their health care and their retirement benefit,” he said.
Around 87% of Whatcom County’s construction labor force belongs to an open shop contractor.
“We’re opposed to the aspect of requiring the workforce to be in the union for the project,” Calloway said at the same Port Commission meeting where Dawson spoke.
In a letter sent to county council members, mayors from the small cities in Whatcom County asked that language relating to requiring union representation in the draft ordinance be removed.
Lummi Nation Chairman Anthony Hillaire wrote in a letter to county council that many tribal-owned businesses would be disproportionately impacted by the PLA language.
“These businesses often operate on tight margins and cannot absorb the additional costs and regulatory burdens imposed by PLAs,” Hillaire said.
Calloway also pointed out a section of state law that already sets prevailing wage and apprenticeship programs for public work projects over $10 million through PLAs.
Those in favor of CBAs and PLAs say they can better reflect the conditions Whatcom County laborers live and work in than laws set by the state. They also argue that the agreements can better support minority- and veteran-owned businesses.
Karl de Jong, the vice president of the Washington State Labor Council AFL-CIO, noted that these types of labor agreements have been around for nearly 100 years, with a PLA being used in the creation of Grand Coulee Dam in 1938.
Recently, a PLA was required in the bidding process for the Library Commons project in Mount Vernon, which resulted in managing project timelines and the budget.
He noted PLAs don’t require unionization but rather ensures that open shop construction companies pay prevailing wages and may require raising the health care package to the union level.
Council member Galloway said Tuesday, Feb. 25, that the discussion about the CBAs and PLAs wouldn’t be going away anytime soon.
Council member Scanlon added that they may have gone too far drafting an ordinance in December without having an educational conversation with the rest of council and other stakeholders like private contractors and construction workers.
“What I’d like to do over the next few months in our meetings is to learn,” he said. Scanlon added that draft ordinance language probably won’t be available until June with a vote coming on the language later in September.
Annie Todd is CDN’s criminal justice/enterprise reporter; reach her at annietodd@cascadiadaily.com; 360-922-3090 ext. 130.
