Smaller construction projects covered under San Jose labor agreement

Dated: December 23 2021

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San Jose is expanding a labor agreement to smaller public works projects, raising questions about how the city measures worker protections against business interests.

The City Council voted last week 8-3 to approve amendments to San Jose’s Project Labor Agreement (PLA), which applies rules about working conditions and the type of labor that can be used on public works projects. The city made several amendments, but the most important is a reduction in the dollar threshold for projects that will fall under the PLA from $3 million to $1 million, which means it will apply to more projects.

By lowering the threshold, the PLA will cover more small projects like roads, sewers and some building renovations. It will also apply stronger oversight to those projects, like making sure union compliance staff have access to work sites.

“It improves protections for workers on the projects, so there’s more oversight on preventing wage theft and ensuring workers are getting their full wages and benefits, as well as training and supervision,” Louise Auerhahn, director of economic and workforce policy at Working Partnerships USA, told San José Spotlight. She added it also creates opportunities for new people to come into the construction industry through apprenticeship opportunities and targeted hiring.

The PLA, adopted in 2019, has only applied to about a dozen projects. Public Works Director Matt Cano said he anticipates the amendment won’t significantly increase the number of projects covered. Still, lawmakers who proposed the amendment say covering more workers under the PLA is worthwhile.

small local companies to afford to bid on similar projects.

During the meeting, Councilmember Maya Esparza pointed out the $1 million threshold is in line with cities like Sacramento, San Leandro and Alameda County, and it’s still higher than PLA thresholds in Long Beach and Los Angeles.

The council meeting also revealed some city enforcement mechanisms have been rarely used. Cano said the city can debar companies for labor violations, but has only done so once in the past 20 years.

The city is currently investigating labor violations at three housing sites built by subcontractors for Habitat for Humanity. The public works department demanded more than $319,000 in restitution for workers, which the subcontractor is contesting.

Councilmember Sylvia Arenas asked Cano if the department would be able to get payments to workers before Christmas. He said no, and that it was hard to give an estimated timeline for when the cases would resolve. Arenas asked Cano about the possibility of enrolling wage theft-affected families in a Christmas giving program. He discouraged this idea, noting that having the city arrange gifts for the affected workers could potentially complicate the case.

“I understand. But those are families that potentially have children,” Arenas said. “If we didn’t have a couple of our paychecks, we would be impacted certainly.”

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Sharad Gupta

Real Estate Sales Leader with over 15 years of diversified experience in real estate sales, property development, and business consulting. With a keen eye to spot real estate opportunities and a natur....

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