PATERSON APPROVES HISTORIC LABOR AGREEMENT

Paterson, NJ – Mayor Andre Sayegh, alongside labor union leaders, announced today the adoption of the Project Labor Agreement (PLA) ordinance, a transformative measure that will regulate public works construction projects exceeding $5,000,000. The ordinance is designed to create local employment opportunities, establish high construction quality standards, and promote workforce development in Paterson.

“This is a monumental step forward for our city,” said Mayor Andre Sayegh. “The Project Labor Agreement ordinance will provide our residents with greater employment opportunities and ensure that public works projects are completed with integrity, safety, and quality. It is a win for both the local workforce and Paterson.”

The new legislation outlines a structured approach to awarding public works contracts, promoting fair competition, transparency, and community benefits. The ordinance mandates apprenticeship and pre-apprenticeship programs, enhancing career prospects for Paterson residents and prioritizing local hiring within the city.

Photo: Brian Jackson, Mayor Andre Sayegh, Tom Kelly                        Photo: Union Leaders and Mayor Andre Sayegh

Project Labor Agreement Ordinance: A Closer Look

Purpose: To improve the integrity and efficiency of public works construction contracts in Paterson by establishing fair competition, quality standards, and community benefits.

Key Points:

1. Fair Competition and Responsibility:

1. 1. Eliminates favoritism and corruption in contract awards.
   2. Defines “responsible” bidders as those meeting federal, state, and local requirements, demonstrating financial and social responsibility.
2. Workforce Development:
   1. Requires contractors to participate in registered apprenticeship programs.
   2. Ensures contractors provide adequate wages and benefits.
   3. Mandates 20% of labor hours on large projects be performed by apprentices, focusing on Paterson residents.
3. Project Labor Agreements (PLA):
   1. Applies to public work projects over $5,000,000.
   2. Includes no-strike agreements and effective dispute resolution.
   3. Promotes Minority and Women-owned Business Enterprises (MWBEs) participation.
4. Community and Economic Benefits:
   1. Reduces local unemployment and government subsidy costs.
   2. Supports long-term planning and resource allocation for future projects.
   3. Ensures high-quality and timely project completion.
5. Monitoring and Compliance:
   1. Requires contractors to submit compliance certifications and quarterly reports.
   2. Establishes rigorous enforcement mechanisms.
6. Flexibility and Exemptions:
   1. Allows for project-specific exemptions based on cost, complexity, and feasibility.

Benefits to Paterson:

• Quality Assurance: Guarantees high-quality construction through skilled labor.
• Economic Growth: Provides local employment and supports businesses.
• Community Development: Prioritizes local workforce development and responsible use of taxpayer money.
• Transparency: Ensures transparent procurement and contractor accountability.

“This ordinance protects Paterson’s residents and taxpayers, ensuring efficient, fair, and high-standard public works projects while fostering local employment and business opportunities,” added Mayor Sayegh.

The adoption of the Project Labor Agreement ordinance represents a significant milestone for Paterson, offering a pathway to economic growth, community development, and a brighter future for its residents.

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