Obama Executiver Order on Unions Stirs Discontent

The Associated Builders and Contractors (ABC) put out a press release objecting to one of Obama's Executive Orders related to government contracts and unions. The press release is at PRNewswire.com here. Obama repealed an earlier rule by Bush that "prohibited federal agencies and recipients of federal funding from requiring contractors to sign union-only project labor agreements (PLAs)". The ABC claims that by requiring contractors on Federal projects to use union representation costs will increase. They also believe that unions have in the past discriminated against minority and women owned companies. The ABC also probably objects to this new rule as it will drive up their labor costs and cut into their profits. Obama and the Democrats relied on a lot of union support during the last election cycle and we should expect more orders like this to increase union participation in Federal contracting.