House Passes Faster Labor Contracts Act, Setting Deadlines on Union Negotiations
According to Construction Dive, the House of Representatives passed the Faster Labor Contracts Act on Tuesday, a bill that would set binding deadlines on contract negotiations between employers and workers who have voted to form or join a union.
What the Bill Would Do
The legislation targets a process that, according to a 2021 Bloomberg Law study cited in the bill, takes 465 days on average between a union vote and final contract approval. Under the Faster Labor Contracts Act, employers would have 10 days to begin negotiations after a worker vote. If no agreement is reached within 90 days, either party could contact the Federal Mediation and Conciliation Service. After another 30 days without resolution, a three-member arbitration panel would step in to settle the dispute.
The bill passed with support from 20 Republicans crossing party lines to vote with Democrats. It still requires Senate passage and a presidential signature to become law.
Reaction from the construction industry was divided. Associated Builders and Contractors CEO Mike Bellaman called the bill a “disgrace,” warning it would hand contract decisions to government-appointed arbitrators rather than the negotiating parties themselves. By contrast, Daniel Hogan, CEO of The Association of Union Constructors, praised the bipartisan passage, saying strong labor-management relationships are the foundation of union construction.
Trent Cotney, partner and construction team leader at law firm Adams and Reese, told Construction Dive that “labor rates and terms in a collective bargaining agreement directly implicate project pricing and scheduling, among other things,” adding that “the accelerated time frames of the FLCA should be a concern for the industry.”
What It Means for Subcontractors
- If enacted, the 10-day window to begin negotiations would require subcontractors to have legal counsel and negotiation strategies ready immediately after a union vote, leaving little room to prepare.
- The 90-day negotiation window followed by mandatory arbitration means labor costs and contract terms could be set by a third-party panel, potentially outside a subcontractor’s preferred terms on wages, scheduling, or work rules.
- Project bids that depend on stable labor cost projections could be complicated by arbitrated first contracts, since the final terms would be unknown until an arbitrator rules.
- Subcontractors with union workforces should monitor the bill’s progress in the Senate and consult legal counsel now to assess exposure before any new organizing votes occur on their projects.
