Obama Backs Unions in Federal Construction President Obama has issued an executive order encouraging the use of project labor agreements on large federal construction projects. Those agreements, usually between contractors and labor unions, set pay and working conditions for all workers on a project, including subcontractors. Obama said the order will “promote economy and efficiency in Federal procurement.” The order is a boon to the president’s labor supporters, with billions of dollars in federal construction jobs due to be unleashed in the economic stimulus plan. The AFL-CIO applauded the move, but construction-industry trade groups contend the agreements drive up costs by paying union wages. Kirk Pickerel, president of Associated Builders and Contractors, an industry association representing non-union contractors, said the president’s order “unfairly discriminat[es] against 84% of U.S. construction workers who choose not to join a labor union.” The issue has been a political football, with Democratic presidents generally favoring project labor agreements and Republicans generally opposing them. The agreements were prohibited during the Bush administration. While the executive order does not make such agreements mandatory, it states, “it is the policy of the Federal government” for executive agencies to encourage their use on projects worth $25 million or more.