BOARD OF AIRPORT COMMISSIONERS APPROVES 10-YEAR EXTENSION OF PROJECT LABOR AGREEMENT
11/19/2020 02:00 PM
FOR IMMEDIATE RELEASE
Nov. 19, 2020
LAX Public Relations (424) 646-5430
BOARD OF AIRPORT COMMISSIONERS APPROVES 10-YEAR EXTENSION OF PROJECT LABOR AGREEMENT
Extension maintains labor relations and policies on all LAX Capital Improvement Projects
Click on the image above to view a video about the Project Labor Agreement and its
positive impacts in the community.
(Los Angeles, CA) Today, the Los Angeles Board of Airport Commissioners (BOAC) approved a 10-year extension of the Los Angeles International Airport (LAX) Project Labor Agreement (PLA). The extension ensures that the PLA will be in place continuously for more than 30 years to maintain labor relations policies and procedures for construction contractors and craft employees engaged on all of LAX’s capital projects.
“With the historic extension of the LAX Project Labor Agreement, Los Angeles World Airports is once again setting the standard for excellence in our commitment to workforce development and inclusion,” said Sean Burton, President, BOAC. “From our groundbreaking HireLAX Apprenticeship Readiness Program, to 20 years without a work stoppage, this agreement has been and will continue to be a cornerstone of LAX’s transformation into one of the best airports in the world.”
The PLA’s workforce development system led directly to the creation of the award-winning HireLAX Apprenticeship Readiness Program, a free eight-week course that prepares residents within the Airport Impact Area for opportunities in the construction trade. With a construction career placement rate of 83 percent and the diversity of its 202 graduates, HireLAX is regarded as one of the top pre-apprenticeship programs in the country. The HireLAX program has been on hiatus due to COVID-19, but a new cohort will begin in January.
“We are excited about the 10-year extension of our Project Labor Agreement with Los Angeles World Airports,” said Sean McGarvey, President of North America’s Building Trades Unions. “Throughout two decades, our LAWA PLA has not only strengthened labor-management cooperation and workforce development, but our strong relationship has been maintained without any work stoppages related to labor issues, as billions of dollars of construction projects were completed. This valuable partnership is one of the longest-running and most successful PLAs in the country. With this new extension, we begin writing the next chapter in the success story of our outstanding and enduring partnership together.”
The extension builds on the current success of the PLA, which celebrated its 20th anniversary last year.
“The extension of the PLA is a critical step in delivering not only promised infrastructure, but the promised jobs and business opportunities to support our community,” said Justin Erbacci, Chief Executive Officer, LAWA. “The future of LAX would not be possible without the craft laborers at the heart of this agreement. Thank you to Parsons, Los Angeles/Orange Counties Building and Construction Trades Council Executive Secretary Ron Miller, and the other members of the negotiation team who were integral in making this extension a reality.”
LAX’s $5.5 billion Landside Access Modernization Program (LAMP) has built upon the PLA’s foundation to establish strong workforce contract requirements with its public-private partnership projects – the Automated People Mover (APM) and Consolidated Rent-A-Car (ConRAC) facility. These contracts require the developers to achieve 30 percent local hire. With contractual accountability mechanisms, these two large projects have consistently outperformed the minimum requirement.
“This is a vote of confidence in our workforce,” said Ron Miller, Executive Secretary, Los Angeles/Orange Counties Building and Construction Trades Council. “LAX is the welcome mat for the world to come to LA, and the work we are doing is the springboard to a better future for our local residents.”
Some of the other key elements of the PLA Amendment include:
Updating or eliminating work rules that may conflict with prevailing wage requirements that were not in place at the time the PLA was originally negotiated.
Adding specific references to the HireLAX Apprenticeship Readiness Program.
The 30 percent local hire goal will now be measured by craft hours worked, not headcount, and will continue to be measured by overall project performance.
The addition of North America's Building Trade Unions-standard language requiring coordination with the veteran hiring program Helmets-to-Hardhats.
LAWA requires rigorous monthly workforce data reporting, beyond what is required in most City contracts, which allow LAWA to track local hire participation by hours worked, as well as by headcount. When tracked by hours worked, both the APM and ConRAC projects further exceed the minimum requirement. Both projects are also required to hire at least 100 first period construction apprentices, with many individuals new to construction recruited and developed through programs such as LAWA’s own HireLAX.
To learn more about the HireLAX Program, click here.
LAWA CEO Justin Erbacci (front row, third from right), Executive Secretary of Los Angeles/Orange Counties Building and Construction Council Ron Miller (front row, second from right) and Parsons PLA Administrator Dan Sloan (front row, far right) at the February 2020 HireLAX program graduation.
(This photo taken prior to physical distancing requirements)
About Los Angeles International Airport (LAX)
LAX, the third-busiest airport in the world and second busiest in the United States in 2019, is in the midst of a $14.3-billion capital improvement program that will touch on all nine passenger terminals and build new facilities, including an Automated People Mover (APM) train, Consolidated Rent-A-Car (ConRAC) facility and a 12- to 15-gate Midfield Satellite Concourse (MSC) addition to the Tom Bradley International Terminal.
In 2019, LAX served nearly 88.1 million passengers and offered an average of 700 daily nonstop flights to 113 destinations in the U.S. and 1,200 weekly nonstop flights to 91 markets in 46 countries on 72 commercial airlines.
LAX generates 620,600 jobs in Southern California, with labor income of $37.3 billion and economic output (business revenues) of more than $126.6 billion, according to an economic study based on 2014 operations. This activity added $6.2 billion to local and state revenues and $8.7 billion in federal tax revenues. The study also reported that LAX's ongoing capital improvement program creates an additional 121,640 annual jobs with labor income of $7.6 billion and economic output of $20.3 billion; $966 million in state and local taxes; and $1.6 billion in federal tax revenues.
LAX is part of a system of two Southern California airports – along with Van Nuys general aviation – that are owned and operated by Los Angeles World Airports (LAWA), a proprietary department of the City of Los Angeles that receives no funding from the City's general fund.
LAWA is leading the aviation industry in sustainability practices, with initiatives related to water management, energy (electricity) management, air quality, recycling and natural resources management. In 2019, LAX received Level III ACI Airport Carbon Accreditation from Airport Councils International-Europe.
LAWA is also a leader in inclusivity, operating eight programs that provide opportunities for business enterprises including local, small, minority-owned, veteran-owned and disadvantaged firms, and working together with community partners to offer the HireLAX Apprenticeship Readiness Program, which targets local workers to make them ready for rewarding careers in the construction trades, and the Build LAX Academy, designed to prepare small contracting businesses for success when working on projects at LAX.
LAX was named a top-10 U.S. airport by SKYTRAX in 2018, and was honored as the "Most Innovative Airport for Passenger Experience" in 2019 by the American Association of Airport Executives. LAX is the second-most popular airport in the world to appear on Instagram, according to wego.com. Other recent honors have included selection as the No. 9 Best Airport (Wall Street Journal); No. 7 Best On-Time Performance for a Mega-Hub Airport (OAG); one of "The World's Best Airports for Business Travelers" (GlobeHunters); Public-Private Partnership of the Year (P3 Bulletin); Urth Caffe, Best Airport Coffee Concession of the Year (Global FAB Awards); Innovation of the Year, Consolidated Rent-A-Car Facility (ARTBA); Best Project, United Airlines Terminal 7 and 8 Redevelopment Program (Engineering News Record California); North American Public-Private Partnership Deal of the Year (IJ Global); and Innovative Transportation Solution of the Year, Automated People Mover (WTS LA).
As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities. Alternative formats in large print, braille, audio, and other forms (if possible) will be provided upon request