The City Council is quickly advancing legislation, Bill 37, that would allow government agencies within the City and County of Honolulu to deny the majority of Hawaii’s construction workers the opportunity to work on taxpayer-funded projects through something ironically called a community workforce agreement (CWA).

More commonly known as a government-mandated project labor agreement (PLA) in other parts of Hawaii and on the mainland, these controversial schemes effectively prevent nearly 60% of Hawaii’s construction workforce who don’t belong to a union from competing to build and work on projects funded by taxpayer dollars. If signed into law, Bill 37 will also needlessly increase the cost of construction and contribute to the skilled labor shortage plaguing America’s construction industry and harming Hawaii’s economic competitiveness.

When mandated by a government entity like a city or county government, PLAs and CWAs typically force builders — union or not — to follow union work rules and hire most or all workers on a jobsite from union hiring halls. That effectively limits the pool of bidders, since nonunion contractors don’t want to abandon their existing employees and quality control practices — key components of a safe and productive workplace — for strangers from union halls governed by unfamiliar rules.

The negative impact of government-mandated PLAs on Hawaii’s nonunion construction workforce is especially severe. They lose the wages and benefits they or their employer are required to contribute to union plans during the life of a typical PLA project unless they join a union and/or pay union fees and meet plan vesting requirements. It’s a form of wage theft that will harm working families employed in construction here.

Many lawmakers state they support policies to ensure local construction jobs go to local residents and help women- and minority-owned businesses. However, the truth is, PLAs can ensure that out-of-state union travelers have priority over Hawaii’s local skilled construction workforce that has chosen not to join a union. In addition, women- and minority-owned businesses are largely nonunion and unlikely to benefit from PLAs promoted by Bill 37.

The impetus for some lawmakers to pass Bill 37 is purely political — to create jobs for union labor and steer contracts to unionized contractors supporting their campaigns. But the unfortunate effect is that they drive up costs.

A May 2017 study by the Beacon Hill Institute in Massachusetts found that PLAs raised the base construction cost of Ohio schools by 13% — $23 per square foot in 2016 prices — relative to non-PLA projects. Studies on the effect of PLA mandates on California, New Jersey, New York, Connecticut and Massachusetts school construction all reached similar conclusions: PLAs increase the cost of construction between 12% and 18%. Simply put, Hawaii cannot afford such waste.

For these reasons, 25 states have passed measures restricting government-mandated PLAs, thereby ensuring fair and open competition on taxpayer-funded construction projects so the public can get the best possible construction project at the best possible price.

Unfortunately, in Hawaii, state policy encourages PLA mandates on a case-by-case basis for state and state-funded projects of $25 million or more. However, dubious claims by PLA supporters promising labor harmony and on-time and on-budget construction on major public works projects have been undermined by delays, cost overruns and administrative irregularities on the Honolulu rail boondoggle and the University of Hawaii-Hilo College Pharmacy Building.

Elections have consequences. And while we understand construction labor unions are a core constituency of some lawmakers on the City Council, it makes little sense for elected officials to turn their backs on hard-working Hawaii people and waste taxpayer dollars because it is politically expedient.

By rejecting Bill 37, the City Council can champion the benefits of fair and open competition and welcome all of Hawaii’s construction workforce to rebuild our community at a price that’s right for taxpayers.

Jonathan Young is president/CEO of the Associated Builders and Contractors, Hawaii Chapter.