DOVER, Del. - A bill moving through the Delaware General Assembly is drawing attention and strong reactions over how labor would be handled on major public construction projects.
Senate Bill 241, introduced in late February, would require Project Labor Agreements on certain state-funded construction projects costing $5 million or more.
Supporters say the measure would strengthen union labor and help protect workers on major job sites. Critics, however, say it could shut out much of Delaware’s construction workforce and drive up costs for taxpayers.
What the bill would do
SB 241 would require a project labor agreement with the Delaware Building and Construction Trades Council for qualifying public works projects. A project labor agreement is a pre-hire collective bargaining agreement that sets labor conditions, dispute procedures, and other work rules before construction begins, according to the legislation.
Under SB 241, public works projects costing $5 million or more would be required to include a PLA. The agreement would be binding on all contractors and subcontractors working on the project, and the requirement would apply to contracts advertised after September 30, 2026.
The bill does include some exceptions. A PLA would not be required if the project receives federal funding, involves highway construction or reconstruction, or if there is only one bid submitted for a craft under the contract.
The bill also says PLAs must include procedures for resolving labor disputes and guarantees against strikes or lockouts.
Supporters say bill backs workers and unions
Delaware Rep. Claire Snyder-Hall, one of the bill’s co-sponsors, said she supports the legislation because of what unions have meant for working families.
“I am proud to be a co-sponsor of SB 241 because I stand with unions,” Snyder-Hall said. “Unions helped create the middle class in the U.S. They have been under attack by neoliberal forces for decades, so it's important to pass pro-labor legislation to support union jobs.”
She added, “Unions are the collective voice of workers, and they are needed to ensure that working people have good jobs, good pay, and good benefits.”
Supporters of project labor agreements often argue they help ensure skilled labor, improve safety, reduce labor disruptions, and keep projects on schedule.
Critics raise cost and access concerns
The Associated Builders and Contractors of Delaware is among the groups pushing back. On Wednesday, the ABC rallied in front of Legislative Hall in Dover to urge lawmakers to reject the bill.
The organization argues the legislation would make it harder for non-union contractors and workers to compete for state-funded jobs.
According to ABC Delaware, more than 87 percent of Delaware’s construction workforce is not union-affiliated, and requiring PLAs could effectively tilt public work away from much of that labor pool.
The group also says PLA mandates can increase construction costs. Citing research from similar policies in other states, critics say the agreements can raise costs by 10 to 30 percent on average.
ABC Delaware points to New Jersey, where similar PLA mandates have been in place since 2002 for some projects. Critics say school construction there cost an estimated 16 to 30 percent more per square foot under PLAs than projects without them.
The group argues that if Delaware saw similar increases, it could add $70 million or more to the state’s capital construction budget in a single year, costs they say would ultimately fall on taxpayers.
Critics also say the bill could disproportionately affect small, minority-owned, and women-owned construction firms, many of which operate as open-shop, non-union businesses.
Debate heads to committee
SB 241 is now before the Delaware Senate Labor Committee, where lawmakers will decide whether to move it forward. If passed and signed into law, the requirement would apply to eligible public works contracts beginning in late 2026.
