President Joe Biden’s administration is set to implement measures reinforcing pro-union policies by leveraging federal infrastructure funds. Biden is expected to sign an executive order requiring federal agencies to prioritize companies that engage actively with unions and offer substantial benefits and competitive wages. This directive will apply to allocations from major legislative packages including the American Rescue Plan, Infrastructure Investment and Jobs Act, CHIPS and Science Act, and Inflation Reduction Act.
According to a statement from the White House, this order represents a significant step in integrating defined labor standards into federal funding decisions. It directs agencies to give added consideration to applicants with labor agreements, those who support voluntary union recognition, and that maintain neutrality during union organizing efforts. Additionally, employers who provide benefits like childcare, paid leave, and job training programs will receive favorable treatment.
The order also advises federal bodies to incentivize elevated wage standards for manufacturing grants, extending beyond the traditional Davis-Bacon Act mandates, which necessitate paying the local prevailing wage for construction projects receiving federal aid. A dedicated task force, led by the Secretary of Labor and the Director of the National Economic Council, will oversee the development and enforcement of these policies.
This move follows the administration’s previous efforts, such as requiring federal contractors to pay a minimum wage of $15 per hour and the promotion of Project Labor Agreements (PLAs) for federal projects. Biden’s push aligns with the “Good Jobs Principles” developed by the Departments of Labor and Commerce in 2022, further entrenching pro-worker policies in federal grant and contract decisions.