IOWA PLA UPDATE (05/04/2011)

On March 22, Iowa Attorney General Thomas J. Miller (D) refused to issue a legal opinion on the dispute between the City of Cedar Rapids, Iowa and Governor Terry Branstad (R) over a Project Labor Agreement (PLA) for its construction of a new convention center.  Miller justified not issuing an opinion on the matter based upon the fact that litigation is “threatened or imminent.”  Cedar Rapids Mayor Ron Corbett (R) said it is unclear whether litigation will occur but did agree that it is possible that a lawsuit might be filed to stop the state from enforcing the Governor’s order prohibiting funding of the project because of a PLA signed by the City.  The Mayor said that if a lawsuit is filed, it would be filed by the union which signed the PLA with the City.  The attorney for the union also sent letters on March 29 to both the Iowa Board of Regents and the Iowa Department of Administrative Services asking them whether PLAs negotiated for a medical facility at the University of Iowa and a veterans home last year will be enforced or whether the dispute with the City of Cedar Rapids has caused those PLAs to be discarded.  The Iowa PLA dispute promises to continue throughout at least the balance of 2011.  Stay tuned.  
                                                                                                                        By Bill Harding, Chapter Attorney


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