Hudson County Lowers Threshold for Union Labor Agreements in Public Projects
JERSEY CITY— Hudson County Executive Craig Guy has signed a new executive order lowering the threshold for when union labor agreements must be used on county construction projects. The move is expected to expand union involvement in public works across the county.
The order, signed April 9, authorizes the use of Project Labor Agreements (PLAs) on projects valued at $3 million or more, down from the previous $5 million threshold, according to the county’s official release.
What the Order Does
Project Labor Agreements are pre-hire contracts between government entities and labor unions that set the terms of employment for specific construction projects before work begins.
Under the new directive, Hudson County will apply PLAs to public works projects meeting the $3 million threshold, aiming to standardize labor conditions and ensure workforce stability.
The executive order outlines several requirements tied to these agreements, including:
- Payment of prevailing wages under New Jersey law;
- Provisions preventing strikes, lockouts, or work stoppages;
- Mandatory apprenticeship programs on covered projects;
- Equal employment opportunity measures for women and minorities; and
- Oversight to track workforce diversity and participation.
Administration’s Rationale
County officials say expanding the use of PLAs will improve project outcomes by relying on skilled labor and reducing delays tied to labor disputes.
According to the county, the policy is intended to keep projects on schedule, maintain construction quality, and provide more predictable costs over time.
The order also highlights the role PLAs play in coordinating multiple trades on large-scale projects, which officials say can reduce inefficiencies during construction.
What Changes in Practice
Previously, the county primarily evaluated PLAs for projects costing $5 million or more. Lowering the threshold to $3 million brings more mid-sized infrastructure projects under potential PLA requirements.
For projects below that threshold, the county may still require a PLA on a case-by-case basis, depending on factors such as complexity and overall public interest.
The order also states that contractors who refuse to comply with PLA requirements may be deemed non-responsive bidders, limiting their eligibility for county contracts.
Broader Implications
The move signals a broader push by Hudson County to formalize union labor’s role in public construction, particularly as infrastructure investment continues across the region.
Supporters argue PLAs improve safety, accountability, and project reliability. Critics, in other jurisdictions, have raised concerns about reduced bidding competition and potential cost impacts.
For Hudson County, officials are framing the policy as a long-term investment in workforce standards and project delivery.
Sources
- Hudson County Executive’s Office, “Hudson County Executive Craig Guy Signs Executive Order Ensuring More Union Projects” (April 10, 2026)
- Hudson County Executive Order No. CG-11 (April 9, 2026)