Government mandated labor

 

Impact on Cost-Effectiveness 

 

 

The General Accounting Office (GAO) was unable to document any cost efficiencies 

achieved by GMLAs on federal construction and, furthermore, concluded that such alleged 

efficiencies could probably never be documented  [Project Labor Agreements:  The Extent of 

Their Use and Related Information (GAO/GGD-98-92, May 1998)].  In addition, research 

conducted on GMLA projects in Alaska, California, Nevada and New York by Wharton School 

of Business Professor Herbert R. Northrup, Ph.D., documented less competition and increased 

costs [Journal of Labor Research, John M. Olin Institute for Employment Practice and Policy, 

Department of Economics, George Mason University, Vol. XIX, No. 1 (Winter 1998)].