Infrastructure Partnerships: Labor’s Evolving Experience

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Infrastructure Partnerships:

Labors Evolving ExperienceBill Barnhart March 2013

WWW.AMERICANPROGRESS.O


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Infrastructure Partnerships:Labors Evolving Experience

Bill Barnhart March 2013

COVER PHOTO

In this Sept. 14, 2009, le photo, road workers begin construction along Caliornia interstate 215 north in San Bernadino County. Ocialssay its the largest stimulus unded reeway project to begin construction. Businesses that received ederal contracts under the economicstimulus are reporting more than 30,000 jobs saved or created in the rst months o the program. AP PHOTO/NICK UT


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1 Introduction and summary

5 Background and history

10 Government policy, pension-fund rules

14 Case studies

19 Legislating P3s in Pennsylvania

20 Conclusion

22 About the author and acknowledgements

23 Endnotes

Contents


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1 Center or American Progress | Inrastructure Partnerships: Labors Evolving Experience

Introduction and summary

A 2,500-on, German-made, highway-unnel-boring machine nicknamed

Harrie rs bi ino he so earh o Miami, Florida, in November 2011. Since

hen he so-called sidewalk superinendens have been a varied lo, o say he leas.

Among hose near and ar waching he $1 billion eor o connec Inersae

395 wih he Por o Miami cargo erminal are visiors o he Miami Childrens

Museum adjacen o he unnel; Florida environmenaliss; cruise-ship operaors;

European reirees; Wall Sree dealmakers; and hundreds o sae and local public

ocials who see similar opporuniies or economic growh.

No group has been more ineresed han he consrucion workers in Miami-Dade

Couny, where he monhly unemploymen rae averaged 12.5 percen on he day

in lae 2011 when he French consrucion company operaing Harrie sared

he boring machines 40-oo-wide cuter head urning in earnes.1

Te unnel projec was born in conroversy, when in 1987 hen-Presiden Ronald

Reagan deemed he idea o connecing he expressway o he Miami cargo

erminal pork-barrel wase.2 When work began on he projec in 2010, local

wriers compared i o Bosons once conenious Big Dig and Alaskas Bridge

o Nowhereboh exreme examples o so-called pork-barrel projecs.3 oday,

as Harrie chews hrough earh or a second, parallel unnel, doubs have aken a

back sea o eager anicipaion ha Miami-Dade Couny will emerge as a major

desinaion or goods moving hrough he recenly widened Panama Canal.4

Wheher his workand a handul o similar projecs currenly underwaycan

conribue o meeing Americas inrasrucure needs depends on ranslaing

hard-won local success ino a naional policy. A major roadblock o he eor o

improve and expand he naions inrasrucure is moneyno jus he availabiliyo money bu also is source. Te Por o Miami unnelrom design o evenual

operaionis being buil and operaed hrough a long-erm lease o privae inves-

ors. Meridiam Inrasrucure, a European-based inrasrucure und deploying

pension dollars rom across he pond, and Bouygues Civil Works, he French rm


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responsible or he unnels consrucion, are he projecs owners. Governmen

he Florida Deparmen o ransporaion, Miami-Dade Couny, and he Ciy o

Miamiis a collaboraor on he projec and will, in eec, ren he aciliy rom

Meridiam and Bouygues.

Tis ype o nancial srucure o pay or public workshe eaming o govern-men wih privae acorsis known as a public-privae parnership, or P3. While

common in Canada, Ausralia, Briain, and Europe and increasingly common

in Souh America, i is novel in he Unied Saes. Public-privae parnerships

enable privae invesorsnoably pension unds, insurance companies, and oher

long-erm invesorso inves in public asses, including highways and unnels,

courhouses, waer sysems, and oher public aciliies. By working hrough an

inrasrucure und such as Meridiam or by invesing direcly in a projec and

assuming some direc ownership, invesors may assume roles in designing, build-

ing, mainaining, and/or operaing a aciliy in reurn or paymens hrough olls,

dedicaed axes, or regular paymens rom sae or local reasuries. Te projecmay already exisreerred o as browneldor i may be on he drawing

boardsreerred o as greeneld. In hese ypes o arrangemens, a sae or local

governmen ypically signs a long-erm lease wih he privae invesors.

Despie he amiliariy P3s have achieved in oher pars o he world, real concerns

are slowing down he ormaion o hese public-privae parnerships in he Unied

Saes. Boh he general public and organized labor have raised valid quesions

abou having privae, pro-seeking eniies manage public inrasrucure such as

roads and bridgesand abou he degree o which ha ownership srucure will

diminish public accounabiliy and avor shor-erm business expediencies over

long-erm public ineress such as hose o workers and he unemployed.

A 2012 sudy5 by he Congressional Budge Oce, or CBO, based on daa rom

76 public-privae-parnership highway projecs rom 1989 hrough mid-2011,

ound ha he botom-line dollar cos o axpayers and he raveling public or a

major highway is litle dieren beween a P3 nancial srucure and radiional

public-works nancing. In oher words, privae dollars or public inrasrucure

may be a welcome new unding source, bu promoers o P3s on Wall Sree and

elsewhere mus address broader public concernsincluding job-relaed issuesi P3s are o grow as a nancing alernaive.6

Te CBO sudy ound ha on a case-by-case basis, cerain highway public-privae

parnerships have done a beter job han radiional public nancing in obaining


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capial, geting projecs compleed quickly, and beter aligning he work o design-

ers, builders, and mainenance crews in producing qualiy roads and bridges. In

addiion, sae legislaion and conrac language aecing cerain P3s have in some

cases addressed labor concerns ha ineviably arise when public conrol o jobs

shis o he privae secor. Tese experiences need o be collaed ino a naional

policy ha maximizes he public benes o P3s and minimizes he risks.

As he CBO analysis concludes, For a public-privae parnership o be successul,

he public and privae parners should be beter o having enered he parnership

han hey would have been i hey had chosen an alernaive approach or projec.7

Wih his repor, he Cener or American Progress exends is recen analysis and

recommendaions on closing Americas inrasrucure gap hrough public-privae col-

laboraion, which were included in CAPs recen repor, Acceleraing Inrasrucure

Improvemens wih Beter Public Policies ha ap Privae Invesmen.8

In his repor we look a employmen issues surrounding public-privae parner-

ships. P3 projecs poenially presen a dual opporuniy o workers: jobs oday

and reiremen income omorrow. As par o heir srucure, P3s apply privaely

raised, pro-seeking invesmen dollarsoen rom pension undso he ask

o building, mainaining, and operaing public roads, bridges, and unnels.9

According o he Poliical Economy Research Insiue a he Universiy o

Massachusets, 18,000 jobs are creaed direcly and indirecly or every $1 bil-

lion invesed in inrasrucure.10 In urn, as a 2008 repor by he Governmen

Accounabiliy Oce noed, proessional invesorsincluding pension-und

managershave idenied highway-inrasrucure projecs as a viable opion or

long-erm invesmen programs.11

Public-privae parnerships have been an esablished inrasrucure-unding

mechanism in many pars o he world. Ye no naional consensus on a posiive

role or P3s will occur in he Unied Saes unil labor ully signs on. o bring labor

on board, heres wha he ederal governmen needs o ensure:

Te U.S. Deparmen o ransporaion needs o accelerae he compleion omodel P3 conracs, puting an emphasis on responsible-conracor policies ha

level he playing eld or all P3 projec biddersunion and nonunion alike.12


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Model conrac language needs o provide or risk sharing among privae inves-

ors and governmens, including risk-disclosure rules or pension unds and

oher P3 equiy invesors.

Te recommended conrac language needs o make clear ha bes value and

qualiy workmanshipno lowes cosis he primary driver o employmenpracices governing privae-secor and public employees associaed wih build-

ing and operaing P3 projecs.

Te ransporaion Deparmen needs o acively work wih saes o dra

saewide laws enabling a broad range o surace-inrasrucure P3s, raher han

projec-by projec saues.

Te Whie House needs o direc he reasury Deparmen o convene pen-

sion-und managers and advisors o ideniy ederal policies ha can increase

pension-und invesmen and paricipaion in P3 inrasrucure projecs.

In making he argumen o expand he use o public-privae-parnership nancing

o U.S. inrasrucure, we rs presen a brie hisory o American labors engage-

men wih P3 inrasrucure work. Nex, we look a some o he sauory and less

ormal rules ha address labor concerns abou he P3 concep. We hen repor

on specic labor issues ha arose in hree projecs: he Por o Miami unnel, he

Presidio Parkway in Caliornia, and he proposed Illiana Corridor, a oll road link-

ing Illinois and Indiana souh o he Chicago area. Aer a look a he P3 legislaing

process in one saePennsylvaniawe revisi our recommendaions.


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Background and history

Americas surace-ransporaion inrasrucurebeter known as roads and

bridgesmus be massively repaired and upgraded i hose living in America are

o be prosperous and sae.13 I is a ask requiring housands o jobs in consruc-

ion, operaion, and mainenance. Ye a poliical consensus on how o mee his

pressing need is missing. Conemp on he righ oward axes and pork-barrel

spending14 is mached on he le by anger oward Wall Sree schemes o seer

pro-seeking privae money ino public inrasrucure.15

Te concep o public-privae parnership is hardly unprecedened in America.

Privae ownership o surace-ransporaion aciliies is as old as America.

Audiences o he recen movie Lincoln saw one o he presidens consiuens

arguing or his amilys righ o collec a privae oll roads receips, jus as a P3

ownership consorium migh do oday. Beore 1800 privae urnpike companies

nanced much o Americas wesward expansion.16 Congress auhorized he

Cumberland Road, Americas rs public highway, in 1806.17 Federally subsidized

highways became a naional program in 1916.18

Americas edgling organized-labor movemen enered he highway program in

1896, when he operaors o he gian seam-powered equipmen used o build high-

ways and railroads me in Chicago o orm wha oday is he Inernaional Union

o Operaing Engineers.19 No long hereaer he Laborers Inernaional Union o

Norh Americarepresening many consrucion radeswas organized in 1903.20

Te naions roads have been essenially a public enerprise or nearly a cenury, 21 and

hey are represened bes by he iconic Inersae Highway Sysem. Bu in he years

immediaely beore he 2008 nancial crisis, privae invesors re-enered he picure.

Inrasrucure invesmen unds emerged as a novel asse class being sold glob-

ally o U.S. pension undsincluding union-sponsored pension undsand

oher insiuional invesors. Inrasrucure unds are creaed by Wall Sree banks

and oher inernaional invesmen pools and collec conribuions rom insi-


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uional invesorsmosly pension unds and insurance companies. Tey hen

direc ha cash o projecs such as road and bridge consrucion.22 In recen years

mos o he projecs nanced by hese unds were overseas.

Advocaes o surace-ransporaion P3s or American roads and bridges ook he

sage a he Federal Highway Adminisraion in 2004. Mary Peers, head o heFederal Highway Adminisraion a he imebeore becoming secreary o rans-

poraiondeclared, Te ime has come o le he ree marke and public-privae

parnerships deliver he innovaion, cos savings and qualiy hey have brough o

every oher indusry.23 Tis senimen exended ino he Obama adminisraion,

which advanced ederal leadership in he P3 arena hrough new language in he

ransporaion-unding bill MAP-21, which was enaced in 2012.

Indeed, discussion o he P3 mechanism has evolved since 2004. When Peers rs

alked o public-privae parnerships, labor ineress in Washingon heard pri-

vae, no parnerships. A a 2006 congressional hearing, John Adler, direcor ohe reiremen-securiy campaign a he 1.8 million-member Service Employees

Inernaional Union, or SEIU, which represens oll collecors and oher oll-road

workers, said ha he sale o exising oll roads o privae invesors was equiva-

len o he Naive Americans who sold Manhatan Island o Peer Minui or he

equivalen o $24 in beads and rinkes.24

Tis and oher labor criiques o surace-ransporaion public-privae parnerships

reeced he pre-nancial crisis era, when he small boom in inrasrucure-und

invesmens in America eruped, wih invesors looking or homegrown deals and

cerain mayors and governors hoping o urn public-inrasrucure asses ino ready

cash. wo highly publicized P3s o ha period are he long-erm leases made o

privae invesors in he Chicago Skyway oll road and he Indiana oll Road.

Boh lease programs generaed large one-ime cash payos o local and sae

governmens and higher olls or users.25 Aer he Grea Recession o 20072009

shrank oll revenues, analyss concluded haa leas in he early yearshese

P3 privae eniies, led by Ausralian bank Macquarie, overpaid and ha he ax-

payers in Chicago and Indiana received a windall.26 Equiy invesors were suck

wih highly leveraged invesmens yielding weak reurns.

Te P3 invesors in he Chicago and Indiana browneld oll-road projecs ar-

geed labor savings in making heir bids. In eec, Chicago and Indiana received

a larger windall because he P3 consoriums planned o cu jobs. As par o he


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Chicago Skyway lease agreemen, displaced workers in he Skyway privaizaion

were oered ciy jobs. Bu exising jobs a he Indiana oll Road were no pro-

eced under he erms o is lease. In spie o he absence o job projecions, he

Inernaional Union o Operaing Engineers endorsed he privaizaion and won

he righ o represen cerain workers on he aciliy.27

wo pre-nancial crisis P3 debacles in Caliornia requenly cied by public-privae-

parnership criics are he Riverside Freeway express oll lanes in Orange Couny

and he Souh Bay Expressway near San Diego. Te Riverside Freeway express

lanes were buil and operaed by privae developers, bu hey were aken over by

he Orange Couny ransporaion Auhoriy in 2002, aer public ourage over

unexpeced olls on so-called high-occupancy vehicles and a noncompee clause

in he conrac wih he privae operaors ha barred he sae rom improving he

expressways parallel nonolled lanes.28 Te Souh Bay Expressway near San Diego, a

greeneld oll road compleed by privae ineress in 2007, led or bankrupcy pro-

ecion jus hree years laer, reecing consrucion delays, liigaion wih conrac-ors, and less-han-expeced usage. In he bankrupcy process he principal amoun

o a $172 million ederal loan o he projec was writen down, and he ineres rae

charged on he loan was increased.29 Privae-equiy invesorsincluding Ausralian

inrasrucure invesmen rm Macquarielos heir enire sake.30

Ciing conroversies ied o hose and oher pre-nancial crisis deals, many labor

leaders and union-pension-und advisers don believe ha P3s craed by pro-

seeking invesors make economic sense or pension beneciaries, curren workers

in he inrasrucure secor, or he general public.

I you call i a public-privae parnership, youre signaling o he world ha youre

puting a lo o money in he pockes o Wall Sree guys, privaizing a public

asse and he projec is likely o go bankrup, says Damon Silvers, policy direcor

and special counsel o he American Federaion o Labor-Congress o Indusrial

Organizaions, or AFL-CIO, which represens more han 12 million workers.31

Silver says ha inrasrucure projecs should be nanced by he ederal govern-

menwhich has unmached borrowing power a hisorically low ineres raes

in combinaion wih nancially capable saes and ciies.

In erms o pension invesmens, We have no recommended [P3s] o any o

our cliens o dae, says Jack Marco, chie execuive ocer o Marco Consuling,

a Chicago-based invesmen adviser o 350 muliemployer union pension plans

known as a-Harley plans, wih $120 billion in combined asses.32 Marco argues


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ha he P3 concep was arred when privae invesors bough conrol o exising

public aciliies, raised olls, andin he case o roadsrimmed employmen.

Even oday, when privae ineress seek union pension money or new consruc-

ionor greeneld projecshe payo is dubious, assers Marco. He says ha P3

sponsors oer union-aliaed pension plans subpar invesmen reurns in exchangeor a promise o jobs. Tas somehing we ace all he ime, Marco noes. Te pen-

sion money is a ligher shade o green i i receives below-marke invesmen reurns.

Several large U.S. insiuional invesors wih pro-labor sympahies are respond-

ing by draing plans o inves direclyinsead o hrough undsin American

inrasrucure. Tese include he $243 billion in asses o he Caliornia Public

Employees Reiremen Sysem, beter known as CalPERS; he $5 billion in asses

o he Union Labor Lie Insurance Company, or Ullico, Americas only labor-

owned insurance and invesmen company; and he $3 billion in asses o he

Dallas Police and Fire Pension Sysem in exas, which has equiy sakes in woDallas-area P3 highway projecs.

Te arge o hese U.S. insiuional invesors is greeneld projecs, which balance

he risk o invesing in unried public-inrasrucure aciliies agains he promise

o immediae job growh and uure economic developmen.

According o Richard etamen, adminisraor o he Dallas Police and Fire

Pension Sysem, invesing in greeneld projecs creaes jobs and reurns or he

pension und. Is a win-win.33 And Sonia Axer, managing direcor o inra-

srucure invesmens a Ullico, pus i his way: Labor working and living in he

communiieshas been he missing elemen. Were making he pie bigger by

spending more on inrasrucure. Were par o he poliical soluion; were also

par o he privae soluion.34

oday, inrasrucure unds are rying o raise ar more money han is jusied

by global demand or such invesmens among insiuional invesors, Georey

Dohrmann, chie execuive ocer o he research and consulancy rm Insiuional

Real Esae, old a recen inrasrucure-invesing conerence in Chicago.35

According o Dohrman, inrasrucure invesmen is a relaively new idea or

many American pension unds and oher insiuional invesors. Wha are bes

pracices? No one really knows. Te issue [or insiuional invesors] is con-

rol. Tey wan a more democraic process.


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For a large slice o insiuional invesorsespecially pension unds or public

employees and privae-secor union membershe allure o direc or und-based

public-privae parnerships in inrasrucure migh improve i bes pracices

included labor ineress.


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Government policy, pension-fund rules

Undersanding he poenial o labors dual involvemen wih P3sas boh

employees and invesorsis vial o linking labor ineress o broader public

ineress. Te privae side o a public-privae parnership may involve pension

money ha, under ederal law, mus be invesed prudenly or he bene o he

employee-beneciaries. Where hey hold P3 invesmens, pension unds can help

shape workplace pracices alongside laws, governmen regulaions, and he collec-

ive bargaining o unions.

Moving Ahead or Progress in he 21s Cenury Ache 2012 ederal highway

bill beter known as MAP-21codies or he rs ime a ederal role in ine-

graing public and privae ineress. Te unding saue requires he secreary o

ransporaion o develop bes pracicesincluding model P3 conracsor

saes and oher governmen agencies ha are working wih he privae secor on

surace-ransporaion projecs.

For P3s receiving ederal dollar subsidies, he secreary s guidance mus include

disclosures by P3 designers o changes in he workorce and wages, benes, or

rules as a resul o a public-privae parnership.36 MAP-21 hereby recognizes a

principal concern o organized labor when i comes o P3s.

In radiional inrasrucure unding, he ederal governmen has undersood ha

qualiy work, air hiring and wages, sae working condiions, and job-raining

opporuniies are essenial elemens o public worksnowihsanding he

requiremens or a low-bid compeiive process. MAP-21 is a welcome sar a

making i clear ha he enry o privae unding hrough he public-privae-par-

nership mechanism does no erode ha naional ineres.

A he consrucion sie, he Davis-Bacon Ac o 1931 can be he sronges job-

proecion ool or consrucion workers in P3 projecs. Te law requires nearly

all consrucion conracors perorming ederally unded or assised road projecs

o pay no less han he wages and benes paid or similar consrucion work


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being perormed in he areaa rule known as he prevailing wage.37 Davis-Bacon

does no require union hiring, bu i does help o equalize bidding condiions or

union- and nonunion consrucion conracors.

Te applicabiliy o he law o P3 highway projecs depends on a P3s use o ed-

eral unds. In addiion o direc ederal suppor, he ransporaion InrasrucureFinance and Innovaion Ac o 1998, or IFIAa popular source o ederal loans,

loan guaranees, and lines o credi or P3sincludes he Davis-Bacon mandae.38

Public-privae-parnership employmen relaed o he design, mainenance, opera-

ion, and adminisraion o a P3 aciliyas opposed o is consrucionis no

covered by Davis-Bacon. MAP-21, however, opens he door or a broader ederal

ineres in proecing all labor consiuens involved wih a P3 inrasrucure projec.

Tiry-wo saes and Puero Rico have enaced laws governing P3 projecs gener-

ally or specic public-privae-parnership projecs. Language addressing laborineress is eviden in he P3-enabling laws o cerain saes such as Illinois and

Pennsylvania, bu i is absen in ohers, including Virginia and exas, wo o he

mos acive P3 saes.

Perhaps he mos aggressive example o P3s addressing labor ineress is an

Illinois saue auhorizing a browneld P3 renancing jus or Chicagos Midway

Inernaional Airpor.39 Te saue conains specic pro-labor provisions, includ-

ing a prevailing-wage rule and a requiremen ha a privae eniy leasing he

airpor mus negoiae wih any union seeking o represen workers and provide

procedures or union organizing in reurn or a ban on srikes. A prospecive

Midway-airpor P3 lessee and he Ciy o Chicago mus oer alernaive jobs o

hose employees working a he airpor who decline P3 employmen.40

Maybe has why heyve been unable o unload Midway, poins ou Henry

Bayer, execuive direcor o he 75,000-member Illinois chaper o he American

Federaion o Sae, Couny, and Municipal Employees, or AFSCME.41 On he

oher hand, says Bayer, Teres no inheren reason why he Ciy o Chicago can

run Midway Airpor as well as any privae eniy ha migh ake i over.

A less prescripive documen esablishing progressive labor relaions or P3s is

known as a responsible-conracor policy, or RCP. Tis language exiss mosly in

requiremens imposed on P3 operaors by pension unds such as CalPERS.42


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Te precise erms vary rom one P3 conrac o he nex. Enorcemen language is

oen vague, bu as a rule, i includes he righ o a pension und o cancel inves-

men conracs and deny a violaor o he responsible-conracor policy urher

access o he und. In eec, hese policies move beyond prevailing-wage laws

o encompass oher labor concerns and cover workers ouside he consrucion

rades. Te CalPERS policy, or example, urges an employer o oer worker-appreniceship programs, avoid ring exising workers, and mainain neuraliy in

union organizing campaigns. Te Cener or American Progress in 2010 oered a

bes pracices oolki or conracing by sae and local governmens.43

Responsible-conracor agreemens don supplan he collecive-bargaining

process, noes Michael Likosky, direcor o he Cener on Law and Public Policy

a New York Universiy and an auhoriy on public-privae parnerships: No, hey

srenghen i. Ta is a main value o P3s.44

Using he CalPERS responsible-conracor policy as a model,45 he overarchingprinciple o any such policy is an armaive commimen o he condiion o

workers as par o he pruden and careul duy o P3 groups in bidding or and

in execuion o P3 conracs using pension-und dollars on he one hand and he

pension unds duciary ineress o is beneciaries on he oher. Te responsible-

conracor-policy program is couched in erms o exibiliy in conrolling inves-

men risks. As par o is process o conrol invesmen risk, CalPERS has a deep

ineres in he condiions o workers employed by CalPERS and is managers and

delegaes, according o he CalPERS policy saemen.

Such language embodies a unique public-ineres conribuion o pension-und

paricipaion in P3 inrasrucure developmen. Te documen saes ha, Tis

policy is an imporan CalPERS policy.

In addiion o seeking pruden and proable pension invesmens hrough

worker-riendly policies, he CalPERS responsible-conracor policy conains spe-

cic proecions or organized labor. Te CalPERS policy suppors many o he

ideals espoused by labor unions and encourages paricipaion by labor unions

in he developmen and managemen o CalPERS inrasrucure invesmens.

Moreover, CalPERS will isel remain neural, and i suppors Manager neuraliy,in he even a labor organizaion lawully atemps o organize workers providing

consrucion, mainenance, operaion, or services a a RCP invesmen.


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Bu exacly how can responsible-conracor policies work a he ground level?

Ideally, responsible-conracor policies can weed ou bad acors beore hey

receive conracs by pre-screening or responsibiliy. A ew years ago a gian roor

being hoised on a wind-energy ower in Caliornias Mojave Deser broke loose

and crushed a nearby ruck, whichorunaelywo workers had jus exied.

Te Laborers Inernaional Union o Norh American, or LIUNA, learned ohe inciden a he jobsie, which was employing nonunion day workers. LIUNA

had invesed in a global inrasrucure invesmen und ha in urn owned a large

equiy sake in he wind arms developmen company.

Recalling he inciden, Richard Mecal, LIUNAs direcor o corporae aairs, said

ha his union has a responsible-conracor policy ha he und had agreed o ge

our money. He urher said ha, We had our olks pick up he phone and say,

You have an invesmen conrac wih us and you need o si down wih us and

nd ou wha happened. Te resul was a new consrucion conracor and he

implemenaion o high-grade employmen pracices a he sie.46


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Case studies

Conversaions abou P3s in surace-inrasrucure developmen rom he Wall

Sree perspecive oen sound like a chaper ou o Michael Lewiss 2003 book

Moneyball, which is abou Billy Beane, he general manager o he Oakland

Ahleics who ried o impose cold-blooded saisical analysis and unamiliar per-

ormance merics on he obacco-juice-sained business o Major League Baseball.

Wih P3s, he sory goes like his: An exper eam o nanciers, engineers, con-

srucion conracors, and operaions managers rom somewhere ou here in hecold-blooded business world descend on a communiy o build and operae a

highly ecien public conveyance as greedy, bribe-seeking poliicians and clueless

ciizens sand around shufing heir ee in awe. Te soryline is a clear case o

smar privae capialism rumping bumbling public works. As is he case in he

game o baseball, however, he realiy is quie dieren.

Port of Miami Tunnel, Florida

Nohing depics bold privae capialism beter han Harrie, he mammoh unnel-

boring machine born o German wizardry and wih an imposing our-sory heigh.

Bu he Por o Miami projec belies he Moneyball heory o ouside experise

and no subsanive local inpu. Chris Hodgkins, vice presiden o Miami Access

unnelhe ormal name o he P3 projecknows why. He calls Miami-Dade

Couny a very hyper counyhyper poliics and hyper media.47

Te projec had quie a mix o players: Five oen compeing unis o sae and

local governmen; Florida residens desperae or jobs in he wake o he saes

consrucion bus; poliical leaders who eared ha jobs would no go o heirconsiuens; and local consrucion unions, consrained by Floridas saus as a

righ-o-work sae, ha were suspicious o he union senimens o Bouygues, he

French general conracor.


18/29


We ried o si down wih Bouygues and hey wouldn alk o us, recalls Mark

Schaunaman, business manager o Local 487 o he Inernaional Union o

Operaing Engineers.48

Hodgkins soluion: I pledged ha he projec would mirror he communiy.

Independen o Bouygues, he se up a hiring-hall process sponsored by LIUNALocal 1652. He named he program Build 305, Miamis area code, aer he com-

plained o Bouygues abou a ruck he had spoted a he jobsie ha had a Georgia

area code pained on is side.

Te resul o hose eors, as Hodgkins pus i, were as ollows: Were union,

were non-union. Were a conglomerae o all he neighborhoods. Eighy-hree

percen o he rs 430 workers hired were rom Miami-Dade Couny. Whenever

I brough local poliical leaders o he sie, hey saw heir neighbors, Hodgkins

says.

Union-jurisdicion issues nagged Build 305. Operaing engineerswho run

heavy consrucion equipmenwere no involved in seting up he hiring

program. In he end, however, wo union-conracing companies were hired or

pre-unneling work perormed by he local LIUNA chaper.

Neverheless, securing specic work or union conracors wasn he only achieve-

men in Floridas righ-o-work culure. Amid opimism surrounding he unnel

projec, Miami-Dade Couny commissioners enaced a prevailing-wage ordinance,

which leveled he general playing eld or union conracors bidding or work.

Presidio Parkway, California

Jane Garveya ormer Federal Highway Adminisraion ocial, member o

he rs Obama ransiion eam, and currenly he Norh American chairman

or global inrasrucure invesor Meridiamhas a unique perspecive on P3s.

Meridiam Inrasrucure, ounded in 2005 by French bankers and engineers, holds

major equiy sakes in he Por o Miami unnel in Florida, he Norh arran and

LBJ Expressways in exas, and he Presidio Parkway in Caliornia.

As Garvey poins ou, Each place is somewha dieren. A lo depends on

he culure and he naure o he sae.49 Unlike he union culures in Florida and

exas, Caliornias union culure is srong, especially among public employees.


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No all jobs a P3 road projecs involve digging, unneling, and laying asphal. Te

projec involved hundreds o whie-collar jobs, including design and adminisra-

ive jobs ha could have easily been ousourced rom he communiyand, or

ha mater, rom he Unied Saes.

In 2010, agains he recommendaion o is sa, he Caliornia ransporaionCommission voed 6 o 5 or he rs ime o seek P3 unding or a $1 billion, 1.6-mile

road projec o rebuild he secion o San Franciscos Doyle Drive ha leads o he

Golden Gae Bridge. Meridiam won he conraccalled he Presidio Parkwaya

nonoll expressway. Te Proessional Engineers in Caliornia Governmen union,

represening 13,000 sae employees, sued in sae cour o kill he deal.

According o Garvey, Caliornia is one o he ew saes where hey sill design

projecs in house. Bu he saes consrucion unions endorsed he projec.

In heir sui, sae engineers complained no specically abou job loss bu abouhe projecs excessive cos o sae axpayers and he prospec ha he privae

developers would supplan public engineers in conducing saey inspecions o

heir own work. Te cour, however, ruled agains he sae engineers.

Bruce Blanning, execuive direcor o he sae engineers union, says ha he gh

agains he projec wasn so much a job issue50 as i was abou he projecs

excessive $1 billion price ag or a 1.6-mile roadway. He claims ha he projec

robs Caliornia and is workers o oher more producive highway projecs.

The Il liana Corr idor Indiana and Il linois

A poliical odd coupleGov. Pa Quinn (IL), a liberal Democra, and ormer

Gov. Mich Daniels (IN), a conservaive Republicanenhusiasically joined

orces wo years ago in suppor o a new oll road ha connecs heir wo saes

souh o Chicago.

New saues in boh saes enable he proposed Illiana Corridoralso called he

Illiana Expresswayo be buil hrough a public-privae parnership. Te sauesinclude prevailing- wage mandaes drawn rom separae sae lawshe Illinois

Procuremen Code and he Indiana Common Consrucion Wage Acbu no

addiional labor-riendly language such as a requiremen or managemen neural-

iy in union organizing eors.51


20/29


Te sae saues, in eec, will resul in unionized consrucion workers build-

ing he road. According o a union ocial, however, AFSCME in Illinois waned

proecions or any pos-consrucion oll-road employees, similar o he Chicago

Midway airpor P3 saue. Te union ulimaely gave in aer he building

radeseager or he consrucion workprevailed on AFSCME o ake he deal.

James Sweeney, presiden o he Inernaional Union o Operaing Engineers

Local 150, whose jurisdicion includes Illinois and Indiana, agrees ha geting

he projec was paramoun. Union proecions ha migh have won approval

in he Democra-dominaed Illinois legislaure would never have cleared he

Republican-conrolled Indiana legislaure, he says. I would have been a poison

pill in he legislaure in Indiana.

Te proposed highway would connec Norh-Souh Inersaes 65 in Indiana

and 55 in Illinois. Te MAP-21 ederal highway bill expedies he projec, which

would diver inersae ruck rac away rom Chicago and norhwes Indiana andenhance boh saes as inernaional ceners o commerce. Given heir experience

wih he browneld Indiana oll Road and Chicago Skyway P3 projecs, highway

expers in boh saes have a chance o demonsrae he laes hinking in green-

eld P3s as i applies o all public and privae ineress.

I look a [P3s] in greeneld siuaions avorably, says union presiden Sweeney. In

selling an esablished public asse, I rown upon i. We mus add road capaciy.

Tere are [insiuional invesor] dollars ou here searching or projecs. Illinois is

he big cherry on he cake or inrasrucure in his counry because we are he cross-

roads or all he major railroads, all he major inersaes and airpors.52

A disinguishing eaure o he Illiana Corridor projec is ha one o is bigges

behind-he-scenes boosers is no a highway developer, a privae invesor, or a

uni o governmen, bu a public-employee, union-owned business. CenerPoin

Properieshe larges indusrial real esae developer in he Chicago area

and a key player in wriing he Illiana Corridor projecs P3 lawsis owned

by CalPERS, which manages he larges pension und in he Unied Saes.

CenerPoin builds and operaes inermodal rail/ruck aciliies, including he

larges maser-planned inland por in Norh America on 10-square miles a heinersecion o Inersaes 80 and 55 souhwes o Chicago.

Illiana is an essenial piece o inrasrucure or he region, noes Paul Fisher,

CenerPoins chie execuive ocer. Weve long advocaed or CalPERS o be


21/29


par o his. Fisher says ha hed like o see he highway exended easward rom

Inersae 65 ino he manuacuring regions o easern Indiana and Ohio. Is all

abou ruck movemen allied wih our rail sysem. Wihou his, he atraciveness

o our huge business park [wes o Chicago] would be less.53

CenerPoin is a labor-riendly company, Fisher says. Im a big believer ha you gewha you pay or. We ake seriously our responsibiliy ha our mission isn jus mak-

ing money. As an aliae o CalPERS, we have a responsible-conracor policy.


22/29


Legislating P3s in Pennsylvania

Despie CalPERSs policy leadership, he ae o exising public-service employees

remains in doub when a public-privae-parnership projec is coming o a com-

muniy. Tis problem was addressed in 2006 by an ocial o P3 advocae Goldman

Sachs, who old a congressional hearing ha, I is also imporan o consider he

uure o he municipal employees as a resul o a [P3] concession. I is possible or

concession conracs o be writen so a concessionaire mus use municipal employ-

ees or all or a porion o oll collecion, mainenance, adminisraion, ec.54

In 2008 he Pennsylvania legislaure rebued hen-Gov. Ed Rendells (D) eor

o sell a long-erm lease o he Pennsylvania urnpike o a P3 invesor in reurn

or an up-ron paymen o $12.8 billion. An analysis by he Pew Cener on he

Saes55 ound hain addiion o is overly opimisic nancial projecion and

doubs abou how i would manage he windallhe Rendell adminisraion

ailed o explain he long-erm eecs o he deal on sae residens and o codiy

public ineressincluding labor ineressin is P3-enabling legislaion.

Las summer Pennsylvania enaced progressive-enabling legislaion ha se

parameers or ransporaion-inrasrucure P3s. Wih respec o labor iner-

ess, he law seps well beyond mos similar sae P3 saues by requiring a P3

developer o oer subsanially idenical salaries and benes o public workers

covered by collecive-bargaining agreemens who migh oherwise be displaced

or requiring he sae o oer comparable jobs o workers who reuse employ-

men wih he P3. Te lawknown as House Bill 3also exends Pennsylvanias

prevailing-wage saue o P3 ransporaion projecs. Despie srong Republican

opposiion o he bills labor-riendly elemens, business and labor ineress uli-

maely joined in urging nal passage o he measure.56


23/29


Conclusion

When Abraham Lincoln rs ran or public oce, he cenerpiece o his cam-

paign was local improvemens or his communiy near Springeld, Illinois.

Laer, amid he umul o he Civil War, Presiden Lincoln underook esab-

lishing he naions railroad sysem. Te sysem was nanced largely by privae

invesors using governmen land subsidies. Bu he needs o workers building

and operaing he railroads played almos no ormal role in he process o crea-

ing one o Americas greaes public resources.

In a sign o radical progress since Lincolns ime, ordinary workers hrough heir

pension unds oday have a chance hrough public-privae parnerships, or P3s, o

inves ormally in upgrading surace inrasrucure and obain ormal proecions or

heir sandard o living as projec workers. Governmen policy mus nurure boh

oucomes as America rebuilds isel o prevail in global economic compeiion.

Tus ar, labor ineracions wih P3s as invesors and workers have been anecdoes

limied o local circumsances. Tese experiences aren ye reeced in a naional

dialogue abou inrasrucure. Lessons learned rom he experiences examined in

his repor and ohers mus be culled a he ederal level, analyzed, and made par

o he inrasrucure planning process across he naion.

Equally imporan o recognize is he ac ha labor concerns vary. Consrucion

workers wan he work and necessarily suppor new consrucion, or greeneld

projecs. Ye he recen eigh-day srike by clerical workers a he pors o Los

Angeles and Long Beach, Caliornia, highligh he separae issues aced by pos-

consrucion workers who are inegral o keeping public inrasrucure uncion-

ing in he public ineres.57 From projec designers o oll collecors, public and

privae workers who are no ye covered by Davis-Bacon or sae laws wih similarworker proecions mus be heard when i comes o P3 projecs.


24/29


A he ederal level, he way orward is clear:

Te Deparmen o ransporaion needs o plan is ag squarely on he side

o responsible-conracor policies ha enable union and nonunion workers o

compee equally in all phases o a P3 projecs lie cycle. Te Davis-Bacon Ac

alone is insucien o proec he array o labor ineress in a shi rom publicworks o privae works.

Te governmen mus guard agains he danger o shor-erm P3 pro seeking

by publishing bes-pracice guidelines or P3-nanced inrasrucure consruc-

ion and operaion in he naional ineres. Low-bid work canno mean low-

qualiy work on P3 projecs. As he CalPERS responsible-conracor policy says,

he privae elemen o public-privae parnerships canno be allowed o mean

unaccounable.

Despie he necessary role o sae and local governmens in shaping P3 inrasruc-ure projecs, he ederal governmen mus discourage projec-by-projec lawmak-

ing and push or a naional emplae ha ses a oor. Piecemeal rules such as he

Midway Airpor P3-enabling saue discourage invesors. Even dierences in sae

laws discourage global inrasrucure invesors and creae uncerainy abou labor

collaboraion on he naional ask o upgrading Americas inrasrucure.

Given he poenial dual role or laboras employees and invesorsederal

policy mus insis ha he risks aced by all P3 sakeholders are clear. In paricu-

lar, pension invesors represening he ineress o reirees mus know he pros

and cons embedded in long-erm, relaively illiquid inrasrucure invesmens.

Financial regulaors mus play a role alongside he Deparmen o ransporaion.

Public-privae parnerships or building roads and bridges are engrained in

Americas disan hisory and are re-emerging in our conemporary debae

abou inrasrucure modernizaion. Privae dollars can serve he public iner-

es in developing a globally compeiive ground-ransporaion nework. Wih

he righ agreemens in place when he rs shovels o dir are urned, hose

who build, operae, and mainain ha nework can bene rom jobs oday and

reiremen income omorrow.


25/29


About the author

Bill Barnhart is a ormer nancial edior and columnis or he Chicago Tribune,

a ormer presiden o he Sociey o American Business Ediors and Wriers, and

auhor oJohn Paul Stevens: An Independent Life.

Acknowledgements

Te auhor hanks Donna Cooper and John Craig o he Cener or American Progress

or heir advice and review and or shepherding his projec rom he beginning.


26/29


Endnotes

1 Miami-Dade County, Miami-Dade County Eco-nomic Indicators (2011), available at http://www.miamidade.gov/business/library/reports/economic-indicators/2011-11-economic-indicators.pd.

2 Pat Burson and Larry Lipman, House Rejects Reagan

Veto to Kill Pork Barrel Bill, Miami News, April 1, 1987.

3 Community Commentary, Is the Port o Miami TunnelOur Big Dig or Our Bridge to Nowhere, Transit Miami,June 2, 2010, available at http://www.transitmiami.com/dot/is-the-port-o-miami-tunnel-our-big-dig-or-our-tunnel-to-nowhere; Eric Maza, Port o Miami

Tunnel Project Could be South Floridas Big Dig, MiamiNew Times Blogs, June 2, 2010, available at http://blogs.miaminewtimes.com/riptide/2010/06/port_o_miami_tunnel_project_c.php#.

4 John Schwartz, Panamas Growth Prompts U.S. Ports toExpand, The New York Times, August 20, 2012, availableat http://www.nytimes.com/2012/08/21/us/us-ports-seek-to-lure-big-ships-ater-panama-canal-expands.html?pagewanted=all.

5 Congressional Budget Oce, Using Public-Private

Partnerships to Carry Out H ighway Projects (2012),available at http://www.cbo.gov/sites/deault/les/cboles/attachments/01-09-PublicPrivatePartnerships.pd.

6 For an excellent summary o the broad issues that needto be addressed when considering P3s, see RegionalPlan Association, Proceed With Caution: Ground Rulesor Public Private Partnership in New Jersey, (2007),available at http://www.rpa.org/pd/rpappp01082007.pd. See p. 8 or a summary o labor concerns in theassociations region.

7 Congressional Budget Oce, Using Public-PrivatePartnerships to Carry Out Highway Projects, p. 6.

8 Donna Cooper, Keith Miller, and John Craig, Accelerat-ing Inrastructure Improvements with Better PublicPolicies that Tap Private Investment (Washington:

Center or American Progress, 2012), available athttp://www.americanprogress.org/issues/economy/report/2012/11/27/46079/accelerating-inrastructure-improvements-with-better-public-policies-that-tap-private-investment/.

9 John Adler, Inrastructure Financing Brieng, Presenta-tion or the Service Employees International Union,December 17, 2008, available at http://stateinnovation.org/Events/Event-Listing/Wednesday-Briengs/2008-12-17-Inrastructure-Finance/SEIU-CSI-Inrastructure-1208-Formatted.aspx.

10 James Heintz, Robert Pollin, and Heidi Garrett-Peltier,How Inrastructure Investments Support the U.S.Economy: Employment, Productivity and Growth(Amherst, MA: Political Economy Research Instituteand Alliance or American Manuacturing, 2009): 5, 45,available at http://www.peri.umass.edu/leadmin/pd/

other_publication_types/green_economics/PERI_Inra-structure_Investments.

11 Government Accountability Oce, Highway Public-Private Partnerships (2008): 26, available at http://www.gao.gov/assets/280/272041.pd.

12 For a current drat o the Federal Highway Administra-tions model legislation, s ee: Federal Highway Adminis-tration, Working Draft(U.S. Department o Transporta-tion), available at http://www.hwa.dot.gov/ipd/pds/legis_model_0610.pd(last accessed March 2013).

13 Donna Cooper and John Grin, Highway Robbery(Washington: Center or American Progress, 2012),available at http://www.americanprogress.org/issues/economy/report/2012/10/02/39728/highway-robbery/;Eno Center or Transportation and Bipartisan PolicyCenter, The Consequences o Reduced Federal Trans-portation Investment (2012), available at https://www.enotrans.org/wp-content/uploads/wpsc/download-ables/Consequences-Paper-09-12.pd.

14 Chris Edwards, Inrastructure projects to x the econ-omy? Dont bank on it., The Washington Post, October21, 2011, available at http://articles.washingtonpost.com/2011-10-21/opinions/35280173_1_inrastructure-bank-hoover-dam-inrastructure-projects.

15 Daniel Shulman and James Ridgeway, The Highway-men: Why You Soon May Be Paying Wall Street Inves-tors, Australian Bankers, and Spanish Builders or the

Privilege o Driving on American Roads,Mother Jones,January/February 2007, p. 26, available at http://www.motherjones.com/politics/2007/01/highwaymen.

16 Federal Highway Administration, Report to Congress onPublic-Private Partnerships (U.S. Department o Trans-portation, 2004), available at http://www.hwa.dot.gov/reports/pppdec2004/pppdec2004.pd.

17 Ibid.

18 Ibid., pp. 1517.

19 International Union o Operating Engineers, History,available at http://www.iuoe.org/Home/AboutIUOE/HistoryoIUOE/tabid/62/Deault.aspx (last accessedMarch 2013).

20 Laborers International Union o North America, Look-

ing Back, Moving Forward (2003), available at http://www.liuna.org/Portals/0/docs/timeline.pd.

21 Federal Highway Administration, Report to Congress onPublic-Private Partnerships, p. 26.

22 John Adler, Inrastructure Financing Brieng; Larry W.Beeerman, Pension Fund Investment in I nrastruc-ture: A Resource Paper (Cambridge, MA: Harvard LawSchool, 2008), available at http://www.law.harvard.edu/programs/lwp/pensions/publications/occpapers/oc-casionalpapers3.pd.

23 See Federal Highway Administration, User Guidebookon Implementing Public-Private Partnerships for Transpor-tation Infrastructure Projects in the United States (U.S.Department o Transportation, 2007): p. 8, available athttp://www.hwa.dot.gov/ipd/pds/ppp_user_guide-book_nal_7-7-07.pd.

24 John Adler, SEIU Testimony to the Senate Appropria-tions Committee on Public Private Partnerships, MetroPlanning Council, May 31, 2006, available at http://www.metroplanning.org/news-events/article/5638.

25 Government Accountability Oce, Highway Public-Private Partnerships, pp. 4748.
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27/29


26 Ronald A. Wirtz, Public-Private Partnerships: For Whomthe Road Tolls? (Minneapolis, MN: Federal ReserveBank o Minneapolis, 2009): p. 37, available at http://www.minneapolised.org/pubs/region/09-06/ppps.pd; Bethany McLean, Would You Buy a Bridge From

This Man?, Fortune, October 2, 2007, available at http://money.cnn.com/2007/09/17/news/international/macquarie_inrastructure_unds.ortune/index.htm;Bruce Einhorn, Way Up Down Under, BloombergBusinessweek, October. 9, 2009, available at http://www.businessweek.com/stories/2005-10-09/way-up-down-under; Ryan Holeywell, The Indiana Toll Road: A Model

or Privatization?, Governing the States and Localities,October 2011, available at http://www.governing.com/topics/mgmt/indiana-toll-road-model-privatization.html#; Darrell Preston, Illinois, Indiana Toll Roads MayJoin Macquarie S ales (Update1),Bloomberg, July 28,2009, available at http://www.bloomberg.com/apps/news?pid=21070001&sid=ak1L8GqtwQg.

27 Craig L. Johnson, Martin J. Luby, and Skokhrukh I.Kurbanov, Toll Road Privatization Transactions: TheChicago Skyway and Indiana Toll Road (Bloomington,IN: School o Public and Environmental Aairs, IndianaUniversity, 2007), available at http://www.docstoc.com/docs/45748860/Toll-Road-Privatization-Transactions-

The-Chicago-Skyway-and-Indiana; Josh Goodman, ALabor Challenge to Republicans in Indiana, Stateline,May 8, 2012, available at http://www.pewstates.org/projects/stateline/headlines/a-labor-challenge-to-republicans-in-indiana-85899385407#.

28 Benjamin G. Perez and James W. March, Public-PrivatePartnerships and the Development o Transport Inra-structure: Trends on Both Sides o the Atlantic (Alberta,Canada: Institute o Public Economics at the Universityo Alberta, 2006): p. 11, available at http://nancecom-mission.dot.gov/Documents/Background%20Docu-ments/perez_ban_ppp_nal.pd.

29 Federal Highway Administration, Project Proles:South Bay Expressway, available at http://www.hwa.dot.gov/ipd/project_proles/ca_southbay.htm(lastaccessed March 2013).

30 Randall Jensen, Tollway Exits Chapter 11, The BondBuyer, May 5, 2011, available at http://www.bondbuyer.com/issues/120_87/south_bay_expressway_bank-ruptcy-1026333-1.html.

31 Personal communication rom Damon Silvers, Novem-ber 2, 2012.

32 Personal communication rom Jack Marco, October 14,2012.

33 Personal communication rom Richard Tettament,November 9, 2012.

34 Personal communication rom Sonia Axter, November6, 2012.

35 Institutional Investing in Inrastructure Conerence, WHotel, Chicago, November 6, 2012.

36 Moving Ahead for Progress in the 21st Century Act,H. Rept. 4348, Section 20013, paragraph 5315, pp.288289, available at http://www.gpo.gov/dsys/pkg/BILLS-112hr4348enr/pd/BILLS-112hr4348enr.pd.

37 U.S. Department o Labor, Davis-Bacon and RelatedActs, O verview, available at http://www.dol.gov/whd/govcontracts/dbra.htm#.UK-g3m4Iso (last accessedMarch 2013).

38 Federal Highway Administration, Chapter 3: EligibilityRequirements (U.S. Department o Transportation,2012), available at http://www.hwa.dot.gov/ipd/pds/tia/pg_chap3.pd.

39 Illinois Local Government Facility Lease Act, PublicAct 094-0750, Sections, 25, 30, 35, 40, available athttp://www.ilga.gov/legislation/publicacts/ulltext.asp?Name=094-0750&print=true&write.

40 Ibid.

41 Personal communication rom Henry Bayer, October 22,2012.

42 CalPERs, Caliornia Public Employees RetirementSystem Statement o Investment Policy or Responsible

Contractor Program (2012), available at http://www.calpers.ca.gov/eip-docs/investments/policies/inv-asset-classes/real-estate/responsible-contractor.pd. For ageneral discussion o responsible contractor policies,see: In the Public I nterest, Responsible Contract-ing, available at http://www.inthepublicinterest.org/node/772 (last accessed March 2013). For otherexamples o responsible contractor policies, see: Labor-ers International Union o North America, ResponsibleContractor Policy, available at http://www.liuna.org/portals/0/departments/corpaairs/docs/inrastructure.pd(last accessed March 2013); Ohio Public EmployeesRetirement System, Responsible Contractor Policy(2003), available at http://www.liuna.org/portals/0/departments/corpaairs/docs/ppunds/OHpublicem-ployees.pd.

43 David Madland and others, Contracting that Works(Washington: Center or American Progress Action

Fund, 2010), available at http://www.americanprogres-saction.org/issues/labor/report/2010/03/31/7444/contracting-that-works/.

44 Personal communication rom Michael Likosky, Novem-ber 16, 2012.

45 CalPERs, Caliornia Public Employees RetirementSystem Statement o Investment Policy or ResponsibleContractor Program.

46 Personal communication rom Richard Metcal, Sep-tember 21, 2012.

47 Personal communication rom Chris Hodgkins, Novem-ber 9, 2012.

48 Personal communication rom Mark Schaunaman,November 5, 2012.

49 Jane Garvey, interview with author, November 7, 2012.

50 Personal communication rom Bruce Blanning, Novem-ber 14, 2012.

51 Illinois General Assembly, Illinois Public-Private Agree-ments or the I lliana Expressway Act, 605 Ill. Comp. Stat. 130, available at http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3229&ChapterID=45; Illinois GeneralAssembly, Illinois Procurement Code, 30 Ill. Comp. Stat. 500, available at http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=532&ChapterID=7; Indiana General As-sembly, Illiana Expressway, Ind. Code 8-23-27, avail-able at http://www.in.gov/legislative/ic/code/title8/ar23/ch27.pd; Public-private agreements, IndianaSenate Bill 382 (2010), available at http://legiscan.com/gaits/text/503656; Indiana Department o Labor, Guideto Establishing I ndianas Common Construction Wage

Act (2008), available at http://www.in.gov/dol/les/Guide_to_CCW_5-30-08.pd.

52 Personal communication rom James Sweeney, Novem-ber 13, 2012.

53 Personal communication rom Paul Fisher, November16, 2012.
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29&ChapterID=45http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3229&ChapterID=45http://www.americanprogressaction.org/issues/labor/report/2010/03/31/7444/contracting-that-works/http://www.americanprogressaction.org/issues/labor/report/2010/03/31/7444/contracting-that-works/http://www.americanprogressaction.org/issues/labor/report/2010/03/31/7444/contracting-that-works/http://www.liuna.org/portals/0/departments/corpaffairs/docs/ppfunds/OHpublicemployees.pdfhttp://www.liuna.org/portals/0/departments/corpaffairs/docs/ppfunds/OHpublicemployees.pdfhttp://www.liuna.org/portals/0/departments/corpaffairs/docs/ppfunds/OHpublicemployees.pdfhttp://www.liuna.org/portals/0/departments/corpaffairs/docs/infrastructure.pdfhttp://www.liuna.org/portals/0/departments/corpaffairs/docs/infrastructure.pdfhttp://www.liuna.org/portals/0/departments/corpaffairs/docs/infrastructure.pdfhttp://www.inthepublicinterest.org/node/772http://www.inthepublicinterest.org/node/772http://www.calpers.ca.gov/eip-docs/investments/policies/inv-asset-classes/real-estate/responsible-contractor.pdfhttp://www.calpers.ca.gov/eip-docs/investments/policies/inv-asset-classes/real-estate/responsible-contractor.pdfhttp://www.calpers.ca.gov/eip-docs/investments/policies/inv-asset-classes/real-estate/responsible-contractor.pdfhttp://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=094-0750&print=true&writehttp://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=094-0750&print=true&writehttp://www.fhwa.dot.gov/ipd/pdfs/tifia/pg_chap3.pdfhttp://www.fhwa.dot.gov/ipd/pdfs/tifia/pg_chap3.pdfhttp://www.gpo.gov/fdsys/pkg/BILLS-112hr4348enr/pdf/BILLS-112hr4348enr.pdfhttp://www.gpo.gov/fdsys/pkg/BILLS-112hr4348enr/pdf/BILLS-112hr4348enr.pdfhttp://www.bondbuyer.com/issues/120_87/south_bay_expressway_bankruptcy-1026333-1.htmlhttp://www.bondbuyer.com/issues/120_87/south_bay_expressway_bankruptcy-1026333-1.htmlhttp://www.bondbuyer.com/issues/120_87/south_bay_expressway_bankruptcy-1026333-1.htmlhttp://www.fhwa.dot.gov/ipd/project_profiles/ca_southbay.htmhttp://www.fhwa.dot.gov/ipd/project_profiles/ca_southbay.htmhttp://financecommission.dot.gov/Documents/Background%20Documents/perez_banff_ppp_final.pdfhttp://financecommission.dot.gov/Documents/Background%20Documents/perez_banff_ppp_final.pdfhttp://financecommission.dot.gov/Documents/Background%20Documents/perez_banff_ppp_final.pdfhttp://www.pewstates.org/projects/stateline/headlines/a-labor-challenge-to-republicans-in-indiana-85899385407http://www.pewstates.org/projects/stateline/headlines/a-labor-challenge-to-republicans-in-indiana-85899385407http://www.pewstates.org/projects/stateline/headlines/a-labor-challenge-to-republicans-in-indiana-85899385407http://www.docstoc.com/docs/45748860/Toll-Road-Privatization-Transactions-The-Chicago-Skyway-and-Indianahttp://www.docstoc.com/docs/45748860/Toll-Road-Privatization-Transactions-The-Chicago-Skyway-and-Indianahttp://www.docstoc.com/docs/45748860/Toll-Road-Privatization-Transactions-The-Chicago-Skyway-and-Indianahttp://www.bloomberg.com/apps/news?pid=21070001&sid=akf1L8GqtwQghttp://www.bloomberg.com/apps/news?pid=21070001&sid=akf1L8GqtwQghttp://www.governing.com/topics/mgmt/indiana-toll-road-model-privatization.htmlhttp://www.governing.com/topics/mgmt/indiana-toll-road-model-privatization.htmlhttp://www.governing.com/topics/mgmt/indiana-toll-road-model-privatization.htmlhttp://www.businessweek.com/stories/2005-10-09/way-up-down-underhttp://www.businessweek.com/stories/2005-10-09/way-up-down-underhttp://www.businessweek.com/stories/2005-10-09/way-up-down-underhttp://money.cnn.com/2007/09/17/news/international/macquarie_infrastructure_funds.fortune/index.htmhttp://money.cnn.com/2007/09/17/news/international/macquarie_infrastructure_funds.fortune/index.htmhttp://money.cnn.com/2007/09/17/news/international/macquarie_infrastructure_funds.fortune/index.htmhttp://www.minneapolisfed.org/pubs/region/09-06/ppps.pdfhttp://www.minneapolisfed.org/pubs/region/09-06/ppps.pdfhttp://www.minneapolisfed.org/pubs/region/09-06/ppps.pdf


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54 Mark Florian, Understanding Contemporary PublicPrivate Highway Transactions: The Future o Inrastruc-ture Finance?, Testimony beore the Subcommitteeon Highways, Transit and Pipelines o the HouseCommittee on Transportation and Inrastructure, May24, 2006, available at http://www.gpo.gov/dsys/pkg/CHRG-109hhrg28290/html/CHRG-109hhrg28290.htm.

55 The Pew Center on the States, Driven by Dollars: WhatStates Should Know When Considering Public-PrivatePartnerships to Fund Transportation (2009), availableat http://www.pewtrusts.org/uploadedFiles/ww-

wpewtrustsorg/Reports/State_policy/PA_Turnpike_FI-NAL_WEB.pd.

56 Pennsylvania Consolidated Statutes, Title 74, Part V,Transportation Inrastructure, Chapter 91, Public-Private Transportation Partnership, Section 9110(19)Section 9120 (7), available at http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=

B&billNbr=0003&pn=3769. Despite strong Republicanopposition to inserting prevailing-wage protection intothe legislation, the act was supported by a coalitiono Pennsylvanias business interests organized as ThePennsylvania Prosperity Project. See The PennsylvaniaProsperity Project, Take Action!, available at http://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIA(last accessedMarch 2013). See also the Pennsylvania AFL-CIO: IBEWLocal Union 29, PA AFL CIO Update Feb 2012, February20, 2012, available at http://www.ibew29.org/index.

php/the-news3/324-pa-af-cio-update-eb-2012.

57 Ian Lovett, Los Angeles and Long Beach Ports toReopen Ater 8-Day Strike, The New York Times,December 5, 2012, available at http://www.nytimes.com/2012/12/06/us/los-angeles-and-long-beach-ports-to-reopen-ater-strike.html?pagewanted=print.
http://www.gpo.gov/fdsys/pkg/CHRG-109hhrg28290/html/CHRG-109hhrg28290.htmhttp://www.gpo.gov/fdsys/pkg/CHRG-109hhrg28290/html/CHRG-109hhrg28290.htmhttp://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/PA_Turnpike_FINAL_WEB.pdfhttp://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/PA_Turnpike_FINAL_WEB.pdfhttp://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/PA_Turnpike_FINAL_WEB.pdfhttp://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.ibew29.org/index.php/the-news3/324-pa-afl-cio-update-feb-2012http://www.ibew29.org/index.php/the-news3/324-pa-afl-cio-update-feb-2012http://www.nytimes.com/2012/12/06/us/los-angeles-and-long-beach-ports-to-reopen-after-strike.html?pagewanted=printhttp://www.nytimes.com/2012/12/06/us/los-angeles-and-long-beach-ports-to-reopen-after-strike.html?pagewanted=printhttp://www.nytimes.com/2012/12/06/us/los-angeles-and-long-beach-ports-to-reopen-after-strike.html?pagewanted=printhttp://www.nytimes.com/2012/12/06/us/los-angeles-and-long-beach-ports-to-reopen-after-strike.html?pagewanted=printhttp://www.nytimes.com/2012/12/06/us/los-angeles-and-long-beach-ports-to-reopen-after-strike.html?pagewanted=printhttp://www.nytimes.com/2012/12/06/us/los-angeles-and-long-beach-ports-to-reopen-after-strike.html?pagewanted=printhttp://www.ibew29.org/index.php/the-news3/324-pa-afl-cio-update-feb-2012http://www.ibew29.org/index.php/the-news3/324-pa-afl-cio-update-feb-2012http://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.pennsylvaniaprosperity.org/issue_alert.asp?g=pennsylvania&issue=Support_Public_Private_Partnerships_%28HB3%29&parent=PENNSYLVANIAhttp://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2011&sessInd=0&billBody=H&billTyp=B&billNbr=0003&pn=3769http://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/PA_Turnpike_FINAL_WEB.pdfhttp://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/PA_Turnpike_FINAL_WEB.pdfhttp://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/PA_Turnpike_FINAL_WEB.pdfhttp://www.gpo.gov/fdsys/pkg/CHRG-109hhrg28290/html/CHRG-109hhrg28290.htmhttp://www.gpo.gov/fdsys/pkg/CHRG-109hhrg28290/html/CHRG-109hhrg28290.htm


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for all. We believe that Americans are bound together by a common commitment to

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Infrastructure Partnerships: Labor’s Evolving Experience

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