Project labor agreement creates thousands of jobs

October 2010 Vol. 65 No. 10
A scene from the construction of the Keystone pipeline.

A $7 billion project labor agreement (PLA) was signed Sept.14, by the United Association General President William P. Hite and TransCanada Corporation. In a time when the construction industry is facing record unemployment, this project will create thousands of quality jobs for the well-trained members of the United Association as well as other labor organizations for the construction of the 1,959-mile Keystone Gulf Coast Expansion Pipeline Project (Keystone XL).

This extensive oil pipeline project will result in over seven million work hours and more than 13,000 new jobs for American workers. When completed, the pipeline system will increase capacity by an additional 500,000 barrels per day and increase the U.S. gross national product by nearly $10 billion per year.

“The United Association of Plumbers, Pipefitters and Sprinklerfitters (UA) is proud to be a part of this collaboration and looks forward to adding thousands of well-paying construction jobs to this country,” said Hite. “Our highly-skilled workforce is ready to begin work and help boost our local and state economies.”

Report: Significant Impact to Local and National Economy
The Perryman Group Report finds that construction of the Keystone XL pipeline will provide short-term contributions to the U.S. economy valued at over $20 billion. The pipeline – stretching from Alberta, Canada, through Montana and other Great Plains states, down to Texas – will make an initial impact to state economies estimated at:

  • Montana: $421 million
  • South Dakota: $470 million
  • Nebraska: $468 million
  • Kansas: $683 million
  • Oklahoma: $1.2 billion
  • Texas: $2.3 billion

Conservative estimates show the pipeline providing permanent long-term benefits to the U.S. economy including:

  • Creation of 250,000 permanent jobs for U.S. workers
  • An annual increase in total spending of $100 billion

The PLA was signed by TransCanada, the UA, the Laborers International Union of North America, the International Brotherhood of Teamsters and the International Union of Operating Engineers. Firm timelines have been established and the initial phase of construction will begin in the first quarter of 2011 with completion planned by early 2013.

Additional information about the Keystone XL pipeline is available at www.transcanada.com/keystone, and The Perryman Group Report at www.perrymangroup.com.