The bidding for a major component of the Hudson Tunnel project is now the subject of a federal court challenge after a New Jersey contractor alleged that the Gateway Development Commission’s new labor agreement prevents it from competing for the work.
George Harms Construction Co. filed the lawsuit Nov. 26 in the U.S. District Court for the District of New Jersey, seeking to halt bidding for the New Jersey surface alignment package and arguing that the PLA approved by the commission on Aug. 20 excludes the company’s United Steelworkers-represented workforce. Offers expire on December 10th.
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Harms is one of four design and construction teams the commission selected Feb. 26 for the contract, which includes tracks, retaining structures, bridges, a wetland viaduct and extensive utility work from Secaucus to North Bergen, NJ.
ENR reviewed council minutes, public comments, meeting transcripts and the full project labor agreement adopted Aug. 20, as well as the complaint filed in federal court.
Documents show the commission did not identify a PLA in its November 2024 request for ratings or its Feb. 28 request for proposals, but presented the concept publicly at the July 28 board meeting. Resolution 0725-04, introduced at that session, authorized Director General Thomas Prendergast to negotiate a PLA for the surface alignment package.
Objections raised after the public publication of the PLA
Minutes from the July meeting show Commissioner Alicia Glen requested a review that would have required any agreement to be returned to the board for approval before taking effect. The session also drew initial objections from Harms and the United Steelworkers.
In a written comment, USW argued that adopting a PLA excluding the union “would decrease competition for public works and lead to higher costs, to the detriment of taxpayers,” adding that its Local 318 “is a source of skilled labor for the project,” recognized by the New Jersey Department of Labor.
The union also referenced the longstanding “harmony agreement” that allowed steelworkers and construction trades to “work side by side on the same job projects in New Jersey and avoid jurisdictional disputes.”
Harms CEO Rob Harms told commissioners the company could not bid under a PLA that excluded the Steelworkers. “We will not be able to make a legal offer,” he said, according to the transcript of the meeting reviewed by ENR.
Despite the objections, commissioners voted unanimously on Aug. 20 to approve Resolution 0825-01 approving the PLA. The 65-page agreement, which is attached as Annex A to the resolution, lists as signatories the Building and Construction Trades Council of Hudson County and its affiliated unions; the Steelworkers are not included.
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The PLA states that it “shall apply in full to any successful bidder for project work signed by it” and that its terms “supersede any national agreement, local agreement or other collective agreement” unless specifically exempted.
Public comments at the Aug. 20 meeting again emphasized the exclusion. “Our members have performed heavy duty and highway work in New Jersey for decades. There is no reason to exclude them,” USW representative Mike Fisher told commissioners, according to the minutes. Harms reiterated that the agreement would prevent a bid from being submitted.
The resolution states that the commission, through an outside consultant, hired a labor consultant whose study found that a PLA would benefit the surface alignment package in terms of cost, schedule and labor harmony.
The study was not included in public materials, and the minutes do not show the commissioners discussing the exclusion of the Steelworkers.
In his lawsuit, Harms argues that the PLA violates the Gateway Development Commission Act, which directs the agency to use existing workforces in both states and to foster labor harmony.
He also cites the commission’s hiring guidelines, which demand the highest level of competence. The lawsuit adds claims under the Sherman Act, as well as due process and equal protection clauses, alleging that the commission exceeded its authority by adopting a labor agreement that excluded a longtime union that represented heavy and highway workers in New Jersey.
The Gateway Commission responds
When asked for comment on the lawsuit, the Gateway Development Commission told ENR that “all shortlisted bidders for the NJ Surface Alignment Project are qualified and permitted to work on the project. No bidder is excluded,” said Molly Beckhardt, senior communications associate. “Project labor agreements are an important part of ensuring consistent and predictable work rules that benefit workers and support timely project execution. GDC has successfully implemented PLAs in other Hudson Tunnel Project construction packages.”
It added that “any awardee may work on the NJ surface alignment project, regardless of which unions have agreements, as long as those unions consent to the PLA,” and said the commission “is confident that the procurement of the NJ surface alignment contract has complied with all relevant laws, regulations and internal guidelines.”
Harms filed an internal protest of the bid on Oct. 29 requesting a formal hearing and requesting that the commission extend the Dec. 10 bid deadline. The commission’s designated protest officer responded Nov. 10 that more time was needed to assess the issues, but did not say when a decision would be made or if the deadline would be extended.
On November 11, Harms raised concerns about potential conflicts of interest and renewed his application. The lawsuit claims the commission’s inaction made the protest process “futile,” prompting the federal filing.
The complaint asks the court to freeze the hiring until it determines whether the PLA complies with state and federal law. A ruling could affect the commission’s timetable for awarding the surface alignment contract, one of the largest civil works components of the Hudson Tunnel project. The outcome may also influence upcoming design-build procurements if the commission plans to use similar labor structures in other packages.
United Steelworkers did not respond to ENR’s request for comment before press. The court has not scheduled hearings on Harms’ request for a preliminary injunction.
