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NJBIA and several other leading groups this week urged Gov. Phil Murphy to veto a bill on his desk that will require the State and other public entities to include labor harmony agreements as part of any agreement it enters with retail and distribution projects.

The signatories in a letter to the governor said bill A-4630 (Burzichelli, D-3) will increase costs for future owners or tenants of retail and distribution centers, while also limiting the contractors that can participate in a particular project. Contractors and subcontractors would be required to enter into labor harmony agreements for no less than five years to work on qualifying projects.

“The additional costs associated with this type of long-term agreement can discourage new business owners and tenants from pursuing retail projects in New Jersey,” the groups wrote.

“New Jersey is already home to the least competitive business climate in the region. Costly mandates such as this will only make that climate worse and discourage potential tenants and owners from undertaking retail and distribution center projects here.”

To read the full letter from NJBIA, the New Jersey State Chamber of Commerce, the Commerce and Industry Association of New Jersey, NAIOP, the New Jersey Food Council, New Jersey Builders Association and the New York Shipping Association, click here.