Sixteen groups representing the U.S. construction industry sent a letter to the White House opposing a recent executive order signed by President Joe Biden requiring “project labor agreements” in federal construction projects over $35 million.

The order signed by Biden earlier this month, is expected to impact nearly 200,000 workers, the White House has said, and offer a potential boost to workers and unions that negotiate these deals.

Project labor agreements are collective bargaining agreements between building trade unions and contractors, which set wages, employment conditions, and dispute resolution on specific projects.

“The administration’s flawed rationale justifying pro-PLA policies ignores marketplace realities and broad opposition to government-mandated PLAs within the construction industry,” said the letter, which was sent to the White House on Tuesday.

The groups said the labor agreements will exacerbate the construction industry’s skilled labor shortage and undermine the Biden administration’s ability to meet its infrastructure, affordable housing and clean energy goals.

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