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By Adrianna Lopez, Director of Labor Relations - published in MMQB - December 22, 2025 What is the SDUSD PSA? The Project Stabilization Agreement (PSA) is a pre-hire labor agreement between San Diego Unified School District (SDUSD) and local building trades unions. With similar requirements of a Project Labor Agreement (PLA), it applies to most bond-funded projects over $1 million and contains specific requirements for local hiring, use of union labor, wage determinations, dispute resolution processes, and apprenticeship hiring goals. Step 1: Sign the Letter of Assent Before starting work, every contractor and subcontractor must sign a Letter of Assent (LOA) agreeing to PSA terms. Make LOA execution part of your subcontract award process; missing this step can delay mobilization. Step 2: Union Assignment via the Pre-Job Conference Primes must attend a pre-job labor conference to align with unions and the District on scopes, manpower, and compliance. At this meeting, the unions will review the various scopes of work anticipated on site, and will claim work rights, assigning which local contractors are required to hire workers from and pay benefits to. Step 3: Understand Core Employee Rules Open-shop contractors can use a limited number of core employees (essentially their own workforce) provided they meet specific work-hour and residency requirements. These workers are not required to join the union but are required to register with the union hiring hall and benefit program. Core workers are limited to a maximum of three in this agreement. Pro Tip: Identify eligible core employees early and prepare them for registration. Step 4: Hiring Hall Referrals & Apprenticeships Unless you’re already signatory to a union agreement, you’ll source most workers through union hiring halls. The PSA also requires using apprentices from joint labor-management programs. Plan apprentice hours and ratios by craft and track compliance weekly. Step 5: Wages & Fringe Benefits All contractors must pay prevailing wages and remit fringe benefits to union trust funds for PSA-covered work. Configure payroll systems accordingly and audit early to avoid costly errors. Pro Tip: Be sure to include additional administrative and benefit costs at bid time to cover monthly reporting costs and payment of double benefits if you already have in-house benefit plans. Step 6: Meet Local Hire Goals SDUSD emphasizes community engagement through hiring goals: - 35% of craft hours from targeted ZIP codes - 70% from within SDUSD boundaries - 100% from San Diego County Coordinate with unions and track zip codes at onboarding and at dispatch requests. Weekly reporting helps you stay on target. Step 7: Dispute Resolution & No-Strike Protection The PSA includes no-strike/no-lockout provisions and a structured dispute resolution process. Document jurisdictional assignments and follow PSA procedures if conflicts arise. Why It Matters Not following PSA mandates can result in costly penalties and payment delays. It’s important that contractors follow the requirements diligently to stay in compliance. Bottom Line With early planning and proactive coordination, open-shop contractors can compete successfully, deliver quality work, and ensure compliance on SDUSD PSA projects.
By Adrianna Lopez, Director of Labor Relations - published in MMQB - December 22, 2025
What is the SDUSD PSA? The Project Stabilization Agreement (PSA) is a pre-hire labor agreement between San Diego Unified School District (SDUSD) and local building trades unions. With similar requirements of a Project Labor Agreement (PLA), it applies to most bond-funded projects over $1 million and contains specific requirements for local hiring, use of union labor, wage determinations, dispute resolution processes, and apprenticeship hiring goals. Step 1: Sign the Letter of Assent Before starting work, every contractor and subcontractor must sign a Letter of Assent (LOA) agreeing to PSA terms. Make LOA execution part of your subcontract award process; missing this step can delay mobilization. Step 2: Union Assignment via the Pre-Job Conference Primes must attend a pre-job labor conference to align with unions and the District on scopes, manpower, and compliance. At this meeting, the unions will review the various scopes of work anticipated on site, and will claim work rights, assigning which local contractors are required to hire workers from and pay benefits to. Step 3: Understand Core Employee Rules Open-shop contractors can use a limited number of core employees (essentially their own workforce) provided they meet specific work-hour and residency requirements. These workers are not required to join the union but are required to register with the union hiring hall and benefit program. Core workers are limited to a maximum of three in this agreement. Pro Tip: Identify eligible core employees early and prepare them for registration. Step 4: Hiring Hall Referrals & Apprenticeships Unless you’re already signatory to a union agreement, you’ll source most workers through union hiring halls. The PSA also requires using apprentices from joint labor-management programs. Plan apprentice hours and ratios by craft and track compliance weekly. Step 5: Wages & Fringe Benefits All contractors must pay prevailing wages and remit fringe benefits to union trust funds for PSA-covered work. Configure payroll systems accordingly and audit early to avoid costly errors. Pro Tip: Be sure to include additional administrative and benefit costs at bid time to cover monthly reporting costs and payment of double benefits if you already have in-house benefit plans. Step 6: Meet Local Hire Goals SDUSD emphasizes community engagement through hiring goals: - 35% of craft hours from targeted ZIP codes - 70% from within SDUSD boundaries - 100% from San Diego County Coordinate with unions and track zip codes at onboarding and at dispatch requests. Weekly reporting helps you stay on target. Step 7: Dispute Resolution & No-Strike Protection The PSA includes no-strike/no-lockout provisions and a structured dispute resolution process. Document jurisdictional assignments and follow PSA procedures if conflicts arise. Why It Matters Not following PSA mandates can result in costly penalties and payment delays. It’s important that contractors follow the requirements diligently to stay in compliance. Bottom Line With early planning and proactive coordination, open-shop contractors can compete successfully, deliver quality work, and ensure compliance on SDUSD PSA projects.