In an executive order signed Dec. 18, Oregon Governor Tina Kotek is directing all state agencies — when they award any construction contract or commit funds to a construction project — to require contractors and subcontractors to sign project labor agreements (PLAs) with building trades unions, committing to use union labor. The PLAs have to include a no-strike guarantee and binding procedures for resolving labor disputes, and can’t exclude non-union firms from signing on temporarily. The order applies to all projects where labor is 15% or more of the total cost, but agency directors can ask the governor for exemptions for short-term emergency work and projects that involve only one trade.
The order also requires state agencies to set targets to increase utilization of minority-owned firms.
The order is a rebuke of Associated General Contractors – Oregon, which has a suit pending in the Oregon Supreme Court to stop PLAs at Oregon Department of Transportation.
That’s a great benefit to Oregon. Union workers who live in the area performing work in the state. Union workers pay state taxes and spend money in their communities strengthening the economy and local communities. Out of state non union contractors bring their employees from right to work for less states into Oregon then send the money back to their welfare states. Ms Tina did the a great job in protecting her state!
While I respect the intent behind the executive order to benefit local communities, I have concerns about its broader implications. Only 14.9% of Oregon’s construction workforce is unionized, meaning the majority of highly skilled and capable workers are not represented by unions. Mandating project labor agreements (PLAs) on most state-funded projects could exclude a significant portion of local contractors and workers who have successfully completed public works projects for decades.
As someone who helps run a small, employee-owned, non-union construction-related business, I worry that this policy will reduce competition, inflate costs, and limit opportunities for minority-owned and emerging contractors who are vital to Oregon’s economy. These businesses often lack the resources to navigate union requirements temporarily, which may undermine efforts to support diversity in construction.
While union labor does contribute to the local economy, so do non-union companies like ours. We are locally owned, reinvest in our communities, and provide competitive wages and benefits to our employees (who are also our owners). This policy risks steering taxpayer dollars to union-signatory firms, which can include out-of-state contractors, rather than supporting the many local businesses and workers who have long been committed to building Oregon.