A guiding value of the Oregon labor movement is to create a fair and just economy that enables any worker — regardless of where they’re from, the language they speak, or who they love — to not only survive, but to thrive. No matter the sector, our movement is always looking for ways to raise standards, improve job quality, and make certain that any worker dreaming of a better life has a place in an Oregon union if they choose.
In the construction industry, project labor agreements (PLAs) are pre-hire agreements utilized by business and labor to set the terms and conditions of employment — like apprenticeship and training requirements, wages, benefits, etc. — and to coordinate the numerous types of skilled construction workers under a single umbrella contract for one or more projects. This is a tool that has been used for nearly 100 years across the country on both public and private projects including the Grand Coulee and Hoover dams, Hanford nuclear site, every NFL stadium, countless K-12 schools and higher education campuses, Walt Disney properties, and clean energy projects like offshore wind farms. PLA projects save taxpayers and investors billions of dollars because they reduce the uncertainty inherent in large-scale construction projects and increase on-time and on-budget completion.
In fact, a recent study by the Illinois Economic Policy Institute — analyzing one of the largest data sets ever used to assess the effectiveness and impacts of PLAs— reported some significant findings. Of the PLA-covered projects analyzed in the study, the bidding was more competitive with more overall bidders than the non-PLA projects; PLA projects were more likely to be awarded at a cost below the original project engineering estimate; and projects covered by a PLA employed more apprentices training for a career in construction, particularly from historically underrepresented populations of women and workers of color.
These are just some of the reasons why the Oregon labor movement applauded and welcomed Governor Tina Kotek’s December executive order pertaining to the use of PLAs on state-funded construction projects. We know, like the governor knows, that this is a responsible policy to make sure that state dollars spent on construction are used to ensure that big things get done well, on time, and on budget. We also know collective bargaining agreements have been shown to reduce racial and gender pay gaps by assuring equal compensation. Union labor is also found to be more productive, as projects with collective bargaining agreements experience lower turnover, fewer shortages, and an overall reduction in project costs, according to a 2023 report done by the Center for American Progress. That same study also showcases the fact that PLAs are effective tools for creating good value on projects that are taxpayer-funded, confirming fair wages and good benefits for the workers on the projects, and removing barriers for workers from all walks of life to access the jobs created. PLAs help level the playing field on construction projects and allow non-union firms to bid on projects as long as they agree to the terms and conditions of the agreement. They also make projects safer because they often include language establishing labor-management committees that deal specifically with safety and health issues.
Governor Kotek showed with this executive order that she gets it, and that she understands how important it is to do everything in her power to establish a high road future as the state spends taxpayer dollars on major construction projects. The Oregon labor movement stands ready to get to work to ensure the success of this new policy, and we look forward to continuing our track record of getting big things done well in the years ahead.
