By NIGEL JAQUISS/Willamette Week
Associated General Contractors, the trade group that represents more than 800 Oregon construction firms, is pushing back hard on an executive order Gov. Tina Kotek issued just before the holidays.
That order requires that construction projects that receive state funding and for which labor costs are more than 15 percent of total costs include labor agreements. Such agreements require that the general contractor engage in collective bargaining with labor unions and establish apprenticeship programs, pay into benefit trusts and adhere to minority-contracting requirements.
Kotek said project labor agreements are in the public’s interest and will result in higher quality and lower costs, more timely completion and will help train a skilled workforce.
“Oregon will soon embark on multiple large scale infrastructure projects across the state. With these projects, we have a generational opportunity to lift up Oregon workers and reinforce public trust in our ability to do big things, and do them well,” Kotek said Dec. 19. “With the broad use of PLAs across state projects, Oregonians will know that public dollars are spent efficiently and benefit the communities in which they’re spent.”
But AGC executive director Mike Salsgiver took issue with the governor’s reasoning — and noted that she issued her order without consulting his organization, which represents a broad spectrum of contractors, from the state’s largest builders to mom-and-pop operations.
He says AGC is not opposed to all project labor agreements, it objects to Kotek requiring them in all instances that meet what AGC believes is a modest threshold.
“While we respect the right of workers to organize and collectively bargain, mandating union-only agreements on every major project adds costs, reduces competition, and shuts out small minority and emerging contractors who are vital to Oregon’s economy,” Salsgiver said.
Although many of the contractors who erect large buildings or work on publicly funded projects such as the renovation of the state Capitol or Portland International Airport are union shops, Salsgiver says that many of the firms that build highway projects are non-union.
“About 80 percent of the contractors on the highway side are non-union,” Salsgiver adds.
That’s a big deal because the Oregon Department of Transportation has an ambitious slate of projects on the drawing board. And although that agency is currently in dire financial trouble, it will be asking the 2025 Legislature for a major funding increase.
Salsgiver disputes Kotek’s assertion that project labor agreements result in cost savings.
“This order comes at a time when our state faces an infrastructure funding crisis,” he said. “Project labor agreements inflate project costs, meaning taxpayers will get less for their money, either through higher taxes or fewer completed projects Oregon needs smart solutions, not mandates that create more barriers for businesses and workers.”
He cites studies to buttress his claims.
A least one West Coast governor agrees with AGC. In September, California Gov. Gavin Newsom vetoed a bill that would have mandated some project labor agreements, writing in his Sep. 29 veto letter, “While I am generally supportive of [project labor agreements] as an option for public works projects, the new requirements proposed in this bill could result in additional cost pressures that were not accounted for in this year’s budget.”
- This story was originally published Jan. 2, 2025 by Willamette Week
Oregon governor has done very little for the people of Oregon and her poor management of state funds proves that she needs a refresher course in simple arithmetic. Wanting union-backed works can destroy a budget and will guarantee that there cost can bankrupt a state. Middle of a project the word goes out let’s stroke and guess what price to finish job doulbles or triples. I could lay out many times that the union has done triple the harm to people which includes their own members. Oregon was once a great state at one time but politics have started the downward trend of the state and has been doing it for sometime. I am a independent voter and over the number of the Oregon leadership the rates of the state has kept us at the bottom of many things. Check out education, healthcare, homeless numbers and no one seems to know the meaning of affordable housing and that just a tiny list of that is destroying this once strong and proud state but now we are just stand up comedy.
A person could likely lay out an equal, if not larger list of people who’ve been injured on non union jobs that got the boot after it was all said and done. While a blanket mandate may not be the answer, something does need to be done regarding worker protections, and benefits. Union protections save lives, and benefits all workers.
Kotek and the democrats have been ruining this state and it continues. I have lived here 55 years, not sure why, guess I always hoped it would change
The governor is correct in her assessment of creating new, talented Union Laborers. People need trade education and decent wages/benefits. Support unions so we don’t become a “southern” style state with under-represented and under-educated labor that big construction companies can walk all over.
I made my career in California as a general contractor and was grateful for its clearly defined Project Labor Agreement requirements. When all vendors are playing by the same rules, the bad players don’t get an advantage over the rest of us who are trying to do right by our workers
Big labor is always anti union even as they proclaim “not all unions”. But we know they mean all.