Oregon Governor Tina Kotek’s recent executive order has ignited heated discussions regarding the use of union labor on state-funded construction projects. Signed on December 18, 2024, the order mandates the use of project labor agreements (PLAs) on major state construction projects, a move that has drawn both support and criticism.

PLAs are agreements between project owners and labor unions, outlining working conditions, pay, and benefits for workers involved in the project. Supporters of Kotek’s executive order argue that PLAs ensure high-quality work, minimize labor disruptions, and promote apprenticeship programs, which can help train a new generation of skilled workers in trades like carpentry, plumbing, and electrical work. "It’s in the best interest of the state for stewarding the resources to get a big project done," Kotek said. "We just have a philosophical disagreement about it."

However, the order has faced significant backlash, particularly from conservative lawmakers and contractor groups. Critics argue that PLAs favor unionized contractors over non-union ones, limiting competition and raising project costs. "What they tend to do is buy you certainty and labor peace," said Mike Salsgiver, executive director of the Oregon chapter of Associated General Contractors, which opposes the order. "But the government is putting its hand on the scale."

Opponents point to studies that suggest PLAs can increase construction costs. A report from Massachusetts indicated that using PLAs for new school projects raised costs by 14%, while California saw a 21% increase for affordable housing projects. However, proponents, including Kotek, believe the long-term benefits, such as faster project completion and fewer delays, outweigh the potential cost increases.

The debate over PLAs in Oregon is not new, but Kotek's executive order has brought the issue to the forefront at a critical time, as the state prepares for a significant infrastructure investment. Lawmakers are also considering a multi-billion-dollar transportation funding package that could be subject to Kotek’s PLA mandate.

In response, the Associated General Contractors and other critics are exploring their legal options. "There is precedent for executive orders to be overturned," said Salsgiver, signaling potential challenges to the order. As the debate continues, the future of project labor agreements in Oregon remains uncertain.