On December 18th, Oregon Governor Tina Kotek presented an executive order stating that all Oregon construction projects would require a project labor agreement (PLA). A PLA requires all open shop contractors to enter into a collective bargaining agreement with the union to seek workers from the union to complete that project. The contents of the executive order emphasize the benefits of PLAs, including higher quality, better efficiency, and lower cost. There is also a reference to the federal requirement for PLA on large-scale construction projects. The governor claims that PLAs will provide labor harmony and equal employment opportunities for minority and economically disadvantaged workers.
All of the information in the executive order contradicts the contributions of all open shop contractors in the State of Oregon. In the transportation sector of Oregon, more than 80% of the contractors, subcontractors, and employees are open shop. Oregon law has provided parity for union and open shop contractors for decades when competing for construction projects. This executive order will not give the state better-trained workers, nor will they operate with greater efficiency or at lower cost than the overwhelmingly open shop contractors currently working in Oregon. These same Oregon contractors have no issues with labor harmony and have forged lasting relationships with minority and disadvantaged businesses. There is no emergency situation in the State of Oregon. The governor is attempting to bypass Oregon’s legislative process.
The most crucial fact that the governor fails to mention is that the retirement benefits paid to open-shop employees are theirs from the first week of employment. The union employees become fully vested after five years. Any contributions made by employees before the vesting period are the union’s. The governor does not care about Oregon families’ hard-earned retirement savings. The governor is working to pay back her biggest political donors at the expense of Oregon families.
What is required is a concerted effort by Contractors and employees to educate the governor and legislators about this bad policy. The attached link provides an excellent toolkit to help inform all Oregonians on the value of equal treatment under the law. It’s time to tell the governor that enough is enough; we will not take it anymore!! https://www.agc-oregon.org/resource/pla-info-center/