Oregon Governor Tina Kotek signed an Executive Order on Wednesday to require project labor agreements (PLAs) for state-funded construction projects. The goal is to improve project efficiency, reduce costs, create jobs for skilled workers, and improve the quality of state infrastructure projects.
Governor Kotek explained that Oregon is about to begin large infrastructure projects, which will provide an opportunity to support local workers and ensure public trust in how taxpayer money is spent.
The order mandates that PLAs be used for construction projects where labor costs make up at least 15% of the total cost. However, some projects, like smaller or simpler ones, are exempt from this requirement. Ongoing projects and maintenance or emergency repairs are also not affected by the order.
PLAs will ensure there are no strikes or work stoppages during construction and include clear procedures to resolve any labor disputes quickly. The order also requires state agencies to include more diverse businesses in these projects, focusing on gender and racial equality. The Governor’s Office will review progress every two years to ensure the order is being followed.
Labor organizations in Oregon, including the Oregon AFL-CIO and the Oregon State Building and Construction Trades Council, strongly supported the order. They believe PLAs will help ensure fair wages, improve working conditions, and offer more opportunities for women and workers from underrepresented communities in the construction industry.