Oregon Governor Tina Kotek recently signed Executive Order 24-31, requiring the use of Project Labor Agreements (PLAs) for state-funded construction projects. This order aims to enhance the quality, timeliness, and cost-effectiveness of major infrastructure projects while also supporting Oregon’s workforce.
Key Features of the Executive Order:
- PLAs Mandated: The order requires PLAs for state projects where on-site labor costs represent 15% or more of the total construction, reconstruction, or renovation costs.
- Exemptions: Short-duration projects, those lacking complexity, and maintenance or emergency repairs are exempt.
- Dispute Resolution: PLAs negotiated under the order will include protections against strikes or lockouts and binding protocols for resolving labor disputes.
- Inclusion Goals: The order mandates tracking the use of minority and women-owned businesses through the Certification Office for Business Inclusion and Diversity to promote racial and gender equality.
Governor Kotek emphasized the importance of using PLAs to ensure public dollars are spent efficiently and benefit local communities. Labor organizations, including the Oregon AFL-CIO and the Oregon State Building and Construction Trades Council, have strongly supported the executive order, seeing it as a major win for workers and a step toward building a more diverse and skilled workforce in Oregon’s construction industry.
This move comes as Oregon is set to embark on large-scale infrastructure projects, offering a “generational opportunity” to improve both the state’s infrastructure and the livelihoods of its workers.