A Marion County judge has stalled a by Gov. Tina Kotek that requires use of union labor in many state construction projects.
In a hearing Monday morning, Circuit Court Judge Thomas M. Hart issued an injunction, barring Kotek鈥檚 administration from moving forward with a policy that critics say would benefit Kotek鈥檚 allies in labor at taxpayers鈥� expense. The policy won鈥檛 proceed unless Kotek ultimately prevails in the case, or her administration convinces the Oregon Supreme Court to overturn the order.
鈥淭he judge鈥檚 ruling reinforces what our local contractors have been saying since the order was issued last December,鈥� said Mike Salsgiver, CEO of the Associated General Contractors, Oregon-Columbia Chapter, which challenged Kotek鈥檚 order in court. 鈥淭he governor lacks the authority to unilaterally alter Oregon鈥檚 system of competitive bidding and open and fair competition.鈥�
The dispute between Kotek and a coalition of Oregon construction firms stems from an order the governor issued shortly before Christmas. It said state agencies are required to use tools known as 鈥減roject labor agreements鈥� in many state construction projects where onsite labor costs make up at least 15% of the costs.
PLAs, as they are known, are contracts between a project owner 鈥� like the state 鈥� and one or more labor unions that will be providing workers. They typically lay out the working conditions for the entire project, including provisions on hourly pay and benefits.
There鈥檚 often a guarantee in the agreements that there will be no strikes by unions or lockouts by employers. Some deals require a target number of apprentices or contracts with minority-owned businesses 鈥� a feature Kotek has argued will ensure the state is supporting disadvantaged communities.
Opponents of PLAs argue they reduce competition by discouraging bids from construction firms that don鈥檛 typically use union labor. They point to studies that have found PLAs lead to higher costs.
Supporters say PLAs offer certainty to projects and that the use of union labor ensures a quality product. They offer their own studies suggesting that PLAs do not increase costs and that they can help projects come in earlier with minimal labor strife.
After being caught off guard by Kotek鈥檚 order, Associated General Contractors and some of its member firms . They argued that Kotek鈥檚 order is an unconstitutional power grab, and that the governor either needed to win legislative approval or go through a robust rulemaking process before making such a sweeping policy change.
The state denied that, saying Kotek鈥檚 order is within her authority as governor, and that the contractors didn鈥檛 have standing to sue.
The two parties argued their cases before Hart on Monday morning. The judge granted the construction firms鈥� request for an injunction from the bench.
鈥淥ur members appreciate Judge Hart鈥檚 ruling and his common-sense review of the facts,鈥� Laurie Kendall, president of the Associated Builders and Contractors, Pacific Northwest Chapter, said in a statement. 鈥淭he ruling protects the rights of all contractors 鈥� union and non-union 鈥� to compete.鈥�
The Oregon Department of Justice, which is representing Kotek, declined comment.
The injunction won鈥檛 have any immediate impact on state projects. While Kotek鈥檚 order took effect when she signed it in December, it allowed agencies to claim an exemption through March 31.
Kotek told OPB on Monday that no state projects were moving forward with a PLA because of her order, and said a number of agencies had requested she issue an exemption to the rule for their projects. Kotek made that comment before news of the injunction had become widespread, and did not appear to know about Hart鈥檚 order. Still, the governor said any potential injunction could slow things down.
鈥淭hat affects construction windows, it affects all kinds of things,鈥� she said.
