A union-only project labor agreement (PLA) is a contract which requires the project to be awarded only to contractors and sub-contractors who agree to: recognize unions as the representatives of their employees on the job; use the union hiring hall to obtain workers; pay union wages and benefits; and obey the union’s restrictive work rules, job classifications and arbitration procedures.

Many states, including Minnesota, Arkansas, Montana and Utah have passed legislation banning or discouraging the use of PLAs on state funded projects due their discriminatory nature. Additionally, on February 17, 2001, President George W. Bush signed Executive Order No. 13202, “Preservation of Open Competition and Government Neutrality Towards Government Contractors’ Labor Relations on Federal and Federally Funded Construction Projects declaring that neither the federal government, nor any agency acting with federal assistance, shall require or prohibit construction contractors to sign union agreements as a condition of performing work on government construction projects.

ABC is strongly opposed to union-only PLAs on public construction projects as they violate the practice of fair and open competition by eliminating the ability of over 80% of Oregon’s construction workforce (non-union workers) to perform work on taxpayer funded projects.

Since 1959, contractors on state-funded public works projects have been required to pay “prevailing wages” determined by Oregon’s Bureau of Labor & Industries (BOLI) for each trade performing work on a public project. Numerous studies across the nation have determined that prevailing wage laws result in significantly inflated costs that waste valuable tax dollars on public construction projects.

ABC strongly opposes efforts to expand Oregon’s prevailing wage law into areas traditionally not covered by the law, including private work being performed in Oregon’s enterprise zones.

Under current Oregon law contractors performing work in the state of Oregon are liable for construction defects up to 10 years after major construction is complete. This liability requirement results in high premiums, severe policy restrictions and dramatic increases in building costs. Additionally, this requirement severely limits the type of work contractors can perform as it leads to a substantial increase in insurance costs.

ABC supports comprehensive liability reform, including reducing Oregon’s statute of repose from 10 years to 6 for claims arising out of construction defects.

ABC believes that fiscal responsibility and a smaller and simpler tax code are keys to a healthy economy. ABC supports minimizing the tax burden on Oregon citizens to increase the rate of capital formation, economic growth and job creation. ABC believes that business tax cuts should be maintained as an integral component of a balanced budget in an effort to lessen the burden on Oregon’s business community and create a stable productive economy.

Many states across the nation have adopted neutrality agreements requiring that the state award all public construction contracts without regard to a contractor’s union or non-union status. Such neutrality agreements state that public agencies and representatives will neither require contractors to sign, nor prohibit construction contractors from signing a union agreement as a condition of working on publicly funded construction projects.

ABC strongly supports the adoption of state mandated neutrality agreements in an effort to provide taxpayers with the most economically sound construction projects as well as avoid discrimination against 80% of Oregon’s non-union construction workers.