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Contractors鈥� groups putting pressure on Oregon Gov. Tina Kotek to reverse her December executive order requiring union-friendly project labor agreements on many state-owned projects have received no indication that she intends to change course.

Representatives of the Associated General Contractors鈥� Oregon-Columbia chapter met with Kotek last week and were rebuffed.

鈥淪he encouraged us to participate actively in the process to seek exemptions to that order, and she expressed no interest in pausing, mitigating, rescinding or amending it,鈥� Mike Salsgiver, executive director of the AGC chapter, said Monday.

Another group, the Northwest Utility Contractors Association, added its voice on Monday, calling on Kotek and state legislators to reverse the executive order.

鈥淧LAs inflate the cost of taxpayer-funded construction projects by artificially reducing the number of companies who are able to do the work,鈥� Jenny Dixson, executive director of NWUCA, stated in a news release. 鈥淚t increases the cost of projects and excludes Oregon family businesses from participating in building state projects.鈥�

Other trade associations, including the National Association of Minority Contractors鈥� Oregon chapter, have also objected to Kotek鈥檚 executive order, to no avail.

鈥淭he governor acknowledges a philosophical difference between her and opponents of PLAs, but it is time to stop fighting over the tool itself and get to work building the infrastructure Oregonians will rely on for years to come,鈥� Roxy Mayer, a spokeswoman for Kotek, stated via email. 鈥淩esistance to moving forward only creates costly delays and an uncertain environment for workers, contractors, and state agencies.鈥�

Mayer added that Kotek 鈥渋s committed to working with the enterprise and other impacted stakeholders to implement the order in a cost-effective manner and does not have plans to roll back the policy.鈥�

The order itself says an agency director may petition the governor to exempt a specific project no later than the solicitation date. Exemptions may also be exercised for projects that have not been awarded through March 31.

Kotek鈥檚 Dec. 18 order requires project labor agreements be used for state-funded projects when on-site labor costs amount to 15 percent of project costs. Construction industry insiders say that will capture the vast majority of large-scale projects. It comes as the state prepares to embark on major infrastructure undertakings, including the Interstate 5 Rose Quarter Improvement Project and the Interstate Bridge replacement project.

The order threatens to lock out nonunion contractors from projects, contractors鈥� groups say. 鈥淚t鈥檚 going to impact a very large portion of folks who do the job,鈥� Dixson, whose association represents both union and nonunion contractors, said in an interview.

Reactions to the executive order

Reaction to the executive order 鈥� which landed as many industry watchers were on holiday break 鈥� was initially muted. But the backlash among contractors has gradually built to a fever pitch. The order has been a focus of contractors鈥� discussions in board meetings, industry gatherings and phone calls, Dixson said.

鈥淚t鈥檚 all they talk about,鈥� she said.

Labor groups have largely supported Kotek鈥檚 executive order, saying it will bring predictability and quality standards to infrastructure projects.

鈥淲hat (PLAs) do is they make sure there鈥檚 no labor unrest,鈥� said Randall Friesen, executive secretary and treasurer of the Columbia Pacific Building and Construction Trades Council. 鈥淭hey also help require local hiring standards, so instead of having people come from all across the country, it鈥檚 local hiring standards.鈥�

Each agreement is negotiated individually to suit a project鈥檚 needs, Friesen said.

Contractors鈥� groups point to studies showing that PLAs can increase project costs. But Friesen disputed that, marshaling a list of competing studies finding that they don鈥檛 boost costs.

鈥淭here鈥檚 no proof it drives prices up,鈥� he said.

With Kotek seemingly sticking to the executive order, it鈥檚 not clear whether the contractors will seek to challenge the directive in court.

鈥淐ontractors groups are discussing all options necessary to rescind, pause, mitigate or stop the executive order from going fully into effect,鈥� Salsgiver wrote in an email.

Dixson said the NWUCA is discussing another tack: educating the public about project labor agreements.

鈥淭he average voter, a lot of times, doesn鈥檛 know what a PLA is or how it can trickle down,鈥� she said.