Beaver State News

The National Federation of Independent Business (NFIB) has joined a coalition of business groups in a lawsuit against Oregon Governor Tina Kotek. The legal action challenges the governor's executive order mandating union-only project labor agreements (PLAs) for state construction projects.

The coalition argues that such PLAs unnecessarily raise construction costs without improving wages or worker benefits. They cite studies indicating an increase in costs by 13 to 20 percent due to union-only PLAs. An analysis by the Oregon Department of Transportation (ODOT), reported by Willamette Week, supports this claim, suggesting taxpayer costs could rise between 10 and 20 percent if PLAs are required on agency projects.

A recent federal court decision is also referenced in the coalition's announcement. A ruling by the United States Court of Federal Claims found that mandating PLAs on federal construction projects violated principles of fair and open competition. This decision overturned several project labor agreements issued during a previous administration.

According to the NFIB Tax Survey conducted in 2024, small-business owners in the construction industry represent a significant portion of NFIB members, accounting for 15.8%. This places them just behind agricultural businesses at 16.6% and services at 23.4%.