Beaver State News

A Marion County circuit court judge has issued a ruling that temporarily halts Governor Tina Kotek's executive order concerning state construction projects. The decision, made on March 24, is seen as a significant victory for the National Federation of Independent Business (NFIB) and its coalition partners, including the Associated Builders and Contractors, Associated General Contractors, and the Northwest Utility Contractors Association.

Governor Kotek had previously issued Executive Order No. 24-31 on December 18, 2024. The order mandated that all state agencies awarding contracts require contractors and subcontractors to negotiate or become parties to project labor agreements with appropriate labor organizations. In response, NFIB and its coalition partners filed a lawsuit against this directive on February 21.

Anthony Smith, the state director for NFIB in Oregon, expressed approval of Judge Thomas M. Hart’s injunction against the executive order. He stated: “NFIB’s small business members welcome today’s decision. They’re looking forward to continuing to bid on public projects – and get them built. There are limits to executive power and we’re grateful to the court for this acknowledgment.”

The ruling has been reported by several media outlets including The Oregonian, Oregon Public Broadcasting, Willamette Week, Oregon Catalyst, and the Oregon Business Report.

A news release issued jointly by NFIB and its partners highlighted studies indicating that union-only project labor agreements can increase construction costs by 13 to 20 percent without raising wages or worker benefits. An analysis by the Oregon Department of Transportation found similar cost increases of 10-20% when such agreements are required.

According to data from the 2024 NFIB Tax Survey, small businesses in the construction industry represent a significant portion of NFIB's membership at 15.8%, following agricultural businesses at 16.6% and services at 23.4%.