By: Nicole Elgin & Lex Shvartsmann
Barran Liebman Law,
On December 18, 2024, Oregon Governor Tina Kotek signed Executive Order 24-31 (EO 24-31), implementing a requirement that project labor agreements be established on certain construction projects funded by the state.
What is a Project Labor Agreement?
A project labor agreement (PLA) is a type of collective bargaining agreement that sets forth the terms and conditions of employment for a construction project. Unlike traditional collective bargaining agreements, PLAs are typically established pre-hire and set the terms and conditions only for a specific construction project. Pre-hire agreements have unique rules under Section 8(f) of the National Labor Relations Act.
What projects does EO 24-31 apply to?
Under EO 24-31, “every contractor and/or subcontractor engaged in the construction of the project” is required to negotiate or become a party to a PLA where:
• The project is funded by a state agency, directly or indirectly;
• The project is a construction project, including reconstruction or major renovation projects; and
• Onsite labor costs account for at least 15% of the total project costs.
Categorically exempt from EO 24-31 are projects that:
• Constitute necessary emergency construction work, minor alterations, repairs, or maintenance necessary to preserve a public improvement; or
• Are of a short duration, lack operational complexity, or involve only one craft or trade.
PLA Specifications Under EO 24-31
PLAs pursuant to EO 24-31 must include the following:
• Guarantees against strikes, lockouts, and similar job disruptions;
• Effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement; and
• Mechanisms for labor-management cooperation on matters of mutual interest and concern, such as productivity, quality of work, and safety and health.
Additionally, PLAs must comply with all applicable state and federal laws and may not exclude open-shop or local firms.
For questions regarding EO 24-31, project labor agreements, or other labor matters, contact Nicole Elgin at 503-276-2109 or [email protected].
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