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Judge Blocks Kotek’s Executive Order Requiring Union Labor for State Construction Projects

In December, the governor ordered state agencies to use union labor for construction contracts. Contractor groups objected.

by Nigel Jaquiss, Oregon Journalism Project March 25, 2025April 10, 2025

Marion County Circuit Judge Thomas M.
Hart issued a temporary injunction today blocking a December executive order by
Gov. Tina Kotek.

The
December order decreed that state agencies “shall” enter into
project labor agreements with labor unions for most state construction
projects.

A highway construction project near Terrebonne. Credit: Jason Blackman

Earlier this month, the Oregon-Columbia
chapter of the Associated General Contractors of America and a host of its
member firms asked Judge Hart to stay that order, which
would have gone into effect March 31. They asked Hart to block the order until
the court could decide on the merits of a lawsuit AGC and its allies filed in
February, challenging Kotek’s authority to issue the executive order. In short,
the contractors argue that only the Legislature may make law in Oregon.

Oregon Department of Justice attorneys
representing Kotek told the court in a March 17 motion that Kotek’s order meant
no such thing.

“The Court should not read the executive
order to be a proclamation of law or an attempt at legislation,” the DOJ
attorneys wrote. “Much like when interpreting a statute or rule, the court
should assume that the governor intended Executive Order 24-31 to be a
constitutional expression of her role as the chief executive and not an attempt to usurp the
authority of the legislative branch.”

Hart didn’t buy that argument. Mike
Salsgiver, chief executive officer of AGC’s Oregon-Columbia chapter, applauded
his decision.

“The judge’s ruling reinforces what our
local contractors have been saying since the order was issued last December,”
Salsgiver said. “The governor lacks the authority to unilaterally alter
Oregon’s system of competitive bidding and open and fair competition.”

The case now continues, with the March 31
deadline for state agencies to implement the governor’s executive order
suspended until Hart rules on the substance of the case.

The Oregon Department of Justice declined
to comment.

—This story was produced by the Oregon Journalism Project, a nonprofit investigative newsroom for the state of Oregon. Learn more at oregonjournalismproject.org.