Mark Harmsworth says Gov. Ferguson’s order burdens taxpayers and excludes most of Washington’s construction workforce

Mark Harmsworth
Washington Policy Center

In July 2025, Governor Bob Ferguson (D) issued Executive Order 25-07, mandating Project Labor Agreements (PLAs) for state-funded construction projects exceeding $35 million (unless an exemption is granted). PLAs require independent contractors to adhere to union work rules, and provide union-level benefits even if the contractors themselves are not a member of a union. While described as a tool to ensure labor harmony and fair wages, PLAs inflate project costs, exclude non-union workers, and undermine Washington’s economic competitiveness.

PLAs restrict bidding to contractors willing to comply with union agreements, shrinking the pool of eligible firms. A 2019 Washington Policy Center study found that PLAs increase construction costs by 10-20% due to reduced competition and rigid union rules. For a $35 million project, that’s an extra $3-5 million, money that could fund additional infrastructure or tax relief. A report published by the Associated Builders and Contractors, echoed this, estimating PLA-driven cost overruns at 12-18% on public projects. Governor Ferguson’s order claims PLAs ensure “economy in state expenditures,” but real-world data contradicts this. Seattle’s Sound Transit projects, often bound by PLAs, have faced delays and budget overruns. As an example, the Lynnwood Link extension ballooned from $2.77 to $3.3 billion by 2024, nearly $500 million over initial estimates.

Labor impacts are equally troubling. PLAs prioritize union workers, sidelining the over 85% of Washington’s construction workforce that is non-union, per 2023 Bureau of Labor Statistics data. Non-union contractors, often small businesses or minority-owned firms, face insurmountable barriers, as they must either unionize their workforce or navigate costly union hiring practices. This excludes skilled workers who choose not to join unions, stifling opportunity and punishing personal choice. The executive order describes PLAs for promoting “diverse and skilled workforces,” but in practice, they favor one group over another, undermining merit-based hiring. A 2017 Beacon Hill Institute study found that PLAs reduced employment opportunities for non-union workers by up to 14% on public projects.

The order also mandates apprenticeships and training programs, which ignores existing non-union training pipelines. Non-union firms like the Associated Builders and Contractors offer robust apprenticeship programs, yet PLAs often disqualify their graduates by requiring union-specific certifications. This creates a de facto monopoly for unions, limiting pathways for young workers, veterans, or those reentering the workforce. In Spokane, a similar 2025 ordinance tied to “underrepresented” hiring quotas sparked backlash for its discriminatory tilt. PLAs risk the same by prioritizing union affiliation over skills or need.

Proponents argue PLAs prevent labor disputes but strikes still occur. In California, even Governor Newsome vetoed SB 894 which would have mandated PLAs on public projects.

Washington’s infrastructure needs, roads, bridges and schools, demand efficiency, not bureaucratic mandates. Instead of PLAs, the state should promote open bidding, streamline regulations, and expand vocational training for all workers, union or not. Governor Ferguson’s order burdens taxpayers and excludes most of Washington’s construction workforce. Repealing this mandate would restore fairness and fiscal sanity to public projects.

Mark Harmsworth is the director of the Small Business Center at the Washington Policy Center.