Right now, union contractors are at an economic disadvantage bidding for small city jobs, because they’re competing with contractors that pay little or nothing for health care. Last year, an informal union-conducted survey of employees of construction contractors doing business with the city found that only about a third had employer-provided individual health coverage, and less than 5 percent had employer-provided coverage that included their families. Union contractors, on the other hand, provide full family health coverage to their employees, by making hourly contributions to joint labor-management health trusts.

The proposed ordinance, termed “pay or play,” would turn the tables — contractors wouldn’t get a competitive advantage by leaving workers to pay for their own family health care.

It got its start over a year ago, when at a Northwest Oregon Labor Council breakfast, City Commission Sam Adams criticized Wal-Mart for not providing adequate insurance to employees. Cherry Harris, stationary coordinator for Operating Engineers Local 701, figured that meant Adams would be on board to use city purchasing power to push contractors to provide health care. Harris and leaders of other building trades unions — Laborers, Carpenters, Iron Workers, and Electrical Workers — began meeting with staff in Adams’ office to come up with a way to do that.

Originally, the group wanted to guarantee health coverage for all workers who worked on City projects — by requiring contractors to “pre-qualify” by showing they provided health care. But City attorneys said that would violate provisions of a state law that sets uniform standards for what can be considered in public contracting. So they came up with the “pay or play” approach.

“By going down this road, the city would be saying we want to do business with companies that are responsible,” Harris said.