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Gov. John Kitzhaber says he's persuaded union and business groups to back off warring initiatives for the November ballot.

(Michael Lloyd/The Oregonian)

Oregon Gov. John Kitzhaber said Monday that he's persuaded rival groups sponsoring several competing tax and union proposals to

.

The state's major public employee unions agreed to drop several proposed initiatives that

. In exchange, groups proposing measures that would hinder the unions -- including one that would

-- also agreed to stand down.

"This is an unprecedented moment in Oregon’s long history of ballot measure politics," Kitzhaber said in a statement. "Over the last three years, we have shown time and time again that no matter how wide the ideological divide might be, people on different sides of issues are able to come together for the greater good of Oregon and our citizens."

"Instead of spending millions on ballot measure battles, we have an agreement that provides an opportunity for people to work with one another on solving Oregon’s biggest problems. I appreciate the willingness of the measures’ sponsors to take this enormous step forward."

Kitzhaber has argued for months that the two sides should instead work with him on reforming Oregon's tax system. The combatants also had their own incentives to back off. The business community was worried that it could be hit with a tax that would disproportionately affect their companies and executives while the unions were worried about fending off an attack on their own operations.

The governor last week

, Service Employees International Union Local 49, to drop five measures that would put new limits on how hospitals can operate.

-- Jeff Mapes