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City Council expected to support the Fair and Open Tendering Act

City Council is expected to approve, at its meeting Monday, a request from City of Sault Ste. Marie staff to formally show its support for Bill 73, the Fair and Open Tendering Act. The request is made in a letter written to Sault Ste.

City Council is expected to approve, at its meeting Monday, a request from City of Sault Ste. Marie staff to formally show its support for Bill 73, the Fair and Open Tendering Act.

The request is made in a letter written to Sault Ste. Marie Mayor Debbie Amaroso and City Council by Commissioner of Human Resources John Luszka.  

Progressive Conservative MPP for Kitchener-Conestoga Michael Harris, who introduced Bill 73 in the Ontario Legislature in May, met with local political and labour figures in Sault Ste. Marie August 22 as part of a province-wide tour promoting the benefits of the Fair and Open Tendering Act.

Bill 73 is scheduled for second reading at Queen's Park September 19.

The bill, if eventually passed, would enable municipalities and school boards to consider tenders for construction projects from a greater number of contractors.

Currently, under Ontario labour law, public sector entities such as municipalities and school boards may only accept bids from companies organized by specific unions. 

Luszka's letter states, that if Bill 73 is passed, "the City would once again be free to accept competitive bids from any and all qualified bidders for its construction projects."

Luszka's letter points out the City is currently obligated to accept bids from construction contractors from only the Labourers International Union of America Local 1036 (LIUNA) and the United Brotherhood of Carpenters of Joiners Local 2486.

"This current monopoly restricts the number of potential bidders, thereby, preventing the City taxpayer from getting the best competitive price for equivalent service and quality for its construction projects."

That echoes comments made by visiting MPP Harris in August.

He said there were no less than 27 companies in his region with the necessary expertise which could have placed bids on a certain project, but that under current regulations, only two were able to bid.

Harris told SooToday.com: "You don't need an economics degree to know that when you reduce 27 bidders down to two, prices go up and taxpayers pay more to build those projects."

"Qualified contractors and their employees…are shut out from public infrastructure projects, and that's not fair," Harris said.

Luszka's letter points out that the City has attempted to legally decertify from the two unions mentioned at great cost and with no success, due to current Labour Relations Act regulations.

Representatives from the Mayors and Regional Chairs of Ontario (MARCO), Large Urban Mayors Caucus of Ontario (LUMCO) and Association of Municipalities Ontario (AMO) have each indicated their support for Bill 73 in letters sent to the Minister of Labour.

In keeping with City staff's request, Council is expected to formally ask the Province to amend Section 126 of the Ontario Labour Relations Act (1995) so that it clearly states municipalities are not construction employers.  


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Darren Taylor

About the Author: Darren Taylor

Darren Taylor is a news reporter and photographer in Sault Ste Marie. He regularly covers community events, political announcements and numerous board meetings. With a background in broadcast journalism, Darren has worked in the media since 1996.
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