Group protests 'labour monopoly' in Sault and other cities

A campaign launched today in southwestern Ontario in an effort to warn municipalities of what it calls construction labour monopolies.

Under Ontario labour law, public sector entities such as municipalities and school boards may only accept bids for off-road work, such as work done on city and school buildings, from companies organized by specific unions. 

Currently, the City of Sault Ste. Marie is obligated to accept bids from contractors from only the Labourers International Union of North America Local 1036 and the United Brotherhood of Carpenters and Joiners Local 2486.

Critics, such as those from Fair Construction, the group behind the campaign, say that when there is a limited choice of contractors to choose from, that inevitably drives up construction costs for municipality and school board projects, and ultimately, a higher cost for taxpayers to pay.

Fair Construction says this is due to a loophole in the Ontario Labour Relations Act, which has led to the current situation in the Sault, Toronto, Hamilton and the Region of Waterloo.

Fair Construction says this situation can reduce competition by up to 70 percent and drive up costs for municipalities by up to 20 to 30 percent.

Fair Construction says in Waterloo, for example, the number of companies who qualify to compete for work on public projects has shrunk from nine to two.

The group says qualified companies and their workers should be allowed to compete on local projects, regardless of union affiliation, in an effort to save money for municipalities and taxpayers.

The Progressive Contractors Association of Canada (PCA) is leading the Fair Construction campaign, and its member companies employ more than 25,000 skilled construction workers nationwide.

In September 2013, a Progressive Conservative bill known as Bill 73, the Fair and Open Tendering Act, was defeated in the Ontario Legislature.

If passed, that bill would have altered the collective agreement in place between the city of Sault Ste. Marie and the Labourers International Union of North America Local 1036 and the United Brotherhood of Carpenters and Joiners Local 2486.

A letter from the city's Human Resources department in 2013 asked council to pass a resolution to show support for Bill 73.

After the bill was defeated, and after a discussion was held in council chambers September 23, 2013 with representatives of the two unions involved, council voted 10-1 in a recorded vote to postpone discussion of support or opposition to any changes to the collective agreement until legislation similar to Bill 73 is introduced in the Legislature.  

Critics of legislation such as Bill 73 and the stance taken by the Fair Construction campaign say tinkering with current legislation would only open the door to cheap labour. 

United Brotherhood of Carpenters and Joiners of America Local 2486 Area Manager Tom Cardinal of Sudbury told SooToday at that September 2013 council meeting any savings achieved by the city through awarding tenders to construction workers not represented by Labourers International or the United Brotherhood would be minimal.

“Those savings do not outweigh the amount of money being spent by members of these two unions working in Sault Ste. Marie and paying taxes here in Sault Ste. Marie,” Cardinal said.