Shoemaker ready to fight carpenter 'monopoly' to Supreme Court

City Council agreed this week to pony up $100,000 to continue fighting a constitutional challenge launched by the United Brotherhood of Carpenters & Joiners of America, who are trying to reinstate a 30-year monopoly on local municipal construction work.

The monopoly began when the city's legal counsel missed a court decision in 1987.

It ended when the Ontario Legislature passed Bill 66 in 2019, ending the costly arrangement under which the city was only allowed to accept construction bids from companies signed with the Carpenters or the Labourers' International Union.

But the carpenters then filed a grievance under Section 133 of the Ontario Labour Relations Act, arguing that the new arrangement violates guarantees of freedom of association contained in the federal Charter of Rights and Freedoms

The Ontario Labour Relations Board ruled on the grievance in late October, 2021.

"We are pleased to report that the City of Sault Ste. Marie was successful," says Peter Niro, the city's director of human resources.

"It is expected that the Carpenters as the 'losing party' will initiate the appeal process through Divisional Court. In preparation to proceed to Divisional Court, council must contemplate further funding to fight an appeal from the Carpenters," Niro says.

The city has already spent $100,000 fighting the constitutional challenge.

And Ward 3 Coun. Matthew Shoemaker considers it money well spent.

"You're asking for support to take this to Divisional Court at this time. You've got my support to take this to the Supreme Court if you need to," Shoemaker told Tuesday night's City Council meeting.

"We are saving an enormous amount of money under the new legislation. The old legislation was flawed. It excluded other unions from being able to bid on our work."

"This is not an anti-union position. It's an anti-monopoly position," Shoemaker said.

"If it takes an appeal on an appeal on an appeal to get a decision with some finality to it, you'll have my support the entire way."

The city is fighting to maintain its current status as a non-construction employer.

Have the city's construction costs dropped since the monopoly ended?

The answer is difficult because effects of the COVID-19 pandemic on the bidding process.

Niro affirms "there's been a more varying degree of the type of applicants we've been receiving."

"That is my understanding that there's been more varying applications and more of them in general," Niro said.

Malcolm White, the city's chief administrative officer, explained that COVID-19 has affected the availability of construction firms to bid on city work.

"That being said, I certainly think the pricing we've seen in the tenders, we've seen a marked improvement," White told city councillors.

The twin-pad replacement for the McMeeken arena "came in a small degree above budget," White said.

"However, I would say, just from my own view, we expected it to be a little higher, just given the pandemic restraints we were under."

As for the $35-million west-end water treatment plant, White said there was definitely competitive bidding.

"It did come in very close to budget."

In contrast, the east-end water treatment plant was built during the monopoly.

"That was a project that was difficult for us," White said.

"We didn't get a lot of bids for it. They were quite a bit above above estimates."

Research compiled by the city for its Ontario Labour Relations Board hearing indicated savings between 19 per cent and 27 per cent on projects undertaken since the monopoly was lifted.

"In general, you'll see that a 20 per cent savings is a very conservative, very reliable number to use on projects such as these," Niro said.