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HomeMy WebLinkAboutCOD-56-02 ,.'1 'of q~n REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: November 18, 2002 ClfJ-I/61-o ;;Z By-law # Report #: COD-56-02 File#J:hr Subject: Fair Wage Schedule Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-56-02 be received for infonmation; and 2. THAT Council confirm its current practice of not utilizing a "Fair Wage Palicy" Submitted by: /') 17. ~ Reviewed by: U ~ -.:::..- "'^-.ll.t.- Franklin Wu, Chief Administrative Officer e Marano, H.B.Sc., C.M.O. Director of Corporate Services MM\LAB\km 1224 ~ , REPORT NO.: COD.56..Q2 PAGE 2 BACKGROUND AND COMMENT Over the past couple of years the Municipality of Clarington .has been approached by various construction Trade Unions, and most recently by the Universal Workers Union, for consideration of the implementation of a "Fair Wage Policy" in all municipal construction contracts. The current practice of the Municipality is to not utilize a "Fair Wage Policy". A Fair Wage Policy stipulates to contractors bidding, the contract hourly rates that they are to pay to their various sub-contractors. The purpose of it is to produce some equity and compromise between those contractors using organized versus unorganized labour. The drawbacks of a Fair Wage Policy can be summarized as follows: . difficult to establish labour rates and classifications acceptable to all parties; . difficult, time consuming and costly to enforce . may require additional staff resources to monitor adherence to the policy . may restrict local competition that is not unionized . may arbitrarily increase prices The goal of the Municipality is to optimize our financial resources. In order to accomplish this our tendering practices must be open and competitive for us to obtain the greatest value for the dollars being expended and meet our objective of running cost effectively. Staff have surveyed all Municipalities within'the Region of Durham and have found that the City of Oshawa is the only one who currently has a Fair Wage Policy. The City of Oshawa Purchasing By-law includes the following clause: "3.08 In the case of all City construction contracts the Contractor shall be required to payor cause to be paid to each person employed in the contract work (including persons employed by Sub-contractors) at least minimum union rate of wages for employees of such class prevailing in Oshawa from time to time during the execution of the work, or if there is no applicable union rate, the prevailing rate of wages in Oshawa for employees. The rates established by the City of Oshawa vary and are based on a percentage of the union rates established in the specific zone for the representative classification, as determined by the Ontario Ministry of Labour. 1221 ~ REPORT NO.: COD-56.()2 PAGE 3 The most aggressive use of a fair wage policy is by the City of Toronto, who actually have a "Fair Wage Office" with four (4) full time staff members. It is the responsibility of these staff to ensure the policies are enforced and to investigate any cases of non-compliance. The only other Municipality in Ontario known to have a "Fair Wage Policy" is the City of London. In summary, it is staff's opinion that to implement a Fair Wage Policy within the Municipality of Clarington would not be in the Municipality's best interest at this time. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1 C 3A6 T(905)623-3379 F (905)623-4169 1222