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HomeMy WebLinkAboutCOD-017-19Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Report Number: COD-017-19 Date of Meeting: September 23, 2019 By-law Number: Submitted By: Marie Marano, Director of Corporate Services Reviewed By: Andrew C. Allison, CAO Resolution#: GG-445-19 File Number: Report Subject: Bill 66 Concern Raised by Carpenters' Union Local 27 Recommendations: 1. That Report COD-017-19 be received for information; and 2. That Bradley Archambault be advised of this report and Council's decision, by the Municipal Clerk's Office. Page 93 Municipality of Clarington Report COD-017-19 Report Overview Page 2 A report was requested to provide background on the Bill 66 concern noted by carpenter Bradley Archambault in an email message, included in the September 9, 2019 Joint General Government and Planning meeting as a Communication for Direction listed as item 10.1. 1. Bill 66 - Restoring Ontario's Competitiveness Act (Royal Assent on April 3, 2019) Communication for Direction re Bill 66 Concern 1.1. Item 10.1 on the September 9, 2019 Joint General Government and Planning Committee meeting was referred to staff to provide background on the issue that was expressed in the email message to the Mayor from Bradley Archambault (Attachment #1). 1.2. The message states the following (as written): "they've told me to contact counsellors or my mayor to bring forth our concerns on this bill so hoping you can do something to stop this 1 don't want to lose my pension..." 1.3. Bill 66 - Schedule 6 (Attachment # 2) introduces a change to the Pension Benefits Act to allow private sector employers to merge individual plans into jointly sponsored pension plans. This would allow employers to pool their risk. There is no indication that this change would put an employee at risk of losing their pension benefit, as identified in the email message. The pension amendment through Bill 66 does not appear to be the key message identified by the Carpenters' Union. 1.4. The Ontario Municipal Employees Retirement System (OMERS) pension plan is not affected by the Pension Benefits Act Bill 66 amendments as it is governed by the OMERS Pension Act. 1.5. The Carpenters' Union Local 27 is a Toronto based union group that initiated a social media campaign to urge municipal governments that have been deemed "construction employers" to oppose Bill 66. The messages urging opposition are identified as Fight Bill 66 on Attachment # 3, and killbi1166.com on Attachment # 4. 1.6. Clarington has never been deemed a construction employer. Municipality of Clarington Page 3 Report COD-017-19 1.7. The concern identified by the Carpenters' Union Local 27 speaks to the risk of dissolving Collective Agreements with "construction employers" as a result of Bill 66 deeming municipalities, school boards and other public entities, to be "non -construction" employers through a change to the Labour Relations Act. This appears to be the key issue for the Carpenter Unions represented in large cities who had been deemed as construction employers, specifically Toronto, Hamilton, Sault Ste. Marie and the Region of Waterloo. The issue is well described in Attachment #6. 1.8. Municipalities had a three month time frame after passage of Bill 66 to "opt -out" of the deeming provision. Bill 66 received Royal Assent on April 3, 2019, and therefore the opt -out decision would have been available until July 3, 2019. 1.9. The overall implications of Bill 66 are complex, and involve amendments to a number of different Acts. The Association of Municipalities of Ontario (AMO) issued an overview of the Bill 66 implications to municipalities (Attachment # 5). Amendments to the Pension Benefits Act per Schedule 6 of Bill 66 is not identified as a Municipal matter by AMO. The amendment to the Labour Relations Act under Bill 66 - Schedule 9 is on the AMO list as a municipal issue. 2. Bill 66 — Schedule 9 Amendment to the Labour Relations Act Construction Tendering 2.1. The Progressive Contractors Association of Canada (PCA) considers the passage of Bill 66 a positive step to opening competitive construction tendering in Ontario. They have identified the Bill as closing a legislative loophole that unintentionally deemed some of Ontario's largest municipalities as "construction employers". (Attachment # 6). 2.2. Bill 66 automatically deems municipalities, school boards and other public entities not to be construction employers, procurement of construction projects can be open to Ontario construction companies and their workers as long as they are qualified. Unless a public entity elected to opt -out of the deemed category of non -construction, it is now not limited by the "construction employer" designation. 2.3. The issue with the "construction employer" designation for municipalities was brought to light in 2012 when the Region of Waterloo became a construction employer under the Act after two of its employees asked to join the United Brotherhood of Carpenters and Joiners. From that point forward, the Region could only contract to companies registered with the same union. There was a school board who experienced the same issue in 2012. Waterloo suggests that it has seen a 50% reduction in bids on public construction and infrastructure projects since it became bound to a construction industry collective agreement, limiting cost-effective competitive construction awards using taxpayer funds. Municipality of Clarington Report COD-017-19 Page 4 2.4. Sault Ste. Marie and Hamilton have also historically been bound to union agreements with the United Brother of Carpenters and Joiners. Both cities have not voted to opt -out of the designation, and now under Bill 66 have become non -construction employers, ending the construction unions' exclusivity for construction contract bidding. 2.5. Toronto is the only Ontario municipality that voted to opt -out of Bill 66. It is bound to nine province -wide collective agreements in the commercial and industrial sector. Attachment # 7 notes that the PCA plans to legally challenge Toronto's decision to reject Bill 66 which continues to allow a monopoly on city construction projects. 2.6. Hamilton may face a challenge from the Carpenters and Joiners union for what they consider to be not upholding the collective agreement with the Carpenters' union. 2.7. The Municipality of Clarington is not tied to any external union, however it does protect wages with the Fair Wage Policy, which has been in place since 2006 as approved through COD-020-06. It provides that the Fair Wage Policy is applicable to construction projects of an estimated value of at least one million dollars. It states as follows: POLICY STATEMENT: On all Industrial Commercial Institutional Construction Contracts with the Municipality, every Contractor and Sub -Contractor shall pay or provide wages, benefits and hours of work to their Employees, in accordance with the "Fair Wage Policy for ICI Contracts" and the Fair Wage Schedule of the Corporation of the Municipality of Clarington. Failure to comply with the Fair Wage Policy may result in restricted ability to bid on Municipal construction business. 3. Concurrence Not Applicable. 4. Conclusion It is respectfully recommended that Council receive this report for information, and Bradley Archambault be advised of this report and Council's decision. Staff Contact: Marie Marano, Director of Corporate Services ext. 2202, or Lisa Wheller Human Resources Manager, ext. 2205. Attachments: Attachment # 1 - Direction Item 10.1 September 9 GGC, from Bradley Archambault Attachment # 2 - Bill 66 Excerpt for Schedule 6 Pension Benefits Act Change Attachment # 3 - Toronto Carpenters Union Local 27 social media post Fight Bill 66 Municipality of Clarington Page 5 Report COD-017-19 Attachment # 4 — Carpenters' Union message on website killbi1166.com Attachment # 5 - AMO bulletin Bill 6 — Municipal Implications Overview Attachment # 6 - NEWS bulletin from the Progressive Contractors Association PCA Attachment # 7 - Article - Toronto stands alone as construction employer Interested Parties: The following interested party will be notified of Council's decision: Bradley Archambault Subject: FW: Bill 66 -----Original Message ----- From: info@clarington.net [mailto:info@clarington.net] On Behalf Of Bradley Archambault Sent: Thursday, June 13, 2019 3:10 PM To: MayorsExternalMailGroup <mayor@clarington.net> Subject: Bill 66 Good day Mr. Mayor I am a carpenter local 27 and have been for 45 years I received a A pamphlet in the mail regarding Bill 66 and workers rights they've told me to contact counsellors or my mayor to bring forth our concerns on this bill so hoping you can do something to stop this I don't want to lose my pension I have three sons also in the union and if this goes through they have a bleak future. If you could please voice our concerns to our provincial government perhaps we can stop this bill from being passed thank you very much yours truly Brad Archambault Origin: https://www.clarington.net/en/town-hall/mayor.asp This email was sent to you by Bradley Archambault<B.a.archambault@gmail.com> through https://www.clarington.net/. Page 68 Bill 66, Restoring Ontario's Competitiveness Act, 2019 - Legislative Assembly of Ontario Page 3 of 29 SCHEDULES Ministry of the Environment, Conservation and Parks Toxics Reduction Act, 2009 The Schedule amends the Toxics Reduction Act, 2009 to provide that the Act is repealed on December 31, 2021. The Schedule also revokes the regulations made under the Act as of the same day. SCHEDULE6 Ministry of Finance Pension Benefits Act Currently, subsection 80.4 (1) of the Pension Benefits Act provides that the conversion of single employer pension plans to jointly sponsored pension plans, implemented through a transfer of assets and liabilities, is only available with respect to plans that are public sector plans and with respect to prescribed pension plans or classes of pension plans. The Schedule repeals subsection 80.4 (1). SCHEDULE? Ministry of Government and Consumer Services Technical Standards and Safety Act, 2000 The Schedule amends the Technical Standards and Safety Act, 2000 so that it no longer applies to upholstered or stuffed articles. The Schedule also allows alternate rules made by a director and approved by the Minister under the Act to regulate any matter to which the regulations made under the Act apply. If alternate rules exist, they apply to the matter instead of the regulations and Minister's orders made under the Act, to the extent provided in the alternate rules. Wireless Services Agreements Act, 2013 The Schedule repeals the Wireless Services Agreements Act, 2013 and revokes the two regulations made under it. SCHEDULE8 Ministry of Health and Long -Term Care Long -Term Care Homes Act, 2007 The Schedule amends subsection 44 (10) of the Long -Term Care Homes Act, 2007 to remove the Director from the list of persons who must be provided a written notice if the licensee withholds approval for admission. Section 106 of the Act is amended to allow the Director to determine how public consultations will be conducted. Under the amended section 106, the Director is required to consult the public for various licensing transactions, unless the Director has determined that a public consultation is not warranted in the circumstances, and the Director may make a policy for this purpose. Section 112 of the Act is amended to allow the Director to issue non-renewable temporary emergency licences for a term of not more than one year to accommodate persons affected by a temporary emergency. Section 113 of the Act is repealed but short-term authorizations given by the Director before the day of the repeal continue to be valid until their authorization period expires. SCHEDULE9 Ministry of labour Employment Standards Act, 2000 The Schedule amends the Employment Standards Act, 2000. The major elements are described below. Section 2 of the Act is amended to provide that the Director, and not the Minister, is required to publish a poster providing information about the Act and regulations. Employers are no longer required to post the poster in the workplace. Part VII of the Act is amended to remove the Director's approval for employers to make agreements that allow their employees to exceed 48 hours of work in a work week. https://www.ola.org/en/legislative-business/bills/parliament-42/session-1 /bill-66 2019-09-06 Toronto Carpenters Union Local 27 on Twitter: "Do we really want to throw away the ... Page 23 of 43 For the best Twitter experience, please use Microsoft Edge, or install the Twitter app from Microsoft Store. QHome 47 Moments a Notifications 0 Messages Search Twitter Q Tweet Toronto Carpenters Union... a Fouow @carpenters27 Do we really want to throw away the construction of our hospitals, schools, and infrastructure to anyone who hangs up a sign & calls himself a contractor? Shoddy or inefficient work can tak@,,l toll orb budgets. Visit KillBill6 o� to learn .ore. orrIlt. arpenters moo Local 27 @carpenters27 - Jun 3 v #Toronto # W16&eekend, #Local27 Carpenters volunteered to help build a #playground nt (roar— Darlr in #Crarhnrni inh Arrnrdinn to rn, inrillor Thompson's City Yhen you need them". 6.46 AM - 23 Apr 2019 tiJ LI i 77 1.:�j 4 Retweets 10 Likes oft �!�y ► tom;. Toronto Carpenters pion Local 27 @carpenters27 May 31 .' Please join your #Carpenters' Union brothers and sisters for a special 4 to#workei5rights Town Hall at the #DanforthMusicHall - June 12th 5:30PM - 10PM Free Admission, Entertainment, Speakers and more! Don't forget to contact your City Councillor ahout KillRiII66 rnm Tweet your reply https://twitter.coin/carpenters27/stattis/1120685391307333632 9/9/2019 r, htts'rkillbiII66•com Routes and Schedules City of..,' 949hibill66hashtagonTvritter 4NOAAacting chief scientist Cr...I (4i Fight Bill 66-Kill Bill 66 X i`: - QBlue Flower GroundCover .•. OSuggestedSites• lyWdcometotheCladngto•.. [a Welcome to theClatingto... is We urge all members to call their local municipal councillor and let them know that you do not support Bill 66 and urge employers impacted through Bill 66 to not opt out of the current collective agreements in place. Call Your Municipal Councillor to Let Them Know Bill 66: Threatens Public Safety: Bill 66 prioritizes cutting `red tape'around planning approvals for business rather than safety of Ontario's residents. If Bill 66 is implemented, key public safety protections will he removed. Dissolve Collective Agreements: Our longstanding Collective Agreements will be dissolved through Bill 66. Many agreements have been in place for generations, Fuel the Underground Economy: The Bill opens up bidding to contractors who have the freedom to improperly hire their workers as sub -contractors rather than as employees. We have included maps and contact information foryou to reference within this brochure for the City of Toronto, City of Hamilton and Region of Waterloo Municipal Council. PLEASE USE THIS INFOUATION AND MAKE THE CALL TODAY! FIGHTING FALSE NEWS ABOUT CONSTRUCTION COSTS Some Conservative politicians and their allies in the right-wing media claim that ripping -up our collective agreements will save municipalities and school boards hundreds of millions of dollars by allowing our work to be done by nonunion contractors. They regularly state that non -union construction costs would be 20 to 4090 cheaper. There is no evidence that these outrageous claims are true and it's time to respond to this false news head-on. The one major study which actually looks at the facts was done by file City of Toronto itself. That study found that therejust aren't major savings to be had by going non. union. The conclusion was when all the relevant factors were taken into account (like the percentage of a contract price which actually relates to labour costs and the requirements of fair wage policies), the very best that the City could hope to save would be 1.7% of its overall costs, ivlost importantly, as the City of Toronto study clearly states, just because nonunion contractors pay their workers less doesn't mean that their customers actually save any money. If that was true then unionized companies would never be the successful bidder any of the vast majority of municipal work which isn't covered by any subcontracting clauses. The simple fact is unionized workers are more efnent workers because of things like their better training and superior safety. Unionized contractors and unionized workers get projects done on -time and on -budget. That is proven real value for ntonry and it's about time that people stopped making claims without any hard evidence about how much money they think can saved by ending collective agreements and attempting to lower workers' wages. For more info, check out the "just Not Credible' report on the Ontario Construction Secretarial website - icicoustruction.com nannrarrrno, nicminr nnininn nr nnramn AMO - Bill 66 — Municipal Implications Overview Page 1 of 2 BILL 66 - MUNICIPAL IMPLICATIONS OVERVIEW LINKS December 18, 2018 I* Bill 66, the Restoring Ontario's On December 6th, 2018, Minister of Economic Development, Job Creation and Trade, the Honourable Todd Smith, Competitiveness Act introduced B#166, the Restoring Ontario 'sCompetitiuenessAct.This proposed legislation has significant interest r_ Ontario Regulatory Registry for municipal governments. Bill 66 has only had First Reading at this time and will continue through the debate and Open for Comment hearing process. After this week's sitting, the Legislature is scheduled to return for the next Session on Tuesday, L Ontario Regulatory Registry February 19, 2019. Open for Comment - Long Term Care In this members' update, AMO is providing an overview and brief analysis as we pursue additional information and L Proposed open -for -business clarification to bring a report to the January Board of Directors meeting. Further communications on the Bill will planning tool occur at that time. L New Regulation under the Several corresponding proposed regulations are now open for comment on the Ontario Regulatory Registry. In Planning Act for open -for- most cases, the deadline for comment is January 20th to respond via the registry process. business planning tool Schedule 2 — Repeal of the PawnbrokersAct CONTACT Schedule 2 of the Bill repeals the Pawnbrokers Actin its entirety. Created in the early 1900s, the Act regulates pawnshops and second hand stores. Municipal governments would retain the authority to create bylaws and Monika Turner business licenses regulating pawnshops, however, the repeal would eliminate law enforcement tools aimed at Director of Policy enforcing against theft and enabling the search and return of stolen goods. AMO will connect with police services mturner@amo.on.ca to obtain their perspectives on the impacts that the change would bring and consider alternatives. T 416.971.9856 ext. 318 Schedule3—AmendmentstotheChi/dCare andEar/yYearsAct,2015andthe Education Act TF 1.877.426.6527 Changes to rules regarding in -home child care services and authorized recreational and skills building g g g gprograms; F416.971.6191 increasing the permissible number and age of children per provider a day will likely increase access to childcare. The proposals may also raise concerns related to children's health and safety and the quality of childcare, with A© possible impacts on municipal monitoring of childcare spaces. Schedule 4 — Amendments to the Ontario Energy Board Act,1998 (Sub -metering) The proposed change deletes references to'unit sub -metering' from the Ontario EnergyBoardAct, and replaces it with references to smart meters. It is unknown if conversions to smart meters have taken place in all housing units being managed by municipal governments. This may impact the ability to individually charge tenants for energy used. Studies show that lack of individual meters can raise energy use over 30%, which will bring financial impacts. As well, it is unclear if itwould have any impact on second suitesor inclusionary zoning initiatives. Schedu le 8 — Amendments to the Long -Term Care HomesAct, 2007 Proposed changes for long-term care homes' licences include that the Director, as appointed bythe Minister, may determine the need and how public consultations shall be conducted. This may reduce the frequency of attendance by licensees at public meetings. Further, the Ministry would haveadded flexibility to issue licenses for temporary beds for a longerduration of time. Municipal homes have licences subject to Minister's approval with no designated term. Further efforts to improve long-term care and reduce administrative burden should continue. There is a need for more discussions to develop a less prescriptive, outcomes -based framework that reduces burden while prioritizing patient care and well-being.AMO will continue to work withotherlong-term care partners to identify opportunities for positive reform and to monitor long-term care impacts of Bill 66 and corresponding regulations. Proposed regulations have been posted for public comment until January 28th, 2019. Schedule 9 — Amendments to the Labour Relations Act,1995 (Construction Employer Designation) Bill 66 would clarify that municipal governments are not construction employers. Construction employer designation reducesthe number of eligible bidders for municipal construction projects and increases municipal capital costs by eliminating competition. Construction is not a core municipal function and municipal governments should not be treated as construction employers. This has been a longstanding municipal ask and AMO has supported past private members' bills seeking this clarification. Schedule 10 — Amendments to the Planning Act ('Open For Business' Tool) The proposed legislation introduces a new planning tool called an "open for business' bylaw. Provincial government commentary has indicated that this tool could fast track permanentjob creating opportunities, indicating that the specifics of the use of the tool will come in future regulation. The posted description of the scope of a regulation indicates that a proposal to use this tool would require a minimum job creation threshold (e.g. 50 jobs for municipalities with a population of less than 250,000 people, or 100jobs for municipalities with a population of more than 250,000 people). It would appear that the tool, like a Minister's Zoning Order (MZO) would be for a specific land use application. We look to the Province to provide greater clarity and how this tool is different or similar to a Minister's Zoning Order. Once there is greater clarity, we can turn attention to whether this tool can deliver what is expected. The draft legislation outlines the order of the.process as follows, presumably after a planning application is received by the municipality as well as some planning evaluation: The municipality must receive approval from the Minister to pass the "open for business" by-law. 1. The municipality passes the by-law. https://www.amo.on-ca/AMO-Content/Policy-Updates/2O l 8lBiII66Municipallmplications... 9/12/2019 AMO - Bill 66 — Municipal Implications Overview Page 2 of 2 2. An agreement between the land use proponent and municipality regarding site plan type conditions is signed and registered against the land to which it applies. 3. It comes into effect within 20 days of passing and is sheltered from LPAT appeal. 4. Notice is provided to the Minister within 3 days of passing and to others within 30 days. 5. The Minister may modify or revoke the by-law. 6. The municipality can amend or revoke the by-law. NOTE: Public consultation is not required but not prohibited. While not clearly stated, the fact that conditions are registered against a specific property implies that the'open for business' by-law is site specific and not a'blanket' across a large area of a municipality. As well, we would look to the Province for greater clarity on how the powers to amend, by both the Minister and the municipal government, might be used. The sections ((6) Non -application oflistedprovisions) indicating which elements of provincial law do not apply to an "open for business by-law" are being widely discussed. This list generally requires that municipal decisions conform to the intent of the listed Acts. Many of these Acts refer to environmental and water related protections, which raises questions about achieving economic gains that may result in longer -term environmental concerns. It should be noted that the EnvironmentalAssessmentActand EA process has not been identified in this list. Perhaps this is the backstop that will avoid costly environmental remediation. There are also other financial, health, and safety factors within these listed Acts that need to be considered as well as the other aspects, such as relationship to municipal planning documents and public consultation. AMO will be continuingour Bill 66 analysis and pursuing answers to these questions over the comingweeks. Proudly serving Ontario municipalities since 1899 ®®®© Tula Related Sites I Programs I Connect I Contact Us I Newsroom I Accessibility I Privacy © 2019 Association of Municipalities of Ontario https://www.amo.on.ca/AMO-Content/Policy-Updates/2018/BiII66MunicipalImplications... 9/12/2019 Passage of Bill 66 A Major Milestone for Fair and Open Construction Tendering in Ontar... Page 1 of 2 t.1,844.466.3819 MEMBER LOGIN NEWS PASSAGE OF BILL 66 A MAJOR MILESTONE FOR FAIR AND OPEN CONSTRUCTION TENDERING IN ONTARIO Posted on April 2, 2019 (April 2, 2019) by admin Toronto (April 2, 2019) -The passage today of Bill 66, 'Restoring Ontario's Competitiveness Act, marks a significant step forward for fair and open construction tendering in Ontario, according to the Progressive Contractors Association of Canada (PCA). The legislation opens up a competitive construction market, where all Ontario workers, businesses and public entities are treated fairly. "We thank the Ford government for allowing ALL qualified Ontario workers and businesses to work on and compete for public construction work, with the passage of Bill 66," said Sean Reid, Vice President and Regional Director, Ontario, for PCA. "Now that municipalities, school boards and other public entities will soon be able to competitively procure their construction projects we are urging them to embrace the legislation by giving all of their local contractors and construction workers a shot at working on taxpayer funded infrastructure" Bill 66 closes a legislative loophole that unintentionally deemed some of Ontario's largest municipalities, including Toronto, Hamilton, the Region of Waterloo and Sault Ste. Marie, as "construction employers". This designation also applied to public entities including the Toronto District School Board, Toronto Community Housing, the University of Toronto and others. This unfair and unintended loophole prevented the vast majority of Ontario construction companies and their workers from bidding and working on public projects, no matter how qualified, innovative or well -respected they are. Once the legislation is proclaimed, municipalities and other public entities can benefit from qualified local workers and contractors building local community infrastructure. However, municipalities, school boards, universities and community housing corporations will be pressured to vote against fairness by certain labour groups that have benefitted from a closed construction market. Despite all of the benefits of Bill 66 (including fairness and cost -savings), they will be encouraged to reject Bill 66 by opting out of its requirements for fair, transparent and inclusive procurement. "We're urging municipalities to stick up for taxpayers, workers and local businesses," added Reid. "The choice is simple: embrace a fair and transparent procurement system, benefitting ALL local workers, or cave in to special interest groups who've been profiting from a monopolized system for far too long:' About the Progressive Contractors Association of Canada (PCA) PCA is the voice of progressive unionized employers in Canada's construction industry. PCA member companies are leaders in infrastructure construction across Canada, employing more than 25,000 skilled construction workers who are represented primarily by CLAC. PCA promotes fair and open construction tendering in ALL Ontario municipalities. For further information, contact: Danna O'Brien, Danna@obriencommunications.ca 416-500-0699 http://www.peac.ca/passage-of-bill-66-a-maj or-milestone-for-fair-and-open-construction-t... 9/ 13/2019 Toronto stands alone in remaining a "construction employer" as other Ontario municipalit... Page 1 of 5 Toronto stands alone in remaining a "construction employer" as other Ontario municipalities embrace Bill 66 changes By Adriana Valentina - July 15, 2019 GTA Construction Report staff writer Toronto's decision to opt out of legislation which would have allowed it to use non -union contractors for city construction projects puts the city in the unique spot as being the only Ontario municipality where unionized workers have sway over politics and business. Other municipalities currently subject to mandatory collective bargaining with construction unions have decided to go along with the provincial government's Bill 66, which ends the construction unions' exclusivity unless cities specifically elect to opt out of the new rules. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt -out if you wish. Accept Reject For more information, see our Privacy Policy. https://ontarioconstructionreport.con-iltoronto-stands-alone-in-remaining-a-construction-em... 9/12/2019 Toronto stands alone in remaining a "construction employer" as other Ontario municipalit... Page 2 of 5 Representatives of non -union contractors say they plan to take Toronto to court over its decision to continue with its status as a "construction employer". The same litigation issue - but on the converse side - is anticipated in Hamilton, where its city council decided to "do nothing" — and by that, allow the Bill 66 provisions to go into effect. Toronto council voted 20 to 4 in favour of maintaining the status quo with organized labour. It also voted in favour of allowing the Labourers' International Union of North America (LiUNA), to bid on city construction work. It is unclear if UUNA's participation will add to jurisdictional tensions with the other construction trade unions - as UUNA has worked with Doug Ford's provincial government in seeking greater access to work in areas considered protected by the other trades. The Globe and Mail reports that, on the same day Toronto voted to stick with the unions, a Hamilton City Council committee voted 11 to 1 in favour of allowing all qualified companies to bid on city construction contracts. Hamilton council will decide the issue on Wednesday. Waterloo Region and Sault Ste. Marie have also endorsed open bidding, the newspaper reported. Bill 66, introduced last December, automatically deems municipalities, school boards, hospitals and universities as non -construction employers, opening bidding on construction contracts to all qualified companies. The government amended the legislation in March, giving municipalities and other public entities the choice of opting out of the new rules and maintaining the status quo. Toronto councillor Anthony Perruzza argued at Wednesday's meeting that the city should opt out. His passionate pro -union speech (and council's This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt -out if you wish. Accept Reject For more information, see our Privacy Policy. https:Hontarioconstructionreport. comltoronto-stands-alone-in-remaining-a-construction-em... 9/ 12/2019 Toronto stands alone in remaining a "construction employer" as other Ontario municipalit... Page 3 of 5 support of his position), came despite a report from Toronto city manager Chris Murray recommending that the city do nothing and, with increased competition, would save between $2 million and $48 million a year on its construction contracts. "Everybody understands that the numbers being bandied about probably aren't true," Perruzza said. "It's really an ideological debate that has been foisted on us." However, Councillor Jaye Robinson argued that the city should end its long-standing agreements with nine labour groups. "What are we afraid of?" she said. "Opening the market to everyone?" Toronto is bound to nine province -wide collective agreements in the industrial, commercial and institutional (ICI) sector. Contractors must work with the nine unions for ICI projects in the city, which Toronto awarded approximately $2.6-billion in contracts in 2018 for all goods and services and $616- million of those contracts were in the ICI sector. The Progressive Contractors Association of Canada (PCA) said in a statement on Wednesday that it plans to legally challenge Toronto's decision to reject Bill 66 and invite UUNA into a group that has "monopolized" city construction projects for years. "It's just plain politicking when a cash -strapped city council passes up substantial savings and puts special -interest groups ahead of their own constituents," said PCA vice-president Sean Reid. Conversely, in Hamilton, a representative of the union that stands to lose work, the United Brotherhood of Carpenters and Joiners of America Local 18, did not rule out taking legal action. "The reality is that there are labour rights, they can't just be wished away,"said Kim Wright, a consultant to the Carpenters' Union, when asked by Councillor Brad Clark if it was the union's intention to challenge the matter in court, the Globe and Mail reported. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt -out if you wish. Accept Reject For more information, see our Privacy Policy. https:Hontarioconstructionreport.comltronto-stands-alone-in-remaining-a-construction-em... 9/ 12/2019 Toronto stands alone in remaining a "construction employer" as other Ontario municipalit... Page 4 of 5 Clark said before the vote that the situation was "challenging" for the city because the province had put it in a position where it could face a potential lawsuit for not upholding the collective agreement with the Carpenters' Union. Hamilton's staff had recommended open tendering. Currently all of the city's carpentry work must be completed by contractors with Carpenters' Union collective agreements. The committee's vote was in line with a report by city staff recommending open tendering. Meanwhile, In Sault Ste. Marie, the city has been bound to provincial union agreements with the United Brotherhood of Carpenters and Joiners and UUNA for more than 30 years. There was much lobbying by non -union contractors there to end the exclusivity before the Conservative government won the last election, usurping long-standing relationships between the former Liberal government and the building trades unions. Accordingly, the city is going along with the Bill 66 changes. As well, The Region of Waterloo will end its union exclusivity, saying it expects that moving to open tendering will translate into savings of between 3 per cent and 30 per cent. The Globe and Mail reports that Waterloo region also said that the number of bids it received following union certification in 2014 dropped by more than 50 per cent. In a statement, Merit Ontario said it was disappointed with Toronto city council's decision and was considering all options, including legal action. City of Toronto councillors voted to remain bound by costly and discriminatory labour agreements despite numerous studies showing that the cost to the taxpayers of Toronto could be in excess of $100 million dollars and against the city staff recommendations, the association said. "Merit Ontario is disappointed by the city council vote which shows an utter lack of respect for taxpayers," said Merit Ontario executive director Michael Galiardo. "Hard working Toronto taxpayers that are open shop or don't This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt -out if you wish. Accept Reject For more information, see our Privacy Policy. https:Hontarioconstructionreport.com/toronto-stands-alone-in-remaining-a-construction-em... 9/ 12/2019 Toronto stands alone in remaining a "construction employer" as other Ontario municipalit... Page 5 of 5 belong to the right union will continue to be excluded from working on infrastructure projects paid for with their own tax dollars." "Toronto is facing a budget crunch, and council said no to the easiest way possible to give itself options and the ability to be leaders for the next generation of taxpayers." "The savings realized through open tendering could have went to 8,000 new child care spaces or 64 million school lunches," Merit Ontario said. "Unfortunately, money is now going to well connected insiders instead of being used for other much needed additional services and city projects. "Savings compounded for many years add up and can really make a difference for the residents of City of Toronto. It's a shame this decision is so short-sighted." "Merit Ontario is considering all options after this disappointing vote including legal action," the statement said. Adriana Valentina This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt -out if you wish. Accept Reject For more information, see our Privacy Policy. https://ontarioconstructionreport.comltronto-stands-alone-in-remaining-a-construction-em... 9/ 12/2019