Monday, November 6, 2017

CLAC Supports the End of Monopolistic Project Labour Agreements

Winnipeg, MB—CLAC welcomes the news that the government of Manitoba will begin consultations aimed at ending the use of project labour agreements (PLAs) on large government projects.

PLAs have been used in Manitoba for several decades. They are not only an affront to worker choice, but they provide poor value for taxpayers by limiting the number of construction firms that are allowed to bid on these projects. Only contractors aligned with the specific unions covered by the PLA are allowed to bid and work on the project. This greatly reduces competition, driving up costs and forcing all workers on major projects to become members of specific unions while working on those projects.

“What we’ve had in Manitoba until now is a monopoly,” says Geoff Dueck Thiessen, CLAC regional director. “We take competition seriously in Canada, for example we have the Competition Act, because we recognize that monopolies limit innovation, efficiency, and consumer choice. Labour monopolies are not fair either. They force workers into a particular union, in many cases overriding the choices workers have already made. We’re relieved that Manitoba is joining much of the rest of Canada in opening up the tendering process.”

CLAC has long advocated for the managed open site model, which was pioneered in Alberta and has since been used and refined in several jurisdictions. This model allows for contractors aligned with traditional craft-based unions, alternative unions like CLAC, as well as non-union contractors to bid on and work on large projects without labour instability. Most recently, B.C Hydro abandoned the PLA approach for the Site C Clean Energy Project, opting for fair and open tendering.

CLAC Supports the End of Monopolistic Project Labour Agreements

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