Monday, March 6, 2023

Push Back on Construction Monopolies a Win for Us All

A recent court ruling will keep construction monopolies at bay in Sault Ste. Marie. It’s a victory for local taxpayers and for a lot of local CLAC members and companies because it reaffirms their right to continue bidding on and building local municipal projects

By Ian DeWaard, CLAC Ontario Director, and Karen Renkema, Vice-President, Progressive Contractors Association of Canada (PCA)

For well over three decades, hundreds of construction workers and many local contractors in Sault Ste. Marie were on the outside looking in. No matter how talented or experienced they were, dated labour laws kept them from building municipal projects in the city.

That’s a long time to be shut out of billions of dollars in construction work that their tax dollars help fund. And it’s the reason that a recent unanimous Divisional Court decision against the Carpenters’ District Council of Ontario and United Brotherhood of Carpenters and Joiners of America, is so meaningful.

After losing their grievance at the Ontario Labour Relations Board, these unions moved on to Divisional Court. They argued that ending their 36-year monopoly on city projects violated their right to collective bargaining under the Charter of Rights and Freedoms, but that didn’t fly.

This seemingly never-ending legal fight has time and again tested the resolve of Sault Council and Mayor Matthew Shoemaker. But he’s proven to be a strong and vocal champion for taxpayers over the years, by spearheading the push back against monopolies that dramatically escalated the cost of municipal construction work for far too long.

The provincial government deserves credit for getting the ball rolling with the passage of Bill 66 back in 2019. This allowed all municipalities to open up their construction markets to competition, providing every qualified construction worker and company with the same opportunity to build projects in their communities.

As a result, workers can participate in taxpayer-funded projects, regardless of which union they belong to. Companies affiliated with the Carpenters’ District Council of Ontario and United Brotherhood of Carpenters and Joiners of America are still able to bid on civic projects, but now they have competition.

The legislation was wholeheartedly supported by the Sault and other cities, which are now realizing the significant benefits of competitive tendering. In fact, just six months after Bill 66 passed, four companies bid on a contract to build a wastewater treatment plant in Sault Ste. Marie. Before this groundbreaking legislation, there would have been only one bidder.

Multiple bids on a project encourage contractors to innovate and put their best bid forward. This ensures taxpayers get their money’s worth, and that’s just what we’re seeing.

A report by the Cardus think tank shows that with the removal of bidding restrictions in the Region of Waterloo saved 14 percent on municipal construction work. That translates into savings of $24 million over two years. Cardus notes similar results in Sault Ste. Marie and Hamilton.

Today, construction costs are under immense pressure with supply chain backlogs, labour shortages, and inflation pushing up material costs. Still, the city has found a way to do the near impossible. It is saving on construction. The city is making sure taxpayers get good value each time infrastructure is upgraded.

Through open competition, the city also demonstrates strong commitment to all local workers and companies who want a shot at building municipal projects. No longer is it the “right” of a few select unions.

Push Back on Construction Monopolies a Win for Us All

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