Friday, June 26, 2026

Toronto’s Backroom Decision on Construction Agreements Could Cost Taxpayers Millions

Toronto—The City of Toronto’s decision to pursue voluntary recognition agreements in the construction sector—introduced as a last-minute motion with no prior staff report or public analysis—represents a troubling step backward for transparency, worker choice, and responsible use of taxpayer dollars.

With no advance notice, independent economic assessment, or opportunity for meaningful public scrutiny, city council has directed staff to negotiate agreements that could expand union control over publicly funded construction.

This motion, introduced by Mayor Olivia Chow at council’s Wednesday meeting, entrenches a system that excludes qualified local contractors and skilled workers based not on merit, but on union affiliation. By requiring that key construction work be performed by union-signatory employers, the city is effectively sidelining experienced small and mid-sized firms that employ Toronto-area workers.

CLAC, an independent all-Canadian union, has long promoted the importance of freedom of association for workers and strongly condemns this decision. Workers should have the right to choose whether—and by whom—they are represented. They should not be forced into any union as a condition of working on publicly funded projects. Policies like this restrict freedom and limit opportunities for both alternative union members and non-union workers.

The impact on taxpayers is equally concerning. Research shows that restricted tendering reduces competition and drives up costs. Studies from Cardus and the Montreal Economic Institute indicate that limiting bidding to select unionized firms can increase construction costs by double-digit percentages—amounting to hundreds of millions of dollars per year in the City of Toronto. Fewer bidders mean higher prices, less innovation, and far less value for public infrastructure spending.

At a time when Toronto residents are already facing affordability pressures, this decision demonstrates a callous disregard for their tax dollars. Every dollar overspent on inflated construction contracts cannot be invested in housing, transit, or essential services.

Major policy shifts affecting billions in public spending should be subject to rigorous analysis, transparent debate, and full public accountability—not introduced as last-minute motions negotiated behind closed doors. Toronto deserves better.

Toronto’s Backroom Decision on Construction Agreements Could Cost Taxpayers Millions

You might be interested in