Ontario Construction Report staff writer
Toronto city council’s decision to expand voluntary union recognition for construction workers outside the industrial, commercial and institutional (ICI) sector is drawing praise and criticism from labor organizations and industry groups over its potential impact on workers, competition and public construction costs.
Council voted June 24 to pursue a voluntary recognition agreement that would expand access to union representation for workers in the residential, heavy construction, road, sewer and watermain sectors. The move builds on a similar agreement approved in 2019 for industrial, commercial and institutional (ICI) construction.
Mayor Olivia Chow introduced the motion at the end of a debate on reducing development charges.
“For quite a few years now, the ICI sector has had 10 collective agreements,” Chow told council. “So we recognize and protect workers in that sector, but not in the housing and residential sector.
“What we are doing right now is filling the gap since we are building all these homes.”
A voluntary recognition agreement will address safety concerns for workers in non-ICI jobs, Chow said, citing statistics showing the rate of injuries on unionized jobsites is lower than on non-unionized sites.
“I noticed the council had done that for the ICI sector and that was a few years ago,” she said. “I then looked into it. Why is it only for the ICI sector and not the residential sector? It didn’t make sense.
A coroner’s report studying 26 fatal fall reports left the mayor “horrified” and concerned that inexperienced small contractors are non-unionized.
“They are subject to more injuries and more deaths, so I thought, you know, we need to move on this.”
Supporters say the agreement will give more construction workers access to collective bargaining, higher wages, benefits and workplace protections.
LIUNA Local 183 called the decision “a historic step forward for the workers who build Toronto.”
“For too long, too many workers have been left without the protections and representation they deserve,” Business manager Jack Olivira said in a statement. “The people building the homes, roads, transit and community infrastructure this city depends on should have access to fair wages, benefits, pensions, respect and a real voice at work.”
Critics, however, say the agreement will reduce competition for publicly funded construction projects by limiting who can bid on city work.
The Progressive Contractors Association of Canada (PCA) is urging council to reverse the decision, arguing it would grant LIUNA Local 183 exclusive bargaining rights in several construction sectors while extending access to city residential construction projects to eight additional unions.
PCA Vice President for Ontario Karen Renkema criticized the way the motion was introduced, noting it was brought forward during council’s consideration of an unrelated item concerning development charge rebates.
“A motion of this magnitude should be debated openly, with proper notice, staff analysis, public consultation, and a clear assessment of the cost to taxpayers,” Renkema said.
The association also believes limiting eligible contractors will increase construction project costs, citing a third-party analysis of the city’s 2019 labor agreement which estimated the procurement model has increased construction costs by at least $347 million annually.
City officials have not publicly endorsed that estimate.
Supporters of the agreement argue that expanding union representation improves job quality, workplace safety and labor stability while ensuring construction workers receive fair compensation and benefits.
The city has not yet released details on how the new voluntary recognition agreement will be implemented or when negotiations with the affected unions will be completed.