Review of Fair Wage Policy

The Corporate Services Committee recommends that City Council adopt the following, on an interim basis pending the hearing of deputations by the Corporate Services Committee at its meeting scheduled to be held on September 14, 1998:

"Recommendations for Part 1 - Labour Trade Provisions

It is recommended that:

(1)the Executive Director of Human Resources in conjunction with the City Solicitor report on the possibilities presented by the Economic Development and Workplace Democracy Act, 1998 for modifying current binding obligations of the City for certified labour trades and the potential to realize future project savings;

Recommendations for Part 2 - Fair Wage Policy:

It is recommended that:

(2)the Fair Wage Policy of the former Municipality of Metropolitan Toronto be adopted for all City Departments, Agencies, Boards and Commissions and replace all existing fair wage policies of the former local municipalities; and

(3)a new Workers' Rights document be developed by the Fair Wage and Labour Trades Office which clearly separates and explains the distinct Fair Wage Policy and Labour Trade sections, their respective purposes, provisions and applicability to areas of the new City;".

The Corporate Services Committee reports, for the information of Council, having deferred consideration of Recommendations Nos (4) to (7), embodied in the report (July 9, 1998) from the Chief Administrative Officer, pending the hearing of deputations at the meeting of the Corporate Services Committee scheduled to be held on September 14, 1998.

The Corporate Services Committee submits the following report (July9, 1998) from the Chief Administrative Officer:

Purpose:

The purpose of this report is to review options respecting the introduction of a single Fair Wage Policy for the new City of Toronto. The varying degree of adoption, application, enforcement and perceived utility of fair wage policy among the former municipalities of the new City is discussed. In addition, the merits of differing views respecting current fair wage provisions are presented for the consideration of Council. Since there also appears to be a high level of misunderstanding between fair wage policy, its purpose and provisions, and the separate and provincially legislated provisions governing certain labour trades, these issues are reviewed to provide a context for the decisions of Council.

Funding Sources, Financial Implications and Impact Statement:

There are no funds immediately required to implement the options under consideration in this report although there may be undetermined cost implications should a Fair Wage Policy be adopted. If extending Fair Wage Policy provisions to the whole City is recommended by Council, there will likely be a need within one year to add one position to the Fair Wage and Labour Trades Office.

Recommendations for Part 1 - Labour Trade Provisions:

It is recommended that:

(1)the Executive Director of Human Resources in conjunction with the City Solicitor report on the possibilities presented by the Economic Development & Workplace Democracy Act, 1998 for modifying current binding obligations of the City for certified labour trades and the potential to realize future project savings;

Recommendations for Part 2 - Fair Wage Policy:

It is recommended that:

(2)the Fair Wage Policy of the former Municipality of Metropolitan Toronto be adopted for all City Departments, agencies, boards and commissions and replace all existing fair wage policies of the former local municipalities;

(3)a new Workers' Rights document be developed by the Fair Wage and Labour Trades Office and the Chief Administrative Officer which clearly separates and explains the distinct Fair Wage Policy and Labour Trade sections, their respective purposes, provisions and applicability to areas of the new City;

(4)the Manager of the Fair Wage and Labour Trades Office with the Executive Director of Human Resources report to the Corporate Services Committee by November, 1998, on current and alternative methods of establishing Fair Wage Schedules and rates;

(5)the Fair Wage and Labour Trades Office report to the Executive Director of Human Resources in the Corporate Services Department and the office's resource requirements be reviewed within one year;

(6)an independent assessment be conducted by the Chief Administrative Officer during 1999, on the competitiveness of its Fair Wage Schedule and rates, including a review of City purchasing costs compared to other large cities not having a fair wage policy; and

(7)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference and Background:

At Council's meeting of March 4, 5 and 6, 1998, in consideration of Clause 1 in Report No. 2 of The Corporate Services Committee, 'Interim Purchasing By-law", the Chief Administrative Officer was requested to develop a City-wide fair wage policy. Council further requested that the recommendations include a mechanism for enforcement and that the report be completed within two months.

Underlying this directive was the assumption that it would be appropriate to extend and apply existing fair wage policy to the new City of Toronto. This was based, in part, on the fact that fair wage policy has had long-standing precedent in the former City of Toronto since 1893, as well as in the former Municipality of Metropolitan Toronto, since 1954. The other former local municipalities differ considerably in the type of purchases for which they use the Toronto and/or Metro fair wage policies as a guide, while enforcement of the provision ranges from none, application on a very limited basis, to full application, as assessed throughout this report.

Comments and Discussion:

Inconsistent fair wage policies and varying application of those policies across the new City detract from achieving amalgamated purchasing activities. In turn, this means that savings through bulk price discounts obtained through amalgamation of volumes cannot be achieved. The decision to be made by Council is whether to achieve consistency through having a single Fair Wage Policy for the new City, or having no Fair Wage Policy. While concerns are expressed about additional cost ramifications where there is adherence to Fair Wage Policy, there is a study commissioned by the Construction Labour Relations Association of B.C., and the B.C. Provincial Council of Carpenters and financially assisted by the Government of Canada, that indicates otherwise. This report contends that the evidence to adequately support or refute the claims is inconclusive at present.

In the preparation of this report, staff of the Chief Administrator's Office (C.A.O.) consulted with legal and labour relations staff from the Corporate Services Department, purchasing staff of the Finance Department, and the Fair Wage and Labour Trades Office. In order to review options for Council, several activities have been undertaken. First, binding municipal obligations under province-wide collective agreements for labour trades have been distinguished from Fair Wage Policy. Second, the current fair wage policies and degree of use across the former local municipalities and other sectors have been summarized. Third, the purpose and utility of a Fair Wage Policy have been assessed. Fourth, recommendations to ensure operational improvements have been made.

Part 1 - Labour Trade Provisions:

(a)Legislation and Applicability:

The mandatory Labour Trades provisions for municipalities bound by province-wide collective agreements are separate from Fair Wage Policy established, monitored and enforced by the City. Central to any understanding of municipal obligations to Labour Trades, is that the City has no discretion in setting wage rates or in using union labour for certain trades performing work for the City. This is by virtue of Province-wide collective agreements applicable to trades in the Industrial, Commercial and Institutional (ICI) and Residential, sectors of the construction industry.

The Province-wide collective agreements are binding on all employers in the sector. The former City of Toronto and Municipality of Metropolitan Toronto were first considered 'employers' when hiring directly from the trade union halls for which the relevant unions obtained bargaining rights beginning in 1978. As a result, subject to the jurisdiction of the collective agreements, union workers must be used for contracted-out work. The use of union sub-contractors for municipal building projects is also required. The former City of Toronto is bound to use union affiliated workers and wages for eight construction trades. The former Metro is bound to use the appropriate union affiliation workers for four ICI trades and five in the Residential sector. Similar agreements were not applicable to the other municipalities with the exception of the City of Etobicoke, which is bound to the Bricklayers' provincial collective agreement. Appendix 1 to this report provides an overview of the binding obligations respecting labour trades.

(b)Impacts of Labour Trade Provisions and Next Steps:

The Labour Relations Act requires the negotiation of collective agreements in the ICI sector by Province-wide employer associations consisting of the major construction companies. These agreements are, however, binding upon all those determined to be 'employers' including certain municipalities. The Municipality of Metropolitan Toronto and Shell Canada, for example, have argued that in contracting-out work they are not 'employers' in the construction industry, but are acting as owners not subject to the obligations of the agreements. The Ontario Labour Relations Board (OLRB) has rejected those arguments and has held that having once been an employer of the relevant labour trades, the entity continues to be an employer within the industry.

At present, Bill 136 specifies that the collective agreements for the construction industry, to which any of the former municipalities were a party, will continue to apply. In addition, the City is concerned about the costs that would result in the event that existing obligations were extended across all its localities. This will be a subject at discussions being held between trade union and City staff on bargaining unit structure and jurisdiction.

On June 26, 1998, Bill 31, the Economic Development and Workplace Democracy Act, 1998 received Royal Assent. Certain of the Act's provisions address the issue of adherence of municipalities and other non-construction employers to the province-wide collective agreements for certified labour trades. In explanatory notes to first reading of the Bill, two avenues allowing non-applicability of the collective agreements are noted. First, the OLRB may issue an order to a non-construction employer declaring that a trade union no longer represents its construction-related employees (as long as the employer does not employ any such trade union members on the day the application is made to the Board). Second, if a project is considered to be economically significant, the Bill provides for specific project agreements to be negotiated. A negotiated project agreement could modify the provisions of province-wide collective agreements if sixty percent of the bargaining agents support its approval.

It is, therefore, recommended that the Executive Director of Human Resources, in conjunction with the City Solicitor, report on the possibilities presented by the Act for modifying current binding obligations of the City for certified labour trades and the potential to realize future project savings.

Part 2 - Fair Wage Policy:

(a)Former City of Toronto and Municipality of Metropolitan Toronto Fair Wage Policies:

The Fair Wage Policy of the former City of Toronto has as its central tenet the prohibition of the City doing business with contractors and suppliers who discriminate against their workers. Originally implemented in 1893 to ensure that contractors for the City paid mechanics, workmen and labourers the union rates or, for non-union workers, the prevailing wages and benefits in their field, the Fair Wage Policy has expanded over the years to other classifications such as clerical workers. The policy also requires compliance with the acceptable number of working hours and conditions of work.

The former Municipality of Metropolitan Toronto was served by the former City of Toronto's Fair Wage and Labour Trades Office and cost-shared the expenses of operating the office. The Municipality of Metropolitan Toronto also had its own Fair Wage Policy, which used the same wage rates and Schedules as the (former) City of Toronto. It did not, however, include the City of Toronto's non-discrimination and occupational health and safety clauses, since these are covered by legislation governing other related policies. The intent of Fair Wage Policy can be summarized as follows:

(i)to produce stable labour relations with minimal disruption;

(ii)to compromise between the wage differentials of organized labour and unorganized labour;

(iii)to create a level playing field in competitions for City work;

(iv)to protect the public; and

(v)to enhance the reputation of the City for ethical business dealings.

Establishing fair wage rates and schedules are intended to minimize potential conflicts between organized and unorganized labour in the tendering and awarding of civic contracts. Fair wage rates are established through discussion with employee and employer groups and associations (having both union and non-union members). These rates are voted on by the above noted groups and are recommended to Council for approval every three years. Certain designated construction related rates are based on the lowest rate established by collective bargaining, while the wage rates for other classifications are based on market and industrial surveys in accordance with the prevailing wages for non-union workers in the geographic area.

The fair wage rates do not apply to small businesses, typically those with owner-operators, or partnerships, or principals of companies as long as they undertake the work themselves. Similarly, while not enforceable since it applies to external jurisdictions, the former City of Toronto approved an International Employment Standards Policy. In this manner, the City alerted potential suppliers that their subsidiaries, partners and suppliers, were also expected to comply with basic employment standards for goods manufactured abroad/overseas.

The Fair Wage and Labour Trades Office has three staff and a budget of approximately $190,000.00, a small portion of which is cost-recoverable from user fees (approximately $20,000.00 per annum) and a 10 percent administrative charge for non-compliance. Prospective bidders to competitive calls are provided with fair wage information and recommended bidders are reviewed prior to the award of any contract to ensure compliance with the approved wage Schedules. In addition, some 200 investigations, inspections and payroll audits are carried out annually as a result of worker or competitor complaints. The 'Workers' Rights' documents attached as Appendix 2 to this report, contain fair wage policy information exclusive of Schedules (as well as labour trades obligations) for each of the former City of Toronto and Municipality of Metropolitan Toronto.

(b)Overview of Fair Wage Policies in Other Jurisdictions:

Many organizations, as shown in Appendix 3 to this report, have made use of either the former Municipality of Metropolitan Toronto or City of Toronto Fair Wage Policy and the (common) fair wage Schedules. Some former local municipalities applied fair wage monitoring on a part-time basis tending to concentrate only on construction contracts for capital projects as opposed to other types of purchases. The current use and application of fair wage policy across the local areas of the new City, is shown in Appendix 4 to this report.

Other government jurisdictions also tend to concentrate on construction work in Fair Wage Policy. This is the case at both the Federal and Provincial government levels and it is also common in a number of municipalities. In all jurisdictions, fair wages are determined in accordance with factors such as the cost of living, taxation rates, collective agreements, and even weather conditions particular to a locality. Conditions around the hours of work, overtime pay, required record-keeping and associated procedures, are also commonly stipulated in fair wage policy. In the Province of Ontario, Fair Wage Schedules include several work sectors additional to the construction sector. In addition, Ontario places an emphasis upon distinguishing between "urban and non-urban areas" and issues varying Fair Wage Schedules accordingly, the last revisions being in 1995.

More detail on the Federal and Provincial Fair Wage Policies, as well as those for other municipalities, including the Region of Hamilton-Wentworth, Cities of Mississauga, Vaughan, Calgary, Edmonton, Montreal and the Greater Vancouver Regional District, can be found in Appendix 5 to this report. It can be concluded that the rate of pay constituting a 'fair wage' is relative to a number of complex factors in any given jurisdiction or locality, as opposed to being a fixed or consistent rate.

A table comparing a sample of Provincial and City/Metro current fair wage rates is contained in Appendix 6.

(c)Merits of Fair Wage Policy:

The Fair Wage Policy is seen by its supporters as a fulfilment of social responsibility by the City to protect the rights of workers and to accord them fair treatment, including fairly ascertained, agreed upon and reasonable rates of pay. The collection and return of nearly $200,000.00, on behalf of workers being paid lesser rates than established as fair, occurred in 1997. The Fair Wage Policy provisions allow for either union or non-union contractors to undertake work as long as they agree to comply with the fair wage Schedule rates of pay.

Enforcement of the Fair Wage Policy is based upon contract law since the Workers' Rights document is included in tender and quotation documents and explicitly states that compliance is a condition of fulfilling the contract's requirements. The existence of a Fair Wage Policy provides a forum for the grievances of workers in business and industry that have little or no union presence. These workers thus have assurance that they will receive rates of pay appropriate to the nature and location (urban locale) of the work.

Outright adoption of a Fair Wage Policy by the new City would confirm its commitment to the fair treatment of workers with whom it does business. Adoption would also allow for amalgamation of purchasing activities, other than those subject to labour trades requirements, across the new City. Since seventy-five percent of total purchasing dollars spent by the former local municipalities are potentially covered by current Fair Wage Policy, a single policy would permit purchasing savings due to bulk volume pricing discounts. Second, it would avoid the possibility of claims against the City from unsuccessful contractors who are limited in bidding for the same work in different areas of the City if they do not comply with the Fair Wage Policy where it is applied.

(d)Drawbacks of Fair Wage Policy:

It is often assumed that binding obligations respecting labour trades (see Part 1) are, by definition, part of Fair Wage Policy. In fact, they are established by different authorities and set different wage compliance conditions for different purposes. While City Council does not control policy respecting labour trades, it needs to ensure that it is not subject to penalty for contravention of an agreement to which it is a party. As a result, confusion typically exists in understanding the differences between Labour Trade and Fair Wage requirements. In cases where municipalities have been determined to be employers in the construction industry, the wage rates for certified construction trades will override the Fair Wage Schedule rates for those classifications of work. As a result, jurisdictions without binding agreements for labour trades tend to conclude that Fair Wage Policy automatically requires union rates of pay when this is not the case.

The application and adherence to Fair Wage Policy has been very limited in the former municipalities comprising the new City of Toronto even where such policy was adopted. Arguments against a fair wage policy include that the Fair Wage Schedule rates may be set too high for construction in particular, but also for other work classifications. This perception arises given the strong influence of construction sector input to setting the fair wage rates and a concern that the rates may be costing the municipality more than necessary while also restricting competition. In addition, some contractors cite the Province of Ontario's lower fair wage schedules. They do not usually make reference, however, to the fact that Provincial schedules are limited to fewer work classifications than the former City or Metro policies.

It should be recognized that wholesale adoption of a Fair Wage Policy (from the former Toronto or Metro) has some costs for the new City associated with it. It would likely require at least one fair wage officer position to be added to the establishment of the Fair Wage and Labour Trades Office within one year. In addition, under a single fair wage policy, suppliers to the City who currently supply to former municipalities not practicing/possessing fair wage, would be obligated to pay wage rates they do not necessarily incur now.

Fair Wage Policy Options and Recommendations for the New City:

(a)Adoption or Non-Adoption of a Fair Wage Policy:

In order to achieve amalgamated purchasing activities for the new City, implementing either one Fair Wage Policy or no Fair Wage Policy across the City, are the only options. Based on the above merits and drawbacks in this regard, it appears that adopting a single Fair Wage Policy is the best course of action for the new City. It gives the City a presence in Fair Wage Policy similar to other large cities and government jurisdictions. Adoption of a Fair Wage Policy will establish agreement with the principles of fair worker treatment, while not precluding operational improvements and options to be reported to Council.

The Fair Wage Policy of the former Municipality of Metropolitan Toronto is more straightforward than that of the former City of Toronto since it contains fewer references to other policy areas covered by other legislation. It is, therefore, recommended that the Fair Wage Policy of the former Municipality of Metropolitan Toronto be adopted for all City Departments, agencies, boards and commissions and replace all existing fair wage policies of the former local municipalities.

(b)Operational Improvements in the Short Term:

In order to address the drawbacks perceived with a Fair Wage Policy, a number of operational improvements for immediate implementation can be identified. First, the confusion in understanding the difference between the Fair Wage Policy and the Labour Trades requirements needs to be reduced. This will be aided to a large extent by amending the Workers' Rights document since that document contains the conditions of both the Fair Wage Policy and the separate and different Labour Trade obligations. As a result, the Workers' Rights document is often referred to as the Fair Wage Policy, when it actually comprises the two separate policy areas. It is, therefore, recommended that a new Workers' Rights document be developed which clearly separates and explains the distinct Fair Wage Policy and Labour Trade sections, their respective purposes, provisions and applicability to areas of the new City.

It would appear that many of the arguments on both sides of the Fair Wage issue are not directly comparable and are inconclusive at best. The perception persists, however, that savings would accrue to the City if there were no Fair Wage Policy. Consideration should be given to addressing the arguments about defraying and controlling costs and testing whether modified, or less direct, involvement in establishing wage rates could result in savings. As a first step, it is recommended that the Manager of the Fair Wage and Labour Trades Office and the Executive Director of Human Resources report to the Corporate Services Committee by November, 1998, on current and alternative methods of establishing Fair Wage Schedules and rates. This would allow for feasible change and also prepare Committee to hold deputations with industry representatives on the options.

It is anticipated that better co-ordination of the issues that will be facing the new City can be delivered by direct collaboration of staff from the Fair Wage and Labour Trades Office with those from the Labour Relations function. The purpose of the Fair Wage and Labour Trades Office is also consistent with goals of the Human Resources Division, such as ensuring workers' rights, promoting equal opportunity, and establishing practices that support employment standards and compensation issues. Accordingly, it is recommended that the Fair Wage and Labour Trades Office be located in, the Human Resources Division of the Corporate Services Department. The importance of Council receiving the professional advice of the Fair Wage Officer on the setting of Fair Wage Rates and Schedules and on the City's purchasing activities is fully acknowledged and supported in establishing this reporting relationship. It is further recommended that the Fair Wage and Labour Trades Office be reviewed in terms of its resource requirements within one year of implementing a City-wide Fair Wage Policy.

(c)Possible Longer-Term Assessment of Fair Wage versus no Fair Wage Pricing:

The Fair Wage Policy has not been assessed against a 'no fair wage policy' in the experience of municipalities. The Fair Wage Policy (as do labour trades' requirements) restricts competition to suppliers who meet its requirements. It can be argued that this may result in fewer bidders competing for the purchase (if they voluntarily choose not to comply) and, therefore, may result in higher costs. In contrast, it could be argued that a Fair Wage Policy might reduce the overall cost of work through better wages and, thus, better performance and work quality.

It is extremely difficult to validly argue either of the above positions in the new City of Toronto in terms of the impact of Fair Wage Policy on overall purchasing costs. Available data is based on the large municipal bulk purchases with volume discounts experienced by the former Metro and City of Toronto, as compared with small volumes and no bulk discounts in other municipalities. The scope of work and the extent of work, is extremely varied and more cost-effective service contracts in areas not applying Fair Wage rates, may be due simply to less complex work being provided.

Nevertheless, over the longer term, Council may feel it is advantageous to initiate an independent assessment of Fair Wage procedures, Schedules and rates. Any such study would be based on comparative evaluations with the Ontario provincial government, other large cities and countries, if applicable. As part of the assessment, purchasing costs for the City of Toronto could be compared with those of cities that do not have a Fair Wage policy. The drawback of such pricing comparisons is that most large cities and jurisdictions in Canada have a Fair Wage Policy. In addition, tax rate differentials, labour costs as only one component of the overall cost of a contract (normally between twenty to thirty percent of total costs), and other such factors can lead to inconclusive results that are open to criticism.

It is, therefore, recommended that Council have an independent assessment conducted by the Chief Administrative Officer during 1999, on the competitiveness of its Fair Wage Schedule and rates, including a review of City purchasing costs compared to other large cities not having a fair wage policy.

Conclusion:

The former City of Toronto and Municipality of Metropolitan Toronto had Fair Wage Policies designed to protect the rights of workers and to prevent doing business with contractors and suppliers who financially or otherwise discriminate against their workers. Both these municipalities used the same Fair Wage Schedule. The other former area municipalities differed considerably in their support, use and enforcement of a Fair Wage Policy. These inconsistencies across the new City detract from achieving amalgamated purchasing activities and the associated savings through bulk price discounts.

Consistency in purchasing across the new City can be achieved by Council either adopting a single Fair Wage Policy, or determining that it will not implement such a policy. An assessment of the merits and drawbacks in this regard was undertaken. It was found that existence of a Fair Wage Policy appears to contribute towards integrity in City business dealings, achieve labour stability and narrow the gap between the wage differentials of union and non-union labour. It was also found that there is not sufficient evidence to either support or refute claims that the Fair Wage Policy may lead to higher costs. Accordingly, this report recommends that the Fair Wage Policy of the former Municipality of Metropolitan Toronto be adopted.

In addition, it was found that Fair Wage Policy, its purpose, provisions and requirements, is often confused with separate, but mandatory, collective agreement compliance for certified labour trades. It was also found that opportunities exist to improve Fair Wage procedures and that there is the potential for the City to improve the competitiveness of its Schedules. Accordingly, this report recommends operating improvements such as new document formats, a review of the method and process used to set fair wage schedules, and a new reporting relationship for the Fair Wage and Labour Trades Office. Over the longer-term as the new City evolves, Council may wish to initiate an independent assessment of its Fair Wage Schedule and rates and overall City purchasing costs.

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Appendix 1

Binding Collective Agreements of the Construction Industry

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Appendix 2 - Workers' Rights, Toronto

(A)The Contractor shall not discriminate against workers or applicants for employment as workers because of race, creed, colour, national origin, political or religious affiliation, sex, sexual orientation, age, marital status, family relationship, and disability.

(B)The Contractor shall at all times comply with the Occupational Health and Safety Act and its regulations and take every precaution reasonable in the circumstances for the protection of workers. If the Contractor sub-contracts any or all of the work or services to be performed, the Contractor will ensure the sub-contractor or sub-contractors are qualified to perform the work or services and comply with the Occupational Health and Safety Act and its regulations.

(C)The Contractor shall pay or cause to be paid weekly or biweekly to every worker employed in the execution of the Contract (and shall see that every owner of a truck or other vehicle employed by the Contractor or by any subcontractor in the execution of the Contract shall pay, or cause to be paid, weekly or biweekly to each of the owner's drivers) wages at the following rates, namely:

(i)for workers employed in shop work, the Union rate of wages in the particular district or locality in which the work is undertaken for any class of work in respect of which there is such Union rate, and for any class of work for which there is no such Union rate, the rate of wages shall be the rate of wages prevailing in the particular district or locality in which the work is undertaken:

(ii)for workers employed in field work:

(a)where the Contractor is in contractual relationship with a Union recognized by the Ontario Labour Relations Board as the bargaining agent for the relevant workers, the applicable rate of wages set out in the collective agreement, provided that such rate of wages is not less than the rate set out for such work in Schedule of Wage Rates described hereinafter, in which case such Schedule of Wage Rates shall apply; and

(b)where there is no such contractual relationship, a rate not less than that set out for such work in the Schedule of Wage Rates filed by the Manager, Fair Wage and Labour Trades Office, in the Office of the City Clerk after being first approved by the Executive Committee of the Corporation (hereinafter called "the Fair Wage Schedule"),

and for the purpose of this paragraph, "wages" or "rate of wages" shall include any applicable amount for fringe benefits shown in the current Fair Wage Schedule, to be paid to the worker as part of the worker's wages or for the worker's benefit as provided in any collective agreement as aforesaid applicable to such worker.

(D)The City of Toronto being bound by the current province-wide collective agreements covering with respect to the Industrial, Commercial and Institutional sectors of the construction industry between:

(i)The Carpenters' Employer Bargaining Agency and the Ontario Provincial Council, United Brotherhood of Carpenters and Joiners of America;

(ii)The Mechanical Contractors Association of Ontario and the Ontario Pipe Trades Council of the United Association of Journeymen and Apprentices of the Plumbing and Pipe-Fitting Industry of the United States and Canada;

(iii)The Electrical Trade Bargaining Agency of the Electrical Contractors Association of Ontario and The International Brotherhood of Electrical Workers and the IBEW Construction Council of Ontario;

(iv)The International Union of Bricklayers and Allied Craftsmen and the Ontario Provincial Conference of the International Union of Bricklayers and Allied Craftsmen, and The Masonry Industry Employers Council of Ontario;

(v)The International Association of Heat and Frost Insulators and Asbestos Workers and The Master Insulators' Association of Ontario Inc.;

(vi)The International Brotherhood of Painters and Allied Trades and The Ontario Painting Contractors Association;

(vii)The Ontario Glazier Agreement between The Architectural Glass and Metal Contractors Association and The International Brotherhood of Painters and Allied Trades; and

(viii)The Environmental Sheet Metal Association Toronto and the Sheet Metal Workers' International Association and the Ontario Sheet Metal Workers' Conference.

any non-maintenance part(s) of the Work that is the work of Union members represented by any Council, Brotherhood, Association or Conference under the provisions of any of the collective agreements referred to in clauses (I) to (viii) shall in each case be performed only by an employer bound by such agreement unless such agreement does not prohibit performance of such part(s) of the Work by others. It is understood without limiting any other provision of the Contract herein that this section shall apply to subcontracts.

(E)The Contractor shall:

(i)at all times keep a list of the names of all workers employed in the Work and a record of the amounts paid to each;

(ii)from time to time, if demanded by the Manager, Fair Wage and Labour Trades Office, furnish a certified copy of all paysheets, lists, records and books relating to the work and keep the originals thereof open at all times for examination by the Manager; and

(iii)at all times furnish and disclose to the said Manager any other information respecting wages of workers that may be desired by the Manager in connection with the Work.

(F)In case of a jurisdictional dispute or dispute as to rate of wages to be paid under the Contract or as to the amount to be paid to any worker, the decision of the Manager, Fair Wage and Labour Trades Office, shall be final and binding upon all parties.

(G)The Contractor shall not compel or permit any worker engaged for the Work to work more than the number of hours per day and the number of hours per week set out in the Fair Wage Schedule for the particular type of work involved except in case of emergency; and then only with the written permission of the Commissioner or head of the Department having charge of the Work or the person then acting as such.

(H)If the Contractor fails to pay any worker (or if any owner of a truck or other vehicle fails to pay any driver) wages at the rate called for in paragraph (C), the Corporation may pay the balance necessary to make up the amount that should have been paid and may charge such balance, together with an administrative fee not in excess of ten per cent of such balance, to the Contractor.

(I)If the Contract is to be for the purchase of supplies or materials to which the provisions in paragraph (C) respecting the rates of wages to be paid to workers engaged in shop work and field work do not apply, the Executive Committee of the Corporation will before awarding same cause to be secured from the Manager, Fair Wage and Labour Trades Office, a report as to whether or not the Tenderer or Bidder maintains a fair wage level.

(J)Workers engaged in clerical office work are to be paid a rate of wages no less than the surveyed standard for each classification of worker for the particular industry at the time of tendering.

(K)The Contractor MUST display legible copies of these "Workers' Rights" in a prominent position in his/her workshop(s), accessible to all employees.

(L)For the purpose of the foregoing paragraphs:

(i)"field work" shall mean all work in performance of the Contract that is not shop work;

(ii)"shop work" shall mean any work in performance of the Contract that is done in or at any factory, foundry, shop or place of manufacture not located at or upon the site of the work, and not operated solely for the purpose of the work; and

(iii)"workers" shall include mechanics, workers, labourers, owners and drivers of a truck or other vehicle employed in the execution of the Contract by the Contractor or by any subcontractor under them and clerical staff.

(M)the Contractor shall attach to all accounts rendered for payment of money upon the contract a statutory declaration affirming that the requirements of the foregoing paragraphs have been fully complied with.

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Appendix 2 - Workers' Rights - Metropolitan Toronto

(A)The Contractor shall pay or cause to be paid weekly or biweekly to every worker employed in the execution of the Contract (and shall see that every owner of a truck or other vehicle employed by the Contractor or by any subcontractor in the execution of the Contract shall pay, or cause to be paid, weekly or biweekly to each of the owner's drivers) wages at the following rates, namely:

(i)for workers employed in shop work, the Union rate of wages in the particular district or locality in which the work is undertaken for any class of work in respect of which there is such Union rate, and for any class of work for which there is no such Union rate, the rate of wages shall be the rate of wages prevailing in the particular district or locality in which the work is undertaken;

(ii)for workers employed in field work:

(a)where the Contractor is in contractual relationship with a Union recognized by the Ontario Labour Relations Board as the bargaining agent for the relevant workers, the applicable rate of wages set out in the collective agreement; and

(b)where there is no such contractual relationship, a rate not less than that set out for such work in the Schedule of Wage Rates filed by the Manager, Fair Wage and Labour Trades Office, with the Clerk of the Metropolitan Corporation after being first approved by the Metropolitan Council (hereinafter called "the Fair Wage Schedule"),

and for the purpose of this paragraph, "wages" or "rate of wages" shall include any applicable amount for fringe benefits shown in the current Fair Wage Schedule, to be paid to the worker as part of the worker's wages or for the worker's benefit as provided in any collective agreement as aforesaid applicable to such worker.

(B)The Metropolitan Corporation being bound by the current province-wide collective agreements with respect to the Industrial, Commercial and Institutional sectors of the construction industry between:

(i)The Carpenters' Employer Bargaining Agency and The Ontario Provincial Council, United Brotherhood of Carpenters and Joiners of America;

(ii)The Mechanical Contractors Association of Ontario and The Ontario Pipe Trades Council of the United Association of Journeymen and Apprentices of the Plumbing and Pipe-Fitting Industry of the United States and Canada;

(iii)The Electrical Trade Bargaining Agency of the Electrical Contractors Association of Ontario and The International Brotherhood of Electrical Workers and the IBEW Construction Council of Ontario; and

(iv)The International Union of Bricklayers and Allied Craftsmen and the Ontario Provincial Conference of the International Union of Bricklayers and Allied Craftsmen, and The Masonry Industry Employers Council of Ontario,

and by the current collective agreements with respect to the residential sector of the construction industry in the geographic area in which the Metropolitan Corporation is situate between:

(v)Local 46 of the United Association referred to in clause (ii) and

(a)Independent Plumbing and Heating Contractors Association (for low-rise residences);

(b)Metropolitan Plumbing and Heating Contractors Association (for high-rise residences); and

(vi)Local 353 of the Brotherhood referred to in clause (iii) and Electrical Contractors Association of Toronto (separate agreements for low-rise and high-rise residences),

(vii)Local 27 of the Carpenters and Allied Workers and The Municipality of Metropolitan Toronto; and

(viii)Heavy Construction Agreement: between the Heavy Construction Association of Ontario and the United Brotherhood of Carpenters and Joiners of America, on behalf of itself and on behalf of its Local Unions and District Councils in the Province of Ontario.

any non-maintenance part(s) of the Work that is the work of Union members represented by any Council, Brotherhood, Association or Conference under the provisions of any of the collective agreements referred to in clauses (I) to (viii) shall in each case be performed only by an employer bound by such agreement unless such agreement does not prohibit performance of such pant(s) of the Work by others.

(C)The Contractor shall:

(i)at all times keep a list of the names of all workers employed in the Work and a record of the amounts paid to each;

(ii)from time to time, if demanded by the Manager, Fair Wage and Labour Trades Office, furnish a certified copy of all paysheets, lists, records and books relating to the work and keep the originals thereof open at all times for examination by the Manager; and

(iii)at all times furnish and disclose to the said Manager any other information respecting wages of workers that may be desired by the Manager in connection with the Work.

(D)In case of a jurisdictional dispute or dispute as to rate of wages to be paid under the Contract or as to the amount to be paid to any worker, the decision of the Manager, Fair Wage and Labour Trades Office, shall be final and binding upon all. parties.

(E)The Contractor shall not compel or permit any worker engaged for the Work to work more than the number of hours per day and the number of hours per week set out in the Fair Wage Schedule for the particular type of work involved except in case of emergency, and then only with the written permission of the Commissioner or head of the Department having charge of the Work or the person then acting as such.

(F)If the Contractor fails to pay any worker (or if any owner of a truck or other vehicle fails to pay any driver) wages at the rate called for in paragraph (A), the Metropolitan Corporation may pay the balance necessary to make up the amount that should have been paid and may charge such balance, together with an administrative fee not in excess of ten per cent of such balance, to the Contractor.

(G)If the Contract is to be for the purchase of supplies or materials to which the provisions in paragraph (A) respecting the rates of wages to be paid to workers engaged in shop work and field work do not apply, The Metropolitan Council will, before awarding same cause to be secured from the Manager, Fair Wage and Labour Trades Office, a report as to whether or not the Tenderer or Bidder maintains a fair wage level.

(H)The Contractor must display legible copies of these "Workers' Rights" in a prominent position in his/her workshop(s), accessible to all employees.

(I)For the purpose of the foregoing paragraphs:

(i)"field work" shall mean all work in performance of the Contract that is not shop work;

(ii)"shop work" shall mean any work in performance of the Contract that is done in or at any factory, foundry, shop or place of manufacture not located at or upon the site of the work, and not operated solely for the purpose of the work; and

(iii)"workers" shall include mechanics, workers, labourers, owners and drivers of a truck or other vehicle employed in the execution of the Contract by the Contractor or by any subcontractor under them and clerical staff.

(J)The Contractor shall attach to all accounts rendered for payment of money upon the contract a statutory declaration affirming that the requirements of the foregoing paragraphs have been fully complied with.

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Appendix 3

Organizations Using Some Services of the Fair Wage and Labour Trades Office:

The following organizations use the services of the Fair Wage and Labour Trades Office in some capacity:

Former Municipalities

Toronto;

Etobicoke;

York; and

Municipality of Metropolitan Toronto.

Former Metro Agencies, Boards and Commissions:

Exhibition Place;

Metropolitan Toronto Zoo;

Metropolitan Toronto Library Board;

Metropolitan Toronto Housing Company Limited;

Metropolitan Toronto Housing Development Company;

Hummingbird Centre for the Performing Arts; and

Toronto Transit Commission.

Former City of Toronto Agencies, Boards and Commissions:

Parking Authority of Toronto;

Toronto Economic Development Corporation;

Toronto Harbour Commission; Toronto Historical Board;

Toronto Hydro Electric System; and

Toronto Public Library Board.

Organizations Using Some Fair Wage Schedules of the Fair Wage and Labour Trades Office:

In addition to the above organizations, the following have used the Fair Wage Schedules in some capacity:

Borough of East York;

City of North York;

City of Scarborough;

City of Vaughan;

George Brown College;

Scarborough Board of Education;

Scarborough Utilities;

University of Toronto;

Vaughan Hydro Commission; and

York University.

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Appendix 4

Fair Wage Policy Practices in Former Municipalities

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Appendix 5

Overview of Fair Wage Policies in Other Governments

Fair Wage Schedules are applied over and above Federal and Provincial minimum wage legislation. Such Schedules are also applied in addition to provisions in the Employment Standards Act of Ontario, and similar legislation in other provinces, which specifies minimum vacation and public holiday entitlements, and hours of regular daily and weekly hours of work, for example.

(a)Federal Government of Canada:

The Federal Government of Canada possesses a Fair Wages and Hours of Labour Act. In this Act, the policy applies to contracts with the government for "construction, re-modelling and the repair or demolition of any work". It further states that, "fair wages are generally accepted as current for competent workmen in the district in which the work is being performed for the character or class of work in which those workmen are respectively engaged". In all cases the wages must be those that are "fair and reasonable and shall in no case be less than the minimum hourly rate of pay prescribed by or pursuant to Part III of the Canada Labour Code". Conditions around the hours of work, overtime pay, required record-keeping and associated procedures, are also stipulated. The Minister of Labour may recommend to the Governor in Council, regulations for the method of determining fair wages, the use of associated schedules, classifications of employment or work and other matters including hours of labour.

(b)Province of Ontario:

The provincial legislation, the Fair Wage Policy of the Government of Ontario, is very similar to the federal legislation but specifies that the Ministry of Labour shall issue "Fair Wage Schedules" pertaining to employment in:

(i)the industrial, commercial and institutional sector of the construction industry;

(ii)the sewer and water-mains sector of the construction industry;

(iii)the roads sector of the construction industry;

(iv)the provision of protection, security or cleaning services in buildings; and

(v)the printing of documents, publications, stationery or posters.

One important distinction from federal legislation, is the emphasis the province places upon distinguishing between "urban and non-urban areas by issuing Fair Wage Schedules for each area". Furthermore, it specifies that for urban areas, the section of the Act requiring an hourly rate of wages paid to employees in the construction industry "at least equal to the fair wage rate", does not apply. Instead, it specifies an hourly rate taking into account a formula for fringe benefits and other factors that must be adhered to in relation to the fair wage rates. Its current base rates are virtually the same as those of the former City of Toronto/Municipality of Metropolitan Toronto.

The Province reviews its fair wage rates in each Fair Wage Schedule, on April 1 of each year. The most recent updates were in 1995. Enforcement tends to be on a complaint-driven basis rather than by regular or stringent monitoring, audit, or inspection procedures.

(c)Municipal Governments:

The Region of Hamilton-Wentworth has an extensive Fair Wage Policy for construction contracts that is much like that of the Province's but which includes sub-contractors under its provisions. Recently, the Region included construction maintenance contracts exceeding $100,000.00 under its Fair Wage Policy. It also made the policy decision to freeze all wage and benefits rates in its Fair Wage Schedule as at January 1, 2000. This would apply where the full costs exceed the full cost of wages and benefits included for the same or similar positions in the Province's Fair Wage Schedule and Labour Conditions (Hamilton Zone). The Region further determined that the maximum total increase to the wages and benefits in the Fair Wage Schedule before January 1, 2000 would be limited to 4.5 percent of the current total compensation package.

The City of Mississauga, stipulates that the rates of wages, hours and conditions of work "shall be in accordance with the Provincial Code and Local Fair Wage Schedules and amendments thereto, as approved and/or adopted by the Authority having jurisdiction, and in force at the time of work".

The City of Vaughan follows the former Municipality of Metropolitan Toronto Fair Wage Schedule of rates (i.e. the same as the former City of Toronto's schedule) in terms of union workers. For non-union workers, the minimum rate of wages is deemed to be the current Fair Wage Schedules of the Labour Standards Branch of the Ministry of Labour in the particular locality or district in which the work is undertaken.

Fair wage policies in the City of Calgary and the City of Edmonton are in place for large construction projects whereas the Greater Vancouver Regional District applies fair wage only for projects funded by the provincial and federal governments (as required by those government levels for all municipal grant recipients).

In the City of Montreal, it is stipulated that outside contractors must be paid at least the same rates as City employees.

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Appendix 6

Fair Wage Rates Comparison

*Up to 15 percent of the Fair Wage rates may be in the form of benefits not required by law (for example: medical, dental, pension plans)

**Represents benefits (i.e., medical, dental, pension plans)

***The total former City/Metro Fair Wage rates include Benefits amount (between 10 per cent - 15 per cent)

Note:The above is a list of sample classifications for comparison purposes and is not a complete list of either rates. The hourly rates listed are journeyperson fair wage rates. The apprentice fair wage for the City ranges from 10 percent to 60 percent less than the journeyperson rate.