The Duncan Cowichan Chamber of Commerce has joined business organizations across the province in slamming the NDP government’s changes to its procurement policy.
Julie Scurr, president of the local Chamber, says sweeping changes announced in mid-July will bring back restrictive and regressive 1990s-style project labour agreements.
“We are writing to express our deep concern over this departure from the fair, open and transparent process that has successfully built our province over much of its history,” Scurr stated in a letter to Premier John Horgan.
Under the changes announced on July 16, a new organization, the Allied Infrastructure and Related Construction Council, will be created. It will act on behalf of 19 trade unions. A worker belonging to a non-affiliated union, will be required to register with one of the government-approved unions within 30 days and pay dues.
The new rules will mean union-only workers on major building projects including the new Cowichan hospital and major bridge and highway projects in the province.
“We feel it’s wrong to insist that workers have to join one specific union,” Scurr said. “Eighty per cent of our workers don’t want to pay union dues.”
Scurr says local contractors don’t want to deal with unions.
“They can’t go and talk with their workers, they have to talk to the union.
“Non-union workers are paid the same rate as union workers, they have the same opportunities and the training opportunities are all there.”
Scurr is particularly concerned about the potential increase in costs for projects like the $600 million Cowichan Valley Hospital that is slated to start construction in 2021.
The province has estimated the new rules could boost the cost of the hospital by four to seven per cent, but Scurr says the Vancouver Board of Trade suggests it could jump by 40 per cent or more.
“Any increase in costs is going to be picked up by the taxpayer,” Scurr points out.
In her letter to Horgan, Scurr says the Building Trades-only hiring policy puts an end to fair, open and transparent government.
“No matter how a construction company organizes its workforce, every company should have the right to bid and win government work.”
The Chamber points to a study done by the Canadian Federation of Independent Business that found that government projects planned over the next three years totaling $25.6 billion, could end up costing another $2.4 billion to $4.8 billion in additional labour costs.
The Federation estimates this will translate into $1,998 to $3,996 for a British Columbia family of four.
“This may be an old-fashioned idea, but we strongly believe that one of government’s primary obligations is to ensure fairness in procurement and that taxpayers are getting the best value for every dollar spent,” Scurr said.
“We support the BC Chamber of Commerce and the Greater Vancouver Board of Trade to respectfully request that you abandon this ill-conceived and ill-advised procurement model where workers, construction contractors and taxpayers all lose.”