Research Shows Alarming Spread of Construction Labour Monopolies

Toronto (Sept. 27, 2018) – New research released today by the Cardus think tank confirms there’s no time to waste in plugging a legislative loophole that has allowed construction labour monopolies to gain control of a staggering $2.5 billion worth of construction projects across the province, according to the Progressive Contractors Association of Canada (PCA).

“This study should set off alarm bells,” said Sean Reid, Vice President and Regional Director, Ontario, for PCA. “The number of construction projects controlled by labour monopolies has grown by an astounding 300 percent since 2012. “The bigger the monopoly, the more hard-earned tax dollars that are being wasted.”

The study, “Shortchanging Ontario’s Cities” shows that six years ago, $750 million worth of construction work was under the control of select unions in many of Ontario’s largest municipalities. Several studies show that one in four provincial taxpayers are being overcharged by 20 to 30 percent on construction projects. That amounts to more than 600 million annually.

“Municipalities shouldn’t have to struggle to pay for transit and child care centres, not when there’s a simple legislative solution allowing them to realize significant savings,” added Reid. “Taxpayers deserve better value for their infrastructure investments.”

Currently, most taxpayer-funded projects in Toronto, Hamilton, Sault Ste. Marie and the Region of Waterloo are awarded based on union affiliation. In these regions, only a select group of contractors and their affiliated unions are allowed to compete for municipal construction work, shutting out the vast majority of local contractors and workers.

About the Progressive Contractors Association of Canada (PCA)

PCA is the voice of progressive unionized employers in Canada’s construction industry. PCA member companies are leaders in infrastructure construction across Canada, employing more than 25,000 skilled construction workers who are represented primarily by CLAC. PCA promotes fair and open construction tendering in ALL Ontario municipalities.

For further information, contact:
Danna O’Brien, 416-500-0699

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