Tories set to open up major capital projects

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This article was published 03/11/2017 (2953 days ago), so information in it may no longer be current.

Premier Brian Pallister’s government is poised to throw open major capital projects to all bidders — regardless whether their workers are unionized or non-unionized.

“We’re excited to test that and see what the savings are,” Infrastructure Minister Ron Schuler told reporters Friday afternoon.

“We allow a larger pool of businesses to bid on it,” Schuler said. “We’d like to hear from Manitobans, particularly industry, where they’d like to go with us. We are going to do a formal consultation process.”

Schuler said that he would also listen to labour.

Organized labour and industry disagreed Friday whether the former NDP government had restricted major capital projects to union shops.

The NDP’s so-called project labour agreements, which set out all the conditions and decided who could work will be a thing of the past, Schuler said.

Chris Lorenc, president of the Manitoba Heavy Construction Association, said Friday that “it’s not just an impact on our industry, it’s the right of workers to determine the nature of their environment. It provides competitive pricing. It’s good all around.”

On the most recent Floodway project, Lorenc said, the NDP required that non-union workers pay union dues and be identified as non-union.

“There is no forced unionization,” said Manitoba Federation of Labour president Kevin Rebeck. Non-union bidders have had to offer their workers fair wages, benefits, safety and working conditions, comparable to those paid to union members, he said.

Rebeck feared that Schuler has pre-judged how his consultation will turn out, and said the Tories are “stuck on ideology.”

“Cheaper is not always better,” Rebeck said.

Schuler said that project labour agreements may have been necessary when megaprojects were built in ­remote locations not readily accessible by air or road, or when Manitoba had to compete with Alberta to keep workers here.

But the most recent work on the floodway shouldn’t have needed a project labour agreement, Schuler said.

“Manitobans want to see us be better stewards of their money,” Schuler said.

“We hope that the government will take the time to listen to Manitobans during their consultations,” NDP labour critic Tom Lindsay urged Friday.

“These agreements help ensure that major, critically-important projects are built to the highest standards, so that Manitobans get what they pay for. Eliminating them will take us back in time, will cost more in the long run.”

Schuler pointed out that he’s delivering a promise the Tories made in the 2016 election campaign, which will require legislation.

The minister said he expects the project alleviating Lake St. Martin flooding would be carried out under the new system. He’ll announce other upcoming capital projects at the Manitoba Heavy Construction Association breakfast on Nov. 17, Schuler said.

He speculated that opening up a larger pool of bidders could save 10 per cent of project costs, which Schuler said the government would use to fund other projects.

Said Rebeck: “I don’t know how he can magically present a 10 per cent figure,” and reminded Schuler that Manitobans will get what Schuler pays for.

Meanwhile, the Progressive Contractors Association of Canada said Schuler’s plan could save 30 per cent on some projects.

“We’re delighted that hard-working Manitobans are finally getting the fairness they deserve,” said Paul de Jong, president of the Progressive Contractors Association of Canada.

“Restoring workers’ rights and allowing a tendering process that’s fair, open and competitive in Manitoba, is a welcome change that’s long overdue.”

nick.martin@freepress.mb.ca