Wrong move on labour laws

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This article was published 22/11/2024 (530 days ago), so information in it may no longer be current.

THE Manitoba government’s recent labour reforms are creating an unsustainable and unpredictable environment for small businesses.

While these changes have been branded as “pro-worker,” the reality is that these labour policies will drive up costs that are already too high and threaten small business viability.

For example, the Manitoba government’s plan to move from a 2:1 to a 1:1 apprentice-to-journeyperson ratio highlights how out of touch the government is with the realities small businesses are facing.

Many small firms are already struggling to find qualified tradespeople, and they now face the daunting task of finding and hiring even more journeypersons to accommodate new apprentices. While we recognize this change was made to enhance safety and training, for smaller companies, it’s an impractical burden that diminishes productivity and compounds their labour challenges.

An HVAC and plumbing small business owner told us that “as a business, we invest heavily in top-notch training and safety, often surpassing Apprenticeship Manitoba’s standards. Instead of targeting those who cut corners, these new changes penalize everyone, making it harder for us to meet growing demand with fewer skilled workers.”

Another blow to small businesses came with the Manitoba government’s repeal of The Public Sector Construction Projects (Tendering) Act. While non-unionized contractors aren’t explicitly barred from bidding, this legislation clearly indicates a preference for awarding contracts to those who embrace unionization, effectively creating a barrier for small, independent firms.

This approach limits fair competition, raises project costs, and restricts growth opportunities for small businesses that have historically relied on public sector work to sustain and expand their operations. Similar agreements enacted in British Columbia have resulted in delayed projects and massive cost overruns.

Furthermore, several proposed changes to Manitoba’s labour dispute laws show a similar disregard for small businesses. First, the prohibition of replacement workers during strikes will risk leaving local independent firms with no way to operate during labour disputes. Second, re-introducing automatic union certification further skews the system in favour of organized labour, stripping away the right to a secret ballot vote and imposing unions on businesses that often lack the resources to negotiate effectively.

These labour dispute laws were introduced through the Manitoba Budget Implementation and Tax Statutes Amendment (BITSA) Bill 37 in March 2024. By introducing these changes through BITSA, the government appears to be explicitly ignoring public feedback on these bills, as BITSA (unlike other bills) is not required to go before a legislative committee for debate.

If this massive overhaul of the province’s labour rules wasn’t enough, the government has also introduced several other policies that will undoubtedly increase operating costs for small businesses.

For example, the recent minimum wage hike has created more obstacles for many small businesses. Data from the latest Canadian Federation of Independent Business Business Barometer indicates three quarters (75 per cent) say increased wage costs are their top financial constraint. While most Manitoba small business owners already pay above minimum wage, mandated wage increases force employers to bump all wages, even for those earning above the minimum, adding more stress to already strained budgets.

Mandating wage increases not only strains small businesses’ budgets, but it increases the cost of hiring young workers — which means some may be left out of the job market.

Then there’s the government’s plan to repeal Bill 16 — The Regulatory Accountability Reporting Act, which had established oversight to prevent regulatory overload. This accountability measure helped keep government-imposed regulations in check. By abandoning this act, the government is opening the door to an unchecked increase in regulations — potentially piling on red tape that costs time and money without providing real benefits to Manitobans.

If the Manitoba government is serious about serving all Manitobans, they must take a more balanced, thoughtful approach to future legislative changes. Instead of rushing through reforms with sweeping mandates, the government should slow down and work collaboratively with business owners and other stakeholders to craft policies that are fair, sustainable, and ensure that policies intended to support Manitoba workers don’t destroy the Manitoba businesses that employ them.

Tyler Slobogian is a senior policy analyst with the Canadian Federation of Independent Business (CFIB).