Only unions consulted about jobs deal for provincial builds: industry

The Manitoba government is being accused of consulting only with a union collective before adopting a jobs policy that governs contracts involving the construction of public projects, including four new schools.

Construction industry associations representatives said Tuesday they learned through a freedom-of-information request that the government met only with Manitoba Building Trades, which proposed a labour framework in July 2025. The two parties discussed the jobs agreement in August, and it was signed 13 days later, the associations said.

They now want the provincial ombudsman to pause the Manitoba Jobs Agreement and conduct a review.

“I was extremely disappointed that there was little rigour in the negotiation,” said Darryl Harrison of the Winnipeg Construction Association.

His group, alongside the Manitoba Heavy Construction Association and the Construction Association of Rural Manitoba, oppose the new rules, which they say will increase construction costs.

The jobs agreements apply to provincial construction projects that cost at least $50 million; they impose wage, benefit and apprenticeship conditions on builders.

Compliance is overseen by a collective of unions headed by Manitoba Building Trades. Construction companies are charged a per-worker fee that’s included in the contract to pay for training opportunities for Manitobans.

The three associations launched a website — redflagmanitoba.ca — to publicize their opposition to the policy.

They liken the contracts to a 20 per cent tax on construction and say they discriminate against the 88 per cent of Manitoba construction workers who aren’t unionized.

“There was such little work done to develop the agreement. It explains why the agreement is causing so (many) problems for the industry,” Harrison said Tuesday. “There’s a lot of construction companies that choose not to pursue these projects because of the pricing risk associated with it and the schedule risk.”

He said the information uncovered by the freedom-of-information files shows the province didn’t analyze the impact on competition, costs and scheduling.

The associations sent a letter to the ombudsman on Friday.

Manitoba Building Trades advocates for jobs agreements with every government, said Tanya Palson, the organization’s executive director: “It’s no different than any other association group advocating for the things they advocate for every day.”

The New Democrats announced its plans for a Manitoba Jobs Agreement in the 2025-26 budget, which was released in March 2025.

It was also a campaign promise, noted Public Service Delivery Minister Mintu Sandhu. He said the province has consulted “hundreds and thousands” of people on the issue.

“Our focus is Manitoba workers,” Sandhu said. “This is about better wages, better benefits and a safer worksite.”

Manitoba Building Trades published an open letter Tuesday in which it denounced the construction associations’ cumulative messaging, and that of the Opposition Progressive Conservatives during house sittings.

“There is an increasing difference between constructive policy discussion and rhetoric that fundamentally misrepresents Manitoba’s construction industry,” says the letter, signed by Palson.

She said the accusation of a 20 per cent tax is “unsubstantiated.”

Project-by-project financial analyses haven’t been publicized. It’s too early to be stating a number, Palson said in an interview Tuesday, and the wages outlined in the agreements align with current union standards.

Two public projects are currently under Manitoba Jobs Agreements: the Victoria General Hospital emergency room rebuild in Winnipeg and the creation of four schools.

Advertising a 20 per cent tax by following union standards is “damaging” to unionized construction companies, Palson argued.

“If that continued to be stated publicly … we may have to consider legal implications,” she said. “That’s actually damaging for fair and transparent procurement.”

Manitoba Building Trades’s letter asserts the new agreements don’t prohibit Manitoba workers from jobs. The only thing stopping non-unionized labour from participating, it says, is employers’ own reluctance to bid on contracts.

The government has inked 28 non-union and 18 union contracts for the four schools, and seven non-union and eight union contracts for the emergency room build, a government spokesperson said.

Still, there’s massive resistance to bidding on Manitoba Jobs Agreement projects, according to construction associations and the Canadian Federation of Independent Business.

“The provincial government does not have the right to substitute its ideology and its preferences for the choices made by 88 per cent of construction workers,” said Chris Lorenc, president of the heavy construction association, adding that 88 per cent covers about 50,000 people.

The 20 per cent tax is just an estimate — the number could be higher, Lorenc said. He said there’s been a lack of transparency over the fee of 85 cents per hour, per worker that’s charged on the schools contract.

Businesses often offer better wages and benefits than outlined in current Manitoba Jobs Agreements, Lorenc said.

He said the province must hire a labour relations mediator — agreed upon by government, Manitoba Building Trades and the construction associations — to review the policy.

The government should implement the mediator’s recommendations, he said.

Manitoba Building Trades is “as open as ever” to engage with industry, Palson said.

The Red River Floodway expansion and some Manitoba Hydro projects, including the Keeyask Generating Station, have used labour frameworks similar to Manitoba Jobs Agreements. The federal government ties some project funding to labour agreements.

“Up until now, we’ve had labour peace. We’ve had union and non-union Manitobans working together on job sites,” said Tory MLA Josh Guenter. “The NDP are completely turning that on its head… at a time when we want to see economic growth.”

gabrielle.piche@winnipegfreepress.com