First test of Manitoba Jobs Agreement framework

Tension is building behind the scenes as construction begins on new Manitoba schools and a Winnipeg hospital emergency department.

Testing and pile-driving could start at three schools in Winnipeg and West St. Paul this week if weather co-operates, Premier Wab Kinew said on Monday.

The schools — in Devonshire Park and Prairie Pointe (Winnipeg) and Meadowlands (West St. Paul) — are among the first projects to fall under the Manitoba Jobs Agreement, which the New Democrats rolled out in September.

Construction projects falling under the agreement are subject to contracts outlining wages, safety protections and apprentice usage. Manitoba Building Trades — which represents 13 member unions — oversees contract compliance.

“Cost of living is No. 1 for so many people out there,” Kinew said on Monday. “How do we help with the cost of living? No. 1 thing is making sure you have a job, and that job pays you well.”

He spoke during a news conference to give an update on the first projects and dispel fears non-unionized companies would be shunted to the side.

Industry associations have shared concern on behalf of local companies.

Penn-co Construction, a unionized contractor, was awarded the main contract for four school builds (the two in Winnipeg, West St. Paul, and one in southwest Brandon).

Bockstael Construction, another non-unionized firm, has the managing contract for a Victoria General Hospital emergency room build, said the head of Manitoba Building Trades.

Six sub-contractors have inked deals; three are unionized, three are not, Kinew said.

“We can say with proof now that this thing is open to everybody as long as you’re willing to pay your workers well,” he said. “(It) makes sense during the cost-of-living issues that we’re facing.”

The jobs agreement is similar to frameworks used across Canada, the United States and Europe and hasn’t shrunk the number of inbound bids, provincial officials said.

The five contracts drew 11 bids, Kinew said. He’s targeting school opening dates in fall of 2027. They’ll be built using a standardized design.

Active construction on the Victoria emergency department is slated for March; site preparation began this month, Kinew said. “(This is) our way of saying, ‘OK, game on.’ These projects are well into the construction phase.”

Monday’s announcement drew additional response from some in the construction industry. The Winnipeg Construction Association, which said it had been in talks with the province about “ways to improve” the Manitoba Jobs Agreement, wasn’t at the news conference.

“We are once again surprised and disappointed,” said Darryl Harrison, the association’s director of stakeholder engagement and advocacy. “This is the second time in six months that the government hasn’t listened to industry and surprised us, and blindsided us, with a press conference about the Manitoba Jobs Agreement.”

The association has around 800 unionized and non-unionized members. It will release formal concerns next week, Harrison said.

Some companies have avoided bidding on Manitoba Jobs Agreement projects because they don’t want Manitoba Building Trade oversight, said Yvette Milner, president of Merit Contractors Association of Manitoba.

The association represents around 200 member companies and 10,000 workers.

“If you chose to not have a unionized workplace, why would you want your project supervised by a union?” Milner said, adding Merit Contractors members pay well.

“You’re either qualified for the work or you’re not. You don’t need a building trades union.”

Paying union fees increases costs, which are passed on to the customer, Milner said.

There might be a “flattening” in the difference between prices offered in bids, but that can be a good thing, said Tanya Palson, Manitoba Building Trades executive director.

“It means the contractor’s getting evaluated on the price of their administration, their experience of doing the job, if they have the capacity at the time to do the job.”

It prevents companies from bidding based on “how little” they can pay labour, she said.

Both the International Brotherhood of Electrical Workers and Construction Labour Relations Association of Manitoba have applauded the Manitoba Jobs Agreement.

The provincial government has tabbed $200 million for the four schools — roughly $50 million each — and $3.5 million for the Victoria hospital emergency department and a mature women’s health centre.

Josh Guenter, Progressive Conservative labour critic, said the New Democrats are “picking winners and losers” through the Manitoba Jobs Agreement.

The initiative covers provincial capital projects totalling $50 million or more. Contractors hired from out of province may be directed to hire Manitoba residents for work.

gabrielle.piche@winnipegfreepress.com