Item - 2013.EX31.12

This report responds to seven Council directions approved as a part of the report titled Council-Directed Follow Up to Community Development Committee Item CD10.2 – the Social Impact of Lower Wage Jobs (April 2012).  These Council directions all address a common theme:  the quality of jobs created through the City's contracting processes, particularly in custodial services contracts.

The report provides an overview of job quality issues in the service sector generally and in the cleaning industry specifically.  Because of the important role that wages play in determining job quality, the report also describes the difference between "minimum wage", "fair wage" and "living wage" standards.

The report recommends a series of actions to ensure the quality of jobs created through the City's contracting processes.  To address job quality issues in custodial service contracts, the report makes two recommendations:

-           Immediate updates to the General Classifications Wage Schedule of the Fair Wage Policy to reflect current, prevailing fair market wages for the jobs covered by this schedule, including workers in the cleaning services industry.  The Schedule currently reflects 2003/4 rates, and includes rates below the legislated Provincial Minimum Wage;

-           Immediate updates to the mandatory requirements proponents must meet when they compete for City custodial service contracts.  The recommended requirements reflect industry best practices, and will help ensure that the City receives quality services and supports quality jobs.

With new mandatory requirements in place for custodial services contracts and fair market wages in place for custodial workers, this report recommends that Council restore delegated authorities for the approval of custodial service contracts:

-           Restoring the authority of Division Heads to approve the appropriate use of subcontracting in custodial service contracts; and

-           Restoring the authority of Bid Committee and Division Heads to approve contracts for custodial services subject to the conditions and procedures provided for in Chapter 195 of the Toronto Municipal Code.

These delegated authorities were suspended by Council in its adoption of Council-Directed Follow Up to Community Development Committee Item CD10.2 – the Social Impact of Lower Wage Jobs in April 2012.

Finally, this report recommends two additional actions to ensure quality jobs are created through the City's contracting process on an ongoing basis:

-           Providing the Manager, Fair Wage Office with the delegated authority to update the Schedules of the Fair Wage Policy on a regular basis.  These schedules establish minimum rates that contractors with the City must pay their workers, and were last updated in 2003.  By delegating this authority, Council will ensure that the Schedules are always current; and

-           Joint work by Economic Development and Culture, Employment and Social Services, and Social Development, Finance and Administration to develop and report on a job quality assessment tool.   Such a tool would include a living wage standard and consider other dimensions of job quality, including skills and training opportunities, and working conditions.  It would allow the City to assess job quality in a number of areas, including the quality of jobs secured for residents through Working as One: A Workforce Development Strategy; the quality of jobs created through Collaborating for Competitiveness: A Strategic Plan for Accelerating Economic Growth and Job Creation in Toronto; and the quality of jobs held by residents in Neighbourhood Improvement Areas identified under Toronto Strong Neighbourhoods Strategy 2020.