Item - 2019.EX6.3

Tracking Status

  • City Council adopted this item on June 18, 2019 with amendments.
  • This item was considered by Executive Committee on June 6, 2019. It is being forwarded to City Council without recommendations. It will be considered by City Council on June 18, 2019.
  • See also MM2.10

EX6.3 - Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on June 18 and 19, 2019, adopted the following:

 

1.  City Council opt out of the application of section 127 (1) to (4) of Schedule 9 of Bill 66 and City Council direct the City Manager to file an election with the Minister of Labour in writing by July 3, 2019 thereby confirming the City of Toronto remains a construction employer.

 

2.  City Council direct that Confidential Attachment 1 to the report (May 29, 2019) from the City Manager remain confidential in its entirety as it pertains to labour relations and potential litigation that affects the City of Toronto.

 

3.  City Council direct the City Manager to report back to the Executive Committee as soon as practicable on the feasibility of implementing a union preference procurement policy in the non-Industrial, Commercial and Institutional sector, such report should address the implications for implementing such a policy. 

 

Confidential Attachment 1 to the report (May 29, 2019) from the City Manager remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to labour relations and potential litigation that affects the City of Toronto.

City Council Decision Advice and Other Information

City Council recessed its public session and met as Committee of the Whole in closed session on June 19, 2019 to consider confidential information on this Item as it pertains to labour relations or employee negotiations and potential litigation that affects the City of Toronto.

 

City Council considered Items EX6.3 and MM8.51 together.

Confidential Attachment - Labour relations or employee negotiations and potential litigation that affects the City of Toronto

Background Information (Committee)

(May 29, 2019) Report and Attachment 1 from the City Manager on Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-133465.pdf
Confidential Attachment 1 - Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019

Background Information (City Council)

(June 17, 2019) Supplementary report from the City Manager on Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019 (EX6.3a)
https://www.toronto.ca/legdocs/mmis/2019/cc/bgrd/backgroundfile-134873.pdf

Communications (Committee)

(June 4, 2019) Letter from Ian DeWaard, Provincial Director, CLAC (EX.Supp.EX6.3.1)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-95046.pdf
(June 5, 2019) Submission from Mike Yorke, President and Director of Public Affairs, Carpenters' District Council of Ontario (EX.New.EX6.3.2)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-95052.pdf
(June 5, 2019) Submission from Jason Ottey, Director of Government Relations and Communications, LiUNA Local 183 (EX.New.EX6.3.3)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-95069.pdf
(June 6, 2019) Submission from David McDonald (EX.New.EX6.3.4)

Communications (City Council)

(June 6, 2019) Submission from Ray Law (CC.Main.EX6.3.5)
(June 14, 2019) Letter from Michael Gallardo, Executive Director, Merit OpenShop Contractors Association of Ontario (CC.Supp.EX6.3.6)
https://www.toronto.ca/legdocs/mmis/2019/cc/comm/communicationfile-95368.pdf
(June 17, 2019) Letter from Sean Reid, Vice President and Regional Director, Ontario Progressive Contractors Association of Canada (CC.New.EX6.3.7)
https://www.toronto.ca/legdocs/mmis/2019/cc/comm/communicationfile-95374.pdf
(June 17, 2019) Letter from Ian DeWaard, Christian Labour Association of Canada Ontario Director (CC.New.EX6.3.8)
https://www.toronto.ca/legdocs/mmis/2019/cc/comm/communicationfile-95375.pdf
(June 17, 2019) E-mail from Andrew Hurd, Director, Policy and Stakeholder Relations, Ontario Road Builders' Association (CC.New.EX6.3.9)
https://www.toronto.ca/legdocs/mmis/2019/cc/comm/communicationfile-95376.pdf
(June 18, 2019) Submission from John O'Grady, Central Ontario Building Trades (CC.New.EX6.3.10)
https://www.toronto.ca/legdocs/mmis/2019/cc/comm/communicationfile-95420.pdf

Motions (City Council)

Report of Committee of the Whole

June 19, 2019 at 3:17 p.m. - Speaker Nunziata advised that City Council had completed its closed session consideration of Item EX6.3 headed "Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019". No motions were placed in the closed session.  City Council would now proceed with the public debate on the Item.


1 - Motion to Adopt Item as Amended moved by Councillor Ana Bail„o (Carried)

That:

 

1.  City Council opt out of the application of section 127 (1) to (4) of Schedule 9 of Bill 66 and City Council direct the City Manager to file an election with the Minister of Labour in writing by July 3, 2019 thereby confirming the City of Toronto remains a construction employer.

 

2.  City Council direct that the confidential information contained in Confidential Attachment 1 to the report (May 23, 2019) from the City Manager remain confidential in its entirety, as it pertains to labour relations and potential litigation that affects the City of Toronto.

 

3.  City Council direct the City Manager to report back to the Executive Committee as soon as practicable on the feasibility of implementing a union preference procurement policy in the non-Industrial, Commercial and Institutional sector, such report should address the implications for implementing such a policy. 

Vote (Adopt Item as Amended) Jun-19-2019 3:57 PM

Result: Carried Majority Required - EX6.3 - Bail„o - motion 1
Total members that voted Yes: 19 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, Paula Fletcher, Mark Grimes, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, John Tory, Kristyn Wong-Tam
Total members that voted No: 5 Members that voted No are John Filion, Michael Ford, Stephen Holyday, Denzil Minnan-Wong, Jaye Robinson
Total members that were Absent: 2 Members that were absent are Jim Karygiannis, Michael Thompson

2 - Motion to Amend Item moved by Councillor Stephen Holyday (Redundant)

That City Council adopt the following recommendations in the report (May 29, 2019) from the City Manager:

 

1. City Council take no action, thereby confirming the City of Toronto as a non-construction employer effective the day subsections 127 (1) to (4) of the Labour Relations Act, 1995 come into force.

 

2. City Council direct the City Manager in consultation with the Chief Financial Officer and Treasurer and Deputy City Managers, to report back on the financial and program impacts to the City being a non-construction employer.

 

3. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it pertains to labour relations and potential litigation that affects the City of Toronto.

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled motion 2 by Councillor Holyday redundant due to Council's adoption of motion 1 by Councillor Bail„o.


Point of Order by Councillor Stephen Holyday

Councillor Holyday, rising on a Point of Order, stated that he wished to understand why Member Motion MM8.51 was urgent.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Order and ruled that it was related to Item EX6.3 and that the Items are proposed to be considered together.

Rulings (City Council)

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled that Councillor Bailao should allow Councillor Robinson to ask her question.

EX6.3 - Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019

Decision Type:
ACTION
Status:
Without Recs
Wards:
All

Confidential Attachment - Labour relations or employee negotiations and potential litigation that affects the City of Toronto

Committee Recommendations

That Executive Committee forwards the item to City Council without recommendations.

Decision Advice and Other Information

The Executive Committee:

 

1. Directed the City Manager to report directly to the June 18, 2019 meeting of City Council on the following:

 

a. the number of union construction companies that can currently bid on construction jobs in the Industrial, Commercial and Institutional sector in the City of Toronto;


b. the number of additional union construction companies that would likely be able to bid on construction jobs in the Industrial, Commercial and Institutional sector in the City of Toronto, if the City decided to become a non-construction employer;


c. the number of non-union construction companies that would likely be able to bid on construction jobs in the Industrial, Commercial and Institutional sector in the City of Toronto, if the City decided to become a non-construction employer;


d. ways in which the City could increase and/or maximize the benefits, such as skills training and community benefits, associated with union workforces being employed in the Industrial, Commercial and Institutional sector, should the City decide to continue being a construction employer;


e. the general percentage of the bids received in the Industrial, Commercial and Institutional sector that account for wages of employees; and given the existence of the City’s Fair Wage Policy, other areas of a successful bid that might become more competitive, if the City became a non-construction employer; and


f. the scale of training programs undertaken by certified and non-city certified unions in Toronto; and similar programs undertaken by non-union construction firms; and

 

g. the central findings of the 2008 City of Toronto report concerning the savings the City would incur if it became a non-construction employer based on the Fair Wage Policy. 

Origin

(May 29, 2019) Report from the City Manager

Summary

On April 2, 2019, Restoring Ontario's Competitiveness Act, 2019 (the Act) passed third reading and received Royal Assent on April 3, 2019.

 

This report provides an overview of the changes made to the Labour Relations Act, 1995 by Schedule 9 of the Act and analyses the anticipated impact on the City of Toronto. The impacts of other sections of the Act are addressed in a separate report for information titled "Bill 66, Restoring Ontario's Competitiveness Act, 2019 - City Impacts".

 

Schedule 9 amends Section 127(1) of the Labour Relations Act, 1995 by deeming public bodies, including municipalities, school boards, hospitals, colleges, universities and local boards, within the meaning of the Municipal Act, 2001 and the City of Toronto Act, 2006, as non-construction employers.

 

It also provides a mechanism through which municipalities who wish to remain as construction employers may opt out of the application of the section within three (3) months from April 3, 2019.

 

The City is bound to nine province-wide collective agreements in the Industrial, Commercial and Institutional sector of the construction industry.

 

As a result, the City has until July 3, 2019 to decide if it will choose to opt-out and remain a construction employer. This authority to opt-out requires a Council decision. If the City does nothing, it will, by default, become a non-construction employer and the province-wide collective agreements that the City is bound to in the Industrial, Commercial and Institutional sector will no longer apply to the City.

 

If Council decides to opt out and the notice of election is filed with the Ministry, the election is irrevocable.  Should the City wish, at a later date, to be deemed a non-construction employer, it must make application to the Ontario Labour Relations Board under the existing definition of non-construction employer in the Labour Relations Act and, the Ontario Labour Relations Board must determine that the City meets the high threshold within the Labour Relations Act.

Background Information

(May 29, 2019) Report and Attachment 1 from the City Manager on Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-133465.pdf
Confidential Attachment 1 - Schedule 9, Changes to the Labour Relations Act, 1995 - Restoring Ontario's Competitiveness Act, 2019

Communications

(June 4, 2019) Letter from Ian DeWaard, Provincial Director, CLAC (EX.Supp.EX6.3.1)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-95046.pdf
(June 5, 2019) Submission from Mike Yorke, President and Director of Public Affairs, Carpenters' District Council of Ontario (EX.New.EX6.3.2)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-95052.pdf
(June 5, 2019) Submission from Jason Ottey, Director of Government Relations and Communications, LiUNA Local 183 (EX.New.EX6.3.3)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-95069.pdf
(June 6, 2019) Submission from David McDonald (EX.New.EX6.3.4)

Speakers

Ian DeWaard, CLAC
Mark Lewis, Carpenters' District Council of Ontario
Robyn Vandenberg, Carpenters' District Council of Ontario
Desiree Smith, Carpenters' District Council of Ontario
Ray Law, Carpenters' District Council of Ontario
Mike Yorke, Carpenters' District Council of Ontario
Sean Reid, Progressive Contractors Association of Canada
Brian Dijkema, Cardus
Phil Gillies, Ontario Construction Consortium
Bill McLeod
Michael Healey
Barry Bince
Dave McDonald
Councillor Shelley Carroll
Councillor Paula Fletcher
Councillor Mike Layton
Councillor Anthony Perruzza

Motions

1 - Motion to forward item Without Recommendations moved by Mayor John Tory (Carried)

That Executive Committee:

 

1. forward the item to City Council without recommendation; and

 

2. direct the City Manager to report directly to the June 18th, 2019 meeting of City Council on the following:

 

a. the number of union construction companies that can currently bid on construction jobs in the Industrial, Commercial and Institutional sector in the City of Toronto;


b. the number of additional union construction companies that would likely be able to bid on construction jobs in the Industrial, Commercial and Institutional sector in the City of Toronto, if the City decided to become a non-construction employer;


c. the number of non-union construction companies that would likely be able to bid on construction jobs in the Industrial, Commercial and Institutional sector in the City of Toronto, if the City decided to become a non-construction employer;


d. ways in which the City could increase and/or maximize the benefits, such as skills training and community benefits, associated with union workforces being employed in the Industrial, Commercial and Institutional sector, should the City decide to continue being a construction employer;


e. the general percentage of the bids received in the Industrial, Commercial and Institutional sector that account for wages of employees; and given the existence of the City’s Fair Wage Policy, other areas of a successful bid that might become more competitive, if the City became a non-construction employer; and


f. the scale of training programs undertaken by certified and non-city certified unions in Toronto; and similar programs undertaken by non-union construction firms; and

 

g. the central findings of the 2008 City of Toronto report concerning the savings the City would incur if it became a non-construction employer based on the Fair Wage Policy. 

Source: Toronto City Clerk at www.toronto.ca/council