Item - 2020.GL14.15

The General Government and Licensing Committee recommends that:

1.  City Council not disqualify Queensway Excavating and Landscaping Ltd. from conducting business with the City, despite the court-ordered reconsideration decision by the Fair Wage Office which found Queensway in non-compliance with the provisions of the Fair Wage Policy in two separate instances over a period of three years inclusive, given that the time between the May 2018 report and the report (June 22, 2020) from the Manager, Fair Wage Office, is equivalent to any disqualification period which might have been imposed for multiple instances of any Fair Wage Policy non-compliance.

2.  City Council direct that the confidential information contained in Confidential Attachment 1 to the report (June 19, 2020) from the City Solicitor [GL14.15a] remain confidential in its entirety, as it is about litigation or potential litigation that affects the City of Toronto and contains advice which is subject to solicitor-client privilege.

Upon conclusion of a Judicial Review, Toronto’s Fair Wage Office was ordered by the Divisional Court on October 15, 2019 to reconsider its decision to disqualify Queensway Excavating and Landscaping Ltd. (Queensway) for non-compliance with Toronto’s Fair Wage Policy.

The Fair Wage Office reconsideration is related directly to Government Management Committee Report, Item GM27.16 adopted by City Council on May 22, 2018 resulting in the disqualification of Queensway from bidding on City contracts for a period of two years. Report GM27.16 detailed that Queensway was non-compliant with the Fair Wage Policy in 2016 and 2018. In 2019-2020, the Fair Wage Office conducted a reconsideration of the 2018 Fair Wage decision with the proper notice and disclosure and provided Queensway with an opportunity to be heard as required by the Court.  The reconsideration decision in February 2020 determined that Queensway was non-compliant with the City's Fair Wage Policy.

This report recommends that Queensway not be disqualified from conducting business with the City of Toronto for a period of two years. This report further recommends that the time between the May 22, 2018 adoption of the Government Management Committee Report GM27.16 and this report, wherein Queensway was unable to bid on City contracts be deemed to be the equivalent of any disqualification period which might have been imposed for any Fair Wage Policy non-compliance.

On October 15, 2019, the Divisional Court set aside the 2018 decision of the Fair Wage Office (the "Office") that Queensway Excavating and Landscaping Ltd. ("Queensway") had violated the City's Fair Wage Policy (the "Policy"). In consequence, the Court also set aside Council's decision to disqualify Queensway from bidding on City contracts for two years. The Court also remitted the original issue of whether Queensway had operated in breach of the Policy back to the Office for reconsideration in accordance with the principles set out in the decision. The results of the Office's reconsideration are set out in the report entitled Queensway Excavating & Landscaping Ltd. - Reconsideration of Disqualification from City Contracts for Fair Wage Policy Non-Compliance, which has also been submitted to the Committee for consideration.

Subsequently, Queensway brought two separate legal proceedings against the City. The first legal proceeding was for payment of monies owed to it for work performed prior to its suspension, which had been held by the City pending the Office's determination of the amounts owed to Queensway's employees.  The second was a claim for damages that Queensway alleged it incurred as a result of the fact it was unable to bid on City contracts in the interval between March, 2018, when Council decided to suspend Queensway from bidding, and October, 2019, when the Court set aside Council's decision.

This report summarizes the Court's decision and the issues raised in the other legal proceedings. Confidential Attachment 1 provides legal advice relating to Queensway's current legal proceedings.