Item - 2023.GG8.20

The General Government Committee:

1. Referred item GG8.20 back to the Manager, Fair Wage Office, Purchasing and Materials Management Division for further review and inclusion of:

a. More detailed financial analysis and estimated budget dollar impact; and

b. Options to continue to include exemptions for small businesses designed to ensure competitiveness and participation in procurement opportunities.

The purpose of this report is to recommend revisions to Toronto Municipal Code Chapter 67, Fair Wage (the "By-Law") and all three of the By-Law's schedules:

The By-Law and Schedule A, Fair Wage Policy (the “Policy”), changing purpose and intent, application, responsibilities, administration, and enforcement;

Schedule B, Labour Trades Contractual Obligations in the Construction Industry (the "Labour Trades"), changing the name to the "Labour Trades Contractual Obligations in the Construction Industry Policy";

Schedule C, Fair Wage Schedule, 2016-2019 ("Schedule C"), updating Schedule C, such that it reflects the most current prevailing wages for the industries in which the City procures services. The details are outlined in greater detail below:

The By-Law and Schedule A

- Adding definitions;

 - Delegating explicit authority to the Manger, Fair Wage Office to order work to be stopped that is suspected of exposing the City to liability, and;

- Refining Policy application provisions regarding "owner operators" and grant agreements,

- Contractor and sub-contractor responsibilities regarding Fair Wage compliance declarations on accounts rendered for payment, displaying copies of the Policy, and permitting workers to work overtime hours have been modernized or removed to reflect current operational and business practices.

- Attachment "1" is a red-line document showing recommended changes to the current By-Law and the Policy.

Schedule B

- The only revision proposed for the Labour Trades is to change the name to the "Labour Trades Contractual Obligations in the Construction Industry Policy", for clarity.

Schedule C

- Comprised of six classifications of work: General Classifications, Heavy Construction work; Industrial, Commercial, Institutional (I.C.I.) work; Road Building work; Sewer and Watermain Construction work; and Utility work.

- An updated Schedule C is recommended to Council for approval every three years. The current Schedule covers 2019 to 2022 and must be updated to reflect 2022 to 2024 rates. The updated Schedule C set out in Attachment "2" reflects wage increases recognized by the construction labour markets. This report recommends that the updated Schedule C takes effect for all new City procurements issued on or after January 1, 2024. All City contracts or procurement documents issued before January 1, 2024 will use the Fair Wage rates set out in the current Schedule C (2019 to 2022). In order to maintain a record of historic wages, The Fair Wage Office will maintain copies of the former Fair Wage Schedules at the Fair Wage Office and on the Fair Wage Office website.