Item - 2023.GG8.20
GG8.20 - Revisions to the Fair Wage Policy and Updating the Fair Wage Schedule to Include 2022-2024 Wage Rates
- Decision Type:
- ACTION
- Status:
- Referred
- Wards:
- All
Committee Recommendations
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.
Origin
Summary
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.
Background Information
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241087.pdf
Attachment 1, part 1 - Fair Wage Policy - Proposed amendments to Municipal Code, Chapter 67 - Fair Wage
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241100.pdf
Attachment 1, part 1 - Fair Wage Policy - Proposed amendments to Municipal Code, Chapter 67 - Fair Wage - Red-lined version
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241235.pdf
Attachment 1, part 2 - Fair Wage Policy - Proposed Amendments to Municipal Code, Chapter 67 - Fair Wage, Schedule A Fair Wage Policy
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241101.pdf
Attachment 1, part 2 - Fair Wage Policy - Proposed Amendments to Municipal Code, Chapter 67 Fair Wage, Schedule A Fair Wage Policy - Red-lined version
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241234.pdf
Attachment 2, part 1 - Fair Wage Schedule 2022-2025 - General Classifications
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241102.pdf
Attachment 2, part 2 - Fair Wage Schedule 2022-2025 - Heavy Construction Work
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241103.pdf
Attachment 2, part 3 - Fair Wage Schedule 2022-2025 - Industrial, Commercial, Institutional (I.C.I.) work
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241105.pdf
Attachment 2, part 4 Fair Wage Schedule 2022-2025 - Road Building work
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241107.pdf
Attachment 2, part 5 - Fair Wage Schedule 2022-2025 - Sewer and Watermain Construction work
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241108.pdf
Attachment 2, part 6 - Fair Wage Schedule 2022-2025 - Utility work
https://www.toronto.ca/legdocs/mmis/2023/gg/bgrd/backgroundfile-241088.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2023/gg/comm/communicationfile-174159.pdf
(December 6, 2023) E-mail from Sean Blake, Business Representative, Carpenters District Council of Ontario Local 27 (GG.Supp)
https://www.toronto.ca/legdocs/mmis/2023/gg/comm/communicationfile-174161.pdf
Motions
That the General Government Committee:
1. Refer 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.
Vote (Refer Item) Dec-06-2023
Result: Carried | Majority Required |
---|---|
Total members that voted Yes: 5 | Members that voted Yes are Jon Burnside, Lily Cheng, Vincent Crisanti, Stephen Holyday, Nick Mantas |
Total members that voted No: 1 | Members that voted No are Paul Ainslie (Chair) |
Total members that were Absent: 0 | Members that were absent are |
That the General Government Committee recommends that:
1. City Council direct that the word "Fair" be removed from the policy title so that it reads "Wage Policy".