Item - 2024.EX14.11

The Executive Committee recommends that:

1. City Council amend Municipal Code Chapter 67 - Fair Wage, including Schedule A, as set out in Attachments 1 and 3 to the report (April 30, 2024) from the Manager, Fair Wage Office, Purchasing and Materials Management, effective July 1, 2024 (the “Effective Date”).

2. City Council amend Schedule C to Municipal Code, Chapter 67, by replacing the current Schedule C with the Schedules contained in Attachments 5, 6, 7, 8, 9 and 10 to the report (April 30, 2024) from the Manager, Fair Wage Office, Purchasing and Materials Management, as the new Schedule C to Chapter 67, effective as of the Effective Date.

This report provides additional information regarding item GG8.20 from the General Government Committee’s meeting on December 6, 2023. Specifically, it provides an updated financial analysis on proposed changes to Toronto Municipal Code Chapter 67, Fair Wage, and how the proposed changes will clarify how the by-law applies to small businesses.

This report is being submitted to the Executive Committee following its April 9, 2024 decision to refer all matters related to the City's Fair Wage Policy from the General Government Committee to the Executive Committee, for consideration.

At the December 2023 General Government Committee meeting, the Manager, Fair Wage Office, Purchasing and Materials Management Division submitted a report on Item GG8.20 dated November 22, 2023 (the “November Report”). The November Report recommended revisions to Chapter 67, Fair Wage (the "By-Law"), and all three of the By-Law's schedules: Schedule A, Fair Wage Policy (the “Policy”); Schedule B, Labour Trades Contractual Obligations in the Construction Industry (the "Labour Trades"); and Schedule C, Fair Wage Schedule, 2016-2019 ("Schedule C"). This report proposes no additional changes.

Under the By-Law the Manager, Fair Wage Office is delegated authority to update the wage rates in Schedule C every three years, consistent with prevailing market rates in the construction industry. The proposed updated Schedule C reflects wage increases recognized by the construction labour markets. The November Report recommended that the updated Schedule C wage rates take effect for all new City procurements issued on or after January 1, 2024. The new proposed effective date is July 1, 2024.

Proposed changes to the By-Law and Policy include adding definitions and clarifying Policy application provisions regarding "Owner Operators" and grant agreements. The proposed changes regarding the Fair Wage Policy not applying to “Owner Operators” would not change how Chapter 67 currently applies to small businesses. The changes further provide clarity as to how the Fair Wage Policy is interpreted regarding grant agreements.