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Associations

Stakeholders ask AG for review, claim Manitoba Jobs Agreements are ‘filled with red flags’

Stakeholders ask AG for review, claim Manitoba Jobs Agreements are ‘filled with red flags’

WINNIPEG — Three construction associations representing the vertical and heavy construction sectors across Manitoba have requested the province’s auditor general review the 85-cent-per-hour per worker charge collected on Manitoba Jobs Agreement-covered projects.

They claim that money “flows directly to a union body on top of existing union dues — with no public oversight, no explanation and no end in sight.”

The Winnipeg ion Association (WCA), the Manitoba Heavy ion Association (MHCA) and the ion Association of Rural Manitoba (CARM) have joined together to formally request the auditor general investigate this fee and the broader “accountability failures” of the MJA.

“This fee is being sent directly to the Manitoba Building Trades without any clear oversight. Nobody in government has explained how the number was set, what it’s supposed to fund, or who’s watching the money. At the end of the day, taxpayers are the ones paying for it,” says Ron Hambley, president of the WCA, in a statement.

According to the province, the MJA is a provincial policy that prioritizes Manitoba workers on major government infrastructure projects to deliver higher wages, benefits and strong safety protections. It is meant to boost local employment, workforce development through apprenticeships and project stability by setting consistent terms for union and non-union trades. All contractors can participate under the terms of the MJA.

Beyond the auditor general, the associations are calling on the provincial government to “fix the MJA’s structural flaws: restore fair and open competition on public projects, end discriminatory hiring requirements, and ensure that Manitoba’s construction workers — union and non-union alike — have a fair shot at building their province.”

According to the release, Statistics Canada indicates approximately 88 per cent of Manitoba’s construction workforce is non-unionized.

Under the MJA, open-shop contractors can start a project with their own existing workforce, but new workers brought on are subject to union hiring preference, and the use of their own workforce requires union approval, the associations claim.

“Transparency and accountability for public funds are absolutely critical. Neither the industry nor Manitoba taxpayers have been given a clear explanation of how this fee was determined or what it is intended to fund. That is not acceptable,” adds Chris Lorenc, president and CEO of the MHCA.

The CARM says rural Manitoba could be particularly impacted because unionized labour is far less available and “local contractors have built skilled, loyal workforces over decades.”

“The MJA gives unions approval rights over the workforce on covered projects and hands them first access to any new hiring. Open-shop companies can start with their own people — but the moment they need to bring someone new on, unions go to the front of the line. That restricts competition, drives up costs and puts rural Manitoba workers at a disadvantage getting work in their own communities. Manitobans will end up paying more and getting less,” states Shawn Wood, executive director of CARM.

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