The first is a shortage of tens of thousands of workers. As equally problematic, are government policies that further limit the pool of available workers leading to higher project costs, delays and missed opportunities.
It’s a scenario playing out with increasing frequency in construction, as public policies governing billions of dollars in public construction work benefit certain construction unions at the expense of the public, many construction contractors and thousands of their workers. A similar exclusive labour agreement was struck more recently between select unions and The Ottawa Hospital to build its new $2.8 billion civic campus. At the height of a labour shortage, thousands of Ottawa-area construction workers and contractors are prevented from bidding on and building this taxpayer-funded project, because the workers have chosen not to affiliate with certain unions.
A recent report by the Cardus think-tank found Toronto council could save local taxpayers $347 million each year on public construction work by supporting a competitive bidding process. There’s no question that the more bids there are, the greater the competition, innovation and productivity. While it is appropriate to make sure skilled tradespeople are well paid, investment thrives on competition, not artificially inflated wages and benefits.
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