January 30, 2008

Wage Legislation

Manitoba construction industry prepares to pay more for skilled trades workers

Report by Construction Industry Wages Consultation Panel recommends higher construction industry wages

RICHARD GILBERT

staff writer

Manitoba’s construction industry will be in a better position to compete for skilled trade workers across Canada as a result of wage increases recommended by a government-led consultation panel.

The Construction Industry Wages Consultation Panel made a recommendation on Jan. 17 to improve construction wage rates in Manitoba.

A report by the panel recommended that the first stage of wage increases come into effect on June 1.

This increase eliminates the confusion caused by setting rates dependant on where a building is constructed.

The panel is a joint industry-labour group that determined that new wage rates are needed in an extremely competitive national construction industry.

The Construction Industry Wages Act divides the construction industry into the heavy sector and the industrial, commercial and institutional sector (ICI).

“An integrated province-wide ICI wage schedule was a priority for the panel. It will simplify wage calculations for employers and ensure the availability of a skilled workforce in rural Manitoba,” said Labour and Immigration Minister Nancy Allan.

“These proposed construction wage increases, combined with the general hourly minimum wage increase set for April 1, are designed to keep Manitoba competitive in the labour market and make Manitoba an attractive place to live.”

Some people in the construction industry said the panel’s recommendations don’t go far enough.

“We at Merit have not been happy with the results of the panel. We wanted higher wages, because the construction sector is booming,” said Harvey Miller, executive director of Merit Contractors Association of Manitoba, which represents open shop contractors.

“The rates recommended by the panel provide the open-shop construction industry with about six to seven per cent less than what we would have paid.”

Merit Contractors Association wrote a letter in December to the Construction Industry Wage Act Review Committee, which recommended changes to the wage schedule for the period 2008-2010.

The letter also asked for Merit to be represented on the review committee.

“We were not invited to be part of the panel. This is a huge oversight, since we are the voice of the open-shop contractors in the province,” Miller said.

“We believe this is a shortcoming that exists in the wage committee structure.”

Despite these problems, the new wage rates help the construction industry keep pace with other provinces, as well as give both employers and workers a working benchmark.

“There is always the new start up companies that try to get away with something and start people at lower wages,” said John Bockstael president of the Winnipeg Construction Association, adding that these companies try to keep workers at $10 an hour.

“A number of companies were trying to keep pace with increases in wages, but other companies weren’t and then they wondered why they were losing workers,” he said.

Rural construction workers would see their wage rates match the current Winnipeg and area rates on June 1, while workers in the Winnipeg area would see an increase of about three per cent.

In the heavy construction sector, the report recommends a general increase of about four per cent in 2008.

That would be followed by increases of three to four per cent, depending on the type of work, effective Jan. 1, 2009. The last recommended increase would be effective Jan. 1, 2010, and would see wages rise between 2.5 and three per cent.

For example, a carpenter in the Winnipeg area or a carpenter working on a major construction project is currently paid $24.50. As of June 1, the rate increases to $25.25. On June 1, 2009, this will increase to $26.00 and on June 1, 2010 the rate increases again to $27.00.

The new wage rates set an industry minimum for specific trades, but employers can always pay more if it becomes necessary to attract and retain workers.

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