CLAC sues City of Toronto over its decision to add LiUNA to list of unions who can bid on municipal work

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Ontario Construction News staff writer

The Christian Labour Association of Canada (CLAC) has sued the City of Toronto over its decision to add the Labourers International Union of North America (LiUNA) to the group of nine other construction trade unions who can bid on municipally contracted work.

LiUNA was added through a city council resolution after the city on June 19 โ€œopted outโ€ of Bill 66, meaning it remains a โ€œconstruction employerโ€ under the Ontario Labour Relations Act.

The Progressive Contractors Association of Canada (PAC), Merit Open Shop Contractors Association and the Canadian Taxpayers Federation say they support the legal action against the city.

CLAC believes that by passing the motion to enter into a voluntary recognition agreement with LiUNA, the city has violated the City of Toronto Act and the cityโ€™s procurement bylaw and policy.

โ€œWhile it looks like all the other municipalities in the province and Torontoโ€™s Exhibition Place will opt for open tendering, Toronto chose to remain closed, which is very poor public and fiscal policy,โ€ PCA said in a statement. โ€œHowever, adding LiUNA to the list of unions that held a monopoly was, in the view of CLACโ€™s legal experts, illegal.

โ€œThe group launching the suit is also very concerned with the process that unfolded on the council floor to allow this decision to go forward in the first place.

โ€œThe motion, MM8.51, to enter into a voluntary recognition agreement with LIUNA was not brought forward publicly until the council meeting started on June 19 and there was no public consultation or staff analysis offered to support it,โ€ PAC asserted. โ€œQuestions from a minority group of councillors about why the city was not taking an open and inclusive approach to construction procurement were dismissed. The questionable legal standing of the motion was made known to council members, but it still advanced with 20 members of council supporting it.โ€

โ€œWe heard rumours that the city was considering opting out of Bill 66, but were shocked when they decided to enter into an exclusive agreement with LiUNA,โ€ said Ian DeWaard, CLACโ€™s Ontario director. โ€œThis agreement gives LiUNA exclusive rights to all skilled labour work on city construction projects. We believe that the councilโ€™s decision is not rational or legal. While we regret having to take legal action, it is the only way to shine a light on what seems to have been a deal cooked up in the backrooms of city hall in an effort to avoid public scrutiny.โ€

โ€œIt was disappointing to witness what occurred at Toronto City Council on June 19. The mayor and councillors are elected to be impartial in safeguarding the public purse and should not be entering into exclusivity arrangements on public infrastructure. We support fairness, inclusiveness, and transparency,โ€ said Michael Gallardo, Merit Ontarioโ€™s executive director.

โ€œTaxpayers deserve better,โ€ he said.

LiUNA said in a statement provided to another publication that it was โ€œtruly disappointingโ€ CLAC and its allies โ€œhave decided to directly attack the well-deserved recognition LIUNA members have earned from the City of Toronto.

โ€œIt is not clear why CLAC has chosen to single LiUNA out from the other nine building trades. LIUNA is the largest construction union in North America,โ€ the LiUNA statement said. โ€œOur membership in Toronto alone dwarfs the membership of CLAC across all of Canada. LiUNAโ€™s members have worked on the vast majority of city projects building the proud city we have today. CLAC cannot say the same.โ€

The cityโ€™s motion says the voluntary recognition agreement โ€œshall not apply to any projects under $400,000 indexed to inflation annually and any projects including but not limited to: playgrounds/playscapes/splash pads, landscaping within Parks, sports infrastructure within parks and hardscaping; and any projects including but not limited to: playgrounds/playscapes/splash pads, landscaping within Parks, sports infrastructure within Parks and hardscaping; and – will apply only to specific identifiable projects tendered by specific city divisions.โ€

The motion also calls for LiUNA to incorporate job training into its arrangements with the city.

โ€œThe Voluntary Recognition Agreement will include a plan whereby Labourers’ International Union of North America will work with city staff to proactively establish annual targets for union funded training seats at its Greater Toronto Area training centres, as well as strategies for increased access to localized training, with the goal of increasing the number of equity-seeking and indigenous registered apprenticeships,โ€ the motion says.

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