Toronto City Council has approved a motion calling for wording in procurement contracts indicating that gender equity among bidders is an aspirational goal.
The motion from Councillor Michelle Holland that was approved Jan. 31 falls short of an earlier proposal that could have required bidders to have 30 per cent gender diversity on their boards of directors.
A staff report authored by the city’s director of the Purchasing and Materials Management Division Michael Pacholok following an extensive consultation process concluded the gender diversity goal was unfeasible for numerous reasons.
The final motion, with an amendment moved by Councillor Kristyn Wong-Tam, called for the city to work with the province’s Women in Business Steering Committee to increase gender diversity, registered “City Council’s support that all corporations should utilize an intersectional analysis to strive to have gender parity on their corporate boards,” and asked city staff to come up with a mechanism to collect information on the gender diversity of corporate boards of entities doing business with the city.
The top executive of one stakeholder consulted by the city at a public session said his association would be watching the file closely to ensure the city does not go any further than it has.
“We have said yes to that resolution because it is aspirational in nature,” said Giovanni Cautillo, executive director of the Ontario Sewer and Watermain Construction Association (OSWCA). “That’s how it is right now, but it could change tomorrow. If it changes tomorrow, my position changes.”
Cautillo said OSWCA applauds the movement to attract more women into construction but when it comes to the city’s procurement practices, there should be “evolution” to a point where women are represented at all levels within firms, not “revolution.”
“I am happy with them not force-feeding us on how to compose our businesses in order to get the job done,” he said. “Not all firms are large like EllisDon and Aecon where they can put architects and engineers onto their boards. A lot of them are mom and pop shops that would be affected so they can no longer bid.”
We are working with millions of dollars in contracts, and we want to know if you are a good employer
— Kristyn Wong-Tam
Toronto City Councillor
Heavy Construction Association of Toronto (HCAT) executive director Peter Smith had submitted a letter supporting the city’s social procurement policy, which he described as outreach to expand market access, but said requiring 30 per cent gender diversity would limit access.
Smaller firms in HCAT generally do not even have a board of directors, Smith wrote, and the largest firms are often divisions of international conglomerates that have very few women, if any, on their boards.
“The Eglinton Crosstown project is an example where some of the largest firms in the country teamed up to win the bid against more international competition,” said the HCAT submission. “Allowing these large firms to participate ensures taxpayers are getting the most competitive pricing possible.”
The staff report surveyed global procurement and found only the City of Melbourne, Aus. has a clause requiring gender equality in its supply chain.
The report said the 30 per cent gender equity requirement would reduce competition and raise prices; it cited practical and legislative hurdles to gathering information on boards of directors; it said staff didn’t have to capacity to educate bidders on gender-diversity compliance; it noted staff were already busy working on two large business transformational projects; and it said the goals were not part of the city’s social procurement policy.
Wong-Tam said the motion serves notice to firms wishing to do business with the city that gender equity is now on the radar.
“We are working with millions of dollars in contracts, and we want to know if you are a good employer,” she said.
Wong-Tam noted the construction sector, traditionally male dominated, had taken notice of the issue. Addressing the HCAT point on international bidding, she said it was important that construction firms diversify, hiring and promoting more women as they compete for projects globally.
“If that gives them a competitive edge, and we know how competitive it is out there, and there are all sorts of requirements with every single tender, and if this is one of them and you can fulfill it…of course it is good business practice, you should do it,” she said.
At some point, she said, she believes the goal of achieving gender equity among city bidders is reachable.
“Whether it is legislated or mandated by a purchaser, at some point it will be achievable, but only if the corporations that are doing this work are well intentioned with benchmarks and goals,” she said.
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