The Progressive Contractors Association (PCA) has recently shared claims about the economic impact of the City of Toronto’s construction procurement practices that warrant closer scrutiny.
Relying on estimates from Cardus, a Hamilton-based think-tank with ties to PCA, they are urging residents and contractors to contact city councillors to advocate for what they describe as $347 million in potential savings.
A closer look at this figure raises important questions. Cardus arrived at the $347 million estimate by projecting the city’s potential construction spending for 2023 and applying a 21 per cent savings rate based on a separate study of procurement activity in Hamilton before and after Bill 66.
Even Cardus acknowledges their sample size is limited and may not directly apply to Toronto’s budget. Their approach does not fully account for the complexities of construction tendering and lacks rigorous academic or mathematical validation.
The idea that such a bold claim can be made without a more stringent methodology is not just misleading — it’s absurd. Back in 2018, Cardus alleged union construction increased costs by 15 per cent, but this was quickly debunked through a simple analysis of wage differences.
The reality? For a 15 per cent cost increase to be real, union workers would have to be paid nearly twice the wages of non-union workers, which is simply not the case. Other factors, such as material costs and project management expenses, are generally consistent regardless of workforce affiliation.
Furthermore, the City of Toronto and a number of other progressive municipalities have adopted fair wage policies, ensuring that workers, regardless of their union status, receive fair and equitable wage for their labour. This ensures cost-cutting contractors who seek the lowest bid do not achieve that goal by cutting workers’ wages.
Construction procurement is more than just chasing the lowest bid.
We believe that fostering strong partnerships with owners will lead to sustainable, cost-effective, and safe construction that benefits owners, contractors and workers.
Smart buyers of construction services look at more than price, they consider financial stability, workforce training and qualifications, past performance, organizational capacity, health and safety standards, and the broader impact on their community.
Construction projects today are complex and require a highly skilled team of workers, supervisors and contractors. Academic research supports a move away from low bid award to best value procurement.
Would you trust an inexperienced, under-resourced mechanic to repair your car’s brakes just because they offer the lowest price? Of course not, you go with the trusted mechanic who has the skills and training necessary to do the job right.
Similarly, construction projects require experienced, properly trained professionals who ensure quality, safety and accountability at every stage.
When you hire a union contractor, you’re not just hiring any workforce — you’re hiring the best-trained, most experienced professionals in the industry.
Union construction invests over $146 million annually in training, with more than 100 dedicated training facilities. The building trades unions and their contractor partners deliver first rate apprenticeship training through 60 unique programs in every region of the province.
In addition to apprenticeship training, there is a strong focus on journeyperson upgrade or specialty training as well as safety training. This ensures that projects are completed efficiently, safely, and to the highest standards. Additionally, union contractors support their workers, maintain sustainable practices and provide protections that safeguard project owners from long-term issues.
And just as importantly, they hire from and give back to the communities they work in.
This isn’t just about getting the job done — it’s about building a stronger, more sustainable future for everyone.
Quality, safety and community investment matter.
Next time you hear claims about so-called “union cost inflation,” ask yourself: who truly benefits from cutting corners?
Brian Barron is chief executive officer of the Ontario Construction Secretariat. Send Industry Perspectives Op-Ed comments and column ideas to editor@dailycommercialnews.com.
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