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WINNIPEG – The Winnipeg Construction Association, Construction Association of Rural Manitoba and Manitoba Heavy Construction Association have issued a joint alert to their respective members and to the industry at large as it pertains to “certain risks” associated with recent changes to the provincial government’s project procurement and delivery practices.

In particular, the associations are concerned about projects designated under the Manitoba Jobs Agreement (MJA).

According to the province, the MJA is a provincial policy that prioritizes Manitoba workers on major government infrastructure projects to deliver higher wages, benefits and strong safety protections. It is meant to boost local employment, workforce development through apprenticeships and project stability by setting consistent terms for union and non-union trades. All contractors can participate under the terms of the MJA.

Just recently several school projects were announced under the policy.

The associations have noted the “MJA is a complex document that incorporates multiple collective agreements, the provisions of which are binding on any and all contractors – unionized and non-unionized alike – working on all such projects for the Province of Manitoba.”

The alert states all contractors bidding on projects subject to the MJA should be aware of the following:

Projects delivered under the MJA include additional reporting, documentation and workforce requirements that will require more staff time and resources.

These can include:

• Detailed workforce reporting and compliance tracking
• Additional onboarding and reporting obligations for subcontractors
• Potential verification of hiring practices and workforce composition
• Contractors should carefully review tender documents and allocate sufficient administrative resources to meet these conditions.

The MJA also introduces a project labour framework that “effectively creates a unionized site environment,” the associations explain.

Even if your company is non-unionized, you will be required to:

• Work under terms aligned with collective agreements
• Potentially engage with union hiring halls for workforce supply
• Adhere to site-specific labour conditions and practices, including using union wages scales and the mandatory payment of union dues, union fund contributions and additional remittances that differ from your standard operations.

The associations have made several recommendations. It should be noted the comments and suggestions are for informational purposes and are not intended as a substitute for legal advice. 

• Review the MJA: Before committing to any project under the MJA, contractors should carefully review the policy from the construction manager.
• Be prepared:Assess the true cost and risk profile for projects covered by the MJA.
• Make informed decisions:Decide whether or not to participate and/or price your scope of work accordingly only after you have reviewed the MJA and assessed the true cost.
• Legal consultation: Contractors are advised to consult with legal professionals and labour relations professionals to ensure they understand their potential liabilities under the MJA.