Brad Smith has watched construction workers finish up their day on the job, only to head off to work at another.
The executive director of Mainland Nova Scotia Building said that alone is enough to support Halifax Regional Municipality’s incoming living wage requirement.
“We see first-hand the impacts on people that cannot have a dignified wage and (are) working two jobs,” Smith told Halifax’s community planning and economic development standing committee Thursday morning.
“Our position is what you’re doing is the right thing to do and it’s a path we need to continue on.”
Effective April 1, the municipality’s contractors for solid waste services, custodial and janitorial services, snow and ice management and security services will be required to pay its workers $21.80 per hour.
The figure was extracted from the Canadian Centre for Policy Alternatives report released in September, which determined the current living wage for Halifax is $21.80 per hour.
Smith, Bob Shepherd, president of Nova Scotia Construction Labour Relations Association, and Jack Wall, president of Cape Breton Building Trades, presented to the committee on behalf of the unionized industrial/commercial/institutional construction industry.
Coun. Sam Austin brings up the concerns raised at the previous meeting by the "manager side," such as smaller businesses suffering.
— Nicole Munro (@Nicole__Munro) February 18, 2021
Bob Shepherd, president of N.S. Construction Labour Relations Association, says all of the unionized employers pay living wages and support it.
The presentation was a stark contrast to what the committee heard last month from Melody Hillman, acting president and chief executive officer of the Construction Association of Nova Scotia, Grant Feltmate, executive director of the Nova Scotia Road Builders Association, and Karen Slaunwhite, executive director of Nova Scotia Home Builders Association.
“We feel that HRM is trying to raise up smaller companies, but we feel like this current structure will likely do the opposite,” Hillman told the committee at the time.
Coun. Trish Purdy (Cole Harbour-Westphal-Lake Loon-Cherry Brook) said she had also talked with small businesses, who are concerned they will be forced to raise the prices of their goods and services, as well as cut jobs once the living wage requirement comes into effect.
“Like could this backfire and actually have more people out of work because of a pay increase? Because that would just be a horrible unintended consequence of a good-intentioned policy,” Purdy said.
Shepherd pointed out all small businesses in the association pay a living wage, if not more.
He did acknowledge, however, there’s a risk during the transition period if the small business is already locked into a contract.
“If a small company has bid to HRM to do a contract and they’re paying their workers $16 an hour and all of a sudden now going to start paying $21 an hour, they could be in trouble,” Shepherd warned.
Smith says the policy provides a level playing field for the contractors when bidding on projects. pic.twitter.com/pM7LRcnLIN
— Nicole Munro (@Nicole__Munro) February 18, 2021
But overall, Smith said the living wage requirement will level the playing field for contractors bidding on Halifax Regional Municipality projects.
“You’d find that some contractors would not even bid on some of the projects or work that HRM has out there because they can’t compete when they have to compete just on wages,” Smith said.
“Now, contractors must compete on safety, quality and the ability to deliver the project on time and on budget.”
Shepherd noted all 350 employers in the association currently pay and are supportive of a living wage.
"What the living wage does is it raises the floor," he said. "The floor right now in the construction business for non-union companies is a lot lower than it is for union companies."
Going forward, Coun. Patty Cuttell (Spryfield-Sambro Loop-Prospect Road) said council will need to look at what industries are being required to pay a living wage as some, such as the construction industry, are a male-dominated field.
“I think we just need to be mindful of that and how are we continuing to create a gap in income that has a gender bias to it,” Cuttell said.
“I applaud efforts to get women into the trades, but I think as an organization we need to be creating a level playing field in our policies.”
