Recommendation:…

Recommendation: Participation Must Require Fair, Open, and Competitive Tendering for Construction

To maximize the economic impact and public value of Special Economic Zones (SEZ), the government should require that all construction work within an SEZ be procured through fair, open, and competitive tendering processes, accessible to contractors from all labour models.

PCA supports the government’s objective to support economic growth and development through the use of SEZ which will provide for fast tracking of permits and expedited approvals while safeguarding environmental protection.

With increased economic challenges as a result of trade instability from the United States, Ontario needs to take important steps to encourage economic growth and a welcoming and stable investment environment. We agree that this measure has the potential to allow for more investment and jobs.

However, it remains critical that any work within these zones is fully maximized for all Ontario construction workers and contractors to participate, regardless of what union (or no union) they are affiliated with. By establishing SEZ’s, the government is clearly signaling that a project has met a standard that warrants special regulatory conditions and therefore is in the public interest.

An example of a construction tendering practice that is not fair and open is the use of Project Labour Agreements (PLAs) under Section 163.1 of the Labour Relations Act. These agreements prevent contractors outside of the provincial ICI collective agreements from participating, ensuring that only Building Trades–affiliated contractors are eligible to bid. Although PLAs are rarely used in Ontario, if an owner within a SEZ were to apply this provision, it would effectively exclude the vast majority of construction contractors—and their workers—from participating on the project.

PCA believes that incorporating language requiring fair and open tendering aligns with this government’s objectives for inclusive growth that benefits all Ontarians.