October 20, 2008

VINCE VERSACE

Sandra Pupatello, Ontario’s minister of international trade and investment, looks on as Peter Fonseca, Ontario’s minister of labour, explains why the province plans to make worker’s compensation mandatory for everyone in construction.

Proposed Ontario legislation would require WSIB coverage for independent operators

VINCE VERSACE

staff writer

WINDSOR

Ontario’s plan to remove the exclusion for independent operators when it comes to workers’ compensation coverage is another step in fighting the underground economy, says the province’s labour minister.

“This is a giant step forward,” said provincial labour minister Peter Fonseca. “This will create an even playing field. Once and for all, we are closing that giant loophole.”

The proposed legislation would make it mandatory to extend benefits and services contained in the Workplace Safety and Insurance Act for independent operators in construction and others in construction who are not currently covered.

Fonseca announced the province’s intention to drop the exclusion at the Provincial Building and Construction Trades Council of Ontario’s 51st convention in Windsor.

“The industry has been working to end this unfair practice for a very long time,” said Pat Dillon, business manager of Provincial Building and Construction Trades Council of Ontario. “This is a vital step in making workplaces safer and levelling the playing field for all who work in construction.”

Both the Council of Ontario Construction Associations (COCA) and the Ontario Construction Secretariat (OCS) have flagged the independent operators issue over the years. An OCS report estimates that between 2003 and 2005, 50 to 60 per cent of unincorporated independent operators should have been classed as employees, and therefore been covered by the WSIB and had employer EI and CPP contributions made on their behalf. COCA is encouraged by the Fonseca’s announcement.

“Right now, 61 per cent of the industry pays 100 per cent of the freight. We have to change that,” said David Zurawel, vice-president, policy and government relations at COCA. “We will be interested to the see the legislation.”

COCA also states that legislation would help ensure quality in competitive bidding among contractors and would help reduce WSIB premium rates as the pool of contributors increases.

A greater emphasis on health and safety will result and more accurate injury data will be collected.

David McDonald, chair of the Open Shop Contractors Association, however, said that if this legislation were to go through, it would overburden the WSIB. Also, the results of mandatory coverage would be the same as in Quebec with mandatory unionization, said McDonald, creating an even larger underground economy.

“This will force legitimate guys to go illegitimate,” said McDonald.

“To solve this problem, all the WSIB has to do is more audits of small contractors.”

Jim Lyons, executive director of the Windsor Construction Association, said news of the exclusion being dropped was surprising because it has been such a longstanding issue. Lyons said though there will be upfront costs for some it will eventually pay itself back through things like increased safety programming.

“We likely have members in our association that have abused the system and now they will have to pay the piper,” added Lyons.

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