Construction industry gets its way after Manitoba finance minister walks back plan to scrap their minimum wage

A proposal by the Manitoba government to scrap an act that guarantees a minimum wage for construction workers is off the table after near-universal outcry from the industry and its unions.

A letter sent last month outlining plans to repeal the Construction Industry Wages Act sent shock waves through the industry — whose members said they never asked for the repeal, or discussed it with government.

Two of the largest construction advocacy groups in the province — the Manitoba Heavy Construction Association and the Winnipeg Construction Association — collectively questioned the move, concerned it would drive down wages during a period of economic uncertainty.

However, those fears were quelled Thursday when Finance Minister Scott Fielding met with the associations and other affected groups, like the Construction Labour Relations Association of Manitoba and the Manitoba Building Trades, which represents 13 member unions within the construction industry.

"He listened to all the players and I give him full credit for that," said Peter Wightman, executive director of the Construction Labour Relations Association.

"We were such a unified voice from all different players in the industry … all saying the same thing. So I think he felt very confident with saying, 'Oops, maybe I should rethink this.'"

Wightman's association acts as the chief bargainer for many construction companies during their contract negotiations with unions. 

Instead of repealing the act, the province and industry representatives agreed to establish a working group with employers, associations and unions to look at making changes to the construction wages act, which hasn't been updated since 2017.

The act sets minimum wages and rules for overtime pay on most Manitoba construction sites in the industrial, commercial, institutional and heavy construction sectors.

Overtime rules and apprentice ratios will be examined by the working group, Wightman said. 

The collective outcry began when a seven-page letter was sent out just before Christmas to industry representatives.

In the letter, Manitoba Finance officials said the type of legislation in the Construction Industry Wages Act is only found in Manitoba, and said "it is unclear what the benefits of the CIWA are."

Chris Lorenc, president of the Manitoba Heavy Construction Association, said the pushback from industry leading up to Thursday's meeting gave Fielding a chance to see the value in the legislation. 

"I do believe that the government now has a far deeper and more informed appreciation of why the act was passed in the first place, and why industry believes as strongly as it does … [in] the merits of the legislation," he said. 

In a prepared statement, Fielding said the Progressive Conservative government's focus moving forward will be modernizing the act, rather than repealing it.

"The minimum wage rates in the Construction Industry Wages Act are outdated and our government believes it's time to address this. We are committed to fair wages for construction industry workers," he wrote.