The independent 2017

The Independent THE OFFICIAL PUBLICATION OF THE INDEPENDENT CONTRACTORS

AND BUSINESSES ASSOCIATION OF BC

Volume 4: 2017

PM 40063056

Philip Hochstein Retires ICBA Makes Major Move in Northeast B.C. Resource Development is Key

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CONTENTS

Volume 4: 2017

PUBLISHER Dan Gnocato dang@mediaedge.ca MANAGING EDITOR Cheryl Mah GRAPHIC DESIGN Jody Sparkes CONTRIBUTING WRITERS Robin Brunet Jock Finlayson Terrance Oakey Minister Todd Stone B.C. SALES Dan Gnocato 604.549.4521 ext. 223

PUBLISHED BY

06

Features

PRESIDENT Kevin Brown VANCOUVER OFFICE

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1000-5255 Yonge St. Toronto, ON M2N 6P4 Tel: 416.512.8186 Fax: 416.512.8344

06 ASSOCIATION FOCUS

A Legacy of Achievement Passionate About Training ICBA Makes Major Move in Northeast B.C.

12 SURVEY

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Taking the Pulse

15 INFRASTRUCTURE Building a Strong B.C.

16 ECONOMY

Resource Development is Key A Balanced and Realistic Energy Future Affordable Housing

ICBA's The Independent Magazine is published once a year by MediaEDGE Communications Inc. REPRINTS: No part of this magazine may be reproduced in any form — print or electronic — without written permission from the publisher. Requests for permission to reprint any portion of this magazine should be sent to the publisher.

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21 MERIT CANADA 2016 Year in Review

Departments 04 CHAIR'S MESSAGE 05 PRESIDENT'S MESSAGE

PAST PRESIDENT'S MESSAGE

The Independent Magazine is the official magazine of the Independent Contractors and Businesses Association published once a year by MediaEdge Communications Inc. Opinions expressed in the magazine are those of the authors and not necessarily endorsed by ICBA or MediaEdge Communications. Editorial inquiries should be sent to the editor at: cherylm@mediaedge.ca

CHAIR'S MESSAGE /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

CHANGE AND OPPORTUNITY

T

his is a pivotal time for our province and for the construction industry.

While there is much to be optimistic about, global economic conditions and an upcoming provincial election are giving rise to a sense of apprehension and uncertainty. In this environment, as the leading voice for the construction sector over the past 40 years, the ICBA continues to advocate strongly for policies and programs that support the construction sector and that will help create the jobs and attract the investment required to build British Columbia.

Today, our industry is one of the drivers of B.C.’s economy accounting for approximately 9 per cent of the province’s GDP and employing more than 200,000 workers.

Here in the Lower Mainland, 2016 was a strong year for construction activity. However, our resource sector continues to face challenges.

There are numerous projects that when done responsibly can help grow our economy, create jobs and generate revenue for additional public services without raising taxes.

The regional economies in the interior and the north of the province are not as robust as

4

THE INDEPENDENT | 2017

the Lower Mainland. There is promise with BC Hydro’s Site C project underway, the recent approval of the Trans Mountain Pipeline Expansion Project (TMPE) and the decision by Woodfibre LNG to move forward. However, opposition to responsible resource development and many infrastructure projects is strong.

In 2016, ICBA took on this challenge and we launched our “Growing the Economy” campaign to counter the ‘no to everything’ movement in our province. We discovered the silent majority who support responsible development lacked a platform for their voices to be heard. We presented petitions, held truck rallies in three northern towns and took the campaign to Victoria and Ottawa to show the governments that British Columbians supports responsible resource development. We demonstrated that people want a balanced approach to building the economy and protecting the environment.

Our voice was heard with the approval of both the TMPE and Pacific Northwest LNG. The ICBA marked a significant milestone in 2016. Our visionary leader Philip Hochstein stepped aside after 30 years at the helm as did Gord Stewart who has been with ICBA for 18 years. Under their leadership, Philip and Gord

led the organization through some extraordinary times to become a robust, thriving organization today that offers a wealth of member services.

Their fearless approach and consistent leadership guided the ICBA through the never ending political and economic challenges over the past three decades.

These are exciting times ahead for ICBA and we are pleased to announce Chris Gardner as our new president. He shares a deep commitment to open shop values and to a strong free enterprise economy. Chris has the right mix of education, experience and energy to lead the ICBA in the next phase of our exciting future.

If you are not a member of the ICBA, please consider getting involved. With your help, we can ensure our province and the construction sector continue to prosper.

Rick Boates Chair, ICBA

/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// PRESIDENT'S MESSAGE

LEADERSHIP CHANGES

I

CBA had a milestone year in 2016. Our leader for 30 years, and my friend and mentor Philip Hochstein stepped aside as president and took on a senior advisory role. He took the organization from a small basement shop in Surrey fighting for equal treatment of all workers and for fair and open tendering practices to a highly respected business association in B.C. that offers a wealth of member services to the open shop construction community.

Working side by side with Philip for the past 18 years, I was a partner on a mission to provide clear and consistent leadership on issues that serve as the foundation of free enterprise and that helped position ICBA as the leading voice for the construction industry. During this incredible journey, I have had the unique opportunity to not only help build a dynamic organization and a vibrant business, but also to contribute to and influence the public policy debate in B.C. in a significant way. I have been privileged to work with exceptional individuals on the board of

F

or over 40 years the ICBA has stood up for the principles that support the construction sector and the small and mediumsize companies that form the backbone of an industry that employs over 200,000 people and is responsible for nearly 10 per cent of B.C.’s GDP. Philip Hochstein and Gord Stewart have built a remarkable organization that has shaped the public policy debate in B.C. and spear-headed initiatives aimed at attracting jobs and investment. It is an honour to be following Philip and Gord – they are both owed a debt of gratitude that cannot be expressed in a few short words.

As we write in this edition of The Independent, there are reasons to be optimistic about the outlook for 2017. B.C. led the country in economic growth in 2016 and is poised to have another strong year. Construction activity has been robust and a number of large infrastructure projects are either underway, Site C, or have been approved, Woodfibre LNG and the Trans Mountain Pipeline Expansion Project.

However, a new administration in Washington is signalling policy changes that may harm B.C.’s

directors and with a talented team of senior managers and staff at ICBA. I will always be proud of this shared legacy.

Since taking over for Philip last fall, I have been working to enhance the team and to lay the ground work for the next chapters of the exciting ICBA story. And now that this work is complete, I will be moving into a consulting role for the duration of the year. I’m proud to announce ICBA’s strong new leadership team: Chris Gardner, ICBA president; Dr. Lindsay Langill, vice president; Mike Davis, regional vice president; and Alain Bergeron, president of ICBA Benefit Services Ltd. I look forward to assisting Chris and the team as they take up the torch that Philip and I are passing along.

Gord Stewart Past President, ICBA

economy, global economic growth continues to be challenged and, here at home, opposition to infrastructure, energy and resource development projects is putting thousands of constructions jobs at risk in communities across B.C. A survey by the ICBA last year found that 80 per cent of British Columbians support responsible resource development. Getting projects to “Yes” is essential to grow our economy, attract investment and create the jobs and opportunities that are the foundation of vibrant communities.

I am looking forward to working with the exceptional team here at the ICBA. These are exciting times for our province and at the ICBA. We will continue to work hard to ensure that the ICBA is the leading voice for construction in B.C.

ICBA BOARD OF DIRECTORS CHAIR Rick Boates Unitech Construction Management Ltd. VICE CHAIR Jim Bogusz Chief Operating Officer at Beedie Development Group SECRETARY/TREASURER Steve Lux Brighter Mechanical Ltd. DIRECTORS Jon Walker Lincor Enterprises Ltd Ivan Harmatny LMS Limited Partnership Dick Reid Kindred Construction Ryan Tones Peter Kiewit Infrastructure Ron Chambers Chambers Electric Corp Chris Gray Connelly Mechanical Laura Stanton All West Glass John Sharp Ventana Construction Ron Karras RMG Construction Mike Kask Burnco Colin Kaufmann WestShore Constuctors Jon Brandt Summit Brook Construction PRESIDENT Chris Gardner VICE PRESIDENT Lindsay Langill

Chris Gardner President, ICBA

2017 | THE INDEPENDENT

5

ASSOCIATION FOCUS ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

A LEGACY

OF ACHIEVEMENT ICBA leader Philip Hochstein retires after 30 years

BY CHERYL MAH

P

hilip Hochstein has been the face and voice of the Independent Contractors and Businesses Association (ICBA) since 1987. With his fearless and candid approach, he has led the organization through some of the construction industry’s most turbulent times in B.C.

6

THE INDEPENDENT | 2017

Hochstein has not only made a career, but a life advocating on behalf of the open shop construction sector. He has been the vocal driving force behind the association, playing a pivotal role in establishing ICBA as the well respected and well recognized organization it is today.

/ ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// “ICBA was an evolution, not a revolution. It started with a small group of contractors who wanted to be treated fairly by the NDP government at that time. And they weren’t and therefore went out and built an organization that has grown and flourished,” says Hochstein. “The principles that the founders stood for were the right principles that have stood the test of time.”

Hochstein has championed and protected those principles for three decades, leaving a legacy of achievements that has propelled ICBA to the forefront in both the business and construction communities. But the next chapter in ICBA’s evolution will now be passed onto his successor.

“The organization is well positioned for transition,” says Hochstein.

The news of his retirement has elicited a flood of “heart warming” emails and phone calls from ICBA members and the construction industry at large, and even former B.C. premier Gordon Campbell.

“I never really appreciated the impact I may have had on some of my members and on the province,” says Hochstein.

According to Hochstein, there were two main reasons for the timing of his retirement. First, the days of battling the union dominated marketplace are long over – one of the biggest successes for ICBA and the open shop sector. There is no more labour unrest and every site is an open site, made up of a diverse group including progressive unions, contractors and independents.

“When I first started, the organization needed a strong, visible, outgoing leader that could stand up and fight the good fight,” reflects Hochstein, who moved to B.C. in the late 70s. “The organization has changed. ICBA is a very large business now and really needs a different style of leadership.”

The timing is also right for him personally as he just turned 64-years-old and most of his colleagues are retiring in the industry.

While he won’t miss the long hours, he will miss the interaction with members and helping them to solve problems – the most rewarding part of the job. “ICBA has been a big part of my family.

My kids used to help stuff envelopes and put mail out. It’s been a big part of my success personally and professionally,” he says.

Hochstein’s dedication and outstanding leadership for the association are echoed by many in the industry. Long-time member Leonard Remple of Haul Away Disposal remembers meeting Hochstein in 1986 when ICBA was struggling for survival.

“Philip saw the need for an open shop organization and the need for strong leadership. He came aboard to take over from Ralph Purdy,” says Remple. “Through 30 years, I have been privileged to know this man and witness his drive, his leadership, his motivation and his tenacity. His accomplishments have earned him the respect and admiration from ICBA members, politicians and even from unions.”

Many of the industry relationships Hochstein has built over the years have also turned into friendships. Two long term friendships include John Knappett, president of Knappett Projects and past ICBA board chair Jim Laurence, president and COO of Magil Construction Pacific Inc. “His contribution to the construction industry and the significant changes that occurred were a direct result of his commitment to free enterprise, the belief that business should be run with minimal interference from government and unions and his sense of loyalty to the small and medium size business community,” says Laurence.

“He has left ICBA in excellent shape to move ahead in the future and will be truly missed by the membership.”

Knappett remembers the support that Hochstein provided to his company when they first joined ICBA in 1985. “The support and mentorship Phil provided to our fledgling firm and the industry will

never be forgotten by those of us who faced the difficult years of growing the open shop construction industry. Phil has been a true leader and a key to the success the province enjoys today. I look forward to his continued friendship and advice as he becomes the senior statesman and retired country gentleman of the British Columbia construction industry.”

As the construction industry has grown and evolved in B.C., so has ICBA and much of that credit is due to Hochstein’s tireless efforts.

“Under his leadership, Philip has led the organization through some extraordinary times. He has taken the organization from a small basement shop in Surrey fighting for fair and equal treatment of workers to a robust, thriving organization that offers a wealth of member services and is a leader in the business community,” says current ICBA board chair Rick Boates.

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7

ASSOCIATION FOCUS /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Indeed, the organization is a far cry from the one Hochstein joined in 1987, when he was the sole employee. Prior to joining the ICBA, he was manager of membership services for the Mechanical Contractors Association of B.C. (MCABC). He also worked for the Canada Employment and Immigration Commission and the Provincial Ministry of Finance.

“I was laid off from MCABC in the late 80s which was a bad time and met Christina Koehl who recruited me to help ICBA. I took the job but I didn’t know the association had nothing and barely any money to pay my salary,” recalls Hochstein.

Since then, there have been many memorable milestones for Hochstein such as the Port Alberni strike in the late 90s (opening the industrial sector to non-union) and the introduction of ICBA’s hour bank health care plan, which was the “right product at the right time.”

“Many of the people in the industry were changing from union to non-union and they were looking for those kinds of services in the manner they were familiar with – that was a big success,” he says.

Another milestone was the first international open shop conference held in Banff that ICBA organized with Merit Alberta. The conference drew hundreds of union protestors in 1990. “The conference was full of tension and to be able to pull that off was an experience,” says Hochstein.

Successive NDP governments in the 90s forced the organization to become involved in politics to challenge union inspired attempts to eliminate competition. Known for taking strong and outspoken stances on issues, ICBA effectively dealt with union-only procurement, wage regulation and apprenticeship issues in B.C. “ICBA stood out among all the other business groups by criticizing the NDP when they did something wrong. That really helped establish our reputation as a group that will stand up for its principles,” says Hochstein, adding ICBA also helped to establish the Coalition of B.C.

Businesses, which represents more than 50,000 small and mediumsized businesses on labour and employment policy issues.

In 2001, when Gordon Campbell and the B.C. Liberal party were elected, Hochstein said the construction industry started to prosper and ICBA was able to develop a solid relationship with the Liberals that still exists today.

“Our success has been the ability to say we’re going to stand up for our members – do it publicly, be loud and clear about what’s right and what’s wrong and not be afraid of the ramifications,” asserts Hochstein.

“It has led ICBA into being a very influential business group not just within construction but the business community at large. And that is playing out with our Growing the Economy campaign.”

The pro-economic development campaign is aimed at identifying those who support responsible resource development in B.C. The campaign has focused its efforts on several resource development

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Thank you for the countless contributions you’ve made to the construction community over your 30 Year Career at ICBA .

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THE INDEPENDENT | 2017

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// projects in the province such as the $6.8-billion Trans Mountain Expansion Pipeline, which received final federal approval (subject to conditions) in late 2016.

“There needs to be balance between the economy and the environment – it can’t be all one way,” says Hochstein. “I think that’s the struggle ahead – getting the proper balance between the economy and the environment... and standing up for the economy when it needs the support. Environmental groups are out of touch with what British Columbians want.”

Success for any association is also measured by meeting the needs of its members, which is a longstanding priority for the organization and ICBA has done that successfully on many fronts such as introducing a suite of services and benefits over the years including health and welfare, retirement programs plus training and apprenticeship initiatives.

“We’re the single largest registrar of construction apprentices in B.C.,” says Hochstein. “We have completion rates that are well above the average.”

Another significant service is a comprehensive range of benefit plans covering life insurance and extended health care to more specialized items such as retirement programs and critical illness coverage.

Moving forward, ICBA will continue to grow and expand its services to its members. Following the opening of its first regional office in Prince George in 2016, the organization will be establishing a Fort St. John office with the acquisition of Energy Services BC (ESBC), the largest oil and gas industry association in the province.

“There are many economic prospects in the north and if they ever come to fruition, we want to be there to help. It will also allow us to bring our services closer to our members outside of the Lower Mainland,” says Hochstein about the regional expansions. “Without investment, there is no construction activity.”

While he will no longer be involved in the day-to-day operations of the organization, Hochstein will continue to act as a special counsel to the president, providing strategic advice as needed for the next couple of years.

He will also continue to serve on various industry boards, including sitting on the Port of Vancouver board of directors.

The leadership transition also includes Lindsay Langill, who joins the association as vice president. Langill was the former dean of the School of Trades and Technology at Thompson Rivers University.

“There will be a void to fill for the next little while, but I’m sure I’ll find ways to fill it,” says Hochstein with a laugh, noting he has some travel plans and will focus on some well deserved “me time.” ICBA

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ICBA MAKES MAJOR MOVE IN NORTHEAST B.C.

J

ust over a year ago, the Independent Contractors and Businesses Association (ICBA) made a commitment to expand its presence by opening its first regional office in Prince George, B.C. Since then, the group has been actively engaging with industry, communities and key stakeholders throughout northern British Columbia.

Early in 2016, ICBA’s leadership and influence were heavily relied upon in northern B.C. as the region hosted numerous Pro LNG truck rallies throughout Terrace, Fort Nelson and Fort St. John. The rallies, highlighted by a 5km long 580-truck motorcade in Fort St John, were instrumental

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in letting British Columbia and Canada know the importance of resource projects and the jobs to resource based communities.

“Throughout our northern B.C. engagement, we heard from a broad spectrum of northern businesses — from engineering firms to realtors to car rental agencies and construction contractors — who want LNG to succeed,” says Mike Davis, ICBA regional vice president.

“It was important that we provided leadership to communities and helped give them a voice around Getting to Yes.” In addition to supporting and promoting responsible resource development, the ICBA expanded its training services in the region by hosting a wide selection of courses in Prince George, Terrace and Fort St John. More than 20 courses were offered, ranging from construction law, civil estimating to foreman training.

As a result of a 40th anniversary Legacy Fund, ICBA also partnered with many regional colleges and school districts to provide $50,000 in trades funding, including a $25,000 donation to the College of New Caledonia (CNC) for technological advancements and five-year naming rights to a room at the college.

“ICBA was extremely proud to partner with educational institutions in northern B.C. this past year,” says Davis. “We have always been committed to supporting the promotion of trades throughout British Columbia and are passionate about the development of skilled training for youth.”

ICBA held a variety of member engagement events this past year, including the inaugural Northern B.C. Construction Roundtable, held last October in Prince George. This event united the construction industry in Prince George and also included key note messages from Ministers Shirley Bond, Mike Morris, John Rustad, Todd Stone and Prince George Mayor Lyn Hall. Delegates were updated on regional projects and prospects from such stakeholders as BC Hydro, TransCanada, Northern Development Initiatives Trust, the City of Prince George and Construction Market Intelligence.

“We are seeing that having a regional ICBA office in place is helping local and regional members as new development projects come on-stream,” says Davis. “There are many economic opportunities in northern British Columbia and we want to ensure that we are supporting responsible development while helping to grow and strengthen B.C.’s economy.”

Through current member and stakeholder engagement, industry, community and government relations, ICBA’s strategic goal of expanding its regional presence is starting to be achieved.

Recently, ICBA proudly announced the acquisition of Fort St. John based Energy Services BC (ESBC), the largest oil and gas industry association in the province.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// ESBC is a registered non-for-profit organization and over the last 30 years has been an advocate for the oil, gas and energy service sector in British Columbia. The organization has a long history in B.C.’s northeast. It evolved from the former Northern Society of Oilfield Contractors and Service Firms, a group that has been active for more than 30 years as a regional advocate for companies who provided services in the oil and gas industry.

“Over the last several years, ESBC has been looking at ways to extend the influence and increase the profile of companies driving the oil and gas sector in the region,” says Art Jarvis, executive director of ESBC. “This is going to be a very powerful partnership and we are looking forward to joining the voice of B.C.’s construction industry.”

“By working together in one organization, the issues that are important to businesses in the Northeast will get more attention across the province and the case for jobs and economic investment in the region will be stronger,” says Davis. “The voice of the construction sector is much stronger with the ESBC as part of the ICBA.” Getting B.C.’s natural resources to global markets is a key driver for job creation and economic investment in the province.

Over the past year, the ICBA received support for responsible resource development and major infrastructure projects from tens of thousands of people across B.C. through its Growing the Economy campaign. The ICBA believes that the silent majority of British Columbians support developing natural resources; and building projects in a sustainable way creates jobs not only in construction but in almost every other sector of the economy.

Davis says that people in the Northeast understand what drives prosperity in B.C. “Together, the ICBA and ESBC will stand up for investments in the energy and resource sector that will bring jobs to this region and help build stronger communities across B.C.” ICBA

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SURVEY /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

TAKING THE PULSE

2017 construction issues and outlook in B.C.

BY CHRIS GARDNER, ICBA PRESIDENT

L

ate last year, the ICBA and ConstructConnect partnered on a survey of the construction sector across Canada.

The results are revealing and reflect the regional differences that define the construction sector in different parts of the country. Businesses are more optimistic about the outlook for the future here in B.C. than they are in other provinces. For good reason – B.C. led Canada in economic growth in 2016 and is poised to be at the top of the pack again in 2017. However, there are head winds on the horizon that will require the private sector and government to work hard together to overcome if we are to continue to create jobs and attract investment in the construction sector.

Economic optimism tempered by frustration with red tape at the municipal level and lingering concern over the shortage of skilled workers were the key findings. With a sample size of nearly 1,900, the survey encompassed the three key industry segments of purchasers, suppliers and contractors from across Canada.

Regional Samples % AGREEING THAT ECONOMIC CONDITIONS ARE GOOD/VERY GOOD IN...

OUTLOOK AND STATE OF THE ECONOMY EIGHTY PER CENT OF B.C.’S CONSTRUCTION INDUSTRY IS UPBEAT ABOUT THE PROVINCE’S CURRENT ECONOMIC CONDITION. MANY BELIEVE THE ECONOMIC CLIMATE WILL STAY THE SAME OVER THE NEXT SIX MONTHS. ONLY 11 PER CENT OF THE INDUSTRY EXPECTS A DECLINE IN THE PROVINCIAL ECONOMY, WHILE 28 PER CENT EXPECT FURTHER IMPROVEMENT. IN CONTRAST, THERE’S A ROUGHLY EQUAL SPLIT WITHIN THE INDUSTRY IN ALBERTA AND ONTARIO, BETWEEN THOSE WHO BELIEVE THINGS WILL GET BETTER AND THOSE WHO BELIEVE THEY WILL GET WORSE. CONSTRUCTION BUSINESSES IN B.C. ARE EVEN MORE OPTIMISTIC ABOUT THE ECONOMIC PROSPECTS FOR THEIR OWN ORGANIZATIONS WITH 88 PER CENT INDICATING CONDITIONS ARE GOOD OR VERY GOOD. THIS IS CONSISTENT WITH THE STRONG PERFORMANCE OF B.C.’S ECONOMY, GROWING 3.4 PER CENT IN 2016 – THE BEST IN CANADA.

Regional Samples IN THE NEXT SIX MONTHS MY PROVINCIAL ECONOMY WILL...

ALBERTANS

11% 26%

28% 24%

ONTARIANS

24%

25%

BRITISH COLUMBIANS

Industry Samples IN THE NEXT SIX MONTHS MY ORGANIZATION'S ECONOMIC PROSPECTS WILL...

SUPPLIERS

13% 10%

22% 40%

CONTRACTORS

14%

38%

PURCHASERS

67% 41%

CANADA

61% 80% 17%

MY PROVINCE

44% 79% 41%

MY MUNICIPALITY

59% 88% 67%

MY ORGANIZATION

85% BRITISH COLUMBIANS

12

THE INDEPENDENT | 2017

ALBERTANS

ONTARIANS

DECLINE

IMPROVE

REST SAID "STAY THE SAME" OR "NOT SURE"

WHAT KEEPS THE INDUSTRY UP AT NIGHT WHAT ARE THE TOP THREE ISSUES YOUR ORGANIZATION FACES RELATED TO CONSTRUCTION? WHEN ASKED ABOUT THE TOP ISSUES THE CONSTRUCTION INDUSTRY FACES, BUSINESS DEVELOPMENT CONCERN TOPPED THE LIST. AMONG CONTRACTORS SPECIFICALLY, NEARLY 90 PER CENT SAID MUNICIPAL REGULATION AND RED TAPE WILL HAVE A NEGATIVE EFFECT ON THE INDUSTRY IN THE NEXT YEAR. EXPECTED TO HAVE A POSITIVE EFFECT IS WORKER SAFETY, INDICATING CONFIDENCE ABOUT THE STATE OF WORKSITE SAFETY.

PURCHASERS

1. Getting the best value for dollar spent 2. Funding for new projects 3. Municipal regulation, permits & red-tape SUPPLIERS

1. Downward pressure on pricing 2. Business development & new opportunities 3. Marketing & growth CONTRACTORS

1. Business development & new work 2. Skilled labour shortages 3. Cost of labour

/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

GETTING ENTANGLED: THE RED TAPE CHALLENGE

WHAT EFFECT DO YOU EXPECT THESE MARKET ISSUES WILL HAVE ON YOUR BUSINESS OVER THE NEXT YEAR? TOP 3 POSITIVE ISSUES FOR CONTRACTORS

ACROSS ALBERTA, B.C. AND ONTARIO, WHEN ASKED ABOUT WHETHER PERMITTING PROCESSES WORKED WELL OR WORKED POORLY AT ALL LEVELS OF GOVERNMENT, THERE WERE BROADLY COMPARABLE VIEWS AT BOTH THE PROVINCIAL AND FEDERAL LEVELS. BUT AT THE MUNICIPAL LEVEL, B.C.’S CONSTRUCTION INDUSTRY IS SIGNIFICANTLY LESS HAPPY – IT IS THE ONLY PROVINCE WHERE MORE PEOPLE SAID THE MUNICIPAL SYSTEM WORKS POORLY THAN IT WORKS WELL.

WORKER SAFETY

70%

MANAGING GROWTH & WORKING CAPITAL

47%

FINDING QUALIFIED SUB-TRADES

42%

23%

7%

45%

8%

51%

7%

TOP 3 NEGATIVE ISSUES FOR CONTRACTORS MUNICIPAL REGULATION, PERMITS & RED TAPE

88%

6% 6%

FOREIGN COMPANIES BIDDING LOCAL PROJECTS

84%

10% 7%

THE $USA/CAD EXCHANGE RATE

83%

9%

EFFECT WILL BE:

VERY POOR/POOR

GOOD/VERY GOOD

8%

NOT SURE

PERMITTING PROCESS AT EACH LEVEL OF GOVERNMENT...

PURCHASERS

FEDERAL PROCESSES

15%

BRITISH COLUMBIANS

35%

28% 31%

26% 22% 23%

ONTARIANS

MUNICIPAL PROCESSES

29% 33%

25%

15%

ALBERTANS

PROVINCIAL PROCESSES

46%

41% 37%

29% 28%

35% 32%

INDUSTRY SAMPLES

19% 17%

PURCHASERS

16%

SUPPLIERS

17% 22%

CONTRACTORS

27% 33% 32%

40% 38%

30% 34%

39% 37%

29% 30%

39% 37% WORK WELL

OVER THE NEXT YEAR, DO YOU SEE YOUR ORGANIZATION...?

FOCUSING ON EFFICIENCIES

93%

ENTERING NEW REGIONS

42%

FOCUSING ON COST MANAGEMENT

89%

EXPANDING

39%

CUTTING COSTS

73%

MAKING CAPITAL INVESTMENTS

35%

OPENING NEW OFFICES

15%

% SAYING DEFINITELY/PROBABLY

WHERE DO WE GO FROM HERE? The ConstructConnect / ICBA survey shows a strong sense of optimism in the B.C. construction sector. However, threats to investment in infrastructure and resource development projects are putting family-supporting jobs in jeopardy and risk our economic future.

Last year, the ICBA launched its Growing the Economy campaign to help bring stalled projects to "yes." The silent majority of British Columbians understand that developing our resources in a responsible way creates jobs in construction and in almost every other sector of the economy.

President Trump’s administration has signalled that our positive trading relationship with the USA could change.

WORK POORLY

REST SAID "NOT SURE"

The consequences for B.C. families are significant. Nearly 40 per cent of B.C.’s economy is the result of exporting goods and services to markets outside of the province. Whether it is softwood lumber or manufactured goods, a new regime of higher tariffs and duties imposed by the USA will threaten the livelihoods of thousands of people across B.C. However, an early positive sign was President Trump's decision to revive TransCanada's Keystone XL Pipeline.

If this project moves forward, it will provide greater market access for Canada's oil and generate jobs and opportunities for B.C. energy service companies, particularly those in northeast B.C. While there is optimism about the outlook for the construction sector in B.C., much work remains to be done to ensure that the full potential of our economy is realized.

2017 | THE INDEPENDENT

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ASSOCIATION FOCUS ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// /

PASSIONATE ABOUT TRAINING

BY ROBIN BRUNET

L

indsay Langill has done everything from welding for a living to being a high profile dean for a respected B.C. university.

But if his reputation had to be summarized in a single phrase, it would probably be: “proficient in fostering change by developing solutions from scratch.”

The Independent Contractors and Businesses Association’s (ICBA) new vice president says, “I didn’t really think of my career along these lines until a few years ago, when I realized the extent to which I enjoyed helping organizations move in new directions.

The great thing about joining ICBA is that an incredible amount of good work has already been accomplished by talented people.”

The gregarious Langill also has a tendency to underplay his workload, so it’s no surprise that “moving forward” for him means setting several lofty goals in 2017, including developing a training workforce network in support of open shop and creating compliance software for ICBA members.

“Establishing comprehensive training programs is my passion,” he says. “I’ve always viewed workforce development in the Canadian construction industry as being weak, with an overreliance on third parties to get the job done. We need to move away from that.”

Langill knows of what he speaks. The son of a Mission-based residential builder, he spent his youth working for his father in construction and then switched to the metal trades: “I much preferred welding and pipefitting to working with wood,” he recalls.

In the late 1980s he began an academic career and holds a Bachelor of Education, Master’s and Ph.D. He began teaching the trades at a variety of institutions, first in the K-12 public school system in Langley (his success in launching an electronics program earned him a Prime Minister’s Award for Teaching Excellence), and culminating in his role as Dean, School of Trades and Technology, at Thompson Rivers University.

In between were many other designations (including three Red Seal trade certifications) and successes, one of the more unusual

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examples occurring in 2006, when he and colleagues created a mobile training unit on behalf of the Industry Training Authority (ITA), for which he was senior director of program standards.

“That’s a prime example of what can happen when a group of people exchange ideas in an effort to do something different from the norm,” he recalls. “That mobile unit is still in operation today with NUIT and is serving the province’s Aboriginal community.”

His association with the ICBA is a lengthy one. “When I was at Thompson Rivers University I became very close to the ICBA due to my development of an extensive training contract component,” he says.

Further priming the pump for his position as ICBA vice president was a teaching stint at James Nash State High School in Queensland, Australia. “I was terribly impressed by how seriously trades training is taken in that country’s learning institutions,” he says. “Industry people have strong control as program advisors: they scrutinize the projects developed for students, they assess the performance of educators very closely and they make decisions on what’s needed in each program and what’s not – and the institutions make it happen.”

In the spirit of believing a comparable level of commitment can be achieved here in B.C., Langill is currently busy plotting their activities in 2017 and with regards to making tangible their focus on training and apprenticeship, they have already come up with provocative ideas.

Langill stresses that building quality assurance into any training program will be a key to ICBA’s growing ability to provide value added services to its members. “In a similar vein, the compliance software solution we’ll be working on this year will ensure the integrity and qualifications of any member bidding for jobs in B.C.,” he says.

In the meantime, Langill every so often takes time to relish his new role as vice president. “I’ve done a lot of things in my life, but with the ICBA I truly feel that all my experience is being put to good use,” he says. “The association is in transition with 'new blood' at the helm, and the future is very exciting.” ICBA

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// ECONOMY

BUILDING A STRONG B.C.

BY TODD STONE, MINISTER OF TRANSPORTATION AND INFRASTRUCTURE

B

.C.’s Ministry of Transportation and Infrastructure makes strategic investments in provincial roads and highways to create a safe and reliable transportation system, provide good value and service for taxpayers and create economic opportunities for our province.

Transportation is a key economic enabler, playing an extremely important role in job creation in B.C. Good-paying, familysupporting jobs are created through our consistent investment in construction and maintenance, as well as through the improved movement of people and goods. An efficient supply chain helps to expand B.C.’s reach into international trade markets which in turn grows the provincial economy.

Our world-class transportation network directly employs more than 133,000 people. It contributed $11.2 billion to our economy in 2014. In 2015, we moved $45.1 billion worth of goods by ship, $11 billion worth of goods by road, $6.5 billion by rail and $2.2 billion worth of goods by air.

We work largely in partnership with other levels of government and with the private sector to deliver projects that will provide more transportation options and build safer and stronger communities.

And we’re building toward the future. In 2015, we introduced B.C. on the Move, the province’s 10-year transportation plan. This plan builds on top of $18 billion in transportation investments since 2001 and will see a further $2.7 billion invested in the next three years alone. During the first year of B.C. on the Move, investments were made in all facets of transportation including highway capacity improvements, road rehabilitation, safety, public transit, airports, ferries and cycling networks.

In this second year of B.C. on the Move, we’ll see significant progress on major infrastructure projects including the $3.5 billion replacement of the George Massey Tunnel. This project has just gone to tender for site preparation work and is on schedule for construction to begin in 2017 with the bridge opening in 2022. We’re also investing $30 million on the Highway 91 and 72nd interchange project, designed to unclog congestion on the Alex Fraser Bridge and Highway 91. Other projects designed to improve traffic flow in the Lower Mainland include the $59 million overpass on Highway 1 at 216th Street in Langley and the Lower Lynn Interchanges project on Highway 1 just north of the Ironworkers Memorial Second Narrows Crossing in North Vancouver.

In Greater Victoria, the soon to be built $85 million McKenzie Interchange will reduce congestion and improve safety at Vancouver Island’s biggest bottleneck. There are also a number of projects on the go in B.C.’s interior including four-laning the Trans-Canada between Kamloops and Alberta, construction on the Cariboo Connector, work on Highway 97 in the Okanagan, construction on Highway 16 west of Terrace and work is underway on the Salmon River Bridge near Prince George.

Using B.C. on the Move as our blueprint, we continue to work with our federal and municipal partners to plan and invest in our transportation network. The Ministry is able to invest in these critical capital and infrastructure projects thanks to the province’s strong fiscal plan. The B.C. government is making record investments in modern, safe infrastructure projects across the province — and in doing so, these construction projects are creating high paying,

George Massey Tunnel bridge replacement

family supporting jobs. These investments are possible because of our strong fiscal plan — and through each, we are “Building a Strong B.C.” for generations to come. ICBA Todd Stone is the B.C. Minister of Transportation and Infrastructure

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Congratulations ICBA on your continued success and support in the industry.

We are proud to be members.

G e n e r a l C o n t r a c t o r s Telephone: (604) 324-3531 Fax: (604)324-3532

2017 | THE INDEPENDENT

15

ECONOMY ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

RESOURCE DEVELOPMENT IS KEY B.C.’s prosperity is still closely tied to the resource sector.

BY JOCK FINLAYSON

T

here is little debate that resources built British Columbia’s economy. Early in the last century, our economy was based on agriculture and the extraction of minerals, timber and fish. Highly productive coal mines and vast stands of easily accessible, low-cost timber translated into widespread wealth and prosperity.

In the post-World War II “province building” era, the extraction and processing of resources and the development of supporting infrastructure continued to dominate the economic landscape.

Railways and highways were extended to open up new areas for economic and resource development. Pipelines, ports and power generation and transmission infrastructure were built to stimulate local economic development and allow B.C. and other western Canadian resource products to access global markets.

In the past three decades, the importance of resource industries has become less obvious, particularly to residents of the Lower Mainland and Greater Victoria. There have also been population out-flows in some resource-dependent regions, reinforcing the perception that natural resources are a dwindling part of the province’s economy.

In today’s diversified B.C. economy, resources represent a smaller share of output and jobs than in the past. It does not follow, however, that resource industries have lost their economic significance. The

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extraction, processing and shipment of natural resource-based goods still drive a large fraction of economic output and produce a myriad of positive economic spin-offs that are felt in every region of the province.

RESOURCE SECTOR IN CONTEXT The “resource sector” is usually understood to encompass the extraction of primary resources as well as related downstream processing. In B.C., the resource sector includes the following components: • forestry and related processing (logging, wood products manufacturing and pulp and paper); • mining and related processing; • natural gas and oil drilling and production; • renewable (clean) energy production; • petroleum and coal products manufacturing; • fishing, aquaculture and seafood products; • primary agriculture and related food processing; and, • parts of chemical manufacturing.

Together, these industries account for 12-13 per cent of B.C.’s gross domestic product (GDP), down from around 30 per cent in the early 1960s. Depending on the state of commodity markets, natural resource industries provide 120,000-130,000 direct jobs in B.C. – jobs that typically offer wages and benefits higher than the all-industry average.

Also worth noting is that provincial government garners in the vicinity of $3 billion annually in direct fees and royalties from the natural resource sector.

This figure does not include billions of dollars of income, sales, property and fuel taxes as well as the various non-tax revenues that are collected by the governments from corporations and employees in the resource industries.

Arguably, the most important contribution of B.C.’s resource industries comes in the form of exports. Resource-based goods still make up about three-quarters of the province’s merchandise exports, amounting to $25 billion in export earnings in 2015. This point deserves particular emphasis, because for a small open economy like British Columbia, exports are essential to improving real incomes and living standards over time.

As our resource industries have matured, the sector as a whole has grown more slowly than some other segments of the economy. That said, natural resources remain central to B.C.’s economic well-being, and the province needs to be able to advance new resource and related infrastructure projects if we want to keep the economy on a healthy growth track. This explains why the Business Council of B.C., in common with the Independent Contractors and Businesses Association (ICBA), supports the Trans Mountain pipeline expansion project, continued investments in our ports, railways and road networks and efforts to develop a global scale liquefied natural gas industry in the province.

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// BEYOND THE DIRECT CONTRIBUTIONS The multi-faced economic impact of the resource sector becomes even more apparent once the spin-off benefits flowing from the direct contributions of resource industries outlined above are taken into account.

To begin with, a wide range of non-resource industries in B.C. sell goods and services to local resource companies. In fact, most of the “inputs” used in resource extraction and processing are sourced within British Columbia, rather than purchased from outside suppliers. Such inputs include labour, raw materials, energy, professional services, transportation and numerous other business services. The economic spin-offs from the resource sector also include consumption spending by the employees who work in these industries and the billions of dollars of capital investment made every year by B.C. resource companies, both on new projects and also to expand and maintain existing facilities and operations. Finally, the government spending that is supported by the royalties and tax revenues generated by resource companies and their employees should also be counted.

Once the various links between resource producers and other industries that depend on them and the secondary spending that flows from resource extraction and processing are fully traced, it turns out that 20-25 per cent of all economic activity in the province ultimately depends on the natural resource sector. In light of this, it is important that government decision makers and community leaders advocate for policies that support not only the responsible development of B.C.’s vast resource wealth, but also the construction and maintenance of ports, roads, railways, pipelines and other infrastructure assets that serve the mining, forestry, energy and agri-food industries. ICBA Jock Finlayson is executive vice-president at the Business

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ECONOMY /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// PROFILE ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

A BALANCED AND REALISTIC ENERGY FUTURE

W

e get and use our energy in very different ways today than we did just a decade or two ago. But does that mean we’re on pace to make the changes we need to, or should we be trying instead to end fossil fuel use as completely and quickly as possible?

The federal government has clearly signalled that it foresees a long-term transition away from fossil fuels: one that will involved continued carbon reduction, as well as new infrastructure to get responsibly produced conventional energy to world markets were the long-term demand outlook is strong.

Demand growth will be driven by an expanding global population and a determination on the part of developing countires to improve their living standards.

It’s true that renewable are poised to make up a much bigger part of the energy mix.

But they’re starting from a low baseline and won’t be able to fully meet demand without more modest but still significant growth in conventional energy sources as well.

Even putting demand growth aside, a quick and complete transition to renewable is simply not viable. Their costs are coming down and technical challenges such as the irregular availability of sources like wind are being tackled. But these remain big hurdles.

Carbon-free energy sources can also have significant ecological footprints of their own.

WORLD ENERGY CONSUMPTION (QUADRILLION BTU) 1,000

800

600

13% 15%

Coal (average of various types)

216

Diesel Fuel & Heating Oil

161

200

2012

2025

2030

2035

2040

2045

DEVELOPED 238 WORLD

254

261

267

274

282

DEVELOPING WORLD 311

375

413

451

491

533

SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION, INTERNATIONAL ENERGY OUTLOOK 2016 (REFERENCE CASE).

DEVELOPED WORLD = OECD COUNTRIES; FOSSIL FUELS = PETROLEUM AND OTHER LIQUIDS, NATURAL GAS AND COAL.

THE INDEPENDENT | 2017

7%

Gasoline Propane

139

Natural Gas

117

Fortunately, renewable are one tool among many in meeting our climate change goals.

Ongoing improvement in energy efficiency is actually the single most important tool.

There’s also huge potential to capture and store carbon. And making more use of cleaner burning fuels like natural gas will also have a cooling effect.

Our energy transition needs to continue.

But conventional energy sources will clearly fuel human progress for a long time to come. And that opens the door to continued Canadian leadership, both as a supplier of responsibly produced conventional energy and as an innovator in renewable and other fields that need to be part of a balanced global energy strategy.

GROWING DEMAND

400

18

36%

29%

The world’s population is growing. And better access to energy, often in basic forms like clean and safe cooking fuels, is vital to lifting more people out of poverty. Even with more renewable and energy efficiency, rising global demand means we’ll need to rely on conventional energy sources for a long time yet. Fossil fuels provided 84 per cent of the world’s energy in 2012 and are projected to provide 78 per cent in 2040.

RENEWABLES Renewables are the alternative most often pointed to by those who think we should

be able to cut ourselves off fossil fuels right away. Renewables are vital to the transition to cleaner energy and they are growing fast.

But various challenges mean the ramp up to larger-scale use will be gradual.

Renewables are getting cheaper but are still expensive. In its aggressive push to promote renewable, Ontario is offering generators prices that are often vastly higher than average market prices. This has contributed to strong pushback on energy costs and widespread concern with “energy poverty”.

Renewable energy is intermittent — often most available when least needed — and widely dispersed. So it’s very challenging to integrate into electricity grids without hurting reliability.

And with the current state of energy-storage technology, renewable need to be backed up with standby conventional generation.

Renewable sources are low carbon, but they have their own environmental footprints. Sources such as solar energy, for example, take up a lot of space relative to the energy they produce.

LOWERING THE TEMPERATURE Continued use of fossil fuels doesn’t mean giving up on dealing with climate change.

A recent international agreement commits countries to work to keep the average global temperature increase to below two degrees, instead of the four-degree increase many believe we’re headed for.

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// ENERGY ECONOMY With a clear global need for continued use of conventional energy for decades to come, there’s no reason for Canada to give up on developing its oil and gas resources – especially since we insist on high standards on carbon management and environmental performance. And the social and economic consequences for our country would be severe if we did give up on these resources. ICBA

BY THE NUMBERS • $81 billion investment in capital projects in the oil & natural gas industry (2014).

• 440,000 jobs, direct and indirect industry employment impact across Canada.

• $70 billion of trade surplus for Canada generated by oil in 2014.

• $15 billion in estimated annual industry contribution to government revenues.

• Economic contribution in B.C. from existing oil and natural gas pipelines is $115 million in property/ corporate taxes and $60 million in procurement.

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19

ECONOMY //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

AFFORDABLE HOUSING Let’s build; not regulate

STILL NOT ENOUGH HOMES Builders are stepping up to meet huge housing demand in Greater Vancouver. In the first quarter of 2016, there was a record level of more than 7,000 housing starts and new home construction is expected to remain above recent averages through 2017. But even

20

THE INDEPENDENT | 2017

HOMES UNDER CONSTRUCTION AND AVAILABLE FOR SALE, GREATER VANCOUVER 35,000

5,000 4,500

30,000

4,000 25,000

3,500 3,000

20,000

2,500 15,000

2,000

10,000

1,500

AVAILABLE FOR SALE

UNDER CONSTRUCTION

I

t’s been an active and interesting housing file in British Columbia. There was a sharp step back in sales in Metro Vancouver last summer, in the wake of the retroactive 15 per cent tax on foreign real estate purchasers.

But it’s not at all clear that the long term impact of this and other recent housing related actions will be all that significant.

The problem is that we’re trying to regulate — and, ironically, tax — our way to affordable housing; and with an almost exclusive focus on decreasing demand. But even if we brought foreign investment in Metro Vancouver real estate to a full stop, what about the tens of thousands of new households that will be formed through population growth in the years to come?

Among the ranks of those struggling to find acceptable housing here are a growing number of pro-housing “yes in my backyard” or YIMBY activists. And they are calling for at least equal focus on the crucial supply side of the equation.

Certainly a reduction in the large municipality imposed regulatory burden has to be part of the solution since research demonstrates that housing supply is particularly sensitive to added delays and uncertainty.

And if current owners and residents are genuinely concerned about affordability for newcomers and the next generation, they need to accept that existing communities must adapt to accommodate more housing. Fortunately, there are opportunities to create density unobtrusively and there are a whole range of benefits that come along with doing so.

It’s near impossible to address an issue of severe scarcity and lack of affordability by focusing on demand alone. We’re keeping one hand firmly tied behind our backs if that’s the strategy we stick with. Instead, let’s tackle this challenge full on: let’s shift our focus away from trying to regulate down demand and instead build more of the housing that British Columbians need.

1,000 5,000

500 0

0 2013

2014

2015

2016

SOURCE: CANADA MORTGAGE AND HOUSING CORPORATION, BC STATS

with a steady climb in residential building, the supply of available homes has been dropping.

HOUSING UNITS AWAITING APPROVAL

69,500

IN 6 LARGE METRO VANCOUVER MUNICIPALITIES

Growth in housing supply is especially sensitive to regulatory delays. A recent study projected that a six month increase in municipal approval timelines would cut supply growth by more than half.

And ongoing population growth will make this an even harder curve to bend.

INCREASING SUPPLY: REGULATE BETTER The cost of a new housing unit in Metro Vancouver includes, on average, close to $30,000 in project approval and regulatory compliance costs. And regulatory delays and uncertainty further strangle off growth in housing supply.

AVERAGE GROWTH in housing stock*

6.37%

PROJECTED GROWTH if approvals took 6 months longer

2.67%

* 2006 -2011 IN 48 CANADIAN MUNICIPALITIES

4.7% VANCOUVER GROWTH in housing stock*

7.0% PROJECTED INCREASE if regulatory burden reduced * 2006 -2011

The same study projected that supply growth in Vancouver would increase by close to half if its currently heavy regulatory burden dropped to the median level in Greater Vancouver. ICBA

//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// MERIT CANADA

2016 YEAR IN REVIEW The Good, the Bad and the Ugly

BY TERRANCE OAKEY

I

n the 2015 federal election, Canadians voted for change, and that is certainly what they are getting. Some of this change has been good for the construction sector, some of it troubling and, most concerning, some of it threatens the long-term competitive dynamics between the unionized and open shop sectors.

First, however, the good news. The federal government is now committed to spending $186 billion over 12 years on infrastructure. While the delivery vehicles for this investment still pose challenges, particularly the notion of a national infrastructure bank and the persistent lack of open tendering, the overall investment is most welcome.

There was also some good news with the federal government’s late November announcement of conditional approval of two major pipeline projects in Western Canada: the Kinder Morgan Trans Mountain pipeline and Enbridge’s Line 3. If and when these projects actually get built, it will be another significant stimulus to the construction sector.

The past year also saw Merit Canada hold its most successful “Day on the Hill” yet, meeting with more than 50 Ministers, Members of Parliament, Senators and staff. The meeting program focused on core issues like the Fair Wages Act, open tendering, secret ballot votes on certification and job targeting funds.

Finally, at the provincial level, the Manitoba government’s decision to restore secret ballot votes on union certification helps with Merit Canada’s ongoing efforts to protect that right in federally regulated sectors.

Not all of the news was good, however. Bill C-4, which repeals legislation on union financial transparency (Bill C-377) and secret ballot votes on certification in federally regulated sectors (Bill C-525), was passed by the House of Commons in October and now awaits committee study in the senate. Also, for the second year in a row, the Revenue Minister issued a statement releasing unions from the reporting requirements under Bill C-377, in effect negating the law with a stroke of a pen.

Merit Canada continues to meet with senators to discuss the importance of financial transparency and secret ballot votes and looks forward to what is hopefully a vigorous debate on Bill C-4 at committee in 2017. However, it will be an uphill battle to defeat or amend this Bill and, should it pass, it will be a big step backwards for worker rights in Canada.

We also share the concerns of all fiscally minded organizations around the long-term deficit projections stemming from the last federal budget. In fact, the November economic update revealed there is no timeline to return to balanced budgets. Even more concerning is a December report from the Department of Finance that projects fiscal deficits beyond 2050 and the national debt spiralling to a staggering $1.5 trillion by 2045.

As has been witnessed in parts of Europe and even with some provinces in this country, there is a harsh day of reckoning that comes once government deficits and debt get out of control. Fortunately, the finance report notes that this fiscal doomsday can be averted with policy changes, and hopefully the government will alter course. That is something to watch for in the next federal budget.

Lastly, we must address the ugly. The chummy relationship between the current federal government and Canada’s unions is reminiscent

of the recent experience in Ontario — and we all know how that ended up, with that province staggering in debt and becoming one of the least competitive places to do business in North America.

Union leaders were offered two main promises from the Liberals during the last election. The first was repealing legislation on union financial transparency and secret ballot voting, upon which the government acted with the introduction of Bill C-4. icba-sept.pdf 1 2017-01-30 12:18 PM

C

M

Y

CM

MY

CY

CMY

TM

K

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MERIT CANADA /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

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The second is even more troublesome for the open shop sector, and that is the promise to implement “a modern Fair Wages Policy,” effectively reinstating the Fair Wages Act. The repeal of that Act in 2012 was one of the most important measures to enhance competition, increase efficiency and reduce costs on federally funded projects, levelling the field between unionized and open shop contractors. There is no justification for its reinstatement — other than pandering to union leaders.

The pledge to do so was referenced in the mandate letters of two ministers following the appointment of the Trudeau Cabinet in late 2015, though legislation to act on the commitment has yet to be introduced. Merit Canada continues to voice its opposition to any such move and will launch its most vocal campaign yet should the government seek to distort the market through reinstatement of this policy.

That ought to make for an interesting 2017 — and hopefully one in which the good outweighs the bad and the ugly. ICBA Terrance Oakey is president of Merit Canada, the national body representing open shop construction contractors.

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