A new 85-cent-per-hour-per-worker fee on large public-sector construction projects in Manitoba is drawing sharp criticism from industry leaders. The fee supports the provincial government’s Manitoba Jobs Agreement program, launched last year to prioritize local workers on infrastructure projects over $50 million.
The Winnipeg Construction Association, Manitoba Heavy Construction Association, and Construction Association of Rural Manitoba say the fee will raise project costs by millions-and potentially 15% or more-without clear accountability. They note funds flow directly to Manitoba Building Trades, a council representing 13 unions, with no transparent oversight mechanism.
"Nobody in government has explained how the number was set, what it’s supposed to fund or who’s watching the money," said Ron Hambley, president of the Winnipeg Construction Association.
The NDP government defends the policy, stating its goal is to train local workers and reduce reliance on out-of-province labor. Minister Mintu Sandhu called retaining Manitoba workers "our No. 1 focus." Opposition Progressive Conservatives warn the fee could rise significantly-and call it "a bad deal for Manitoba."
Manitoba job agreements also standardize wages and benefits across unionized and non-unionized workers to prevent labor disruptions on long-term projects.