OHBA starts letter-writing campaign to MPPs
Renovators, home builders anxious about
imminent mandatory WSIB coverage legislation
Staff Writer NHBA Structures
“I believe that had the provincial government done more members are writing to their local MPPs.
thorough public consultation, and received different view- A published report quotes Ministry of Labour
Homebuilders and renovators across Ontario are dis- points, it would have amended the legislation to accom- spokesperson Bruce Skeaff as saying there is no firm date
mayed with the provincial government’s imminent legisla- modate the interests of all contractors large and small,” to introduce the legislation, but the government would like
tion to require mandatory participation in the Workplace Henderson said. to have the new rules in effect by 2012.
Safety and Insurance Board (WSIB) for most independent Henderson said he doesn’t know how many OHBA
contractors within the construction industry.
They fear the new requirements will dramatically – and
unfairly – increase costs for legitimate businesses, and drive
Survey responses: Divided opinions
many smaller organizations over the line into the under-
ground economy
While the Ontario Con- The residential sector is Also by making WSIB ground economy”, those
.
The Ontario Home Builders’
struction Report’s survey of mostly made up of small mandatory the under- working for cash for pri-
Association is spearhead-
ing a letter-writing campaign to Ontario parliamentarians,
readers is not a scientific contractors. We can get ground economy will in- vate individuals.
asking them to reconsider the legislation, which is moving
poll, the results show how better and cheaper insur- crease making for a * It is difficult for inde-
through the review process with exceptional haste (and may
seriously divided the con- ance privately. For us more uneven playing pendent contractors and
be approaching final reading or approval by the time this
struction industry is on the this +-8% additional fee field. Those people that small corporations with
issue of Structures reaches readers.)
issue of mandatory WSIB will only cause more un- are not truly independent few employees, to meet
The form letter, sent to all GOHBA members, and to be
coverage. Here are some of derground work or peo- contractors should be all the requirements that
signed by individual members and sent to their local MLAs,
the comments completed by ple leaving the industry. declared an employee are mandatory at this
says: “I am strongly against any changes that would force
people who answered the * I hope that this legisla- and they should be time. Adding an addi-
me to cover (independent contractors) under WSIB. The
question: tion is appealed. This treated as one including tional monthly payment
choice to apply and purchase optional WSIB coverage
The Ontario govern- added layer of bureau- WSIB coverage. will make it harder for
ought to rest with the employer since under the current
ment has announced pro- cracy will inevitably * It will do nothing to rec- independent contractors
regime, private insurance provides greater protection and
posed legislation that mean that many contrac- tify the underground to stay in business.
coverage.”
would make workers’ tors will be found not to (economy) which is the * I agree that it is a good
Mike Martin, an Ottawa renovator who chairs the
compensation coverage be in compliance, which primary reason why this idea to ensure all work-
GOHBA Renovators’ Council and its provincial counter
mandatory for individuals then means the WSIB is done. ers are covered by WSIB
-
part, says the new regulations may result in a payroll cost
(independent contractors) will have to file claims * Too many times inde- as the independent oper-
increase of eight or nine per cent. “We may need to pay
in the construction indus- against them until the pendent workers bid ator status has been
$6,400 in premiums for the person working in our office
try who are currently not perceived remittances subcontracts and do not abused. That said current
who rarely sees a job site,” he says. “How much more busi-
covered? What do you are made. Many small have the same expense legislation will exempt
ness will we have to do to pay that extra cost?”
think of this change? contractors are already to cover. That gives renovators. This will
The legislation includes an exemption for residential
overburdened with vari- them and unfair advan- leave a gaping hole in
renovators, but Martin says this will do little good for many
* I think by forcing sub- ous government require- tage. If they are injured the legislation and in my
renovators who may do the occasional new home project,
contractors to pay higher ments . . . on the job they are still opinion will allow one
or small commercial job. He says he isn’t sure how the reg-
premiums through * Independent contractors entitled to the benefits. of the main problem
ulations will be applied. “I’m not sure if the WSIB will be
WSIB in lieu of their form an important part We must all pay to be el- areas to go unchecked.
collected percentage wise or across the board,” he said.
own private coverage it of the residential con- igible for WSIB. * Currently, we make our
“Some home renovators may be fine, but what happens if
will force our labour struction industry. They * Most independent con- subcontractors show
you dabble in commercial or new homes.”
costs higher. With the are entrepreneurs that tractors carry personal proof of WSIB cover-
The new legislation is strongly supported by the mixed
decline in our econ- seek the rewards for insurance that is cheaper age. If not, we decrease
construction associations represented by the Council of On-
omy’s stability, in- their labours and ac- than WSIB and offers their draws by the equiv-
tario Construction Associations (COCA) and the labour
creased labour costs knowledge the risks in- better coverage with less alent amount of WSIB
movement, who have expressed concern how businesses
would be detrimental to volved. They should be paperwork. This legisla- premiums and remit di-
using non-union labour and independent contractors are un-
our industry. allowed to work this tion does not solve the rectly to the govern-
dercutting them on projects.
* If an independent con- way if they so choose. problem of the “under- ment.
But these views are not shared by the home building and
tractor wants coverage it
renovations community, who feel that they are unjustly
is much cheaper and bet-
being forced to purchase insurance at greater cost and of
ter coverage to have a
much less value than they can obtain privately
disability insurance plan.
.
David Henderson, director of industry relations for the
WSIB is not helping the
Ontario Home Builders Association, says the association
independents, it is only
does not know why the provincial government has decided
after money to help pay
to press forward with the legislation at what seems to be
other claims.
exceptional speed. “I understand this could be passed as
* The current system has
early as the end of the month (November),” he said. “W
been working well . .
e
met with a few cabinet ministers. They are unable to an-
.why change it now. This
swer this question, why it is moving at such a break-neck
is a change no one wants
speed.” Henderson says the OHBA would like the gov-
except the government,
ernment to allow for public hearings outside of Toronto be-
and the only reason is to
fore finalizing the legislation to allow for proper
grab additional revenue
consultation and public content and participation.
from our industry. I am
“The proponents of this legislation seem to have very
vehemently opposed to
little understanding of how small, legitimate, above-board
this tax grab!
contractors operate in this province,” he said. “Bill 119 will
* This issue has been
never accomplish its goals.”
brewing for sometime.
B4 - NHBA Structures December 2008
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