PAGE OCR A2 – December 2008 – The Ontario Construction Report
Mandatory WSIB coverage for independent contractors
Industry divided almost evenly in its opinion of new legislation
STAFF WRITER – The OCR Construction Report
duce underground economy world. More individuals in businesses with adequate provincial government done
activity, and result in hope- construction would have ac- private insurance – raising more thorough public con-
Ontario’s construction versely, the mixed construc- fully lower premiums for cess to health and safety ed- overhead costs significantly, sultation, and received dif-
industry is divided almost tion associations represented contractors currently re- ucation and training and possibly pushing some ferent viewpoints, it would
evenly in support and oppo- by the Council of Ontario quired to contribute to resources.” legitimate businesses over have amended the legisla-
sition for imminent legisla- Construction Associations, WSIB. Renovators and The provincial govern- the line into the underground tion to accommodate the in-
tion to require independent are in favour. As well, not smaller builders disagree, ment estimates about 90,000 economy. terests of all contractors
contractors working to have surprisingly, the labour saying the new rules will construction workers not Henderson, the OHBA’s large and small,” Henderson
mandatory WSIB coverage. movement is enthusiastic dramatically increase their currently covered under director of industry rela- said.
Residential contractors about the changes. costs, and will likely force WSIB regulations will now tions, says the association Henderson says he does
and renovators, represented Proponents say the new many builders and renova- be registered for the pro- does not know why the not know how many of the
by the Ontario Home legislation, which is moving tors into the underground gram. provincial government has 4,200 OHBA members in-
Builders’ Association, through the readings in the economy. “As it stands now, there decided to press forward vited to communicate with
strongly opposed the legisla- Legislative Assembly at an The Ontario Construc- is a good portion of the con- with the legislation at what local members of parliament
tion, even though it contains exceptionally rapid speed tion Report polled readers struction industry that is not seems to be exceptional have sent their own versions
an exemption for contractors and may be proclaimed be- across the province for opin- paying . . . We believe speed. “I understand this of a form letter to their local
working exclusively on fore the end of the year, will ions and observations. mandatory coverage is a could be passed as early as MPPs asking them to recon-
home renovations. Con- level the playing field, re- While the survey is unscien- positive thing because it is the end of the month (No- sider the legislation.
tific, the results indicate a going to create a level play- vember),” he said. “We met At least one union organ-
virtual 50/50 tie in approval ing field,” said David Zu- with a few cabinet ministers. izer, on learning of the im-
and objection to the new rawel, vice president of They are unable to answer pending legislation, told an
legislation. policy and government rela- this question, why it is mov- OCR writer that “I’ll be hir-
Of 46 people who com- tions with the Council of ing at such a break-neck ing several organizers” soon
pleted the survey, 20 said Ontario Construction Asso- speed.” Henderson says in to encourage collective
they approve the legislation, ciations (COCA). reviewing the legislation, agreements among contrac-
and 19 opposed it. The re- Zurawel told the Ottawa the government should hold tors soon to be affected by
maining seven said they Business Journal his organi- hearings outside of Toronto the legislation. The labour
don’t know, don’t care, or zation has calculated that 61 to allow for proper consulta- movement, for years, has
provided other observations. per cent of construction in- tion and public content and advocated the proposed rule
In the news release an- dustry employees are cur- participation. changes.
nouncing the changed rules, rently forced to pay 100 per “The proponents of this However, Mike Martin,
which are expected to be cent of the sector’s WSIB legislation seem to have chair of the Ontario Home
fully implemented by 2012, premiums. very little understanding of Builders Association reno-
Ontario labour minister However, Zurawel’s how small, legitimate, vators council, says the new
Peter Fonseca said: “Our counterpart at the Ontario above-board contractors op- rules will dramatically in-
proposed legislation will Home Builders’ Association, erate in this province,” he crease the costs of legitimate
contribute to our goal of David Henderson, says the said. “Bill 119 will never ac- small businesses, perhaps
making Ontario’s work- situation will result in an un- complish its goals.” adding upwards of $12,000
places the safest in the fair burden to many small “I believe that had the in annual insurance premi-
ums. While residential ren-
ovators are exempt from the
new rules, he says most ren-
www.Order
ovation contractors would
still be caught because their
businesses do some com-
Construction
mercial work or perhaps
contribute to the construc-
tion of custom homes,
Documents
which would not be exempt.
Martin, an Ottawa reno-
vator who also chairs the
Greater Ottawa Home
Here.ca
Builders’ Association reno-
vators council, says that the
new regulations may result
in a payroll cost increase of
eight or nine per cent. “We
Our new online store can be your
may need to pay $6,400 in
one stop shop:
premiums for the person
working in our office who
Order the CCA/CCDC documents
rarely sees a job site,” he
you need and pay on line. says. “How much more
business will we have to do
Order today at:
to pay that extra cost?”
A published report
www.OrderConstructionDocumentsHere.ca
quotes Ministry of Labour
spokesperson Bruce Skeaff
as saying there is no firm
A Service Provided By
date to introduce the legisla-
tion, but the government
would like to have the new
NOTICE: Any previous problems connecting to the domain name have been corrected.
rules in effect by 2012.
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