Competition Bureau urged to investigate Ottawa Hospital expansion deal
The Progressive Contractors Association of Canada (PCA) has submitted a complaint to the Competition Bureau regarding work at the Ottawa Hospital’s Civic campus mega-project.
PCA filed the complaint in the wake of a January announcement that saw the hospital and the Unionized Building and Construction Trades of Eastern Ontario and Western Quebec sign an exclusive project labour agreement (PLA). Under its terms, contractors and workers who are not affiliated with these select unions from bidding on and building the $2.8-billion project.
“There’s something seriously wrong when thousands of Ottawa area construction workers and local companies have no chance to build one of the largest infrastructure projects in the city’s history,” said Karen Renkema, VP of Ontario at PCA. “This is a deal that shuts out local talent and does not provide good public value. That warrants an investigation.”
PCA’s position is that the deal limits the number of firms that can bid to work on the project. This, in turn, invites higher construction costs and reduced productivity.
No other Ontario healthcare facilities have been built using this arrangement.
“The Ottawa Hospital’s restrictive PLA is not in the public interest,” said Renkema. “It is a clear example of exclusive dealing, tied selling and market restrictions, which run counter to the Competition Act. Local taxpayers, workers and companies deserve better.”
The PCA announcement cites a report issued last year by the Montreal Economic Institute. The report estimates that a PLA could escalate project costs by anywhere from $168 million to $525 million by 2028.
It concludes that, “It is unacceptable for a public entity to make taxpayers pay more by granting exclusivity to only a certain group of affiliated workers.”
The PCA represents more than 25,000 unionized construction workers across Canada.