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Schedule Development Procedures - Fair Wages and Hours of Labour Act and Regulations - OPD 871

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Canada Labour Code, Part II - OPDs

No.: 871
Date: Effective May 2005

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1. Purpose

This directive replaces OPD 870 dated August 28, 1987.

The purpose of this directive is twofold:

• to establish procedures to be applied consistently throughout the Labour Program of Human Resources and Skills Development Canada (HRSDC - Labour Program); and
• to define the roles and responsibilities of those involved in the development of Schedules under the Fair Wages and Hours of Labour Act (the Act) and the Fair Wages and Hours of Labour Regulations (the Regulations).

2. Scope

This directive applies to the regions and the Labour Standards and Workplace Equity Division (LSWE).

It deals with the development of Schedules of wage rates for federal construction contracts.

3. Background

The Minister of Labour announced the reinstatement of the use of Schedules of wage rates for federal construction contracts in 1997. Subsequent to a pilot project testing an industry focused method of developing Schedules, the Stanley Commission of Inquiry was called in 1998 to consider other means of Schedule development.

The Fair Wages and Hours of Labour Regulations were amended according to the Commission's recommendations. The new Regulations came into force on September 29, 1999.

Therefore, the need has arisen to revise existing policies and procedures in accordance with the regulatory amendments.

4. Authority

This directive is issued under the authority of the Director General, National Labour Operations Directorate, HRSDC - Labour Program. Schedules of wage rates for competent journeyperson construction trades workers are developped by HRSDC - Labour Program under the authority of the Act, paragraphs 6(a) and (d), and the Regulations, sections 4 and 5, and subsections 6(1) and (2).

5. Definitions

In this directive,

"Labour Regional Head" means the most senior position in Human Resources and Skills Development Canada - Labour Program within a region. « chef régional du travail »

"Contracting authority" means a department of the Government of Canada, or a federal Crown Corporation as defined in subsection 83(1) of the Financial Administration Act. « adjudicateur »

"A contract covered by the Fair Wages and Hours of Labour Act" means a contract issued by a federal contracting authority for the construction, remodelling, repair or demolition of federal real property where the contract contains the Fair Wages and Hours of Labour 'Labour Conditions' document and the applicable Schedule(s) of wage rates for federal construction contracts. « un contrat visé par la Loi sur les justes salaires et les heures de travail »

"District" means a geographical area where the prevailing wages for competent workers are fairly consistent or relatively uniform. (Federal Court decision - Kinetic Construction Ltd. v. Minister of Labour et al, July 25, 2000). « district »

"Survey" refers to the Construction Industry Wage Rate Survey conducted by Statistics Canada from time to time under contract with the Labour Branch of HRSDC. « sondage »

"Survey results" means the published data in the "most frequently paid wage" column of the Construction Industry Wage Rate Survey. « résultats du sondage »

"Competent worker" means a journeyperson or an unlicensed or uncertified worker who has sufficient training and work experience in a trade to be considered competent in the performance of the normal work of the trade by the employer of that worker. « travailleur compétent »

"Journeyperson" means a person with a licence or certificate of qualification issued by the provincial or territorial government for the specified trade. « compagnon »

"Apprentice" means a person who is registered in a trades training program for which the training content and process, the program duration and the rates of pay for work under the program are established under the authority of provincial or territorial legislation. « apprenti »

6. Guiding Principles

6.1 The principles of procedural fairness and natural justice apply to the present directive, and officials involved are obligated to give the parties a reasonable opportunity to make representation and to be heard on matters pertaining to the development of the Schedules of wage rates for federal construction contracts.

6.2 HRSDC - Labour Program officials must perform their duties in an objective, unbiased manner.

7. Procedures

7.1 Development of Schedules of wage rates for federal construction contracts

1. Use of provincial or territorial schedules

   When construction industry wage rates are established for a province or territory by or under provincial or territorial legislation, the Labour Regional Head, in consultation with Labour Standards Operations at NHQ (LSOPS/NHQ), will evaluate the provincial or territorial rates to determine whether these rates will be adopted as federal construction contract wage rates.

   (Regulation 4(1))

   In general, the evaluation will consider whether the provincial or territorial rates may be realistically applied to each district in the region, and whether they are generally accepted as current by the construction industry in the affected region.

   (Regulation 4(1))

   More specifically, the evaluation will be based on the results of an investigation of the method by which the provincial or territorial rates were established, and will consider at least:

   • whether both union and non-union rates, or some combination, are represented;
   • whether the rates reflect a basic hourly wage, or whether other elements such as benefits, travel allowances, 'hardship pay' or bonuses are factored into the rates;
   • whether rates apply to districts within the province and which geographical areas of the province are included; and
   • which sectors of the construction industry are included.

   When provincial or territorial rates are not available, or, as a result of the evaluation, have been found not to be suitable for use as federal construction contract wage rates, the federal construction contract wage rates shall be established according to statistical estimates produced by Statistics Canada.

   (Regulations 4(2) & (3))

2. Use of statistical estimates from Statistics Canada

   On behalf of the Labour Regional Head, LSOPS/NHQ will, from time to time, evaluate Statistics Canada occupational and wage data to decide whether any existing data may be suitable for establishing Schedules of wage rates for federal construction contracts.

   Where no suitable data exists, LSOPS/NHQ will negotiate with Statistics Canada for the conduct of a specialized survey of wage rates in the construction industry.

7.2 Conduct of a Statistics Canada survey

LSOPS/NHQ, with input from HRSDC - Labour Program regional officials and provincial or territorial government representatives, will establish a construction industry consultation group in each province or territory to be surveyed.

The consultation group will include HRSDC - Labour Program regional representatives, representatives from the provincial or territorial government, and representatives from the construction industry in the province or territory. Industry representatives will include members of organizations representing contractors and organizations representing labour groups.

Before the commencement of a Statistics Canada survey, LSOPS/NHQ and Statistics Canada will consult with the consultation group to outline the proposed survey methodology, to obtain industry and regional input regarding occupations to be included, district or zone boundaries, and to receive advice about any issues within the construction industry which may affect the conduct of the survey or impact on the production of the Schedules of wage rates for federal construction contracts.

Using standard survey and statistical analysis procedures, within parameters established in consultation with HRSDC - Labour Program, and respecting recommendations of the respective consultation group to the extent possible without diminishing the integrity of the survey, Statistics Canada will conduct a survey of the construction industry to collect data on wages paid to competent workers.

On completion of the survey, Statistics Canada provides the survey results, including the final district boundaries, to HRSDC - Labour Branch at NHQ.

7.3 Development of draft Schedules

On behalf of HRSDC - Labour Program Labour Regional Heads, using the "most frequently paid wage rate" data from the Statistics Canada survey results, LSOPS/NHQ will develop draft Schedules of wage rates for federal construction contracts for all surveyed occupations and for each district where there is publishable data concerning the most frequently paid wage rates.

(Regulation 5)

On completion of the draft Schedules, LSOPS/NHQ and Statistics Canada will consult again with the respective consultation group to report on the conduct of the survey and the survey results, to introduce the draft Schedule of wage rates for federal construction contracts, to address concerns the consultation group may have about the survey or development of the Schedules, and to receive additional advice from the consultation group in the event of missing data in the draft Schedules.

7.4 Finalization of Schedules

LSOPS/NHQ will send the final drafts of the Schedules of wage rates for federal construction contracts to the appropriate HRSDC - Labour Program Labour Regional Head for review and approval.

In addition, LSOPS/NHQ will prepare a supplemental "Apprentice Table" for each Schedule of wage rates for federal construction contracts. The Tables are provided as addenda to the Schedules of wage rates for federal construction contracts. It is expected that by including non-journeyperson level rates to the extent possible without compromising the Act and Regulations, contractors will more readily comply with their contract conditions concerning wage rates to be paid on federal construction contracts, and inspectors will have additional tools to facilitate monitoring work sites and investigating complaints.

The Apprentice Tables will contain, for each occupation on the Schedule for which there is a provincial or territorial apprenticeship program, the percentage by which the federal construction contract wage rates may be modified for registered apprentices, and the resultant wage rate for each apprentice level.

The percentages and corresponding rates on the Apprentice Tables will be based on the rates established under the authority of the legislation of the provincial or territorial governments, or their designated agents, for all apprenticable construction occupations included on the corresponding Schedule of wage rates for federal construction contracts.

Once approved, the Labour Regional Head will return the Schedules to the Manager of LSOPS/NHQ for assignment of an effective date, usually one month from the date of receipt at NHQ, and for immediate distribution to contracting authorities and other regions.

7.5 Updating Schedules

As survey logistics and HRSDC - Labour Program resources allow, Schedules of wage rates for federal construction contracts will be updated no earlier than 2 years, and no later than 5 years, after the Schedule's effective date.

The wage rates on the Schedules of wage rates for federal construction contracts may be updated according to the results of a new survey, or by any other method recommended or approved by Statistics Canada to provide reasonable estimates of generally accepted wage rates in the construction industry. Update methods may include, but are not limited to, trend analysis or the use of data from other Statistics Canada economic studies. From time to time, on behalf of the Labour Regional Heads, LSOPS/NHQ will undertake discussions with Statistics Canada to determine and implement the most efficient and effective method of updating the Schedules of wage rates for federal construction contracts.

8. Responsibilities

The Director General, National Labour Operations Directorate, HRSDC - Labour Program, is responsible for:

• ensuring uniform application of the present directive within HRSDC - Labour Program;
• responding to recommendations from the Senior Director, LSWE, concerning:
  
  • modifications to the present directive;
  • the methodology for establishing Schedules;
  • the allocation of resources, including budget funds for surveys or other services required from Statistics Canada, for the administration of the Fair Wages and Hours of Labour Act and Regulations;
  • signing contracts with Statistics Canada to obtain the estimates required for the development of Schedules.

The Senior Director, LSWE, is responsible for:

• ensuring uniform application of the present directive within LSWE;
• making recommendations to the Director General, National Labour Operations Directorate, HRSDC - Labour Program, concerning:
  
  • modifications to the present directive;
  • the methodology for developing Schedules;
  • the allocation of resources for the implementation of the Act and Regulations;
• responding to recommendations from the Manager, Labour Standards Operations, concerning:
  
  • modifications to the present directive;
  • the methodology for development of Schedules;
  • NHQ resources required for administration of the Act and Regulations;
  • the development of contracts with Statistics Canada for wage surveys and other services to obtain wage estimates.

The Manager of Labour Standards Operations at NHQ is responsible for:

• making recommendations to the Senior Director, LSWE, concerning:
  
  • modifications to the present directive;
  • the methodology for developing wage schedules in accordance with subsection 4(2) of the Fair Wages and Hours of Labour Regulations;
  • the allocation of NHQ resources for the implementation of the Act and Regulations, including budget funds for surveys or other services required from Statistics Canada;
  • developing contracts with Statistics Canada for wage surveys or the provision of statistical estimates;
  • the development of draft Schedules for approval by Labour Regional Heads;
  • the development of this directive and other policies concerning administration of the Act and Regulations.

Labour Regional Heads are responsible for:

• ensuring uniform application of the present directive within their respective regions;
• approving Schedules for districts within their respective regions.

9. Effective Date

This revised procedure is effective as of the date of issuance.

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Date Modified:

2011-12-06