Transport committee  Sure.

Transport committee  Of course. We respect the right of all qualified contractors to compete and we accept the results of that competition.

Transport committee  Sure. It's usually done at the contract level, and we'll provide that. There are also some great examples where the federal government, in some recent Nova Scotia agreements, has written into the contract that there will be no union-only schemes and no sole-source contracts. There is a precedent for the federal government doing this.

Transport committee  On average, it's 12% to 18% overall. In specific regions where, say, 80% of all construction companies are union free, the cost goes even higher. In an area where you have 60% to 40% union free versus union, the difference is a little less. In the province of Alberta, where close to 90% of construction is open shop, when you have union-only requirements it's even more expensive because the pool of workers and contractors you have to go with is so small.

Transport committee  I want to clarify our organization's position. Obviously we're not proposing that it be the lowest bid that doesn't meet all relevant safety requirements and other things. Price is only one element. I just don't think that if on Monday you're not a unionized contractor and on Tuesday you are, you suddenly have the right to bid.

Transport committee  I think every other jurisdiction that has union-only contracting has shown that it increases costs. I do think there is another premium being paid, and that's a matter of public record. I don't think anything is there in terms of the union-only dynamic. There is alleged collusion going on among contractors.

Transport committee  No, not at all. I think employees who choose to belong to a union have every right to do so as they exercise their free choice. I also don't think that employees who vote on a Monday not to have a union should be required to join a union by the government simply to work in construction on projects.

Transport committee  I don't—

Transport committee  We're just starting our campaign to raise this with officials and MPs and others. Overall, I think people are supportive of the principle. I think you have identified where some of the opposition will come from and where some of the details have to be worked out. We actually think that the federal government has a fiduciary responsibility to ensure that when they transfer $100 million, it is actually spent in a proper way, and that all of the taxpayers that pay into that fund are able to access it, regardless of whether union contractors or non-union contractors can bid.

Transport committee  There may be differences in sectors. I can only speak to construction. In construction, most reputable studies that have been done on the issue show a premium of between 12% and 18%. That's overall. When you look at specific regions where there's further shrinkage of competition, it can be as high as 30% to 40%.

Transport committee  I think, absolutely, in the city of Montreal it's a matter of public record now that there's been misappropriation, but if you take a city like Hamilton, where there's closed tendering for all city work, there was a recent waste-water project that was being tendered, and they hired outside consultants to develop a budget for the project.

Transport committee  Good afternoon. Thank you to the committee for the invitation to participate in this study. Today I'll focus on the need for open tendering of all contracts that involve federal funds. Only through a system of open tendering can you ensure competition and respect for taxpayer dollars.

Finance committee  I would.

Finance committee  I would agree with that.

Finance committee  Unfortunately not.