Good afternoon. On behalf of the International Union of Operating Engineers, I'm honoured to appear before the committee today.
Across Canada, we represent nearly 65,000 members building and maintaining the infrastructure our country relies on. Our members operate cranes and heavy equipment, work as mechanics and apprentices and are often the first on the project and the last to leave. Our local unions run not-for-profit training centres nationwide, preparing the next generation of skilled trade workers.
We are here today to support Bill C-39's efforts to accelerate the major projects Canada needs: new energy infrastructure, transportation corridors and investments that strengthen our economy and create good-paying jobs. The proposed one project, one review approach is welcome. Better federal coordination, clearer timelines and less duplication can help move projects from the drawing board to the job site without compromising necessary standards.
Approving projects is only part of the equation. We also need to ensure that Canada engages in the skilled workforce and the stable labour relations necessary to build them. That's why we believe project labour agreements between project proponents and building trade unions should be a requirement for major projects benefiting from federal support and streamlined approvals.
These agreements standardize labour terms and conditions, coordinate trades and contractors, improve scheduling and workforce planning and provide clear ways to resolve disputes with no strike or lockout provisions during the construction of the projects. They reduce disruptions and give owners greater confidence that the projects will be completed safely, efficiently and on schedule.
A recent study by Independent Project Analysis examined 140 completed projects in B.C. and Alberta, primarily at existing industrial sites. It found that union labour was 17% more productive than open shop labour, with 16% lower construction labour costs and 7% lower total project costs on average.
British Columbia Infrastructure Benefits offers another example. On its community benefits agreement projects—PLAs, by a different name—workers have logged 13.7 million hours, apprentices or trainees have been at 24%, and residents within 100 kilometres of the job performed 83% of the hours worked. A separate study, covering 2019 to 2024, found that 14% of those workers were indigenous—more than twice the provincial construction average—and 9% were women, at about 50% above the average. A quarter of the women hired were indigenous. None of these outcomes would have been possible without the enforcement provisions set out in the body of a project labour agreement.
This also presents an opportunity for economic reconciliation. Research by economist Jim Stanford finds that indigenous workers covered by union agreements earn, on average, 20% more than indigenous workers without union coverage.
Project labour agreements, together with our union's training centres, can help deliver these benefits across Canada. We encourage the committee to make them central to the major project framework.
Turning to the labour provisions of Bill C-39, we acknowledge the government's efforts to address concerns related to first contracts, contract flipping and other issues that have affected workers in Canada.
Regarding section 107 of the Canada Labour Code, the vast majority of our union membership is employed in workplaces that are governed by provincial labour codes. Therefore, we are not impacted by the changes to section 107. We acknowledge the government's efforts to introduce clearer guardrails and hope this committee will work closely with directly affected unions to address their concerns and develop acceptable amendments.
We recognize the importance of stability in federally regulated industries. However, the right to strike is a fundamental in meaningful collective bargaining. Government intervention when negotiations become difficult can reduce employers' incentive to reach agreements at the bargaining table, risk prolonged disputes and undermine collective bargaining. We urge the committee to address these concerns and protect free collective bargaining and the constitutionally protected right to strike.
In conclusion, Canada has no shortage of infrastructure needs, and our members have the skills to meet them. We hope Bill C-39 helps more projects move forward, creating lasting opportunities for Canadians, workers and communities. We also hope that the federal government will ensure this work is performed by the highly skilled, well-trained workers of Canada's unionized sector.
I'm happy to take any questions. Thank you to the committee.