Fair wage policy

Policy Owner: Strategic Procurement
Approval: Board of Directors
First Approved: April 24, 2004
Effective Date: January 26, 2017

Policy statement

• This policy sets the fair wage rates to be paid by vendors to their employees carrying out construction related work for Toronto Community Housing where such rates are not set by a collective agreement.

• The purpose of the policy is to ensure that vendors who do business with Toronto Community Housing pay a fare wage to their employees.

• The policy was created pursuant to the directive of Toronto Community Housing’s shareholder.

Scope

The Fair Wage Policy (the policy) applies to all construction contracts with Toronto Community Housing.

The provisions of the policy apply equally to contractors and sub-contractors engaged in work for Toronto Community Housing. A contractor is fully responsible for making sure that all of its sub-contractors comply with the policy and the included schedule. It is understood that contractors cannot sub-contract work to any sub-contractor at a rate lower than that established by this policy. Contractors will be responsible for any violation or non-compliance issues arising from the engagement of any sub-contractor on a Toronto Community Housing contract.

Definitions

Benefits: for example company pension plans, extended health care benefits, dental and prescription plans, vacation/holiday pay or an appropriate amount in lieu thereof, etc. as set out in the schedule.

Contract: an agreement between Toronto Community Housing and a contractor (as defined herein) to perform services or to provide materials and supplies.

Contractor: any person, firm or corporation having a contract with Toronto Community Housing for the performance of work but does not include any person, firm or corporation that only supplies materials for the contract.

Fair Wage Schedule: the published schedule of wages and benefits for the performance of construction work on Toronto Community Housing construction contracts and the performance of work set out in the general classifications.

Non-Compliance: the occurrence of any of the following conditions:

• Contractor fails to meets its obligations under the policy.
• Sub-contractor fails to meets its obligations under the policy.
• Contractor or sub-contractor has been found in violation of the policy.

Sub-contractor: any person, firm or corporation performing work under a contract with a contractor having a contract with Toronto Community Housing or an agreement under the contractor with another sub-contractor for the performance of work but does not include any person, firm or corporation that only supplies materials for the contract.

Wages: the basic hourly rate of pay as set out in the schedule.

Workers: those persons employed by the contractor or sub-contractor (as defined in positions, classifications or trades identified in the schedule for the performance of work on a contract with Toronto Community Housing).

Policy details

Every contractor and sub-contractor is required to pay in total value an amount equal to or greater than those wages and Benefits as set out in the Fair Wage Schedule (the schedule) of the policy.

Toronto Community Housing will notify every entity expressing interest in Toronto Community Housing contracts of the existence of the policy and the schedule, and will direct such entities to the documents as published on Toronto Community Housing’s website.

The contractor and its sub-contractor are responsible for only those schedule rates that exist as of the closing date of any procurement exercise for the provision of goods and services.

Declarations

Within 10 business days following the award of a contract with Toronto Community Housing, the contractor and each of the sub-contractors will provide Toronto Community Housing with a declaration confirming that the contractor and each of the sub-contractors will comply with the policy and schedule. Such a declaration must also include a list of the wages that will be paid to each worker employed to provide services in relation to the contract. Failure to provide such declarations will result in the termination of contract. Any sub-contractor engaged during the term of a contract shall provide a declaration, as outlined above, prior to the sub-contractor starting the provision of services in relation to the contract.

Worker notification

The contractor is responsible to post copies of such declarations, as noted in the Declarations section above, and of the schedule in a conspicuous place in all areas where workers perform services in relation to the contract. Contractors and sub- contractors will also notify all workers of the policy and schedule. Additionally, each contractor and sub-contractor will provide each worker with a copy of the policy and schedule along with the worker’s first pay in relation to the contract.

Proof of compliance

The contractor or sub-contractor will attach to all accounts rendered for payment of money upon the contract a record of payment to workers in compliance with this policy, and a declaration affirming that the requirements of this policy have been fully complied with, including the employee notification requirement as set out in paragraph 8 above, by both itself and any sub-contractor providing services on the contract.

The contractor will pay or cause wages to be paid weekly or biweekly to every worker employed in the execution of the contract at the following rates:

• where the contractor or sub-contractor is in a contractual relationship with a Union recognized by the Ontario Labour Relations Board as the bargaining agent for the relevant workers, the applicable rate of wages set out in the collective agreement; and

• where Toronto Community Housing is in a contractual relationship with a Union the applicable rate of wages set out in the collective agreement; and

• where there is no such contractual relationship, a rate not less than that set out for such work in the schedule as determined from time to time and published by Toronto Community Housing.

Compliance and monitoring

Investigation and enforcement

Complaints

Toronto Community Housing has the authority to receive and investigate complaints from workers, or any third party, with respect to contractor or sub-contractor Non- compliance.

All complaints must be submitted in writing to Strategic Procurement of no later than thirty (30) days following the completion of the work under a Toronto Community Housing contract where the complaint is being made against a contractor; or a sub- contract where a complaint is being made against a sub-contractor.

Complaints may be sent by electronic mail or by regular mail. Please refer to Toronto Community Housing’s website for current contact information. Electronic complaints can be sent to procurement@torontohousing.ca.

Toronto Community Housing has the authority to waive these timelines for complaints, and may investigate any claim made under this policy for a period of six months following the substantial completion of a contract.

Payroll audit

Toronto Community Housing has the authority to request any information respecting wages or workers, names of workers, payroll records, paysheets, copies of total income payments documents as required by the Canadian Revenue Agency, book keeping records, and any other document that can substantiate that payments of wages were made to workers in accordance with the policy and schedule.

The contractor is responsible for obtaining the consent of all workers to disclose such information to Toronto Community Housing and will provide a copy of such consents to Toronto Community Housing. Should a worker decline to consent to such disclosure, redacted copies of such documentation removing worker last name, address, and any other such personal information protected under the Municipal Freedom of Information and Protection of Privacy Act. R.S.O. 1990, Chapter M.56, and Personal Information Protection and Electronic Documents Act (S.C. 2000, c. 5), must be provided to Toronto Community Housing along with a copy of the worker’s refusal to consent.

When requested, the contractor or sub-contractor is required to provide these records within fifteen (15) calendar days of the date Toronto Community Housing provides notice of such request.

Investigations

Toronto Community Housing may also carry out spot payroll audits, or perform random site visits to monitor contractors and sub-contractors for compliance with the policy.

Such site visits may include interviewing workers and other staff, a review of payroll records, and other actions which Toronto Community Housing may require to confirm compliance or investigate possible non-compliance.

Disputes

In case of any dispute as to the rate of Wages to be paid under the contract or as to the amount to be paid to any worker pursuant to the policy and schedule, the decision of Toronto Community Housing is final and binding upon all parties.

Penalties

Where a contractor or sub-contractor is found to be paying wages to workers less than as required by the policy and schedule, they are required to make retroactive payments of all unpaid wages to any worker who did not receive the required wage. The contractor or sub-contractor must also pay Toronto Community Housing an administrative fee at a rate of 10% of the total of the unpaid wages.

Disqualification

Where a contractor or sub-contractor is found to be paying wages to workers less than as required by the policy and the schedule on two (2) separate occasions within any consecutive three (3) year period, the Director of Strategic Procurement will recommend to the Board of Directors that the contractor or sub-contractor be disqualified from conducting business with Toronto Community Housing or any of its subsidiaries for a period of two (2) consecutive years.

Following the disqualification period, should the contractor or sub-contractor be found to be paying wages to workers less than as required by the policy and the schedule within the one (1) year period immediately following the expiry of the initial two (2) year disqualification period, the Director of Strategic Procurement will recommend to the Board of Directors that the contractor or sub-contractor be disqualified from conducting business with Toronto Community Housing or any of its subsidiaries for an indefinite period of time.

The names of all contractors and sub-contractors who have been disqualified from conducting business with Toronto Community Housing will have the name of their firm posted on Toronto Community Housing’s website.

Once five (5) years has elapsed since either a contractor or sub-contractor has been disqualified after a second incidence of non-compliance, the contractor or Sub- contractor may then apply to Toronto Community Housing to have their eligibility to bid on Toronto Community Housing work reinstated.

Report to Board of Directors

Toronto Community Housing will provide an annual report to the Board of Directors that includes but is not limited to information regarding the operation and enforcement of the policy.