January 17, 2008
PANEL RECOMMENDS NEW CONSTRUCTION WAGES
– – –Proposals Would Keep Industry Competitive: Allan
The Construction Industry Wages Consultation Panel has recommended improved construction wage rates that will help keep Manitoba’s construction industry competitive, Labour and Immigration Minister Nancy Allan announced today.
“The Construction Industry Wages Consultation Panel has presented its recommendations to government following extensive consultations to determine new wage rates that are needed in today’s extremely competitive national construction industry,” said Allan. “We support the panel in its belief that these new rates represent a fair balance between employers and employees in the construction sectors.”
The panel is a joint industry-labour group covering rural and urban construction and is chaired by Bill Hamilton.
The Construction Industry Wages Act divides the construction industry into the heavy sector and the industrial, commercial and institutional sector (ICI). The report recommends the first stage of wage increases for both sectors come into effect June 1, 2008.
In the heavy construction sector, the report recommends a general increase of approximately four per cent in 2008. That would be followed by increases of three to four per cent, depending on the type of work, effective Jan. 1, 2009. The last recommended increase would be effective Jan. 1, 2010, and would see wages rise between 2.5 and three per cent.
The panel reached consensus on an integrated provincewide ICI wage schedule starting on June 1, 2009. This was a goal established in the terms of reference for the panel and eliminates the confusion caused by setting rates dependant on where a building is constructed.
Proposed wage increases in the ICI sector took into account special adjustments required in some classifications to ensure an attractive and competitive market for workers and employers. Rural construction workers would see their wage rates match the current Winnipeg and area rates on June 1, 2008, while workers in the Winnipeg area would see an increase of approximately three per cent.
On June 1, 2009, all workers in the same classification would have the same minimum wage regardless of where they work in the province. Generally this would mean an increase of three to six per cent for most classifications. The integrated schedule would then increase again for all workers on Jan. 1, 2010, with general increases of around four per cent.
“An integrated provincewide ICI wage schedule was a priority for the panel. It will simplify wage calculations for employers and ensure the availability of a skilled workforce in rural Manitoba,” said Allan. “These proposed construction wage increases, combined with the general hourly minimum wage increase set for April 1, are designed to keep Manitoba competitive in the labour market and make Manitoba an attractive place to live.”
More information and proposed wage rates can be found at www.gov.mb.ca/labour/standards
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Backgrounder
Proposed Construction Wage Schedules For 2008-10 - http://www.gov.mb.ca/asset_library/en/newslinks/2008/2008jan/ConstructionMinWage.LI.doc