BUSINESS

Quebec Construction Workers Strike After Negotiations Break Down

06/17/2013 12:23 EDT | Updated 08/16/2013 05:12 EDT
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MONTREAL - The sounds of hammering, drilling and digging at Quebec's bustling construction sites were replaced by chants and waving picket signs as workers walked off the job Monday in a general strike.

Among the sites paralyzed by the walkout that began at midnight is the construction of Montreal's superhospitals, which are among the biggest construction projects in Canada. One of those hospitals is mired in corruption scandals that have rocked Quebec's industry.

Now the industry has more than just arrests and anti-corruption measures to slow it down.

About 175,000 workers in the residential, industrial and commercial sector laid down their tools Monday for the strike after negotiations broke off on the weekend with the builders' alliance.

Civil engineering and road work are affected. So are Quebec City's pro-hockey arena project, the $8.5-billion La Romaine hydro-electric facility on Quebec's North Shore, and several multimillion-dollar housing developments in Montreal and Quebec City.

Premier Pauline Marois said the government is carefully watching the province's first construction strike since 1986. She urged both sides to get back to the bargaining table.

"It is important for the economy of Quebec," she said in Montreal at a news conference that was dominated by questions about the arrest of Montreal Mayor Michael Applebaum.

Labour Minister Agnes Maltais warned the companies and the workers that they will bear the responsibility for economic consequences.

She ruled out bringing in any special back-to-work legislation.

"This will be settled by negotiation," Maltais said in Limoilou.

She said the government doesn't decide conditions for the private sector and that she made that point to both sides in a call on Sunday.

"I called both the management side and the union side to tell them, 'Listen carefully — don't wait for the government to solve your problems. It's your responsibility.'"

She said government concilliators will continue to work on the conflict.

Maltais did not know how much the strike would affect costs on government-funded projects, saying that would depend on the length of the strike.

Quebec City Mayor Regis Labeaume estimated the city's new arena project would lose $200,000 per day if no work is being done.

"If (the strike) lasts until Friday, that will be $1 million we'll no longer have and the site will face delays at the same time," he said.

Labeaume said, from his point of view, he "would not hestitate" to legislate an end to the strike.

The Canadian Federation of Independent Business noted the construction industry accounts for about 15 per cent of the gross domestic product and $51 billion in investment.

"We should remember that this industry is composed mainly of small businesses," said Martine Hebert, the federation's vice-president. "Indeed, 82 per cent of enterprises have five or fewer employees.

"Every day lost on sites therefore has significant financial impact, not only on the economy but also thousands of small entrepreneurs. Ultimately, nobody wins."

Sticking points in the dispute are wages and working conditions.

Workers insist a main problem for them was a demand by the Quebec construction association to change the amount of overtime pay employees would get for extra hours worked, reducing it from double time to time-and-a-half.

The union has also said it was being asked to agree to a 14-hour day and six-day work week at regular wages although the construction association says it never made such demands.

The strike follows accusations from both the construction union and the builders' associations of bargaining in bad faith.

Lyne Marcoux, the chief negotiator for the provincial construction association, said Monday she continues to doubt the sincerity of the union's willingness to negotiate.

"I think we can still reach a deal if the unions are sincere and they show us there's not something else behind this strike," she said.

Marcoux said they had been able to discuss serious issues such as pensions in previous bargaining without resorting to pressure tactics.

The construction association has been harsh in its criticisms of the union since talks broke down. It has insisted it had continually shown respect during bargaining and had attempted to improve working conditions.

Yves Ouellet, a spokesman for the construction union, rejected that as he announced the strike on Sunday, saying the offers had shown a complete lack of respect for workers and didn't address the quality of the job they do.

He denied suggestions the unions had been greedy in the face of concessions requested to boost productivity and because of tough economic times.

Ouellet insisted Quebec construction workers are among the best, most productive in the world and deserve to be paid what they're worth. The unions had already made concessions and the builders asked for more, he insisted.

He said monetary offers had been for a one-per-cent increase with no retroactive pay. The union is seeking a three-per-cent increase in the first year and 2.75 per cent in the next two years of the contract.

"I hope management will come back to the table and quit playing dice with the workers, saying, 'If they go out, they'll come back," Ouellet said Monday.

"Meanwhile it's the people of Quebec that are suffering and I think that's irresponsible on their part."

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