Alberta steps back from Bill 17 and exempts construction

With workplace regulations across the country under review and modification, the successful push back by Alberta’s construction industry to Bill 17 is worth noting. Strong negative reaction has resulted in the province pushing the ‘Pause’ button on key elements of Bill 17, its new workplace regulations due to come into force on January 1, 2018, as they apply to construction. The province had been criticized by many for putting the legislation into play quickly and without consolation with the labor groups affected.

Banking overtime hours at a 1.5 rate was a contentious issue
One provision from which the construction industry will be exempt concerns the calculation of banked overtime hours beyond a standard 44 hours work week. While employers still have the option paying overtime out at 1.5 times the regular hourly rate, Bill 17 would have forced the banking overtime at that same 1.5 rate as future time off rather than the current one-for-one basis.

Alberta Labour Minister Christina Gray has conceded that many Bill 17 provisions will not apply to the construction industry without consultations

Due to the nature of the industry, fast-approaching deadlines often result in last-minute overtime hours to meet completion timelines. The proposed new calculation was onerous and costly for employers. At the time, Edmonton contractor Les Yochim, President of BelVan Construction, represented the typical reaction of contractors using the banking of hours on a one-for-one basis to compensate employees for overtime hours. “We’re simply going to have to prohibit any overtime,” he told Canadian Contractor. “We can’t effectively bill our customers overtime at time and a half. Working, say, on Saturdays to get a job done is often client-driven,” he added, agreeing that it’s near the end of the project when builders are trying to get things completed for their customer that these new rules would have played a big role.

Industry associations wait for more news on consultation
The government now promises the construction industry that the status quo will hold. “Any changes to existing regulations would only be made after consulting with the construction industry,” Labour Ministry spokesman Matt Dykstra confirmed with Canadian Contractor.

The Alberta Construction Industry reportedly expressed their pleasure with this outcome, although they told Canadian Contractor that since they don’t represent home builders and renovators, they couldn’t speak specifically for that industry. Surprisingly, the Alberta chapter of the Canadian Home Builders Association appeared unaware of any of the issues at hand when contacted, and therefore had no idea how or if they would be part of any future consultations. “We’re simply not involved with this at present,” said media relations officer Danielle Forbes.

In fact, the nature of those future consultations has yet to be confirmed, Dykstra said. “A lot of the changes to the employment standards in Bill 17 don’t take effect until January 1, 2018 anyway, so there is some time for government to have further discussions with the construction industry.”

However, as an individual contractor, Les Yochim is happier. “With that portion of the Bill being deferred for the construction industry, I feel much more accepting of the proposed changes,” he told Canadian Contractor.  “I fully expect that the NDP will be working hard to appeal to the masses now that they are in the second half of their four-year term.”

Overtime defined with reference to a 44 hour week
According to a fact sheet supplied by the Alberta Ministry of Labour, employers and employees can forge their own group or individual overtime agreements regarding the banking of hours or the calculation of compressed work weeks (i.e. working more hours per days but less days per week), within the overall framework of a 44 hour week. However, workers choosing to bank overtime must be able to use their accumulated time off within three months of the overtime hours earned. If an employer subsequently chooses to pay out those banked hours instead, it must be at the 1.5 hourly rate.

Labour codes are evolving province by province
Bill 17 and its associated changes represent part of a province-by-province legislative movement to redefine employer-employee relationship across the country. In addition to overtime, included are increases in minimum wage, time off, and vacation calculations. The fact that Alberta tried to enact changes quickly and without consultation yet was willing to step back and reconsider the benefits of talking to those industries affected, might signal positive government and industry relationships in the future. The message to other provinces is that acting without consultation is rife with political risk.

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