Alec Caldwell
It’s time to include the safety factor in reasons to stamp out cash contracting
Canadian ContractorMost of the talk about Ontario's $4.5-billion in underground residential construction centres on "levelling the playing field" and lost revenues for public services. What about safety? Time to add that into the conversation, says Alec Caldwell.
Statistics Canada say that Ontario’s underground economy is at $15-billion, all sectors.
Residential construction takes up a whopping 30 per cent of this number, which makes it a $4.5 billion black market.
Every contractor reading this has probably been offered a “cash” job recently. Consumers are relentless in their pursuit of tax-free renovations.
So, how can you compete when the playing field is not level?
Well, in Ontario, the government has said that it will finally make a big assault on the underground economy in our industry. Don’t hold your breath for anything instant. It’s the government, right? But the will seems to be there.
A key figure in this fight in Ontari-Owe will be parliamentary assistant Laura Albanese. She has announced she wants to consult key stakeholders, like the Ontario Home Builders’ Association (OHBA) and others. The idea is to get everyone around a big table and thrash out a strategy. It’s a start, but don’t hold your breath, as it’s not easy to turn around an elephant.
The underground economy affects us all, governments attempting to provide key services as well as legitimate above-board contractors. But the one key area that is often missed in all of these discussions is the safety of all these workers hired in the underground economy. Are their lives being put at risk? Especially newer arrivals to Canada who filter into construction? Are they even aware of our safety laws? Because there is nothing about a cash job that makes employers less liable for the safety of their workers. Even if the homeowner becomes, de facto, the “constructor” when they hire an underground crew. The Ministry of Labour is an equal opportunity prosecutor in the event of death or injury.
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In my business we cannot even entertain a cash deal, every single job is done to the letter of the laws. And yet the government is hammering honest contractors under the burden of so many different programs that it’s becoming difficult to actually work. The 5018 form where we have to track our subs, WSIB, HST number and all their information. Do you think that any of my subs are flying under the radar? Absolutely not! However we are all being audited because it’s easier to hammer honest companies who have perhaps forgot to update a certificate then it is to go after the real crooks. This culture is killing small honest business and forcing the underground economy into even darker shadows. As usual being honest don’t pay off it costs a fortune. I’m sick of being hounded by all these incompetent agencies and the bureaucrats operating them. Shame on our government!
I certainly appreciate your desire to run an honest, legitimate business. But by doing so, you subject yourself and your trades to the worst kind of scum, their systematic incompetence, and condone their corruption.
Often the biggest criminals aren’t those who break the laws, but those who obey them.