Manitoba’s heavy construction industry employs roughly 10,000–15,000 skilled workers and delivers essential civil infrastructure across the province—sewer and water systems, excavation, and road construction. More than 90% of this industry operates as open shop (non-unionized).
Despite this, many companies have already decided not to bid on the four school projects currently being tendered under the Manitoba Jobs Agreement (MJA). That trend is expected to continue across future provincially funded infrastructure projects.
The result is clear: reduced competition and significantly higher costs. Project costs are expected to rise by up to 20%. A mandatory $0.85/hour fee per worker alone will add roughly $250,000 per school—$1 million across four schools—and an estimated $5 million more on the CancerCare project. That is $6 million diverted to union-related fees with no clear accountability. Those funds could instead support schools, healthcare equipment, roads, and water infrastructure.
At the same time, Manitobans lose out. We will pay more for fewer local jobs, and we’ll see more out of province license plates on Manitoba taxpayer-funded projects.
For many open-shop contractors, the MJA is simply unworkable. After careful review, companies have already concluded the structure makes participation commercially and operationally unviable.
Excluding qualified Manitoba-based employers is unfair and counterproductive. It limits competition, increases costs, and ignores the proven track record of open-shop contractors who have successfully delivered projects across the province.
These outcomes should raise red flags about the MJA.
Industry has raised key concerns among them forced union pressure. While the MJA does not formally require union membership, it effectively pushes non-union workers into union-controlled systems. This includes mandatory fees, union representation on projects, hiring preferences for union members, and alignment with collective agreements.
This undermines the open-shop model, weakens direct employer-employee relationships, and creates real pressure toward unionization.
Government should not be imposing labour relations models. This is an overreach of its mandate.
Secondly, the MJA introduces unclear and administratively heavy requirements: prioritized hiring rules, union oversight of qualifications, standardized compensation structures, and extensive reporting obligations.
These create compliance risks, delays, and added costs—further discouraging participation.
There is clearly a better approach for Manitoba.
The industry supports hiring Manitobans, fair wages, and safe worksites. But the MJA is not achieving those goals. Instead, it favors unionized contractors and creates barriers for the majority of the workforce.
If the goal is to prioritize Manitoba workers, the solution is simple: require contractors to employ Manitoba residents. Union membership should not determine who gets to work on publicly funded projects.
The current approach effectively discriminates against over 90% of the industry and their families.
Companies are walking away from projects reluctantly. They are being denied a fair opportunity to compete, to build their province, and to support thousands of Manitoba workers.
This policy undermines affordability by driving up costs while simultaneously reducing local employment.
No reasonable Manitoban supports denying someone a job simply because they are not part of a union – except the Manitoba government.
That is the clearest red flag of all.
Chris Lorenc, B. A., LL.B.,
President & CEO MHCA
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