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Report of the 
Royal Commission 
on Certain Sectors 
of the Building Industry 




Published by the 

Ministry of the Attorney General. 

Printed by J.C. Thatcher, 

Queen's Printer for Ontario. 

Province of Ontario 

Toronto, Canada 

© 1974 Government of Ontario 


Volume i 







THE EARLY PERIOD, 1 968-9/ 32 

Concrete forming / 32 
Lathing and drywall / 40 


Naftali Kanner threatened / 50 

Donato Tullio threatened / 51 

Acme harassment / 55 

Shooting, Acme premises, July 1972 / 57 

Bombing, Acme premises, 19 July 1972 / 72 

Bombing, Gemini premises, 21 July 1972 / 73 

Bombing, Acme premises, 2 September 1972 / 77 

Bombing investigation / 80 

Shooting of Bruno Zanini, 23 August 1972 / 92 

Jean Guy Denis threatened, Ottawa, 1 971 -2 / 99 

Assault on Paul Denis, 8 January 1973 / 105 

Threats to Patrick Daly, Hamilton, 9 June 1971 / 107 

Burglary of Carpenters' Union Local 18, Hamilton, 22 July 1970 / 1 10 




vi Report on the building industry 



companies/ 199 
Organized crime / 199 
Combines and price-fixing / 229 
Multi-corporations / 242 
Company-union joint activities / 244 
unions/ 252 
Business agents / 252 
Welfare funds / 287 
Books and records / 298 




Multi-corporations / 322 
Bid depositories / 323 
Company-union joint ventures / 323 
Licensing of contractors / 324 
labour/ 325 
Books and records / 325 
Hiring practices / 326 
Jurisdictional disputes / 328 
Welfare funds/ 332 
Trusteeship/ 335 


Labour Relations Board / 337 

Certification/ 338 

Accreditation / 339 

Arbitration / 340 

Conciliation/ 341 

Enforcement / 341 

Construction Industry Review Panel / 342 


Contents vii 
Volume 2 


a Memorandum on the industrial relations features of the problem by H.D. 
Woods / 3 

b-i Labourers' International Union of North America, Local 183/61 
b-2 Labourers' International Union of North America, Local 183: pro- 
posed amendments to labour legislation / 81 
B-3 Building & construction unions: causes of change / 92 
c Marble Masons, Tile Layers, Terrazzo Workers Union No. 31 / 109 
d Submission by John Meiorin/ 119 
e The Christian Labour Association of Canada/ 129 
f Toronto Building and Construction Trades Council / 143 
g Ontario Council of the Housing & Urban Development Association of 
Canada/ Association canadienne de 1' habitation et du Developpement 
Urbain/ 149 

h Masonry Contractors' Association (Toronto-Incorporated) / 157 
1 The Building and Construction Trades Council of Ottawa, Hull and 
District/ 161 

j The Construction Labour Relations Association of Ontario / 179 
k Sheet Metal Workers' International Association, Local 285 / 187 
l-i The Council of Concrete Forming Trade Unions, Toronto / 193 
l-2 Supplementary Submission from the International Union of Operating 
Engineers, Hoisting Division, Local 793 a-b-c-d / 207 
m Ontario General Contractors Association / 2 1 1 

n Inter-Provincial Council of Lathers For and On Behalf of its Affiliated 
Local Unions/ 221 

o Building and Construction Trades Department afl-cio / 237 
p The United Brotherhood of Carpenters and Joiners of America Local 

q Certification, accreditation, jurisdictional disputes, and Section 123: 
cases disposed of by o.l.r.b. in Fiscal Year 1973-4, by the Ontario Minis- 
try of Labour / 257 

APPENDICES 1-95, EXHIBITS (The exhibits, unless noted, appear in 
Volume 2.) 

1 Advertisements of Commission hearings / 271 

2 Letter and list of counsel/ 272 

3 Bibliography / 273 

viii Report on the building industry 

4 Charge of price-fixing / 274 

5 Romanelli's companies/ Vol. I, 16 

6 Agreement between Toronto and District Marble and Local 31 / 278 

7 Members of the Metro Toronto Marble, Tile and Terrazzo Associa- 
tion / 280 

8 Offences committed in Toronto / 281 

9 Page from Simone's notebook / Vol. 1, 45 

10 Angelo DelZotto's printing / Vol. 1, 45 

1 1 Acme premises after shooting / Vol. 1 , 59 

12 Nathan Klegerman, Ian Rosenburg, and Frank Volpe / Vol. 1, 61 

13 Criminal record of Ian Rosenburg / 282 

14 Ian Rosenburg / Vol. 1 , 62 

15 1003 Dufferin Street / Vol. 1 , 63 

16 Guns and parts / Vol. 1, 64 

17 Laboratory report on weapons / 284 

18 Acme floor plan / 287 

19 Unit 7, 73 Alness Street / 288 

20 Gemini truck at 6 Milvan Drive / Vol. 1 , 73 

2 1 Plan of 6 Milvan Drive / 289 

22 Unit 6a, 73 Alness Street/ 290 

23 Acme premises after 2 September 1972 bombing / Vol. 1 , 78 

24 Acme premises, Unit 7, and position of crouched figure / 291 

25 Nathan Klegerman and Charles Yanover with Yanover's motorcycle / 
Vol. 1, 213 

26 Henderson's recommendations for control of sale and disposal of un- 
used dynamite / 292 

27 Dynamite/ Vol. 1,82 
27A Dynamite/ Vol. 1,82 

28 Criminal record of Ross Morrell / 294 

29 Ross Daniel Morrell / Vol. 1 , 84 

30 Criminal record of Thomas Kiroff / 295 

31 Thomas Kiroff/ Vol. 1, 84 

32 Fuses identified by Morrell / 297 

33 Criminal record of Randolph Wheatley / 298 

34 Randolph Wellington Wheatley / Vol. 1, 89 

35 Morrell's paper with lawyer's name / 300 

36 Zanini's hospital record / 301 

37 Zanini's laboratory record / 302 

38 Zappia's card / 303 

39 Letter re Daly tape / 304 

Contents ix 

40 Section 1 10 of the Criminal Code of Canada/ 305 

41 Section 383 of the Criminal Code of Canada/ 307 

42 Freezer invoice / 308 

43 Agostino Simone's house/ Vol. 1, 136 

44 Cheque from Acme to Romanelli / 309 

45 Deposit slip, Durable Drywall / 310 

46 Cheque from Northdown to Simone / 312 

47 Purchase contract for De Monte 's car / 3 13 

48 Cheque from Da Re for DeMonte's car / 3 14 

49 Letter re DeMonte's car/ 315 

50 Addendum to concrete forming agreement / 3 16 

51 Report on Charles Irvine's financial transactions / 318 

52 Cheque to Donaldson dated 21 December 1970 for $8000. / 330 

53 Cheque to Donaldson dated 19 April 1972 for $6000. / 331 

54 Cheque to Thomson from Northdown for $17,000. / 332 

55 Invoice, Alkon Homes/ 333 

56 Cheque to Thomson from Accurate Engraving for $2887.50 / 335 

57 Cheque to Thomson from Cameo Interiors for $4000. / 336 

58 Cheque to Thomson from Cameo Interiors for $500. / 337 

59 Cheques to M. Kurtz from Giuliani / 338 

60 Letter of intent / 340 

61 Romanelli's cheque dated 26 June 1972 for $2000. / 342 

62 Deposit slip dated 29 June 1972 for $1000. / 342 

63 Criminal record of Natale Luppino / 343 

64 Joseph Zappia / Vol. 1 , 204 

65 Statement of net worth of Paul Volpe / 344 

66 Criminal record of Paul Volpe/ 345 

67 Paul Volpe / Vol. 1 , 204 

68 Criminal record of Charles Yanover / 346 

69 Charles Yanover/ Vol. 1,212 

70 Criminal record of Nathan Klegerman / 347 

71 Traffic summons to Paul Volpe / 348 

72 Criminal record of Daniel Gasbarrini / 349 

73 Analysis of work for Royal York Hotel / 350 

74 Agreement between Mayer's Cabinets & Interiors Ltd. and Cloutier & 
Elliott Ltd. and Brandson Bros. Ltd. / 351 

75 List of drywall bidders for Commerce Court project / 354 

76 List of bids received for Commerce Court project / 355 

77 Natale Luppino/ Vol. 1, 201 

78 Agreement between Paolini and Local 31 / 356 

x Report on the building industry 

79 Statement of Amis' financial transactions with Local 598 / 357 

80 Report by Leonard Lawrence on Local 18 / 358 

81 Report by William Stefanovitch on Local 18 / 368 

82 Text of letter from Joseph Power to Charles Irvine re trusteeship of 
Local 117/370 

83 Text of letter from W.E. McMynn and Anthony Mariano to Joseph 
Power re trusteeship of Local 1 17 / 375 

84 Letter from Attilio Capodilupo to Joseph Power / 382 

85 Letter from Joseph Power to Attilio Capodilupo / 383 

86 Report of the election of Avoledo / 384 

87 Memorandum of accounts by Angelo Burigana / 385 

88 Criminal record of Bruno Zanini / 386 

89 Bruno Zanini/ Vol. 1, 281 

90 Financial statement of Local 1 17 / 388 

91 Letter re public trustee / 390 

92 Report on union welfare funds by P. Wayne Musselman of Touche Ross 
& Co./ 391 

93 Financial statement of Local 562 / 399 

94 Overview of union accounting system / 401 

95 Report of J.B. Pearce on Local 18/414 



Memorandum on the industrial 
relations features of the problem 

H.D. Woods 


The nature of industrial relations in any industry will reflect the character 
of the industry itself and the employment circumstances. This is a first 
approximation only and an over-simplistic one. It is an expression of the 
fact that industrial relationships are largely derivative. The parties in- 
volved directly, employers and their representatives, the managers, and 
employees and their agencies, the unions, are involved in a process of 
fashioning a set of relationships and rule-making whose purpose is to cope 
with the human problems of employment. 

A comparative examination of collective agreements negotiated in a 
number of industries will reveal that there are quite significant differences 
in the provisions from agreement to agreement. Collective agreements in 
the mining industry, in steel mills, pulp and paper, textiles, garments. 
airlines, public service agencies - the number is endless - will all differ 
from one another in some degree. This means that each industry makes 
demands on employees which reflect the functions the management has 
identified with the various jobs or positions in the organization. These 
functions are themselves derived from the necessities o( the industry 
concerned. The complex of jobs in a petro-chemical plant will show little 
resemblance to that of a department store or a printing plant or a garment 
factory. And the personnel policy of firms operating in these various 
activities will likewise differ one from another, reflecting the basic differ- 
ences in the occupational functions themselves. 

4 Report on the building industry 

Personnel policy formulation is a process of rule-making designed to 
control and direct the relationships of people at work. Starting times, 
length of shift, job composition, personal job qualifications, rates of pay, 
job responsibilities, relationship procedures, various rewards and penal- 
ties and a host of other factors concerning people at work make up the web 
of rules and regulations which reflect the personnel policy of an organiza- 

Usually personnel policy is thought of as the prerogative of the em- 
ployer. In a non-union situation, the employer does in fact have control of 
the personnel policy, within the law. However, in a unionized operation the 
union participates in the evolution of the personnel policy through collec- 
tive bargaining and consequent collective agreements, through day-to-day 
dealings with management regarding the application of the agreement, and 
indeed in joint consultation and discussion of matters not formally covered 
in the collective agreement. In other words, personnel policy becomes a 
joint product of the employer and union. The web of rules and regulations, 
the standards of wages and other employee benefits, and the procedures of 
the relationship are established by agreement between the employer and 
the collective agent of the employees, the union. Unilateral determination 
of the policy is replaced by a bilateral system. 

There is an extremely important consequence that flows from this joint 
determination of the terms and conditions of work and the procedures of 
the industrial relationship. This is the effect of the presence of a union on 
the freedom of management to make decisions. Practically all clauses in a 
collective agreement contain an element of control over the management 
prerogative. An employer who agrees with a union to a specific set of wage 
minima is not only establishing an obligation to pay accordingly, but is 
surrendering his right to reduce these rates during the period of the union 
contract, and for an extended period as established in law, beyond termina- 
tion. The same is true of all the other rights established by the agreement. 
The employer has simply given up sections of his jurisdiction or preroga- 
tive at least for a period of time. And while he can legally recover these 
prerogatives when the collective agreement ceases to have legal status, in 
fact there is little likelihood that the employer can in a succeeding contract 
eliminate anything which the union rates as important. It can be done, but 
the cost in industrial strife may be very great. Generally employers accept 
the loss of prerogative as gone more or less forever. 

One fact, particularly relevant in this inquiry, and having an important 
influence on the kind of personnel policy which will emerge in a given 
situation is the expected duration of the period of employment. In most 

Study papers and briefs 5 

manufacturing plants, commercial operations, transportation, and com- 
munications, and some other industries where the economic activity is 
more or less continuous, long periods of service are the order of the day. 
Collective agreements usually are beneficial to both employer and em- 
ployee - to the employer because of the stabilizing effect of the agreement 
on his labour force, and to the employee because of the acquisition of rights 
and the presence of procedures for guaranteeing that these rights in the 
terms and conditions of work will be respected. 

This point about continuity of employment is emphasized because it will 
be important later, when the lack of employment continuity in the con- 
struction industry is under examination. Collective bargaining in that in- 
dustry produces not only major differences in results from those that 
emerge in industry generally, but also significantly alters the attitude of the 
parties towards personnel policy formulation itself and towards the ad- 
ministrative application of policy. As will be indicated later, it is perhaps 
not going too far to suggest that what may be considered normal for the 
relationships of labour and management in, for example, the manufacturing 
sector, is not applicable to the construction industry. 


Because of the nature of the construction industry, there are special prob- 
lems in its union-management relations. Certain features of the industry, 
along with other characteristics common to industry in general, have the 
effect of building in a state of instability in construction which helps to 
explain the attitudes and behaviour of both those who act in entrepreneur- 
ial and managerial capacities and those who make up the employed work- 

Five influences call for examination: 

/. Construction cycles 

Over the years construction volume has been highly volatile. The growth 
rate of construction is more erratic than that of the rest of the economy. 
The reasons for this unique behaviour of the construction sector are 
complex, but beyond the scope of this investigation. What is relevant and 
important is the recognition that cyclical expansion and contraction in the 
volume of construction is an important influence on the market for the 
various classes of labour employed in the industry. Construction is subject 
to periodic shortages and surpluses of labour because of this tendency to 
booms and recessions. Furthermore, the supply of labour, especially in the 

b Report on the building industry 

higher skilled trades, is relatively inelastic or unresponsive to changes in 
demand. Thus, shortage of supply for skilled workmen whose period of 
training to reach a satisfactory level of skill is relatively long and, conse- 
quently, increased wage rates may not in the short run do much to alleviate 
a labour shortage. 

2. Seasonality 

The construction industry had made progress in recent decades in solving 
the problem of seasonality. Techniques have been developed which make 
it possible to continue production throughout much of the year, even in the 
unfavourable winter months. Yet seasonality remains a factor influencing 
the volume of employment and adding a disturbing element to industrial 
relationships in the industry. 

3. Project system 

By far the most disruptive factor influencing employment and industrial 
relations is the project nature of the industry itself. Construction takes 
place on a given site over a period of time, at the end of which, when the 
structure is complete, the entire productive effort of all factors and agents, 
including labour, comes to an end. Once the building is finished, the 
demand for construction facilities on the site is ended. Construction em- 
ployment drops to zero and the various contractors and subcontractors 
move on to other sites, usually with few or none of their former employees. 
In contrast to most manufacturing industries, the product of the construc- 
tion industry is immobile. It provides its services on the site where it was 
produced, and the users of the structure 'consume' the services on the 
production site after the producers have departed. 

It will be seen later that this basic discontinuity characteristic of con- 
struction is the source of much of the tension and conflict that plague 
construction labour relations and help to explain the actions, whether 
lawful or otherwise, which the involved parties may engage in as protective 

4. Technological change 

Labour relations in most industries are influenced by change in the tech- 
nology of production. Construction is no exception. Indeed much of the 
controversy and clash of interest recorded in the proceedings of this 
Commission is directly or indirectly related to the economic opportunities 
and the employment disruption associated with the introduction, or at- 

Study papers and briefs 7 

tempted introduction, of such changes. But these changes bear with par- 
ticular force on construction labour relations because of the discontinuity 
problem already mentioned. This point will be further elaborated later on. 

5. Inflation 

Much of the period under review has been marked by severe inflation. 
Undoubtedly construction labour relations have been influenced by the 
disruptive impact of rising prices which threaten real incomes of the em- 
ployed labour force, by contract commitments of the employers which 
encourage them to strive for long-term contracts and to resist escalator 
clauses in collective agreements or wage adjustment during the life of an 
agreement. Recent demands in the industry, as well as in others, in some 
parts of the country for upward adjustments in wages during the life of the 
collective agreements indicate the problem of the unstabilizing effect of 
inflation and the threat it holds for viable collective bargaining relations. 


The key to much of the unique problem of industrial relations in construc- 
tion is to be found in the structure of the industry itself. The industry 
functions through a system involving owners, entrepreneurs, general con- 
tractors, management companies, subcontractors or trade contractors, 
employees, and unions. As a means of emphasizing the relationships which 
develop in the contract and subcontract system in construction I shall 
present a short comparison with a manufacturing or commercial model. 

A manufacturing or commercial business operation presents a picture of 
a group of interdependent specialized departments operating in accordance 
with some form of organizational plan held together by the authority of 
senior executives. The role of management is to integrate the work of all 
these functioning departments. The power to do so is the authority of 
management derived from the employer-employee relationship. If there 
are conflicts between or among departments they are resolved by the 
exercise of authority by the common senior management. All persons on 
the work-site engaged in production are employees of the one company. 
Management is monolithic in that it alone possesses the power to establish 
policy and issue instructions and orders. 

If a union organizes the work force on an industrial basis the situation 
changes in that the unrestrained authority of the employer and his man- 
agement becomes subject to the influence of the union. Jointly determined 

8 Report on the building industry 

rules embodied in a collective agreement apply, but the employer retains 
the authority of management of the activities on the work-site, albeit one 
that must now respect any collective agreement it has signed with the 
union. But it is important to note that in the case of an industrial union 
agreement the union as sole negotiation agent has achieved a monolithic 
status on the labour representation side. In the process the responsibility 
for resolving conflicts of interest among worker groups is to a considerable 
extent transferred from the employer to the union. It is the union which 
must seek the compromises which will bring policy accommodations be- 
tween and among unskilled and skilled, long- and short-service employees, 
and many other interest groups and factions. And parenthetically it usually 
does not possess the power of management authoritarianism to achieve 
these necessary accommodations, but must work its tortuous way through 
a form of democratic process. 

Two other modifications to the model need to be made. In the first place, 
employers do frequently invite other employers to come on the production 
site and assume employer authority in certain operations. The device is 
subcontracting, and the areas affected are usually those that are not di- 
rectly related to the production process for which the plant exists. Security 
guards, cafeterias, computer services, accounting, and so on are illustra- 
tions of this type of subcontracting. While such contracting-out is most 
prevalent in these ancillary services, it also occurs with regard to work 
directly involved in the production process. And it should be noted that 
even the industrial unions have tried to prevent contracting-out because of 
the threat it poses to the jobs of its members and to the unions presumed 

The effect of contracting out of work that would normally be undertaken 
by the union with an industrial agreement will be to confront the union with 
an employer with whom it may have no relationship. This could mean 
either jurisdictional conflict with another union, or the presence at the 
work-place of non-union men working at terms less favourable than those 
that apply to the unionized workers. Under the circumstances the union 
will attempt to protect itself either by preventing subcontracts or by 
unionizing the employees of the subcontractor. 

The second modification of the model involves the situation where the 
work-force in a factory or service operation, for example, is split among 
several bargaining units, each represented by a different union. Thus, 
office employees, maintenance staff, stationary engineers, and others may 
each have a distinct bargaining unit of jobs and each its own unions, while 

Study papers and briefs 9 

the bulk of the production staff may be represented by one of the industrial 

The employer's problem of personnel policy formulation becomes 
difficult because, while he provides a unity of authority on the one side, he 
is confronted with divided authority on the union side. While each union is 
confined to its own unit jurisdiction, the interplay of influences from one 
unit to another may be extremely important. The door is opened to tactical 
manoeuvring among the unions and by the employer also. Yet in practice 
the employer must work out through collective bargaining with all the 
unions a personnel policy which retains some semblance of rationality in 
spite of the independent unions representing interdependent functional 
groups. With several bargaining units the employer's role of personnel 
policy making is not surrendered, but it is made difficult by having to deal 
with independent union authorities for various segments of his workforce. 

It has been noted that construction is largely on a project basis with the 
activity taking place on the site where the product is to be used. An 
additional element is vitally important - the contract and subcontract 
system. Contracting and subcontracting of the work on a construction site 
is the normal way of carrying on construction is a very large part of the 
industry. It is true that some construction is carried out without contracting 
to construction firms. In these cases the entrepreneur engages employees 
of the various trades in the numbers and at the times as needed. This is 
really the model of the manufacturing industry with the important similar- 
ity that there is only one employer on the site, and the important difference 
that the whole operation stops when the structure is complete. This con- 
struction without contractors is usually limited to small building structures 
and is relatively unimportant. It will be ignored in the rest of this report. 

The normal system in construction is by contract and subcontract 
arrangements. If a builder signs a contract with a general contractor, the 
builder does not assume the role of an employer. The general contractor 
frequently does for part of the labour force employed on the site , but only to 
the extent that he undertakes part of the construction work himself. Much 
of the work will be done by trade subcontractors who undertake at the 
appropriate stage in the construction process to come on site with the 
necessary equipment and manpower required to contribute their 
specialized skills in accordance with the terms of the subcontract. When 
their part of the work is done they withdraw, to be replaced by another 
subcontractor and his workers whose contribution comes at a later stage. 
There is, of course, overlapping in time of trade specialities, so that several 

io Report on the building industry 

subcontracts are being carried out at the same time. Thus, throughout the 
construction period there is a succession of overlapping arrivals and depar- 
tures of subcontractors. 


Construction employers have established various associations to serve 
their particular interests. At the national level there is the Canadian Con- 
struction Association which engages in research, provides information to 
the industry, and engages in activities calculated to serve the interests of 
the industry with the public and the federal government. There are also 
provincial associations which function in somewhat the same way at the 
provincial level. The Ontario Federation of Construction Associations is 
one of these. Within Ontario there are a number of local or regional 
associations such as the Toronto Construction Association, the Ottawa 
Construction Association, the Sault Ste Marie Builders' Exchange, and the 
London and District Construction Association. While these local associa- 
tions engage in a number of activities, some of them become involved 
directly or indirectly in collective bargaining. Since there is a tendency 
away from individual employer bargaining these local employer associa- 
tions are likely to become more important, at least as far as industrial 
relations are concerned. But if the goal of some employers and unions 
towards province- wide bargaining on a trade-by-trade basis gains support, 
these local employer associations may become subordinate in the indus- 
trial relations area to more broadly based employer associations. The 
situation is fluid. 

As indicated elsewhere in this report, employer associations now have 
available the instrument of accreditation which, while not yet widely used, 
probably will have the effect of stabilizing the associations and strengthen- 
ing the management side in collective bargaining. 

The construction industry in Canada has in recent years been develop- 
ing specialized agencies concerned exclusively with labour relations. 
These usually take the form of a bureau of labour relations associated with 
a local employers' association. It is too early to draw any conclusions from 
the experience to date. Logically the existence of these agencies makes 
sense since they are concerned exclusively with industrial relations and 
can indulge in the luxury of a small professional bureaucracy which per- 
forms the functions of resolving conflicts of interest within the employer 
group and also handles the bargaining for the employers they represent. 

Study papers and briefs 1 1 


A major difference between the employer associations and that on the 
employee side is international character of the latter. Most unionized 
construction workers in Ontario are members of one or another of the 
international unions, so called because they operate in both the United 
States and Canada. The head offices of these international unions are in the 
United States and the Canadian locals are chartered by those offices. Their 
parent unions are affiliated with the afl-cio in the United States and are 
the components of the Construction Trades Department of that federation. 
The Canadian branches are affiliated with the Canadian Labour Congress, 
and provincially they may be affiliated with the various federations such as 
the Ontario Federation of Labour. Locals may be affiliated with local 
labour councils, and usually they are local councils of the same union in an 
area. There are also provincial groupings of the locals of a given group. 

It is important to note that each of the international unions looks upon 
itself as sovereign in its own work jurisdiction and that bargaining authority 
is decentralized to a considerable degree. Consequently some unions bar- 
gain through individual locals and with single employers. Others bargain 
through individual locals and with associations of employers. Still others 
bargain through councils of locals with employer associations. And in a few 
cases a union may enter into a province-wide agreement. 

Those who advocate broadening the geographic base of collective bar- 
gaining have to contend with the traditions of decentralized authority and 
the resistance to centralization this entails. Even more difficult is the task 
of those who favour multi-trade bargaining, which calls for not merely a 
shift of the decision-making authority within the union, but also requires 
surrender of sovereignty to some form of common agency. 

There are in Ontario some construction unions that are not part of the 
international system. These independent unions are small and numerically 
insignificant. Yet, as will be seen later, the problem of accommodating the 
internationals and interdependents into a common system is formidable 
and nearly impossible. As will also be seen, in Quebec where the construc- 
tion union independents make up a considerable percentage of the total, no 
satisfactory system of accommodation has been found. The latest legisla- 
tive experiment is failing at present. 

If the problems in the industry require changes in union structure con- 
struction labour relations are on a rocky road indeed. 

12 Report on the building industry 


It has been pointed out that in the manufacturing sector and other sectors 
where there is continuity of employment the relationship that develops 
between the employer or his managers and the employee is in some re- 
spects very different from employment relations in construction. Two 
basic differences are of particular importance. These are the imperma- 
nence of the work-site and the impermanence of the employer. Construc- 
tion workers, as a normal experience, are frequently seeking employment 
with new employers, they also are moving from site to site. 

Certain important consequences flow from this unstable employment 
relationship. First, there can be no career plan by an employer for his 
employees since the career with any employer is short term. This means 
that a personnel policy for any given firm is limited to the essential matters 
that are important for short-term employment. They are mostly confined to 
financial matters such as wages, although in unionized cases there will be 
additional employer financial commitments for welfare funds. Shift 
schedules will also be included. But the cluster of employee rights which in 
industrial situations are established on the basis of seniority will be largely 
absent from the personnel policy of a construction firm simply because the 
employment term is discontinuous. 

Secondly, a logical consequence of discontinuity is tne transfer of much 
of the personnel policy formulation from employer to the union. The union 
provides the only institution in the industry with which the worker can have 
a continuous relationship. Since the rules and standards applying to em- 
ployees at the work place need to conform to some logic of consistency 
over a considerable period of time, and since the employer because of short 
employment periods cannot supply consistency of policy, the craft unions 
do it themselves. Construction industry collective agreements usually 
contain large segments taken from laws of the union enacted in its interna- 
tional conventions, plus certain local arrangements and local or regional 

While to the outsider this may take on the appearance of union arro- 
gance, and while it may and does from time to time lead to abuse, it is wrong 
to assume that the solution to such abuses is to engage only in the negative 
exercise of resorting to various forms of restraint, including law enforce- 
ment. Undoubtedly there are circumstances that call for the protection of 
the courts, but there is also the need to consider the nature of the problem 
with which employers, employees, and unions in construction are strug- 
gling. The fact that construction unions attempt with much success to 

Study papers and briefs 13 

impose rules and terms on employers must be recognized as a means of 
filling a gap which exists, not because of employers' abdication of their 
proper role of designing a personnel policy appropriate to their needs, but 
because of the fact that the short-term employment they can offer to their 
employees renders the kind of personnel policy appropriate in situations of 
employment continuity highly unsuitable and indeed unworkable from the 
employers' point of view in the construction industry. This basic problem 
will be explored further after examination of the goals of management and 
unions and consideration of the areas of conflict. Meanwhile it may be 
noted that the form of collective bargaining that applies reasonably well in 
industries of continuity on fixed sites is not suitable in construction. 


The construction industry operates through contracts and subcontracts. 
As suggested earlier, only by this system is it possible to gain the 
economies of specialization which prevail in the industry. And perhaps it 
might be well to emphasize the fact already noted that the organization of 
employees into craft unions is a reflection of the trade specializations of the 
contractors rather than the reverse. 

Specialization by subcontractors, while making possible certain 
economies, by the same token exposes the contractor to uncertainty and 
insecurity. It also makes solution of this problem a prime object of the 
contractors. Much of the evidence before the Royal Commission bears 
testimony to the efforts of contractors to increase their security of opera- 
tion in an uncertain future. 

A central characteristic of the enterprise system is competition, and this 
applies in construction as well as in other industries. Indeed it bears with 
particular severity on construction because long-term relationships be- 
tween the customer, the builder, and vendor, the contractor, and subcon- 
tractors, such as can be established between manufacturers and their 
customers, are ruled out of construction by the nature of the industry. The 
builder of a high-rise office tower may be a customer for that kind of 
construction only once. 

Public policy as reflected in combines legislation supports the principle 
and practice of competition as a means of protecting the public from 
concentrated control of supply resulting in price-fixing to the detriment of 
the consumer. Yet the history of investigations under the combines legisla- 
tion suggests that in many areas efforts are made to limit competition. 
Construction contractors are no exception, if a considerable amount of the 

14 Report on the building industry 

testimony in the proceedings is to be believed. There are indications of at 
least two forms of action designed to reduce competition. There is the 
attempt to limit the number of contractors in sectors of the industry by 
various means, some of which involve collaboration between the combin- 
ing employers and union officials; and there are attempts by contractors to 
determine among themselves the allocation of contracts among the group 
thereby influencing the contract price. 

In certain sectors of the construction industry the amount of capital 
required to enter the industry is relatively light; or in other words, they are 
labour-intensive sectors. Entry is relatively easy. It is not uncommon for 
workmen to attempt to become small-scale contractors. In fact the pro- 
ceedings reveal occupational histories of some men who have moved back 
and forth from workman to contractor, depending upon the state of the 
industry and their own personal fortunes. This pattern of industrial 
metamorphosis is more likely to occur in the residential sector where very 
little capital is needed than in the commercial and industrial sectors where 
capital requirements are heavier. 

This ease of entry enhances competition and encourages contractors to 
limit their own numbers by establishing barriers to entry by new com- 
petitors. The goal is the reduction of uncertainty regarding future con- 

It should be noted that the basic conflict in this regard is between and 
among businessmen and companies, although as will be indicated later 
situations will exist in which unions or union leaders, in self-interest, may 
make common cause with the employers with whom they have established 
relationships against other possible contractor competitors. 

On the job-site the contractors and their managements are normally 
anxious to operate for as low a cost as they can. This means, among other 
things, that there is a need for an adequate supply of competent labour 
which may be acquired quickly, directed to maximize productivity, and 
terminated with ease on short notice. It is obvious that in these needs and 
interests of employers lie the seeds of conflict with labour and the construc- 
tion unions. 


Employees generally are interested in stable income, which is particularly 
uncertain in the construction industry, influenced as it is by cyclical and 
seasonal fluctuations and by frequent project terminations. Like all other 
segments of society employees also seek income increases. 

Study papers and briefs 15 

Unions support employees in their demands by seeking to control the 
available job opportunities for their members, by negotiating wage rate 
increases and other financial benefits, and by assuring the continued exis- 
tence and viability of the union itself. 

While these goals of employees and unions seem obvious, attempts to 
achieve them leads to a very complex set of relationships among the unions 
and employers and employer organizations which are frequently accom- 
panied by severe stress and which at times turn into covert conflict or open 


Every employment situation involves both co-operation and conflict. Em- 
ployment is co-operative in that the employer and his employees work 
for the common purpose of production, and it embodies conflict of inter- 
est because the achievement of individual goals involves a limit to goal 
achievement by other participants. Thus the employee's wage gain is the 
employer's cost increase. These conflicts of interest are not confined to 
employer vs employee situations only; nor are they limited to the wage 
issue alone, as will be seen by an examination of the construction industry. 

Workers vs workers 

Workers in a given trade or classification compete with one another for the 

available job vacancies. Since in construction workers enter the labour 

market fairly frequently, the way is open for this competition to take place 

frequently unless some system of control is used to limit or direct the 


Employees on the job may also be in competition with employees of 
other trades when there is overlapping of the functions which may be 
performed by members of different trades. Established trade jurisdictions 
may eliminate this problem of competition provided the employees in both 
groups recognize and respect the jurisdictional definitions. The transcripts 
reveal that jurisdictional conflict is one of the issues fomenting disorder in 
sectors of the industry in Ontario. 

Technological change is one of the principal influences encouraging 
jurisdictional conflict. Inevitably the materials, tasks, and procedures in- 
cluded in the definition of a trade jurisdiction change through time. The 
introduction of dry wall replacing plaster is a particularly relevant example . 
As this evolution in the technology of the industry progresses the original 
definitions show signs of obsolescence. Unions endeavour to catch up 

16 Report on the building industry 

either by amending their own jurisdictional definition or by reinterpreting 
it in day-to-day practice. If there is some system by which general agree- 
ment to these jurisdictional adjustments can be reached in the industry some 
degree of harmony can prevail. If not there is likely to be resort to methods 
of force. 

Union vs union 

Job and jurisdictional conflict among workers in the industry is reflected in 
the relationships among the unions who represent them, as the struggles 
among the plasterers, lathers, and carpenters unions reflected in the tran- 
scripts indicate. Unions seek to expand their control by organizing the 
employees of their trade in competition with other unions. 

Similarly unions in the construction industry will protect their juris- 
dictions against either non-union labour and non-union contractors or com- 
peting unions by pushing certification, by pressuring non-unionized em- 
ployers into signing collective agreements giving exclusive employment 
rights to their members, and by subcontract clauses which require subcon- 
tractors to adhere to the union agreement signed by the general contractor. 
There is a great deal of evidence in the transcripts to illustrate this process 
of union attempts at expansion. 

Contractor vs union 

There are two principal areas of conflict between contractors and unions. 
The first is institutional and revolves around the question of whether or not 
there is to be an established relationship between the union and the em- 
ployer. This is the representational issue. Is the employer to deal with the 
union or not? The resolution of this conflict is not merely a matter for the 
union and employer. Employees also participate in the decision. They do 
so by providing membership and financial support to the union and in their 
actions in the voting constituency in certification cases before the Labour 
Relations Board. 

The mere fact of acceptance of the union (as a bargaining agent) by the 
employer does not settle the question of recognition. There is also the 
question of the degree of recognition, and there is the related matter of 
function. Thus, in the construction industry the employers may accept the 
union as the source of labour supply, and leave to the union the employee 
selection function. The hiring hall is the instrument for performing these 
recruitment and selection functions, and it is controlled by the union. While 
similar provision may be found in collective agreements outside the con- 
struction industry, the surrender of function to the union is usually not so 

Study papers and briefs 17 

extensive because the more stable employment relationship makes the 
control of employment less important to the industrial union. An employer 
outside construction may be forced to give priority of employment to his 
former employees before employing new workers, but he is usually not 
prevented from hiring independently when there are no qualified 
'employees-on-lay-off seeking to be re-employed by the employer. In 
construction, in contrast, the worker who has been laid off by an employer 
usually has quite limited recall rights if his former employer expands 
employment. Indeed, because of the construction workers' consciousness 
of the scarcity of jobs and the built-in phenomenon of employment instabil- 
ity, the principle of equitable sharing of job vacancies through the hiring 
hall 'longest out, first in' priority lists tends, in union policy, to replace the 
importance given to seniority by industrial unions, where more or less 
indefinite employment is assumed and periods of lay-off are expected to be 
followed by return to work for the same employee, with a continuation of 
accumulated rights and privileges built up during earlier periods. 

Under these circumstances, a construction union's capacity to serve the 
interests of its members, and even its ability to survive, depends not upon 
the agreement it may have with a particular employer, but on the relation- 
ships it has with all the employers in a geographic area who hire the classes 
of workmen represented by the union. The complex of rules in construc- 
tion that determine who will be employed by whom, and under what 
conditions, therefore, must be on a multi-employer and geographic basis 
whether or not the employers engage in single or associational bargaining 
with the union. 

This point concerning the degree of union recognition in construction, 
or the extended role of the union in shaping an employment and personnel 
policy for its classes of workers to all employers in an area, is emphasized 
because it is related to fundamental conflicts between unions and em- 
ployers as well as between unions and unions and even employers and 
other employers, and is at the centre of instability in the industry. It 
requires further elaboration. 

The employer who attempts to operate independently of a union is a 
threat to the system of tradesman and union security which is central to the 
whole system of recognition, collective agreements, contracts and subcon- 
tract clauses, including the union's control over labour supply. An existing 
union can be threatened by an employer in a number of ways. 

A non-unionized employer who is successful in bidding for a construc- 
tion contract threatens the jurisdiction of the union which represents the 
class of workers employed by the non-unionized contractor. The tran- 

1 8 Report on the building industry 

scripts reveal that unions were prepared to tolerate non-union contractors 
usually only in small operations such as the house-building sector. In the 
commercial sector there was no place, in their view, for non-union contrac- 
tors nor non-union men on the construction sites. 

A contractor unionized by a competing union other than the union with a 
traditional 'property right' in certain territory and work is also a threat. 
Attempts by a unionized contractor to employ workmen, not members of 
the union, on the job-site always provoke strong reaction. Construction 
unions and those they represent do not tolerate invasion from any source. 

It is therefore not surprising that construction unions should strive to put 
their relationship with the contractors and with other unions on a continu- 
ing and determinable basis in spite of, or indeed because of, the very 
discontinuity of the employment relationship. Hence the complex web of 
collective agreements based on a geographic bargaining unit, the use of 
subcontract clauses, the hostility to competing unions, the use of the 
employers as a means of establishing and maintaining the system of rules 
and practices in the industry. Hence also the elaborate machinery for the 
resolution of jurisdictional disputes. 

The second source of conflict between unions and contractors is the 
substantive issue of wages, hours, and other cost items, as well as the work 
rules. It is these matters that, when resolved, make up the bulk of the union 
agreement. In a general sense they are of the same nature in the industrial 
and construction sectors, but there are differences. In the case of the 
industrial sector, the agreement may be thought of as the laws of the plant 
or company; whereas in construction the union will attempt to make them 
the laws of a region and applicable to all employers in the trade. And the 
loose relationship between contractor and employees and the close rela- 
tionship between union and employees encourages an inflexible attitude on 
the part of organized labour. Again the work rules become a crucial line of 
defence against the insecurity peculiar to the industry. Employers' at- 
tempts to alter these standards and work rules to their advantage are 
understandably resisted strongly by the unions. The evidence concerning 
the controversy over the introduction of piece rates is a good illustration. If 
a construction union should abandon its traditional and successful opposi- 
tion to piece rates it could undermine the whole structure of its relation- 
ship, not only with the employer to whom it made the concession, but with 
all employers with whom it deals. And it is interesting that the transcipts 
seem to indicate that efforts to introduce piece rates were accompanied by 
questionable or corrupt practice and threats of violence as well as actual 

Study papers and briefs 19 

Such experiences raise questions about the capacity of collective bar- 
gaining to perform its problem-solving role in certain sectors of the con- 
struction industry. If it is to perform this role properly some changes in the 
rules of the game seem to be needed. The process of change in this respect, 
which was started when various jurisdictions, including Ontario, began 
experimenting with special legislation applicable to construction, has not 
run its course. 


The problems of accommodation that exist in construction must be consi- 
dered in the context of the analysis of the industry outlined above and in the 
light of the nature of the conflict areas themselves. It is a theme of this 
report that the most important element in the process of accommodation is 
time. Put in simple terms, the discontinuity factor means that resolution of 
controversial issues must be quick and decisive if it is to be effective in 
controlling conflict between and among the parties involved. There is little 
value in a union achieving the right to represent the employees of a 
contractor if the contractor terminates his employer status before the union 
can function as bargaining agent. Nor does it help a contractor to have a 
jurisdiction problem settled in his favour after all or most of the disputed 
work has been completed by another contractor. Indeed it can be shown 
that speed of decision is vital in all of the dispute issues that are present in 
the construction industry. A comparison between industrial relations in 
construction and those in a more continuous and localized enterprise will 
help to emphasize the need for quick solutions to potential conflict in 

A union attempting to unionize the employees of a stationary industry 
with continuity of employment may encounter delays which may be frus- 
trating, but are not usually fatal to its achieving its goal of representation 
rights and recognition by the employer. There is no operational deadline 
which, if passed, means total failure. In construction there is such a 
deadline because the relationship between the employer and his employees 
is a dissolving one. 

Even after the union is recognized or certified as holding the negotiation 
rights for the employees of a given employer, there is much greater urgency 
for the construction union to reach agreement than in most other situations . 
A union's right to bargain in construction is a wasting asset if it is confined 
to a given employer on a particular site. Again it is the approaching 
termination of the functions of a particular contractor or subcontractor on 

20 Report on the building industry 

that site that could dissolve a union's bargaining position. Unless some 
alternative system of recognition is available which effectively reduces or 
eliminates both the time deadline and the site limitations construction 
unions, unlike their industrial counterparts, will operate under the menace 
of automatic collapse. Time is always on the side of the construction 
employer who wishes to avoid the burdens of a collective agreement. In 
other words, site bargaining units in construction are unsatisfactory if 
continuity of a relationship between a union and an employer is to be 
maintained. The introduction of geographic certification has alleviated this 
problem to a very considerable degree. 

It would be wrong to assume that urgency in collective bargaining 
resides only with the union. An employer benefits by delays only if he 
escapes the burden of the terms of an agreement altogether and at the same 
time avoids certain possible consequences of operating without a collec- 
tive agreement. Where the union is strong because of members' support, or 
because of the solidarity it may share with other construction unions, the 
reluctant contractor may face picket lines or slowdowns, or he may be 
deprived of a labour supply altogether, or be limited to recruiting from the 
least efficient workmen. Subcontractors, like unions, operate within the 
time framework of the construction project. They face overhead losses if 
their equipment is idle; they may be subject to commercial penalty provi- 
sions; and in a period of high interest rates they are under particularly 
strong pressure to complete their contracts on time. 

Under such compulsions the bargaining power of the individual em- 
ployer may be weak and he may be willing to accept a collective agreement 
whose terms are more onerous to him than he would be prepared to accept 
if he were not under the pressures he feels in isolation. Of course it may be 
noted that in a building boom the contractor may be able to pay a relatively 
high price for industrial peace because of the high level of demand for 
construction and because the volume of demand is not particularly respon- 
sive to price increases. 

Construction employers generally prefer to negotiate through employer 
associations since this provides some protection against whipsawing by 
the unions. If the individual contractors do not break ranks and negotiate 
outside the associational bargaining, and if they are prepared to stand 
together in a strike situation, there will be generated a real countervailing 
employer bargaining power, and the union will be denied access to those 
tactical weapons based on negotiations with individual employers. Associa- 
tional bargaining is the employer's answer to both the union's divisionary 

Study papers and briefs 21 

tactics and the employer's temptation to accept the short-run advantages of 
individual bargaining. 

A major difficulty with associational bargaining is the clash of interests 
among the contractor members of the association. Since in Ontario mem- 
bership in an employers' association is voluntary, and since unions may 
seek to take advantage of dealing directly with individual contractors, 
employer associations have a tendency to weakness or disintegration. 
Testimony before the Commission indicates that this problem of the inher- 
ent weakness of employer associations was a major factor in the request by 
employers in the construction industry for the introduction into the Ontario 
Labour Relations Act of the device of accreditation. In this request the 
employers were successful and the act was altered accordingly. This 
procedure will be discussed more thoroughly later when the various 
legislature experiments designed to solve construction labour relations 
problems are reviewed. For the present it may be noted that the procedure 
alters the effect of certification in an important respect. Whereas 
certification in the ordinary sense extends to a union the sole right to 
represent the employees of a particular employer and to negotiate with him 
a collective agreement, under accreditation the union still possess the sole 
right to represent the employees of the certifid employer, but only through 
the agency of the accredited employers' association, whether or not the 
employer in question is a member of the association. The principal purpose 
of this legislation is to strengthen and stablize the employer associations by 
removing the obligation, and indeed the right, of an individual employer to 
negotiate with the union recognized or certified as the bargaining agent for 
his employees. In practical terms this is designed to prevent an employer 
from 'going it alone' or making special deals with a union to the disadvan- 
tage of the unionized employers as a group. 

Perhaps the most important feature of associational bargaining, whether 
supported by accreditation or not, is that it broadens the base of collective 
bargaining and should help to solve the problem posed by three distinguish- 
ing features of construction; viz, the construction site, discontinuity, and 
mobility of the production agents. If the unionized employers of a trade are 
under common agreement with a union covering a geographic area, the 
situation becomes a little more like that of an employer in other industries. 
There is a legally unified employer side dealing with a single union. The 
contractors and subcontractors move their operations from site to site in 
response to the demand for their construction services and in accordance 
with the contracts they are able to bid successfully. The tradesmen move 

22 Report on the building industry 

from employer to employer under a common collective agreement 
negotiated by the agency of all contractors of the trade. The agreements 
take on more of the flavour of industrial 'legislation,' although privately 
negotiated and amended by the unions and the employer associations. 

It should also be noted that such arrangements in the construction 
industry are consistent with the point already made that there can be little 
of the traditional personnel policy associated with industries with more 
stable employment relationships. But it is also worth noting that if associa- 
tional bargaining provides greater stability in employment relationships as 
between a group of trade contractors and their employees, it is conceivable 
that a group or centralized trade personnel policy might develop and take 
on more of the character usually associated with that term. The employers 
association might provide the permanency which could partly overcome 
the problem of discontinuity which now caters to instability and conflict. 

So far in this section on associational bargaining we have been con- 
cerned with a single union, or a council of locals or units of the same union. 
In other words the analysis has been limited to single-trade bargaining, and 
the emphasis has been placed on a union negotiating with an association of 
employers employing members of the same trade. The general conclusion 
has emerged that if stable employer associations, protected from the 
malaise of disintegration under the pressures of competition and the built- 
in insecurity of the construction industry contracting system, can be estab- 
lished, then some of the present insecurities faced by contractors in the 
negotiation process can be overcome, resulting in more stable industrial 
relations. It is now necessary to look beyond this single union bargaining to 
consider whether a system which promoted multi-trade bargaining is via- 
ble, and whether it would likewise produce advantages in industrial rela- 
tions. It is worth noting at this point that in Quebec public policy has 
accepted multi-trade bargaining as a goal and has imposed it by law. Let us 
consider multi-trade bargaining aside from compulsion. 

There are undoubtedly certain advantages to be derived from multi- 
trade bargaining in the construction industry; and there are disadvantages. 
Under this procedure all of the unions in the construction industry would 
bargain with an association which included both general and trade contrac- 
tors. In other words a considerable evolution of the structure of the institu- 
tions involved in the industry would be necessary before effective multi- 
trade bargaining could take place. The only other way of achieving this 
objective would be via the Quebec route of legal compulsion. 

Multi-trade bargaining would eliminate whipsawing between unions 
since all unions would be covered by the same agreement. This would 

Study papers and briefs 23 

make bargaining more difficult because the union side would be saddled 
with the problem of winning acceptances among the unions involved for the 
compromises of the multifarious interests necessary to reach agreement 
with the employers. Can the construction industry unions be expected to 
surrender the degree of sovereignty necessary to make it possible for a 
central bargaining authority to function effectively? Will they be willing to 
accept the results of such bargaining, or will they be inclined to reassert 
their union's sovereignty and break out of the system*? The difficulties on 
the employer side arising from the individual contractor's right to remain 
aloof from an association, or to drop his membership, could easily be 
duplicated on the union side. 

There is also the geographic scope of multi-trade bargaining as indeed 
there is with single-trade negotiations. But the problem is simpler in the 
case of a single union than in the multi-trade situation. While the evidence 
before the Royal Commission reveals situations of conflict over territorial 
jurisdictions between locals of the same union, these locals generally 
accept the authority of the international and keep within their own area. 
But when all the unions are involved, and assuming that there has not been 
resort to the Quebec legislated solution, there could be as many conflicts as 
there are independent unions. For example, one union might prefer area 
bargaining and others might prefer different areas or province-wide bar- 

Thus, while there are possible advantages to multi-trade bargaining 
there are problems. The institutional structure is not yet appropriate on 
either side, nor is the attitude of the parties. Considerable evolution would 
be necessary both in structure and attitude if any form o\^ voluntary mul- 
ti-trade system is to function effectively. The issue will be raised again in 
conjunction with the examination of policy experiments in the various 
jurisdictions. Meanwhile it is important to emphasize that while bargaining 
between a union and an association has become fairly common in Ontario. 
multi-trade bargaining is rare and largely confined to out of the way major 
projects, which are not under investigation. 

One of the problems that plagues the construction industry is that 
concerning the task jurisdiction of the various unions. Each union includes 
in its constitution a description of the materials, tasks, and sectors which 
taken together defines its jurisdiction. There is a major problem o\' 
accommodation. In the context of starts and termination of construction 
activities at various sites it is a matter of great importance to the workers 
and their unions to know what job territory 'belongs' to them. When more 
than one union claims the sole right to perform certain tasks on a construe- 

24 Report on the building industry 

tion site a serious clash of interest can occur. There is need for some 
mechanism to settle such issues in a manner that will be respected by the 
contesting unions and by the employers with whom they have agreements. 
It is also important that settlement be quick because of the ever approach- 
ing termination date of the operation. In the absence of a due process 
procedure the temptation to resort to industrial force by means of picket- 
ing is strong and since time is always running out for the contesting union, 
and particularly for the union claiming that an improper allocation of work 
has been made, there is a probability of escalation beyond informational 
picketing to actual physical force. But aside from this possibility, such 
disputes, unless referred to some accepted system of adjudication, can and 
sometimes do lead to shut-downs because of the strongly held view that it is 
wrong to cross picket lines. 

Task assignment disputes always involve at least two unions, and some- 
times more than two. They also usually involve the interest of employers 
respectively identified with the conflicting unions. Thus, a conflict between 
the lathers and the carpenters is not limited to these workmen and their 
unions, but includes in addition the interested subcontractors as well. A 
decision in favour of the carpenters will mean that the lathers will be denied 
access to the work, but also it means that a subcontractor who specializes 
in the lathing function will likewise lose out. 

The problem has engaged the attention of the Construction Trades 
Department of the afl-cio for many years and, in collaboration with the 
various construction industry contractors' association, they have ex- 
perimented with considerable success with joint machinery whose function 
is to decide these issues. In other words the employers and unions in the 
industry have designed their own machinery to settle jurisdictional dis- 

Further discussion of this issue is delayed until the legal provisions for 
dealing with jurisdictional disputes is under review. Meanwhile it is neces- 
sary to draw attention to a form of jurisdictional disputes which presents, at 
least in principle, perhaps the most difficult problem in this area. The 
reference is to the conflict between unions, one of which is not part of 
the Construction Trades Department of the afl-cio. The Christian 
Labour Association of Canada is a good illustration. This union, which 
has bargaining rights for a relatively small number of employees in On- 
tario construction, is not part of the internal afl-cio system. Since it 
attempts to organize on an industrial rather than a craft basis it is in 
competition with a number of unions both with regard to the right to 
represent workmen, and with regard to task jurisdiction. It has no access to 

Study papers and briefs 25 

the joint machinery for the settlement of jurisdictional disputes in construc- 
tion, and in fact is looked upon as an alien by the international unions. 

The clac was introduced here as an illustration that draws attention to a 
broader and perhaps central issue in the construction industry. Can public 
policy acquiesce in the principle that there is no place on the construction 
sites in Ontario for unions other than those which are part of the afl-cio 
Construction Trades Department, and those allied with them such as the 
Teamsters who are not normally engaged in job competition with them. 
There is a real difficulty in reconciling the principle of freedom of choice of 
unions, a cornerstone of public policy and law, with some of the results of 
practices operating in Ontario, and indeed elsewhere. 

Construction unions seek to establish bargaining relationships with 
employers either through voluntary recognition or by certification. They 
seek to protect themselves from non-union competition, or from competi- 
tion from employees represented by another union, by the closed shop and 
subcontract clauses. They introduce the hiring hall device as a means of 
controlling access to the construction sites. They try to include in collec- 
tive agreements the definition of their own work jurisdiction. All of these 
strategies can be defended as efforts to resolve some of the human and 
institutional problems which flow from the way in which the construction 
industry operates. Yet the over-all effect of success in these endeavours 
may be to thwart the intention of public policy in some other respect. 

Thus, as the evidence submitted indicates, the closed shop and subcon- 
tract clauses may prevent a unionized employer from successful bidding 
for contracts if he has been certified by the 'wrong' union. In the circum- 
stances the certification has been defeated by collective bargaining. 

This section has been entitled 'Problems of Accommodation/ With 
regard to most conflict areas, some form of accommodation is possible. 
However, in the case of conflict between the international unions in con- 
struction and the independents there may be no basis of accommodation at 
all without a serious alteration in the procedures now practised by the 
internationals to solve real problems. Thus, the attempts of internationals 
to establish continuing relationships with employers or employer associa- 
tions on a geographic basis is a legitimate way of solving the problem of 
discontinuity. Similarly, the hiring hall is a means for orderly and systema- 
tic assignment of unionized employees to unionized job sites. Also, the 
subcontract clause is a logical device to prevent employers from avoiding 
the obligations undertaken in a collective agreement by transferring the 
employer role to others not under agreement with the union. 

But it must be recognized that, pushed to the logical limit, the extension 

26 Report on the building industry 

of these practices would give total jurisdiction to the international con- 
struction unions, regardless of what other union was able to secure some 
certification. Indeed, the impression is gained from the briefs and tes- 
timony before us that the limited success of the independents in Ontario is 
tolerated by the internationals in fringe areas in much the same way as is 
non-union construction in the home-building sector. It is not surprising that 
the independents have had such limited success. 

A more serious problem involving another aspect of the jurisdictional 
issue may be emerging. Within the construction trade group there is one 
union which may be classed as semi-industrial. This is the labourers union. 
Local 183 of this union supports the existing power of the Labour Relations 
Board to certify a union for a bargaining unit covering a group of employees 
who exercise a combination of technical skills or are required to perform 
the skills in whole or in part of more than one craft as part of a whole crew or 
team, the other members of which are also required to perform in similar 
fashion. Local 183 cites the technological changes and innovations in the 
construction industry over the last decade as justifying this somewhat 
altered view of the concept of the unit appropriate for collective bargaining. 
Other unions have suggested that this authority of the Board should be 

In effect, this power of the Board opens the door to a form of industrial- 
union competition for the established craft unions . The extent to which this 
authority might be used depends upon the way the Board interprets the 
Act, the extent of technological change, and the vigour displayed by unions 
that are prepared to represent multi-skilled groups. There could be a major 
conflict in the construction industry over this issue. 

Whether or not this happens, it seems clear that technological and other 
changes in the industry are having, and are likely to continue to have, 
important consequences for industrial relations in construction. The union 
structure, the jurisdictional territories established, and the independent 
roles of the unions in collective bargaining are confronted with a problem of 
adaptation to accelerating change. Yet there is a static quality about con- 
struction unionism which makes such adaptation difficult. Technology 
leads to an erosion of work practices and a decline in demand for the 
particular skills upon which a specific union may be built. Attempts to 
adjust lead to conflict over jurisdiction, the entry of alien unions, and 
tensions within the union establishment. There is a need for mechanisms 
which will assist in the transformation which must be made. 

This is easy to say, and has validity, but poses great difficulties. It is 
doubtful whether the jurisdictional dispute mechanisms developed in the 

Study papers and briefs 27 

industry or established in the Labour Relations Act can meet fully the 
emerging challenge of change. 

There is a particularly difficult problem of accommodation associated 
with technological change or industrial conversion. Prior to the introduc- 
tion of collective agreements, and particularly to the legal prohibition of the 
work-stoppage during the life of a collective agreement, controversies over 
the impact of change and conditions of employment could be resolved by 
negotiation and strikes or lockouts without any violation of a labour rela- 
tions law. At present this is not so because the law in practically all 
Canadian jurisdictions, including Ontario, requires that there shall be no 
strike or lockout during the life of the agreement, and the strike right is 
replaced by a right to arbitration. But arbitration is limited to the agreement 
as it exists, and unless specific provision has been made to cover the 
consequences of change the arbitrator may find that he has no jurisdiction 
to settle such a dispute during the life of an agreement. Arbitrators in 
Canada have, with few exceptions, accepted the residual rights interpreta- 
tion of the collective agreement which takes a narrower rather than a 
broader view of the coverage of the agreement and of the arbitrators' 

Employers' organizations have generally welcomed this interpretation 
of the collective agreement and have resisted efforts to change the law so 
that it can give some protection and relief to employees and their unions 
who, while protected by a collective agreement, rarely have been able to 
induce employers to include in agreements clauses which provide a real 
protection against technological change if such change takes place. To the 
employer the most important goals he seeks through the collective agree- 
ment are industrial peace and the certainty of his own and his employees' 
rights and obligations. If contracts can be opened up during their term 
because he wishes to introduce change he believes he loses the real protec- 
tion which should flow from the agreement. 

In this problem area the goals of the employer and of employees are in 
sharp conflict. Each is seeking security; the employer to establish a status 
quo of rights which leaves him free to manage with the certainty that his 
obligations will not change while the agreement lasts; the employee by 
having a collective agreement that protects his job and his skills from 
known as well as unforeseen threats as time passes. Each side is seeking 
security by imposing a burden of insecurity on the other side. 

All of this is true for most industry; it is not confined to construction. Yet 
in construction it may be a particularly severe problem because of the 
nature of the industry itself. The construction unions have tried to protect 

28 Report on the building industry 

those they represent by jurisdictional definitions, by elaborate and often 
inflexible work rules which they impose on their employers through collec- 
tive agreements, and through the system of territorial bargaining and 
subcontract clauses which in effect extend the agreement and work rules to 
formerly non-unionized employees and their employers. 

As with some other labour law provisions, the applicability of these 
clauses to the construction industry is questionable. The discontinuity 
element and the fact that time is of the essence mean that the delays 
provided would likely prevent settlement in time to be of much use to the 
parties. Moreover, technological change in the construction industry fre- 
quently leads to jurisdictional disputes among the unions and their respec- 
tive subcontractor groups. In industrial union situations, technological 
change and the cost advantages to be gained therefrom may encourage 
management to favour one classification of workers against another, but 
the problem of accommodation on the employee side is likely to be con- 
tained within the membership of one union. In construction such changes 
occur in the context of independent crafts and independent contractors or 
contractor groups. Accommodation must take place in the context of 
divided authorities on both sides of the bargaining table. Where one union 
and its employer-contractors may oppose a change because it threatens the 
job security of the tradesmen represented by that union and the contract 
opportunities of their employers, another union and its employers may 
favour the change because it promises to increase job security for another 
group of workmen and the business opportunities of their employers. In 
these circumstances a technological change issue will become a jurisdic- 
tional issue and the earlier analysis of jurisdictional conflict will apply. 

This problem of change and its impact on industrial relations is only one 
illustration of the disrupting effects that may flow from influences outside 
the relationships of the employer and employee and union parties. There 
are others which put strains on the relationships and on the conventional 
means of accommodation, and the institutions which have been developed 
by practice under the umbrella of the legal framework. Inflation is particu- 
larly serious and is now plaguing labour relations in all industry. As with the 
technological change issue, the problem originates outside the relationship 
of the parties, and like technological change it also places the process of 
collective bargaining under severe strain. Indeed it is doubtful if this issue 
can be resolved by collective bargaining, although this is the thrust of the 
current demands for re-opening of contracts and the inclusion of indexing 
provisions. If it cannot be met by bargaining, and if it is not resolved by 
public authority, inflation may render collective bargaining almost un- 

Study papers and briefs 29 

workable in the construction industry as in industry generally. Contracts 
presuppose a relatively stable unit of account. 


Principles of public policy 

Several provinces have introduced special legislative provisions applicable 
to construction industry industrial relations. Generally these do not intro- 
duce any new principle although, as will be seen, there has been some 
modification in the rights which are basic to the general labour relations 
laws in Canada. A brief review of the principles upon which Canadian 
labour relations legislation rests follows. 

The keynote of public policy is freedom of association. This means, on 
the employee side, the right to join or not to join a union, to organize and 
work for the advancement of unions, to accept office in unions, and to 
engage in all legitimate union activities. On the employer side is the same 
freedom to form and participate in the activities of employer associations. 

A second major principle is the right of a union to represent a unit of 
employees in collective bargaining, and the associated obligation on em- 
ployers to recognize this right in a union which can establish certain levels 
of support among the members of the unit it proposes to represent. 

Closely associated with this principle is the right to bargain collectively 
with the object of influencing or determining the rules of the work place 
which shall govern the relationships and terms and conditions of work. 

A fourth principle concerns the recognition of due process as the 
governing influence in the interpretation of the agreements in the period of 

Finally and perhaps the basic foundation of policy is the acceptance of 
the idea that decision-making in union-management relations should be, as 
far as possible, left to the parties of interest and not made for them by some 
agency of government. 

Main features and agencies of public policy 

The principal elements in public policy established in law to protect free- 
dom of association are the unfair labour practice clauses that list a long 
series of prohibited actions which, if allowed, could be used to discourage 
employees from exercising their right regarding union membership. Em- 
ployers are forbidden to use threats, promises, discrimination, intimida- 
tion, discipline, or discharge to discourage union activity. Persons acting 

30 Report on the building industry 

on behalf of unions are similarly restrained from using improper methods to 
recruit membership. And unions and employees are forbidden to discour- 
age employers from forming their own associations. 

The right of unions to represent employees in labour relations is sup- 
ported by legislation which legitimizes voluntary recognition, or by 
certification of unions which establishes a procedure leading to a certificate 
of representation issued by a labour relations board to a union which can 
show proof of some statutory minimum support, either through member- 
ship or by a vote of the employees in the unit the union seeks to represent. 

Compulsory collective bargaining is supported in the law by the rule that 
a union which has succeeded in achieving a voluntary bargaining relation- 
ship with an employer or employer's association has a continuing right until 
and unless the appropriate labour relations board terminates these rights. 
Compulsory collective bargaining is also supported by certification by a 
labour relations board on application by a union which is able to demon- 
strate the legally required degree and kind of support from the unit appro- 
priate for collective bargaining. 

Finally, due process with regard to the resolution of conflicts arising 
after a collective agreement has come into force, and concerning its mean- 
ing or application, is usually supported by a legal requirement of arbitration 
or some other procedure without a resort to strike or lockout during a 
collective agreement. 

These are the major provisions in the law to implement a policy of 
collective bargaining based on principles which are derived from western 
notions of freedom. In practice, on any given issue there is little uniformity 
across the jurisdictions in Canada. There are some differences in the 
definition of unfair labour practices; there are different guidelines for the 
determination of units appropriate for collective bargaining; the restraints 
on the use of the strike and lockout are not identical from province to 
province; the statutory provisions for dispute settlement during the life of 
an agreement indicate experiment in different directions, and so on. Yet in 
broad conceptual terms in the general situation there is much in common, 
and it is fair to say that there is an identifiable public policy. 

Special provisions in the construction industry 

In at least two major sectors of employment there has been much ex- 
perimentation in public policy in recent years. These are in public employ- 
ment industrial relations and in the construction industry. In both of these 
cases the explanation of the tendency to establish different instruments and 
procedure of public policy is a reflection of important special features of 

Study papers and briefs 3 1 

employment in the respective areas, and hence an apparent need for 
different rules and procedures for the resolution of industrial relations 
policies. We are concerned only with the problem in construction. Atten- 
tion is now turned to some of the important experiments in public policy in 
construction industry labour relations. It is well to keep in mind the special 
characteristics of the construction industry which lie at the root of much of 
the turbulence in construction labour relations, and which render the 
conventional provisions of labour relations legislation unsatisfactory in 
construction. Construction is a transient industry; it is always completing 
its operations on a given site and moving on; the general contractors, the 
specialty subcontractors, and the workmen are occupied at a given site for 
varying periods of time and then move on. Employer-employee relation- 
ships are always coming to an end and being established with and among 
different parties. Instability, uncertainty, and insecurity encourage defen- 
sive activities and contribute to the problems of illegality under review by 
the Royal Commission. In this context speed of resolution of conflicts 
becomes crucially important. 

Much of the special legislation is directed to creating new bases of 
stability by encouraging more permanent relationships between unions and 
management, by facilitating negotiations, by speedy resolution of jurisdic- 
tional conflict, and by encouraging rapid adjudication in grievance cases 
and interpretation issues during the life of a collective agreement. 

The bargaining unit problem 

Ontario and some other jurisdictions have freed themselves from the 
problems posed by site certifications . Section 1 08 ( 1 ) of the Ontario Labour 
Relations Act states that '... the Board shall determine the unit of em- 
ployees ... by reference to a geographic area and it shall not confine the unit 
to a particular project.' Similarly the Nova Scotia Trade Union Act, 
Section 92 (2), provides that the Construction Industry Panel of the Labour 
Relations Board '... shall determine the unit of employees that is appro- 
priate for collective bargaining by reference to a geographic area." In New 
Brunswick Section 41 (2) of the Industrial Relations Act now provides for 
geographic certification as a general rule but, unlike Ontario and Nova 
Scotia, it does leave discretion to the Board to certify on a project basis if it 
is satisfied that the circumstances warrant a unit so confined. Some other 
provinces have made no special provision to eliminate site certifications. 

The effect of eliminating site certifications and restricting the Board to 
area or geographic certifications is to encourage stability in employer- 
union relations. Strictly speaking, in the case of site certification the 

32 Report on the building industry 

employer's recognition of the union would terminate as soon as the em- 
ployer had completed his contract on the site for which the union held the 
certification. The unit appropriate for collective bargaining would either 
have collapsed or have dwindled and moved on. The union's right to 
recognition would have come to an end. However, while no statistical 
information is available, there is no doubt that in these circumstances 
voluntary continuation of recognition by employers was widely practised 
in Ontario before the province abandoned site certification, and continues 
to be practised in those jurisdictions which have not abolished site 
certification. Recognition is habit-forming. 

It should also be noted that even when site certification was possible, in 
some jurisdictions at least, it was permissible for a Board to certify on a 
geographic basis. The change to area or geographic certifications in On- 
tario was therefore not a revolutionary one since it continued a practice of 
area certifications but dropped the option of site certifications in the con- 
struction industry. The net effect on stabilizing relationships between 
contractors and unions is, nevertheless, important. 

The legal requirements of area certification and the elimination of site 
certifications broadens the base of recognition but it does not entirely solve 
the problem of the 'disappearing bargaining unit.' It is possible that a 
contractor who, either through certification or by voluntary recognition, is 
in an established relationship with a union may complete all his work in the 
designated area and find himself without employees. His unit of employees 
no longer exists. The question arises concerning the status of an agreement 
to renew or amend such a collective agreement. The Ontario law has dealt 
with this problem by providing in section 1 10 that such an agreement to 
renew or amend 'shall be deemed to be a collective agreement notwith- 
standing that there were no employees in the bargaining unit ... affected at 
the time the agreement was entered into.' In other words it would appear 
that once an area bargaining unit is established and operative, either by 
certification or by voluntary recognition, the employer and union can 
conduct valid negotiations for the continuation, with or without amend- 
ments, of their agreement even though there are no employees left in the 
bargaining unit. 

This is an adjustment in the Labour Relations Act to meet realistically 
one of the major problems of construction instability. It tends to make the 
relationship between the employer and the union continuous so that the 
basic structure of the terms and conditions of work and the work rules 
remain and are available for the protection of employees if and when the 
contractor recommences operations. 

Study papers and briefs 33 

A council of trade unions may apply (section 9) to be certified to 
represent a unit of employees appropriate for collective bargaining, pro- 
vided they have each vested appropriate authority in the council to enable 
it to discharge the responsibilities of a bargaining agent. This could have 
the effect of further enlarging the bargaining unit, and increasing em- 
ployer-union stability. 

It is also possible for a union or council of unions to gain bargaining 
rights for a unit of employees of more than one employer either by volun- 
tary recognition or by certification. This would provide for negotiation by 
either a union or a council of unions and a group of employers. And in 
Ontario, while bargaining between a union and a single contractor is 
common, there is a considerable amount of collective bargaining between a 
union on the one hand and an association of employers on the other. If this 
practice spreads, the broadening of the bargaining unit should have the 
effect of stabilizing union-employer relations even further. 

It must be noted that the initiative in achieving certification involving the 
employees of more than one employer rests with the union. Even if an 
association of employers wished to negotiate as a group, a union could 
block the move by insisting on bargaining according to their individual 
employer certifications. In practice unions have sometimes favoured indi- 
vidual bargaining and at others bargaining with employer groups . There are 
tactical advantages in both of these approaches and a union is likely to elect 
the one most advantageous to its own interest. 

Accreditation of employer associations 

Accreditation of construction employer associations has been introduced 
into the Ontario system at the request of employers in the industry. Put in 
the simplest terms, accreditation grants to an employers' organization the 
sole right to represent in collective bargaining all the employers in a sector 
of the industry and in a geographic area whose employees are represented 
in collective bargaining by a particular union. 

Accreditation differs from voluntary associational bargaining in at least 
three important ways. First, the initiative is transferred to the employers 
because only they can apply for accreditation. Secondly, the union is 
compelled by law to accept associational bargaining if the Labour Rela- 
tions Board grants accreditation to the employer association. Thirdly, the 
association has the bargaining rights not only for those employers who are 
members of the association, but also for non-member employers in the 
sector and the geographic area whose employees are represented by the 
union. In other words, the only employers not represented by the associa- 

34 Report on the building industry 

tion are really the non-unionized employers or those under certification by 
another union. 

The law in a number of sections makes it abundantly clear that accredi- 
tation is intended to replace the individual employer by the accredited 
association in all aspects of collective bargaining. The purpose is to 
strengthen the employers' association by removing the opportunities 
available in voluntary associational bargaining to the union to engage in 
shipsaving tactics and deals with individual employers. Section 119(1) 
prohibits individual bargaining. Section 1 19(2) prohibits unions from enter- 
ing into either oral or written agreements to supply workmen to an accre- 
dited employer during a strike or lockout . However, in step backward from 
these provisions in support of accredited employer solidarity section 1 19(3) 
protects the right of an accredited employer to continue or attempt to 
continue his operations during a strike or lockout. 

In other words, the law permits an employer whose bargaining agent, 
the accredited association, is involved in a strike or has called a lockout, to 
undermine employer solidarity and undo much of the good done by the 
original accreditation. It would not be difficult for such an employer to 
overcome any slight disadvantage he might suffer because he is barred 
from asking the union to supply men. He is not prevented from alternative 
forms of recruitment. He can advertise. He can recruit by telephone 
through his foremen and so on. 

There is some logic in support of section 1 19(3). It gives the appearance 
of placing accreditation on the same basis as certification of a union. In case 
of a strike there is nothing in this law to prohibit a workman from taking 
employment with another employer while the strike is on. Indeed there is 
nothing in the law to prevent a workman from reporting to work for his own 
employer against whom the strike has been called by his union. It would 
seem to be logical that an employer represented by an accredited associa- 
tion should have the same privilege of continuing his operation as section 
1 19(3) guarantees. But the consistency is not as real as it seems. The law 
does not guarantee an employee's right to work during a strike, it is silent 
on this issue; and it is quite possible that an employee who continued to 
work would be violating the constitution of his union and would therefore 
be subject to union discipline. Corresponding disciplinary action against an 
employer who continued to operate while the accredited association is 
involved in a strike or lockout appears to be ruled out by this provision in 
the legislation. Therefore, both for reasons implicit in the purpose of 
accreditation and of consistency, section 1 19(3) is difficult to defend. 

The limitations of the jurisdiction of an accredited employers' associa- 

Study papers and briefs 35 

tion are important. Two classifications of employers remain outside the 
authority of the accredited association. These are the non-unionized em- 
ployers and those whose employees are represented by another union. 
This limitation is important because it means that the accreditation does 
not establish a complete system in a sector in an area unless the union upon 
whose recognition the accreditation is based succeeds in unionizing all 
employers in the sector in the area. However, accreditation does cover any 
employer who subsequent to the signing of the agreement between the 
union and accredited association of employers is certified by the union, or 
voluntarily recognizes the union. In other words it is possible for this 
bargaining unit to grow, but its growth depends on the organizing activities 
of the union. 

Arbitration during the life of an agreement 

Collective agreements in Ontario are required by law to include provisions 
for the resolution of complaints regarding the application or administration 
of agreements, and a statutory arbitration clause is presumed to be in- 
cluded in agreements which themselves do not contain such provision. On 
the whole this provision has worked reasonably well in industry generally, 
and it has been useful in construction. However, there have been com- 
plaints concerning certain aspects of grievance arbitration. These involve 
questions of the time involved, the lack of qualified arbitrators, and the 

These arbitration provisions in the Ontario law are applicable to all 
union agreements, and there is no special provision for the construction 
industry. This is not so in all jurisdictions. The system in Quebec is quite 
different from that in Ontario, but so is the entire structure of industrial 
relations in the industry which is governed by a special piece of legislation. 
Perhaps of greater interest to Ontario is the Nova Scotia experiment. Since 
the law of labour relations in that province is in most respects similar to the 
Ontario law, and since Nova Scotia has adopted for the construction 
industry several features of the Ontario law, and particularly the provision 
regarding accreditation of employer associations as well as the device of a 
Construction Industry Panel of the Labour Relations Board, the Nova 
Scotia deviation from Ontario regarding grievance arbitration may have 
relevance in any discussion about reform in industrial relations policy and 
procedure for the construction industry in Ontario. 

Nova Scotia has adopted (for agreements other than in construction) the 
Ontario arrangement of a statutory arbitration clause which is considered 
to be in any collective agreement where the parties to the agreement have 

36 Report on the building industry 

failed to include an arbitration clause of their own. But the Nova Scotia 
general provision differs from the Ontario law in one important respect: it 
makes no mention of a tripartite board of arbitration, whereas the Ontario 
statutory clause is built on the three-member concept. Section 40(2) of the 
Nova Scotia Trade Union Act reads in part '... either of the parties may, 
after exhausting any grievance procedure established by this agreement 
notify the other party in writing of its desire to submit the difference or 
allegation to arbitration. If the parties fail to agree upon an arbitrator, the 
appointment shall be made by the Minister of Labour . . . upon the request of 
either party. The arbitrator shall hear and determine the difference or 
allegation and shall issue a decision 

This Nova Scotia clause clearly displays a bias toward the single arbi- 
trator. It is also noteworthy that it makes no mention of time limits. The 
corresponding clause in the Ontario Act, however, has a bias towards the 
three-member board of arbitration; and it also has a system of statutory 
time limits. Section 37 of the Ontario Labour Relations Act reads in part as 

(1) Every collective agreement shall provide for the final and binding settle- 
ment by arbitration, without stoppage of work, of all differences between the 
parties arising from the interpretation, application, administration or alleged 
violation of the agreement, including any question as to whether a matter is 
arbitrable. (2) If a collective agreement does not contain such a provision as is 
mentioned in subsection 1, it shall be deemed to contain the following 
provision: Where a difference arises between the parties relating to the 
interpretation, application or administration of this agreement, including any 
question as to whether a matter is arbitrable, or where an allegation is made 
that this agreement has been violated, either of the parties may, after exhaust- 
ing any grievance procedure established by this agreement, notify the other 
party in writing of its desire to submit the difference or allegation to arbitra- 
tion and the notice shall contain the name of the first party's appointee to an 
arbitration board. The recipient of the notice shall within five days inform the 
other party of the name of its appointee to the arbitration board. The two 
appointees so selected shall, within five days of the appointment of the 
second of them, appoint a third person who shall be the chairman. If the 
recipient of the notice fails to appoint an arbitrator, or if the two appointees 
fail to agree upon a chairman within the time limited, the appointment shall be 
made by the Minister of Labour for Ontario upon the request of either party. 
The arbitration board shall hear and determine the difference or allegation 
and shall issue a decision and the decision is final and binding upon the parties 

Study papers and briefs 37 

and upon any employee or employer affected by it. The decision of a majority 
is the decision of the arbitration board, but if there is no majority the decision 
of the chairman governs. (3) If, in the opinion of the Board, any part of the 
arbitration provision, including the method of appointment of the arbitrator 
or arbitration board, is inadequate, or if the provision set out in subsection 2 is 
alleged by either party to be unsuitable, the Board may, on the request of 
either party, modify the provision so long as it conforms with subsection 1 . 
but, until so modified, the arbitration provision in the collective agreement or 
in subsection 2, as the case may be, applies. 

It will be noted that the model provided in this Ontario statute is a tri-partite 
board. It is also to be observed that two five-day limits are provided at 
respective stages in the process. This clause applies to construction as to 
other industries in Ontario. 

Nova Scotia has in its construction industry arbitration clause departed 
from both the Ontario provision and the general provision in the Nova 
Scotia Trade Union Act, but it has retained certain features of both. 
Section 103 of the Trade Union Act reads in part as follows: 

(1) Notwithstanding Sections 39 and 40 and any provision in a collective 
agreement, where an employer or an employers' organization enters a collec- 
tive agreement, any dispute or difference between the parties to the collective 
agreement, including the persons bound by the collective agreement, relating 
to or involving (a) the interpretation, meaning, application or administration 
of the collective agreement or any provision of the collective agreement: (b) a 
violation or an allegation of a violation of the collective agreement; (c) 
working conditions; or (d) a question whether a matter is arbitrable, shall be 
submitted for final settlement to arbitration in accordance with this Section in 
substitution for any arbitration or arbitration procedure provided for in the 
collective agreement. (2) Where a dispute or difference arises between the 
parties to a collective agreement to which this Section applies during the 
period from the date of its termination to the date the requirements of Section 
102 have been met, this Section applies to the settlement of the dispute or 
difference. (3) When a dispute or difference arises which the parties are 
unable to resolve, the parties to the dispute or difference shall agree by 
midnight of the day on which the dispute or difference arises upon the 
appointment of a single arbitrator to arbitrate the dispute or difference . 1 4 1 
When one of the parties advises the Minister that a dispute or difference has 
arisen and that the parties to the dispute or difference have failed to comply 
with subsection (3) , the Minister may appoint an arbitrator. (5) Notw ithstand- 

38 Report on the building industry 

ing any provision of this Section, the Minister may, with the written consent 
of the employer and the trade union or unions representing the employees 
who are represented by a trade union, appoint a person to be the arbitrator for 
the purpose of this Section for the term of the collective agreement or for the 
term mentioned in the appointment and the provisions of subsections (3) and 
(4) shall not apply. (6) The arbitrator appointed pursuant to this Section has 
the powers conferred by Section 41 and, without restricting his power and 
authority, his decision shall be an order and may require (a) compliance with 
the collective agreement in the manner stipulated; (b) reinstatement of an 
employee in the case of a dismissal or suspension in lieu of dismissal with or 
without compensation. (7) The decision of the arbitrator shall be rendered 
within forty-eight hours of the time of appointment unless an extension is 
agreed upon by the parties. (8) The parties to the dispute or difference shall be 
bound by the decision of the arbitrator from the time the decision is rendered 
and shall abide by and carry out any requirement contained in the decision. 
(9) An arbitrator appointed pursuant to the provisions of this Section who 
renders a decision in respect of a dispute or difference shall make a report and 
shall transmit the report to the Minister and to the parties. ( 10) One third of 
the fees of, and the expenses incurred by an arbitrator appointed under the 
provisions of this Section shall be paid by each of the Minister and the 
employer or the employers' organization and trade union that are parties to 
the collective agreement in accordance with a scale of fees and expenses 
approved by the Minister. 

The first important feature of the Nova Scotia provision is that it is 
mandatory in the construction industry. It sets aside any provision in a 
collective agreement for arbitration and imposes the statutory clause. 
Secondly it imposes a single arbitrator and leaves no option to the parties to 
design their own system. Thirdly it establishes very short time limits for the 
appointment of an arbitrator, and for the arbitrator to hear the parties and 
render his decision. Fourthly it encourages the use of permanent umpires 
by authorizing the minister to appoint one if the parties agree. Clearly Nova 
Scotia is trying to encourage something close to instant arbitration in the 
construction industry. 

There is merit in this approach although it is rather severe. Yet is should 
be recognized that arbitration loses much of its value if it does in fact 
function as its critics from time to time claim. 

A study under the title 'Justice Delayed' sponsored by the Labour 
Council of Metropolitan Toronto and concerning all grievance arbitration 
reports filed with the Arbitration Commission in the period from 1 Sep- 

Study papers and briefs 39 

tember 1971 to 1 September 1973 reveals that the median time from the date 
of the grievance to the date of the final award was approximately six 
months for cases handled by a single arbitrator and eight months by a 
three-member board. The authors make the following significant state- 
ment, 'It may be that the results of a tripartite review are more acceptable 
to the parties since each side can be assured that its position has been 
pressed before the arbitrator through its nominee. However, the chairman 
of the Tribunal is chosen for his perceived impartiality and neither side 
seriously expects him to be influenced by the pleadings of its spokesmen. 
The basis of support for the tripartite system may indeed be illusory. It may 
very well be that a speedy Just remedy is one of the desired products of any 
judicial or quasi-judicial system and certainly of the entire arbitration 
process itself.' 

If arbitration, as it now functions, is viewed as unsatisfactory in industry 
in general it must be all the more unsatisfactory in construction where, for 
reasons already stated, the time element is so crucial. It may not be 
necessary to introduce legislation as severe and inflexible as has Nova 
Scotia. Nevertheless, the objectives of that law are on the whole sound. 
The basic goal is speed. This is to be achieved in three ways. One is to 
establish tight time limits within the process, another is to require the single 
arbitrator, and the third is to encourage an established umpire so that an 
arbitrator is always available. 

It is possible that it may be very difficult to live within the time limits set 
in Nova Scotia, and perhaps more time might be permitted. Yet it is equally 
important to remember that the longer settlement is delayed, the less likely 
will there be confidence in the system, and the more probable will be resort 
to pressure tactics, slow downs, spontaneous wildcat strikes and even 
illegal work stoppages. 

Some representatives of labour and management are distrustful of the 
single arbitrator. No evidence indicating substantial justification for this 
distrust has come to light. Yet, regardless of merit, the attitude of the 
parties is important and should be respected. There is a tradition of tripar- 
tite labour relations devices in Canada which goes back about three- 
quarters of a century to the conciliation boards under the Industrial Dis- 
putes Investigation Act whose principles and procedures are now incorpo- 
rated in the Canada Labour Code and corresponding labour relations acts 
of many of the provinces. Until fairly recently, drafters of labour legislation 
have been strongly disposed to accept tripartitism as the normal form of 
tribunal in labour relations whether in the area of conciliation or of arbitra- 
tion. The industrial community has become accustomed to this board 

40 Report on the building industry 

system and has been slow to shift over to the single arbitrator. A study in 
1 96 1 by the present author of 500 Canadian Collective Agreements showed 
that only 10 per cent provided for single arbitrators. But in Ontario the 
proportion choosing the single arbitrator was higher at 23 per cent. There 
seems to have been some increase in the single arbitrator systems, but the 
study of the Labour Council of Metropolitan Toronto shows that over 63 
per cent were still using the multi-member boards in 1973. 

It is suggested that two alternative types of arbitration legislation might 
be considered for the construction industry of Ontario. 
Type A : The law should contain an arbitration clause which provides as 
follows: (a) the parties should be required to include an arbitration clause; 
(b) failing such a clause a statutory clause should be presumed to be 
included; (c) the statutory clause should provide for a single arbitrator; (d) 
short time-limits on the appointment of the arbitrator, on the hearing, and 
on the rendering of the award should be established in the law. These might 
be a little less severe than Nova Scotia, although it is better to err on the 
side of speed in order to put pressure on the parties to complete the 

Type B : The law should contain an arbitration clause which provides as 
follows: (a) the statutory clause outlined in (b), (c), and id) above should be 
presumed to be in all construction collective agreements except as pro- 
vided below; (b) the parties could replace the statutory clause only by 
authority of the Construction Industry Panel of the Labour Relations 

The difference between these two proposals is one of emphasis. The 
first imposes on the parties the duty to include an arbitration clause, and 
provides a statutory clause in case they fail to do so. The second provides a 
mandatory single arbitrator clause which can only be replaced by one 
designed by the parties by authority of the Board. The second has the 
merit, if the single arbitrator is considered an advantage to speedy settle- 
ment, that it builds in the single arbitrator, but unlike the Nova Scotia Act, 
it permits the parties to change the procedure if the change is sanctioned by 
the Construction Industry Panel of the Labour Relations Board. 

It is suggested that the second of these alternatives is preferable to the 
first in that it should discourage the use of tripartite boards of arbitration 
because it forces the parties to take formal action before the Panel if the 
statutory clause is to be replaced. Secondly, the tight statutory time limits 
recommended and the existing authority of the minister to appoint an 
umpire, on the joint approval of the parties, for the duration of the agree- 
ment, should encourage the use of permanent umpires or arbitrators. 

Study papers and briefs 41 

Such a policy should eliminate some of the reasons for complaint about 
arbitration. If permanent umpires are appointed, resort to arbitration could 
be immediate. The time limits would force the parties to develop simplified 
procedures which might reduce the resort to legalism now so widely 
criticized. Also speed should sharply reduce the cost. Finally, if effective, 
speedy and reliable arbitration can be developed, confidence in the process 
should be restored and the temptation either to set aside the rule of law by 
resort to illegal walkouts, or to achieve the same ends by threats of 
economic force would not be so great. Thus, one of the sources of instabil- 
ity and unrest might be brought under control. 

One further observation on arbitration needs to be made regarding 
arbitration during the life of an agreement. There is an impression rather 
widely held that arbitration is solely an employee's defensive instrument. It 
is suggested that this is much too narrow a view and that, particularly in 
construction, there is need to recognize that there are collective rights of 
the union as an organization, and also of the employer or employers' 
association. Most arbitrations are concerned with employee grievances, 
and most collective agreements are written in language which reflects a 
preoccupation with employee rights under the agreement. Grievance arbi- 
tration serves to protect the employee, and to a large extent it protects the 
union in its rights since these are frequently associated with employee 
rights. But there are some rights of the union as an entity which should be 
protected by the agreement without reference to a particular grievance field 
by an employee. Regulations regarding the union presence on the premises 
may be cited as illustrative. 

On the employer side the situation is somewhat different since the 
management is always in the active role of decision-making. Consequently 
management rights in the relationship are largely protected by 
management's authority to direct the work force, and to discipline for 
cause. But there is one situation in which management has no authority 
within itself to insure its own protection. This is the case when the action 
threatening a management right under the agreement is a collective one 
such as a strike in the face of a clause in the agreement which forbids strikes 
during the life of the agreement. It is submitted that employers in general, 
and perhaps construction employers in particular, have not sufficiently 
recognized arbitration as an instrument of defence against strikes in viola- 
tion of their collective agreement. This is not to ignore the well-known 
difficulty of establishing union complicity in a collective withdrawal of 
work, and hence in making a case that the union has violated the agree- 
ment. That difficulty is usually present. Yet if the problems of walkouts, of 

42 Report on the building industry 

slow downs, and activities such as picketting the job site during the life of 
an agreement are to be solved, a strong case can be made for doing so 
through the adjudicative machinery in the hands of the parties than by re- 
sort to the courts. If this is to be the case, more attention must be paid to 
arbitration clauses in the agreement by the parties when agreements are 
negotiated. But in any case it is important that if a special statutory 
arbitration clause applicable to construction industry is introduced into the 
Labour Relations Act it should contain language that ensures the right of 
unions and employers to seek protection through arbitration. The present 
section 37(2) of the Ontario Act and 103 of the Nova Scotia Act do appear 
to establish this right. 

But as suggested, the real problem in this situation may be with the 
attitude of the parties and a limited view that arbitration is for grievances. It 
is possible, for example, that the fact that in Ontario and practically all of 
Canada the strike is prohibited during the life of an agreement, and arbitra- 
tion in this period is compulsory, employers have been encouraged to look 
upon a strike as a violation of the law rather than a breach of the union's 
contractual obligation. This may explain the preference for going to court 
rather than to arbitration. Yet arbitration has the advantage that the matter 
is confined to the industrial relations issue of the obligation undertaken by 
the unions to the employer under the agreement. It avoids the question of 

In summary, public policy in Ontario has made no special provision for 
the construction industry in the area of rights arbitration. Consideration 
might be given by public authorities to an improved system which recog- 
nizes the crucial importance of speedy settlement, which encourages the 
single arbitrator as against the tripartite boards, and protects the right of 
unions and management to arbitration on their own account. In addition, 
the parties of interest should give serious thought to the use of permanent 
umpires rather than ad hoc arbitrators. These improvements should help to 
speed up the process, avoid wildcat strikes, place more responsibility for 
maintaining industrial peace on unions, and possibly reduce the cost of 
arbitration itself. 

Jurisdictional disputes 

It was suggested in Part x of this report that it is doubtful whether the 
jurisdictional dispute resolution mechanisms developed in the industry or 
established in the Labour Relations Act can meet fully the emerging chal- 
lenge of change. It is now time to examine this problem more thoroughly. 

Study papers and briefs 43 

As a start attention will be directed to the provisions in the Ontario Labour 
Relations Act and in other Jurisdictions as well. 

The provision for the resolution of work assignment disputes in the 
Ontario Labour Relations Act is not confined to the construction industry. 
Section 81(1) reads in part as follows: 'The Board may inquire into a 
complaint that a trade union . . . was or is requiring an employer ... to assign 
particular work to persons in a particular trade union or in a particular 
trade, craft or class rather than to persons in another trade union or in 
another trade, craft or class , or that an employer was or is assigning work to 
persons in a particular trade union rather than to persons in another trade 
union, and it shall direct what action, if any, the employer ... the trade 
union shall do or refrain from doing with respect to the assignment of 

In effect this general authority empowers the Labour Relations Board to 
make work assignments on the job site where a complaint is filed that an 
employer has made an assignment in accordance with a requirement by a 
particular union. Usually this means that one union is claiming that the 
work is within the scope of its jurisdiction, and therefore should be per- 
formed by its members rather than by the members of another union to 
whom the employee has assigned the work. In the context of the construc- 
tion industry this means that jobs are at stake. 

The situation is complicated in Ontario by the fact that there has existed 
for several decades the joint machinery for the resolution of jurisdictional 
disputes in the industry located in Washington. The Ontario law, without 
specifying it, recognizes this kind of machinery in Section 81(13) and (14) 
which read: 

( 1 3) Where a trade union or council of trade unions and an employer or an 
employers' organization have made an arrangement to resolve any differ- 
ences between them arising from the assignment of work, the Board may, 
upon such terms and conditions as it may fix, postpone inquiring into a 
complaint under this section until the difference has been dealt with in 
accordance with such arrangement. 

(14) The Board shall not enquire into a complaint made by a trade union, 
council of trade unions, employer or employers' organization that has en- 
tered into a collective agreement that contains a provision requiring the 
reference of any difference between them arising out of work assignment to a 
tribunal mutually selected by them with respect to any difference as to work 
assignment that can be resolved under the collective agreement, and such 

44 Report on the building industry 

trade union, council of trade unions, employer or employers' organization 
shall do or abstain from doing anything required of it by the decision of such 

It is difficult for the layman, untutored in the niceties of legal language to 
know precisely what the difference between these two subsections really 
is; (13) uses the term 'arrangement' while (14) uses 'collective agreement.' 
The Board retains discretion in the first but not the second. Presumably the 
arrangement to resolve might not include a provision for a binding decision 
whereas the collective agreement clause providing for a referee would. 

Another provision in the Ontario law must be noted. Included in the 
special part of the Act which applies to the construction industry only is 
section 1 24 which requires unions and employers in the construction indus- 
try, who have entered into a collective agreement, to designate jurisdic- 
tional representatives to act in the event of a dispute as to the assignment of 
work. Sections 81(3), (4), and (5) require the appropriate jurisdictional 
representatives to meet and attempt to resolve the jurisdictional dispute as 
an intervening step before adjudication by the Board. 

While this intervening step appears to have some merit, the Royal 
Commission was informed by representatives of labour and management 
as well as departmental officers that it has not worked. It appears to be 
practically a dead letter. The value of a procedure to be used by the parties 
themselves before having access to the Board would rest on speed and the 
fact of co-determination among the parties of interest. If it does not provide 
speedy decisions as to which trade is to get a work assignment the com- 
plainant may witness the work being completed by others even if the 
complainant receives the assignment. 

Perhaps a new approach is needed - one that produces a settlement 
quickly after a complaint is filed. The present system is cumbersome and 
slow. True it does provide that the Board may act quickly and issue an 
interim order of assignment where the complainant alleges a strike is 
imminent or taking place. But it appears that the Board in these situations is 
inclined to issue an interim order upholding the assignment already made 
by the employer. This may prevent a strike but it also may protect a wrong 
assignment. If, as has been represented to us, those who stand to benefit by 
the original allocation prolong the hearing before the Board by devices all 
too prevalent in industrial conflict resolution, the play for time can defeat 
the complaint, not on its merits, but by the passage of time. 

The difficulty with speedy determination is that it may not give ample 
time for the presentation of relevant evidence, and this may be a denial of 

Study papers and briefs 45 

justice. Can a system be designed which overcomes this problem and at the 
same time permits the operation on the construction site to continue 
without interruption? Unless such a formula can be found the industry 
faces either continuing injustice or disruption or both. There is no perfect 
solution but it is possible that a closer approximation to maximizing these 
goals can be achieved. The proposal which follows is advanced in that 

It is suggested that any machinery such as that envisaged by section 81 
(3), (4), and (5) and section 124 be no longer imposed by law, but that the 
parties in the industry or sectors thereof be free to design such machinery 
as they wish, or to have no machinery. Secondly, instead of a more or less 
automatic interim award which merely confirms the status quo, the com- 
plaint should be investigated by an officer of the Board who would be 
empowered to make a firm assignment based on his investigation. This 
might uphold the original assignment of the employer, or it might require 
the employer to reassign the work to the trade presenting the complaint. In 
any case, the parties of interest would be required to respect the decision. 
However, there would be a right of appeal to the Construction Industry 
Division of the Board whose ruling would be final. 

This proposal differs from the present system in a number of ways. In 
the first place this award of the investigating officer is intended to be a true 
reflection of the merits. It would undoubtedly require the services of a high 
calibre investigator who also would need to have a good knowledge of the 
industry. It calls for professional competence. Secondly it avoids a dubious 
feature of the present law which makes a strike or threat of a strike 
necessary before the Board can issue an interim order [section 81(8)]. Such 
a provision forces someone to promote a strike in order to get protection 
from the Board. Thirdly, while the decision of the investigator would be 
based on his administrative judgment in relation to his view of the facts, 
natural justice is protected in the right of appeal by a party disputing the 
investigating officer's decision. 

This does not preclude the industry from developing its own machinery 
for the resolution of jurisdictional disputes. Indeed the removal of the 
present statutory jurisdictional representatives might open the way to 
innovation and inventiveness by the parties and encourage them to solve 
their problems themselves. 

The situation in Ontario has been plagued by conflict over the jurisdic- 
tions of the joint machinery in Washington and the Ontario Labour Rela- 
tions Board. Representations to the Royal Commission indicate that, in 
general, employers favour having their cases heard by the Board in On- 

46 Report on the building industry 

tario, whereas most unions prefer the private machinery in Washington, 
although at least one union indicated a strong preference for having these 
task assignment disputes settled by the Ontario Labour Relations Board. 
Some construction unions who favour the private machinery argued that 
there should be only one authority and this should be the Impartial Jurisdic- 
tional Disputes Board in Washington. They claimed that having two au- 
thorities opens the door to abuse. Parties will try to manipulate their way 
into appearing before the tribunal most likely to favour their respective 
positions. Moreover, the private system has an accumulation of decisions 
and precedents which are based on criteria which have over the years 
become well known to those involved in the industry. This background of 
knowledge and decisions of record makes it possible to get quick assign- 
ment awards and hence reduces jurisdictional conflict to a minimum. 
Those who hold these views argue that the authority granted to the Labour 
Relations Board to adjudicate these issues is disruptive of the private 

Certainly it is true that cases before the Board in Ontario take much 
more time than those that are handled in Washington. In the construction 
industry this can be damaging because of the need for speedy resolution of 
these disputes. 

There appears to be a more fundamental issue under the surface than 
meets the eye in this dispute over the proper vehicle for the resolution of 
jurisdictional disputes. This is not simply the mechanical question of what 
machinery is to be used. Particularly important are the criteria to be used. If 
the Board introduces new criteria, or if it places greater emphasis on 
certain criteria than does the private tribunal, the decisions of the two 
systems will be different. The employers have indicated the need to use the 
Board on the grounds of greater familiarity with local circumstances and to 
take these local circumstances into account. There is also reason to believe 
that the Ontario Board pays more attention to the cost effects of task 
assignment. If, as it is alleged, the Labour Relations Board gives priority to 
cost factors it is understandable that the employers would prefer the 
decisions of that Board. Similarly it explains the distaste for the Labour 
Relations Board of those unions whose trades are threatened most by 
technological change in the industry. On the other hand, predator unions 
serving lesser skilled workmen would derive benefit from cost conscious 
jurisdictional decisions. 

The public policy problems involved in the resolution of jurisdictional 
disputes in the construction industry are formidable. If there were no 
orderly procedures for their resolution jurisdictional conflicts would be 

Study papers and briefs 47 

settled by the exercise, or threat of the exercise, of industrial power. Yet 
that method could be very costly indeed. It also would fly in the face of the 
established policy forbidding work stoppages during the life of a collective 

The unions and employer organizations in construction in the United 
States designed private machinery for the resolution of conflicts over 
jurisdiction to avoid the resort to force. But that system raises questions of 
public policy in Ontario with regard to at least three matters. A brief 
examination of these matters follows: 

1 / The private machinery was designed to include on the union side only 
unions affiliated with the Construction Trades Department of the afl-cio. 
This means such well-known unions as the Carpenters, the Bricklayers, 
the Sheetmetal Workers, the Electricians, the Plumbers, and others. These 
international unions dominate the unionized sectors of the industry in 
Ontario, and indeed in Canada as a whole except in Quebec where the 
Confederation of National Trade Unions and one or two others represent a 
significant portion, although not a majority, of the workers. Even in On- 
tario there are a few 'independents.' All of these outsiders are denied 
access to the Impartial Jurisdictional Disputes Board in Washington. To 
admit them would be to violate a long cherished and widely held union view 
that dual unionism is intolerable in the labour movement. The internation- 
als have many times made it clear that they oppose the presence on the 
construction sites of construction unions which are not affiliated. 
Moreover, the rejection of dual unionism would be a total barrier to the 
admission of the independents to the jurisdictional disputes system. Even if 
they could bring cases to the joint private machinery it is unthinkable that 
justice would be done. For this reason alone there would appear to be a 
need for a public system. 

2 / Private machinery controlled by the unions and employer organizations 
in the industry is likely to reach decisions which tend to protect high cost 
obsolescence in the construction methods used. An employer who finds 
that the jurisdictional dispute machinery requires him to assign work to a 
trade with high wage rates rather than to another of lower rates may be 
discouraged from introducing labour cost-saving changes. Since the deci- 
sions of the Impartial Jurisdictional Disputes Board in Washington and its 
predecessor, the National Joint Board for the Settlement of Jurisdictional 
Disputes, are based on tradition and precedent and earlier decisions of 
record as contained in the 'Green Book/ they tend to support somewhat 
outmoded jurisdictional descriptions and the web of restrictive work rules 
woven around them by earlier union pressure. The strong open-shop 

48 Report on the building industry 

movement in the industry in the United States at the present time appears 
to be at least partly a reaction to union barriers to change. And while 
jurisdictional disputes represent conflicts of interest among different 
trades, their resolution by private machinery is bound to have a depressing 
impact on the rate of change in the technology of production. 
3 / Closely related to the question of protecting skill obsolescence is the 
support the joint private machinery may give to structural obsolescence, 
particularly on the union side. If the balance of influence of technological 
change is in the direction of reducing the importance of the separate trades, 
it is likely that efficient use of manpower calls for considerable restructur- 
ing of unions in the industry. This could take the form of multi-skill units 
represented either by councils of unions from different trades or by the 
emergence of unions who take for their jurisdictional territory functions 
now assigned to two or more trades. Those unions which have collective 
agreements with general contractor associations, and hence have the op- 
portunity to extend their agreements by subcontract clauses have a power- 
ful instrument in support of their jurisdictional territory in spite of tech- 
nological change. The evolution of union structure in response to the 
opportunities presented by technological possibilities may be delayed or 
stopped and the public denied the benefits of change. 

It is easy to recommend that in the settlement of jurisdictional conflicts 
in construction there is a public interest to be taken into account, and that 
therefore there is a role for some public agency such as the Labour Rela- 
tions Board in the making of disputed work assignments. But there are 
conflicting public interests to be taken into account. The public is con- 
cerned with industrial peace on the construction sites and this gives sup- 
port to a Labour Relations Board function if these disputes cannot be 
settled with dispatch and with justice to the parties of interest. Justice in 
this case must relate to some set of criteria which is widely accepted by all 
concerned. Yet it is this question of acceptable criteria where there is 
bound to be much controversy. 

It was noted that the Labour Relations Board pays more attention to the 
cost element. In other words the Board is inclined to add criteria in support 
of the public interest not only in relation to industrial peace, but also with 
regard to the costs of construction. It is a question whether criteria derived 
from the experience of the parties, which look not only to industrial peace 
but also to the preservation of existing rights in a world of change, are 
compatible with criteria such as costs of construction which are matters of 
interest to the employers and particularly to the buying public. 

The theme of this paper was described in an earlier section as being 

Study papers and briefs 49 

principally the need for speed in the resolution of all forms of conflict in the 
construction industry; and this element is important in the industry. But in 
the assignment issue there is the problem of the contents of the decisions 
also. In effect this is saying that the industry and its unions and employer 
associations cannot be relied upon to make assignments that conform to the 
public interest. 

The legislation has recognized the importance of the principle that so far 
as possible the private parties of interest should bear the burden of respon- 
sibility of resolving conflicts with industrial peace as a goal. It does so by 
permitting the Board to postpone hearings in a situation where the parties 
have made an arrangement to resolve differences concerning assignment 
[section 81(13)], and by prohibiting the Board from investigating a com- 
plaint made by a party which has entered into a collective agreement con- 
taining a provision for referring such a work assignment to a tribunal 
established for that purpose [section 81(14)]. In other words agreements to 
deal with jurisdictional complaints before the Impartial Jurisdictional Dis- 
putes Board take precedence over the Labour Relations Board. If all of the 
parties in the industry should be bound by agreements providing for settle- 
ment by private machinery there would be no cases before the Board. In 
other words, the legislators appear to have recognized application to the 
Labour Relations Board as a standby arrangement to function when private 
machinery was not available. 

The problem of criteria in effect makes the public system under the 
Labour Relations Board something more than a standby alternative. It 
makes it a different system because it emphasizes the cost element, and to a 
degree because of the weight given to local circumstances. 

The dilemma of public policy is that it is trying to support two proce- 
dures which appear to be incompatible. The Ontario Board system is 
available as a right. The law, however, permits the parties to opt out by 
accepting the procedure of the Impartial Jurisdictional Disputes Board in 
Washington. But to do so requires that all parties of interest accept this 
procedure. In a sense the objectives of the law would be achieved if all 
parties elected the Washington system and no cases came to the Board. But 
that is not happening for the reasons outlined above. It was indicated in 
discussion, for example, that some contractor groups refuse to sign agree- 
ments which require the use of the private system injurisdictional disputes. 

In spite of these difficulties, the case for maintaining the authority of the 
Ontario Labour Relations Board is strong. But two matters require atten- 
tion. First, there should be some reform which will guarantee speed. The 
investigator proposal outlined above is one possible way of achieving this. 

50 Report on the building industry 

and it is consistent with the spirit of clause 91(13) dealing with certification. 
Secondly, there needs to be clarification of the goals of the system. Indus- 
trial peace is one, and this means speedy resolution of disputes. A refining 
of the jurisdictions of the various unions in the light of change is another. 
The third, and most formidable, is some general agreement by unions, 
employers, and public authority on the criteria to be used. 


The most dramatic legislative experiment in Canada which attempts to deal 
with the industrial relations problems peculiar to the construction industry 
is that of Quebec . The Construction I ndustry Labour Relations Act was first 
passed in 1968 and has been amended each year since. It may be looked 
upon as a massive attempt to cope with all of the areas of instability in 
construction labour relations in one major piece of legislation. It is risky to 
take any specific provision and treat it in isolation in comparison with a 
clause in the Ontario Labour Relations Act directed at the same problem 
area. The reason that this is so is the interdependence of the various clauses 
and their impact in application on one another. Thus, for example, the 
introduction of statutory recognition of certain union organizations and 
employer associations radically alters the problem of unfair labour prac- 
tices, although it was designed to stabilize the union side and the formal 
structural relationships of the union and employers in the industry. These 
observations on the Quebec system are introduced here, not with the 
notion of recommending imitation of any specific provision, but because in 
the course of our investigations there were frequent references by some of 
the parties of interest and others outside the industry, to the Quebec 
experiment. There is considerable interest in the Quebec system, and some 
of the proposals coming to our attention are themselves imitative in part at 
least. Therefore, it seemed wise to present at least a short outline and 
analysis of the Quebec system for purposes of perspective. 

Public policy in Quebec has established collective bargaining in con- 
struction on a multiemployer and multiunion basis, using the geographic 
principle and the procedure of jurisdictional extension of the collective 
agreement. There is no certification of unions under the Labour Code, nor 
is there accreditation of employer associations as in Ontario. Replacing 
these two procedures was in the first instance statutory recognition on the 
union side of certain central union bodies including the Quebec Federation 
of Labour on behalf of its construction affiliates and the Confederation of 
National Trade Unions on behalf of its construction affiliates. Individual 

Study papers and briefs 51 

unions are not certified. On the employer side the law recognized five 
associations of employers including the Quebec Construction Federation, 
the Provincial Association of Residential Contractors, the Association of 
Roads and Highway Builders, the Corporation of Master Electricians of 
Quebec, and the Corporation of Master Pipe-Mechanics of Quebec. 

Sole right to negotiate on behalf of the respective sides rests with these 
named organizations. No other negotiation is legal. It is true that the law 
provides for the termination of these rights or for the granting of rights to 
new associations annually on the basis of an investigation and in accor- 
dance with a complicated membership percentage formula (sections 6, 7, 
8). But the fact remains that dislodgement is highly unlikely. Originally the 
law provided for the negotiation of a collective agreement 'for the whole of 
the province of Quebec or a stated district.' This was repealed in 1973 and 
replaced by the following (section 13), 'Any collective agreement made 
under this Act shall determine the conditions of employment applicable to 
all trades and employments in the construction industry in the province of 
Quebec; only one agreement may be made with respect to such trades and 
employments.' Thus Quebec now provides for only one collective agree- 
ment for the entire province, for the entire construction industry. 

For many years Quebec has had on its statute books the Collective 
Agreement Decrees Act which provides for the extension by decree on 
application to the minister of the terms of a collective agreement negotiated 
between a union or council of unions and an employers' organization. In 
this way, a private negotiation can be converted into a public law by 
proclamation. In the new Construction Industry Act, the principle in- 
volved is contained in Section 14, which reads: 'The Lieutenant-Governor 
in Council, upon petition of any representative association which has 
signed a collective agreement, may order that such agreement shall also 
bind all the employees and employers in the construction industry in the 
province of Quebec' In other words the bargaining parties are in effect 
legislating for the whole province for the whole industry. 

The question might be asked as to why there is any necessity to convert 
the sole collective agreement in the industry into a decree. The answer is 
that the decree is a proclamation of the government and therefore, has the 
status of public law in addition to its status as a private agreement. Juridi- 
cal extension also establishes the legal status of employers and employees 
who are not identified with any of the representative associations involved 
in the negotiations. Section 17 states in part: '... The clauses of the agree- 
ment reproduced in the decree ... shall become executory for all the 

52 Report on the building industry 

employers and all the employees . . . ' And section 20 reads: 'The adoption of 
the decree shall render all the clauses of the collective agreement obliga- 
tory; its provisions entail a matter of public order.' 

Most Canadian labour relations acts impose requirements for the inclu- 
sion of some particular provisions in any collective agreement. Common 
are procedural requirements such as recognition, the length of agreements, 
grievance arbitration, and the like. The Quebec Construction Industry 
Labour Relations Act goes much farther than any other: (section 28) 'The 
decree must contain provisions respecting the classification of employ- 
ments, remuneration, payroll, working hours, overtime, holidays, vaca- 
tion with pay, notice of dismissal, complementary security plan, the term 
of the decree and the procedure for amending the decree. The decree must 
also contain provisions respecting union security, including the advance 
deduction of assessments, union delegates, the procedure for settling 
grievances and the exercise of employees' recourses against disciplinary 
measures taken by the employer.' The framework is mandatory. There is 
also a comprehensive list of items which may be included in the decree such 
as seniority, mobility of manpower, work in rotation, night work, Sunday 
work, and wage increases, bonuses, various indemnities and allowances, 
notice boards, cloakrooms, and tools. 

This attention to detail is not surprising in the light of the sole authority 
vested in the representative organizations to negotiate the agreement and 
request its juridical extension as the industrial relations law governing the 
construction sites. 

Section 30 provides for the arbitration of grievances. The parties are 
required to choose a single arbitration officer at the time of negotiation, but 
if they cannot agree, the minister shall appoint one from among the persons 
whose names appear on an official list. The arbitrator is required under 
section 31 to render an award within five days of the end of the inquiry or 
within a maximum of sixty days. This is not as drastic as the Nova Scotia 
provision but it is similar in that it imposes a single arbitrator and sets 
inflexible time limits. 

A contentious problem area whose ramifications are revealed in the 
proceedings of the Royal Commission is that involving union membership, 
subcontract clauses and work allocation. Some of the Quebec provisions 
are instructive. Section 33 contains the usual provision guaranteeing an 
employee the right to join an association of his choice, but it also prohibits 
him from belonging to two unions at the same time, a practice not unknown 
in Ontario especially in circumstances of sharp union rivalry. In Quebec a 
union member may withdraw from membership but only during the 

Study papers and briefs 53 

seventh month before the date of expiry of the decree or agreement. In that 
month he may transfer from one union to another. 

Particularly important, in the light of union security and subcontract 
clauses in Ontario is the following: Section 33a 'No employer ... shall 
refuse to employ or dismiss a person because such a person or the associa- 
tion of employees of which he is a member ceases or declares his or its 
intention to cease to be affiliated or with a representative association or to 
pay union assessments to such representative association.' 

And along the same lines, section 39 forbids a union from resorting to 
discrimination against an employee for the sole reason that he belongs to 
another union or no union. Section 40 forbids an employer from refusing to 
hire an employee for the sole reason that he was not referred through a 
union or its hiring hall. In other words lack of access to a hiring hall shall not 
be a bar to obtaining work. And section 41 provides that no union shall 
refuse membership to an employee because he was not hired through its 
hiring hall. 

Before consideration of the implications of these provisions a few more 
unusual features of the Quebec system should be mentioned. 

Consistent with the principle in the Collective Agreement Decrees Act 
the Construction Industry Act provides for a joint parity commission 
clothed with legal entity and empowered to administer the decree. It is 
made up of persons representative of the representative associations and a 
chairman appointed by the government after consultation with the parties. 
It has very large powers and assumes much of the character of a governing 
body of industrial relations in the industry. 

There is special provision for enforcing rights guaranteed by the section 
dealing with freedom of association. Section 42 paves the way for com- 
plaints to the minister who is empowered to appoint an investigating officer 
and impose an arbitrator after eight-days' delay . The arbitrator's award is to 
be rendered within thirty days and is binding. The burden of proof is on the 

There has been much debate about who should take the initiative in 
prosecutions for violation of the labour relations acts of the various pro- 
vinces. Some argue that the victims of legal violations should bear the 
responsibility of prosecution. Others argue that this should be a function of 
public authority, on the grounds that an action in court by one of the parties 
in the construction industry may lead to reprisal action and further damage 
to the innocent party. Clause 56^, inserted in the Quebec Construction 
Industry Labour Relations Act in 1972, is interesting. It reads as follows: 
'The Attorney-General shall make an inquiry each time a written com- 

54 Report on the building industry 

plaint brings to his attention an infringement of this act; if he is of opinion 
that such infringement has occurred, he shall prosecute the offender as 
circumstances warrant.' 

In some jurisdictions attorneys-general have been reluctant to assume 
this responsibility. In Quebec the law makes it clear that there is a respon- 
sibility on this public officer. 

There are many more clauses which bear witness to the fact that Quebec 
is engaged in a massive experiment in construction industry labour rela- 
tions. Those outlined will suffice to indicate the nature of the experiment. It 
remains to consider the various provisions in relation to the problems 
inherent in the industry, and in particular those involving insecurity and 

The first important feature to note is that Quebec has, for the construc- 
tion industry, abandoned the principle so jealously defended by North 
American unions, and especially construction unions, which holds that 
dual unionism is not to be tolerated. The law provides a place at the 
bargaining table for any union central which can meet the necessary mem- 
bership percentage requirement. 

Secondly the concept of bargaining units based on membership in a 
given union in a specific territory is abandoned in favour of a single unit of 
all employees in the industry in the province. There is no sector which is 
not covered by the decree. 

Thirdly bargaining by union locals or by a particular trade is replaced by 
multitrade union and multiemployer associational bargaining for the pro- 

Fourthly bargaining is really concerned with the decree which means 
that private agreement is converted into public law and regulation. 

The Quebec law should eliminate much of the conflict between em- 
ployers and employees over union membership since discouraging mem- 
bership does not relieve the employer of the costs imposed by the collective 
agreement. The decree covers the non-union as well as the union em- 

The system does not eliminate the conflict among unions for members, 
but it does limit open competition to one month in each year when em- 
ployees are free to change their union allegiance. But the significance of 
membership is altered by the legal barriers to discrimination in employ- 
ment and discrimination regarding union membership. The Quebec law 
contains a form of 'right to work' clause since union membership cannot be 
used as a requirement for employment in the construction industry. Simi- 
larly the use of subcontract clauses to guarantee the allocation of work to 

Study papers and briefs 55 

the members of a particular union is also ruled out. However, there is 
imposed on general contractors and the subcontractors a joint responsibil- 
ity to ensure the payment of wages fixed by the decree. This, if effective, 
should eliminate the practice present in other jurisdictions of subcontract- 
ing to non-union employers in order to avoid the high labour costs of 
unionized employees. 

Embedded within the authority of the Parity Commission is the power to 
resolve work assignment disputes among unions. Indeed the functioning of 
the Parity Commission is crucial to the success or failure of the system. For 
this reason it has been clothed with a great deal of authority to establish 
systems of registration of work, to impose employment record system on 
employers, to require monthly reports, levy on the employers and em- 
ployees the amounts required to finance its operations, and so on, subject 
to approval by the lieutenant-govemor-in-council. 

It would appear that if the Quebec system operated as intended in the 
legislation, most of the instability and uncertainty which beset labour 
relations in the industry would be reduced or eliminated. This is not the 
place to engage in a detailed critique of the system, but one or two illustra- 
tions of the difficulties encountered may be instructive. 

Sectorial bargaining on the grand scale was bound to produce tensions 
and strains among the unions. The presence of the cntu and the interna- 
tionals at the same bargaining table invited tactical manoeuvering between 
these union centrals and led to deadlock. There was no way to resolve the 
conflict between the right of both organizations to be involved in the 
negotiations and at the same time to protect the minority party in its right to 
an effective say in the process. Either the minority would have a veto 
power or no power. It is not surprising that at one stage the minority 
representatives withdrew from negotiations. 

There appears to have been considerable violation of the basic freedom 
of association. In spite of the law, in some instances employers have faced 
the old problem of picket lines established to protect the presence on job 
sites of employees who were members of another union. 

There is also some indication that the system imposes on the unions, 
both as between the cntu and internationals, and among the internationals 
themselves, severe problems of accommodation to reach policy decisions 
which can make possible an agreed position vis-a-vis the employers. 

Ontario can learn from the Quebec experiment in sectorial bargaining in 
the construction industry, and the lessons are both positive and negative. 
Something approximating the Quebec procedure for grievance-handling 
has already been suggested in this report. The settlement of jurisdictional 

56 Report on the building industry 

disputes cannot be accomplished on the Quebec model because of the 
absence in Ontario of anything like the Construction Industry Commission 
of Quebec. What is needed is change that speeds up the present procedure 
and strengthens the authority of the Ontario Labour Relations Board. 
Proposals have already been advanced to this end. 

On the more fundamental question of bargaining structure, it is unlikely 
that either construction labour or construction employers will favour mul- 
titrade and multiunion bargaining on a provincial basis. There is evidence 
of more than a casual interest in province-wide bargaining on a single union 
basis. If this movement should succeed there would be only as many 
bargaining units as there are unions in the industry. It is a concept consis- 
tent with the philosophy that opposes dual unionism. In Quebec the system 
attempts to solve the problem of competitive unions by supporting dual 
unionism in both the bargaining process leading to the decree and on the 
construction sites. It has not been particularly successful. It is unlikely that 
the industry in Ontario will be willing to surrender the independence of the 
parties now existing for the monolithism and vastly increased public inter- 
vention of Quebec. It should be noted that Quebec has had to contend with 
a problem complicated by the presence of the cntu as a serious competitor 
to the internationals, a problem only barely present in Ontario. 

It may be that at some time in the future there will be multitrade 
bargaining on a provincial basis, but that is unlikely for the immediate 
future. It is possible that the idea of province-wide bargaining on an 
individual-trade basis will gain support and be tried out increasingly by the 
parties. Even that modest approach towards the Quebec system will re- 
quire considerable structural changes on both sides, and in the relation- 
ships between the two sides. The present circumstances suggest a con- 
tinued heavy reliance on voluntary experiment rather than public imposi- 
tion of sectorial bargaining as in Quebec. 

The establishment of the Construction Industry Panel was a move of 
great importance. The work it has been doing shows much promise. Its 
creation is consistent with the view that the major responsibility for the 
evolution of the institutions of industrial relationships must rest with the 
parties. There may be, however, an emerging problem of the relationship 
between the members of the Panel and the constituencies they represent. A 
case can be made for a program whose object would be to disseminate 
information among those involved in the construction industry to increase 
their understanding of the problems of industrial relationships in the indus- 
try. Serious consideration might be given to the establishment of a con- 
struction industry joint labour-management committee linked with one or 

Study papers and briefs 57 

more of the universities whose object would be to conduct such programs 
of research and information dissemination through publications, confer- 
ences, seminars and other available devices. Such a development could be 
built around the existing panel, and should be considered complementary 
and in no way competitive with it. 


The burden of the argument in this memorandum is that a key to turbulance 
in the construction industry is to be found in the chronic insecurity which 
confronts all participants from builders through the whole complex of 
contractors on the business or employer side, and the unions and the 
workmen on the employee side. This, of course, is a condition of the 
enterprise system and is not in principle unique to construction. All 
businesses face uncertainties and the possibility, in a competitive world, of 
failure. Employed members of the labour force are seldom guaranteed 
either continued employment or income. But between construction and 
most other economic sectors there is at least an important degree of 
difference. This difference is discontinuity which is characteristic of the 
construction industry, and which places on those engaged in it a special 
burden of uncertainty and insecurity. 

In this perspective much of what has been revealed in the transcripts 
becomes more understandable. Evidence of bidding rings formed by con- 
tractors may be seen as efforts of mutual self-help by contractors deter- 
mined to control the allocation of contracts, to limit the number of success- 
ful bidders, and to establish price-fixing minima. In economic terms the 
bidding ring is a device whose purpose is to insulate the participants from 
the full force of the market. 

The evidence also suggests that such rings are themselves unstable and 
fragile. They face at least two threats; attack from without and defection 
from within. Both of these appear to have been active in the sectors of the 
industry under investigation. On the other hand the bid-peddling device 
seems to have been used to induce scaling down of original bids and to 
strengthen the competitive factor on behalf of those inviting bids. 

The transcripts also suggest that in some instances contractors have 
attempted to protect bidding rings by enlisting the support of union leaders 
whose control over hiring halls has provided a means of denying a supply of 
tradesmen to 'outsiders.' This is another manifestation of a flight from 

Contractors' testimony to the effect that they have attempted to obtain 

58 Report on the building industry 

union contracts regardless of whether their employees were members of, 
or were represented by, the relevant union, indicates the problem of new 
contractor entrants to a trade, confronted by the subcontracting system, 
the union-dominated hiring hall, and in some cases by protective 'deals' 
between a union leader and the established contractors bent on keeping 
down competition. 

Whether these collusive arrangements were within the law or were 
violations is important to the public of Ontario, which naturally has an 
interest in protecting the legal order and the rights of those whose interests 
may be damaged by illegal actions. But it is equally important to under- 
stand the motivation of the transgressors, without condoning them. To 
conclude that the problems under investigation by the Commission may be 
solved by a simple 'law and order' approach begs the question of the real 
pressures which operate in the industry and which encourage the protec- 
tive activities already mentioned, whether legal or otherwise. 

The hiring hall itself has a double purpose. It serves to guarantee that 
only union men will be able to obtain work on the construction sites, and it 
provides a formula and a procedure for allocating the available work among 
the union-represented workmen. It is an instrument developed by the 
unions to bring order into the construction industry labour market and to 
reduce the level of employment uncertainty which characterizes the indus- 
try. But like other devides already mentioned, it also represents an attempt 
to limit competition. 

Solutions to problems sometimes have the effect of introducing new 
problems. This is true of the union-controlled hiring hall. If the only men to 
be allowed to work on the construction sites are those who are supplied by 
the union with whom the employer has an agreement, the employer may be 
denied access to highly qualified men outside the union. If union member- 
ship is open to all qualified workmen, the door to employment will not be 
closed, but the employer may still be required to accept into employment 
individuals he might consider unsuitable. It is interesting to note that some 
flexibility in applying the hiring hall formula is permitted by some of the 
unions to accommodate the employers. Yet discretion is limited, according 
to union spokesmen, by the fact that out-of-work members keep a close 
watch on the priority lists and object strenuously if they discover dis- 
criminatory employment allocations. 

The hiring hall is not an instrument that operates in isolation. It is in 
support of, and supported by, the closed-shop principle and the subcon- 
tract clause, as well as clauses in agreements which concern the selection 
of apprentices and control their numbers. Together, if these mutually 

Study papers and briefs 59 

supporting devices function as intended by the unions, they control the 
flow of workmen into the industry and onto the construction sites. In this 
sense this collection of instruments may be looked upon as a construction 
industry manpower management organization, the principal purpose of 
which is to manipulate the job market in construction for the benefit of the 
unionized employees. 

The threats to the system come from a number of sources. Employers 
who wish to take advantage of lower cost labour may attempt to operate 
with a non-unionized labour. The home-building sector in Ontario appears 
to be largely unorganized, and the data before the Commission includes 
references to the conflicts which occurred when the unions moved into the 
residential high-rise field. 

Some employers have attempted to retain discretion with regard to 
production techniques which conflict with established union policies. The 
struggle revealed in the transcript of the hearings over an employer's 
determination to operate with piecework rates, contrary to established 
union policy, allegedly led to proposals from the employer side of strong- 
arm methods of control of objecting union members, to attempted corrup- 
tion of union officials, to threats of violence, and to actual violence. 

To the employer the union stood in the way of lower cost methods he 
had been able to introduce in at least one other area, and to his ambition to 
expand his business through cost reduction methods not available to his 
unionized competitors. To the union the employer's ambitions would 
destroy the system of job protection, freedom from speed-up, and would 
threaten the existence of the union itself. When the stakes are this high an 
element of desperation may enter. 

The unionized sector of the construction industry in Ontario is domi- 
nated by the international unions affiliated with the afl-cio and its Con- 
struction Trades Department. These unions, as has been pointed out, from 
time to time, face serious jurisdictional problems, problems which are 
aggravated by technological change in the industry. The private machinery 
developed in the United States has had considerable success in resolving 
these inter-union conflicts, but it has not been entirely successful. There 
are examples of unions failing to comply with the results of the appeal 
machinery. There is clearly a distaste for this machinery by the employers, 
and one or two unions also indicated a preference for the procedure 
available through the Ontario Labour Relations Board. 

The international unions have no satisfactory answer to the problem of 
jurisdictional disputes between one of their group and any union which 
operates as an independent outside the afl-cio Construction Trades De- 

60 Report on the building industry 

partment. It is therefore not surprising that independents favour the resolu- 
tion of such conflicts before the Labour Relations Board. 

The jurisdictional problem in the construction industry is particularly 
difficult because of the conflicting objectives involved. There are two 
major areas of public policy to consider. The first concerns the question of 
the appropriate tribunal to be granted the authority to decide jurisdictional 
conflicts. Should it be the private tribunal developed by the industry or 
should it be the public tribunal, the Labour Relations Board? Is it possible 
to retain both and, by improved procedures, establish a workable relation- 
ship between them so that the vexed issue of jurisdictional conflict can be 
handled and such conflicts eliminated? This is improbable because of the 
growing importance of jurisdiction to the survival of some of the trades. 

The second aspect of this problem is that posed by the independent 
unions. While they are almost insignificant numerically, in principle they 
may be important. The evidence shows a high level of intolerance in the 
international unions towards the independents and a belief that there is no 
place on the construction sites for them. There is a strong sense among the 
internationals that legitimacy is vested only in them and their system. From 
the point of view of the independents this attitude means that they are to be 
confined to peripheral areas or eliminated altogether. And this means 
trouble for any contractor who may be so unfortunate as to be tied by 
certification to the one of independents. Because of the international con- 
trolled system of contracts and subcontract clauses these contractors in a 
bargaining relationship with the independents may find it impossible to bid 
successfully on contracts no matter the price offered in the bid. In other 
words the intention of certification may be defeated by the system under 
the control of the internationals. The issue is further complicated by the 
fact that at least one independent operates as an industrial union thereby 
coming into jurisdictional conflict with several internationals. 

Provincial authorities may find it necessary to re-examine both aspects 
of this jurisdictional problem again. In passing, it is worth noting that 
Quebec, where there were two strong union centrals, attempted to solve 
the problem by statutory determination of the right of specified union 
bodies to represent construction workers in collective bargaining. But in 
doing so they gave legislative backing to a system of dual unionism, a 
system alien to the North American tradition and indeed to conventional 
North American labour law and policy. 


Labourers' International Union 
of North America, Local 183 


At the outset, the Labourers' International Union of North America, Local 
183 ('Local 183') wishes to thank the Commission for the opportunity of 
presenting this brief. The purpose of the brief is to ensure that the Commis- 
sion and the public are fully and properly informed of all relevant facts and 
circumstances pertaining to the residential concrete forming industry in 
Metropolitan Toronto and vicinity ('Forming Industry'). The record, in- 
deed, will establish that Local 183, has, since 1969, requested the Ontario 
Government to conduct an inquiry into the Forming Industry. In submit- 
ting this brief, Local 183 believes that the Commission is interested in 
investigating the reasons why the existing Provincial Legislation, including 
the Ontario Labour Relations Act, has failed to eliminate problems in the 
Forming Industry. 


(a) On August 25th, 1952, the International Hod Carriers' Building and 
Common Labourers' Union of America (now known as the Labourers' 
International Union of North America and hereinafter called 'the Labour- 
ers' International') issued a Charter for a Local Union to be established in 
Toronto, Ontario to be known as 'Ontario Hydro Workers, Local Union 
No. 183' with jurisdiction covering all of Ontario. When Local 183 was 
first established, there were approximately 400 persons who became mem- 

62 Report on the building industry 

bers. Initially, Local 183 succeeded in organizing all Hydro-Electric Power 
Commission of Ontario construction employees coming within Local i83's 
jurisdiction in Ontario. 

(b) During the 1950's, as a result of the Ontario Hydro contracting out a 
large part of its construction work, the Labourers' International granted 
Local 183 jurisdiction to organize and represent employees engaged by 
contractors working at Ontario Hydro projects in Ontario known as 'utility 
contractors' which specialized in installation of cables for such companies 
as Ontario Hydro, Bell Canada and municipal hydro commissions. 

(c) Although initially, Local 183's geographic jurisdiction was for all of 
Ontario, such jurisdiction was later restricted to the County of Simcoe and 
the area covered by the Ontario Labour Relations Board Geographic Area 
No. 8 described as follows: Metropolitan Toronto, the Regional Municipal- 
ity of York and the County of Peel, the Township of Esquising and the 
Towns of Oakville and Milton, in the County of Halton and the Township 
of Pickering in the County of Ontario. 

(d) In 1958, the Labourers' International granted Local T83 jurisdiction 
over road building, sewers, watermains and subway construction, which 
for the most part was unorganized at that time. Local 183^ province-wide 
jurisdiction over building construction at Ontario Hydro projects was 
transferred from Local 183 to various other Locals of the Labourers' 
International except for jurisdiction in relation to Ontario Hydro 'lines and 
stations' projects in Ontario. This transfer of jurisdiction resulted in Local 
183's membership being reduced by approximately two-thirds. 

(e) Local 183's attempts to organize employees of road, sewer and water- 
main contractors proved successful and accordingly, in 1964, the Labour- 
ers' International granted Local 183 jurisdiction over 'heavy construction' 
viz bridges, dams and other large structures involving heavy engineering 
techniques. Local 183 was also granted certain additional jurisdiction 
covering industries such as pipelines and landscaping in the area of Met- 
ropolitan Toronto and vicinity. 

(f) In 1968, Local 183 was requested to organize a group of miners em- 
ployed in mining development in the Sudbury area. Local 183's intention at 
that time was to organize all tunnel work in Ontario as was the case with its 
sister Local in British Columbia. At this time. Local 183 already rep- 
resented a substantial number of miners in southern Ontario engaged in 
subway, sewers and tunnel construction. In Sudbury, the Mine, Mill and 
Smelter Workers' Union and the United Steelworkers of America had 
tailed in their attempts to organize these miners. Despite strong opposition 
from the Steelworkers' Union and from the various employers. Local 183 

Study papers and briefs 63 

succeeded in certifying Dravo of Canada Limited and subsequently en- 
tered into a collective agreement with that company. At one time, Local 
183 had 980 members engaged in mining development in Sudbury. In 1972, 
as mining development work decreased in the Sudbury area, Local 183's 
membership was substantially reduced. Accordingly, in order to afford 
greater protection to Local i83's Sudbury members, including being able to 
provide them with greater employment opportunities , Local 1 83 's jurisdic- 
tion in mining development was transferred to Local 493, the Sudbury 
based Local of the Labourers' International. 

(g) In April, 1969, the Labourers' International granted Local 183 jurisdic- 
tion to organize workers engaged on residential construction projects in 
Metropolitan Toronto and vicinity except workers employed as brick- 
layers and plasterers' helpers. This enabled Local 183 to organize concrete 
forming workers and employees of apartment builders who were not rep- 
resented by any trade union. We will deal in greater detail with Local 183's 
efforts to organize in the Forming Industry. 

(h) Local 183 did not concentrate all of its efforts in organizing in the 
construction industry but continued to organize in other areas where 
employees desired representation by a bargaining agent, examples of 
which are as follows: 

(i) Local 183 organized approximately 50 employees engaged at the Cana- 
dian Radiator Manufacturing Co. Limited. 

(ii) Local 183 organized approximately 20 employees engaged at Wayne 
Pump of Canada Ltd. 

(iii) Local 183 organized the employees of Munisan Limited, a garbage 
collection company which now employs approximately 150 persons, 
(iv) Local 183 has organized male and female dental technicians at two 
Toronto laboratories, the bargaining rights for whom were transferred to 
the Amalgamated Jewelry, and Allied Trades Workers Union, Local 33. 
Toronto, Affiliated with International Jewelry Workers Union clc 
afl-cio, at the request of the employees in the bargaining units, 
(v) Local 183 organized persons engaged as oil burner mechanics and once 
having organized a representative number of the companies engaged in the 
Metropolitan Toronto area, Local 183 encouraged these employees and 
gave them financial and other assistance to obtain a separate Local Union 
Charter from the Labourers' International which is now known as Oil and 
Gas Technicians, Service, Domestic and General Workers Union Local 

(vi) Local 183 organized approximately 200 persons employed by security 
guard companies such as S.I.S. Protection Company and Knight Security 

64 Report on the building industry 

Guards Limited. The Ontario Labour Relations Board refused to certify 
Local 183 for a bargaining unit of security guards employed by Knight 
Security Guards Limited to protect the property, not of Knight Security 
Guards Limited, but of other employers, for the reason that: 

' ... in order to give full effect to the words used in Section 9 [now Section 11 
of the Labour Relations Act] . we are of the opinion that the unqualified term 
guard as used in the latter part of the Section refers to the type of guard 
employed by the respondent in this case and we therefore find that, since the 
applicant admits to membership persons other than guards, the applicant is 
precluded by the operation of Section 9 to represent the employees of the 
respondent in this case.' 

{Labourers ' International Union of North America, Local 183 v. Knight 
Security Guards Limited, O.L.R.B. Monthly Report, September, 1968, page 

Local 183 instituted certiorari proceedings in the Supreme Court of Ontario 
to quash the said decision of the Board. Although the Court of first instance 
and the Ontario Court of Appeal disagreed with the Board's interpretation 
of Section 9 of the Act, the Courts were unable to interfere with the 
decision by reason of the privative clause of the Act. Mr. Justice Laskin, as 
he then was, stated on behalf of the Court of Appeal: 

'Although we do not adopt the interpretation placed upon Section 9 by the 
Board, we are of the opinion that its statutory powers extend to the construc- 
tion of provisions such as Section 9and to the application of those provisions 
as construed, as being integral to the issues confided to its jurisdiction. In 
view of the preclusive effect of Sections 79 and 80 [ now Sections 95 and 97] of 
the Labour Relations Act, the Board's decision although based on a con- 
struction which is unacceptable to this Court, is not reviewable.' (emphasis 

See Labourers' International Union of North America. Local tSj v. Knight 
Security Guards Ltd. (1969) 4 D.L.R. (3d) 45 (Ont. H.C.); affd ( 1969) 5 

(vii) Local 183 organized four tree surgeon companies engaged in the 
Metropolitan Toronto area including Cedarvale Tree Services Ltd., which 
company instituted certiorari proceedings in the Supreme Court of Ontario 
to quash the Board's decision in which proceedings the company was 
successful. {Cedarvale Tree Services Ltd. , o.l.r.b. Monthly Report. Feb- 

Study papers and briefs 65 

ruary, 1970, page 1305, R. v. Ontario Labour Relations Board, ex parte 
Cedarvale Tree Services Ltd. , [1971] 1 O.R. 38 (Ont. H.C.), Re Cedarvale 
Tree Services Ltd. v. Labourers' International Union of North America, 
Local 183 [1971] 3 O.R. 832 (Ont. C.A.)) The result of the Court proceed- 
ings was that since the primary business of Cedarvale Tree Services Ltd. 
was 'horticulture' then by reason of Section 2(c) of the Ontario Labour 
Relations Act, the said Act was not applicable to the company and accord- 
ingly, Local 183 could not be certified as bargaining agent for its em- 
ployees. Local 183, being dissatisfied with the results of the Court proceed- 
ings, and in particular with the exclusion of these employees from coverage 
by the Act, formally requested the Premier of Ontario to amend the Act so 
that these employees could be afforded the benefits from collective bar- 
gaining on their behalf as envisaged by the Act. Local 183's efforts in this 
regard did not lead to any response from the Ontario Government. 


(a) SAFETY AND ACCIDENT PREVENTION - Local 183 has always 
been and continues to be involved in all aspects of construction safety. For 
example, during 1968, Local 183 initiated a campaign to improve upon 
safety conditions in the construction industry, which campaign was the 
motivating force for the establishment of a Joint Committee on Construc- 
tion Safety participated in by the Ontario Federation of Labour, the Pro- 
vincial Building and Construction Trades Council of Ontario, the Toronto 
Building and Construction Trades Council and the Construction Safety 
Association of Ontario. The Committee prepared and presented an exten- 
sive brief to the Ontario Department of Labour in December, 1968 which 
resulted in several amendments to safety legislation including a recent 
amendment providing for provincial appointment and regulation of safety 
inspectors under the Construction Safety Act of Ontario. 

(b) WORKMEN'S COMPENSATION - In September, 1969, Local 183 
prepared and presented a brief to the Royal Commission on Workmen's 
Compensation in Ontario as well as attending several of the hearings before 
the Commissioner, the Honourable Mr. Justice McGillivray of the Ontario 
Court of Appeal, for the purpose of presenting evidence and submissions. 
Several of Local 183's recommendations to the Commission were accepted 
such as increased benefits to widows, orphans and injured workmen as well 
as increased burial expenses. In addition, the previous waiting period 
before benefits could be given was reduced from five to two days. 

66 Report on the building industry 

(c) CAISSON DISEASE - Medical Research - Local 183 members have 
always been involved in tunnel construction, i.e. construction of subways 
for the Toronto Transit Commission. As a result, Local 183 has always 
played an active role in improving upon safety legislation pertaining to 
tunnels, which legislation has effectively reduced the number of accidents 
in this type of work. Furthermore, due to somewhat peculiar and unsatis- 
factory soil conditions in Metropolitan Toronto, a large portion of tunnel 
work has been constructed under conditions of compressed air. Very little 
medical information has been made available on the effects on human life 
when working under conditions of compressed air. Accordingly, Local 
183, in view of its concern for the welfare of its members engaged in this 
type of work, sponsored financially and otherwise, a thorough research and 
study of this problem. 

As a result of Local 183's efforts, the Ontario Workmen's Compensation 
Board retained Dr. G. Gammara to commence a study of Caisson Disease 
and the Board sponsored Dr. Gammara for approximately nine months 
after which Local 183 became his sole sponsor. Dr. Gammara's research 
has taken approximately six years and cost at least $60,000.00 which has 
been paid for by Local 183. The results of Dr. Gammara's research will 
shortly appear in a book to be published by Harper and Row of New York. 
The approximate cost of publishing this book is between $15,000.00 and 
$20,000.00 and is being paid for by the Labourers' International. Already, 
copies of this book have been requested by labour departments in West 
Germany. England and the United States. 

(d) PROBLEMS OF UNEMPLOYMENT - Local 183 was responsible for 
establishing a committee in Toronto known as the Mayor's Emergency 
Unemployment Committee to deal with the then chronic unemployment 

(e) RETRAINING PROGRAMS - In 1969, Local 183 was instrumental in 
establishing retraining programs for its members and any others who 
wished to participate, which programs were established with the co- 
operation of Canada Manpower, the Ontario Department of Education and 
the George Brown College of Applied Arts and Technology. 

(0 TORONTO SUBWA Y CONSTRUCTION - Local 183 representatives 
were and continue to be consulted by the Toronto Transit Commission on 
such matters as type of subway construction and safety. 

Study papers and briefs 67 



The history of residential concrete forming in Metropolitan Toronto and 
Vicinity is a relatively brief one. Although it is difficult to determine an 
exact date of its origin, the concept of the 'flying forms' was introduced 
during the late I950's. 

The phenomenon of the flying form is unique in Metropolitan Toronto 
and vicinity. Several theories have been advanced for its origination. The 
Canadian Patent Scaffolding Co. Ltd. developed the flying form as a 
promotional concept to increase its sales of tubular metal scaffolds used on 
most types of construction projects. 

Orlando Realty Limited was the first company to use a flying form 
constructed entirely of wood. Thereafter, the Leader and DiLorenzo 
groups of companies adopted this concept, the DiLorenzo group being 
mainly responsible for the subsequent popularity of this method of con- 
crete forming. 

Coincidental with the emergence of the flying form concept, there was a 
considerable increase in the demand for highrise apartment buildings in 
Metropolitan Toronto. The flying form method of concrete forming pro- 
vided apartment builders with an inexpensive and efficient method by 
which to construct these buildings and these factors resulted in the ex- 
tended use of this concept. Furthermore, due to the design of the flying 
form, the same could carry a greater load than the traditional method of 
forming, namely all wood construction. The flying form was also more 
manoeuvrable and required fewer persons to install it. 

An additional factor which resulted in the extended use of this concept 
was the availability in Metropolitan Toronto during the late 1950's and 
early i96o's of a large influx of immigrant workers who were willing to 
adapt themselves to working with the flying form system. Until around 
1965, construction unions in Metropolitan Toronto made no attempts to 
organize in the Forming Industry and as a result, the contractors were 
performing this work on a 'non-union basis' meaning in part that the 
persons employed in this industry were working under substantially less 

68 Report on the building industry 

favourable working conditions and rates than their counterparts engaged in 
concrete forming work on commercial, industrial and institutional con- 
struction. Accordingly, the flying form system in the Forming Industry was 
one that became associated with 'non-union cheap immigrant labour'. As a 
result, the Forming Industry provided a fertile ground for trade unions to 


(i) During 1965, the United Brotherhood of Carpenters and Joiners of 
America ('Carpenters'), the International Association of Bridge, Struc- 
tural and Ornamental Iron Workers, Local 721 ('Iron Workers'), the 
Labourers' International Union of North America, Local 506 ('Labourers' 
Local 506') (then known as the International Hod Carriers, Building and 
Common Labourers' Union of America, Local 506) commenced a cam- 
paign to organize employees engaged in the Forming Industry, 
(ii) On December 17th, 1965, the Iron Workers, Labourers' Local 506 and 
the Carpenters applied to be certified for their respective craft bargaining 
units for each of the following employers engaged in the Forming Industry: 


Di Lorenzo 




Brotherhood of 
Carpenters and 
Joiners of 
(o.l.r.b. File 


Hod Carriers 
Building and 
Labourers of 
America, Local 
506(0. L.R.B. 
File No.) 


Association of 
Structural and 
Ornamental Iron 
Workers, Local 
721 (O.L.R.B. 
File No.) 






1 1 2 09-65 -R 

1 1215-65-R 

Study papers and briefs 69 













These applications covered approximately 400 employees. An examiner 
was appointed in all 12 applications and after lengthy examinations and 
further hearings before the Board, the applications were all dismissed, 
some in November, 1966 and others in November, 1967. 
(hi) On November 12th, 1969, the Carpenters, Iron Workers and Labour- 
ers' Local 506 requested the Board to reconsider its decisions dismissing 
the said applications for certification. Attached hereto and marked Exhibit 
'A' is a copy of a letter dated November 12th, 1969 from counsel to the said 
Unions addressed to the Board with respect to the request for reconsidera- 
tion wherein it was alleged, inter alia, as follows: 

'1. Each of the above named respondents [employers] deliberately and 
fraudulently presented or caused to be presented to the Ontario Labour 
Relations Board through the Examiner appointed in these proceedings, evi- 
dence which the respondents [employers] knew or ought to have known to be 

2. The respondents, by means of such conduct, fraudulently intended to 
deceive and mislead the Board as part of a scheme to improperly and unlaw- 
fully prevent the applicants or any of them from becoming the duly certified 
bargaining agents for the respondents' employees on whose behalf the above 
mentioned applications were made.' 

By letters dated November 27th and December 30th. 1969, attached hereto 
and marked Exhibits 'B' and 'C respectively, additional facts in support of 
the aforementioned allegations were provided to the Board and the parties. 
The Board granted the Unions' request for reconsideration as set forth in 
its decision dated April 8th, 1970, a copy of which is attached hereto and 
marked Exhibit 'D'. 

(iv) In 1968, Bruno Zanini, a self-styled labour leader, Gus Simone, busi- 
ness manager of the Wood. Wire and Metal Lathers' International Union. 
Local 562 ('Lathers' Local 562') and Charles Irvine, International Vice- 

70 Report on the building industry 

President of the Operative Plasterers' and Cement Masons' International 
Association of the United States and Canada ('Plasterers' International') 
commenced a campaign to organize workers in the Forming Industry. On 
November 4th, 1968, a collective agreement was purportedly made and 
entered into between Lathers' Local 562 and the Forming Contractors' 
Association of Metropolitan Toronto ('the Association') by and on behalf 
of the Association's member companies whose signatures are affixed to the 
said agreement, a copy of which is attached hereto and marked Exhibit 'E' . 
This agreement was to be effective from November 4th, 1968 until January 
31st, 1974 ('the Local 562 agreement'). 

(v) Also during early November, 1968, the Council of Concrete-Forming 
Trade Unions ('the Council') consisting of the following trade unions: 
International Association of Bridge, Structural and Ornamental Iron 
Workers, Local 721 

Labourers' International Union of North America, Local 506 
Operative Plasterers' and Cement Masons' International Association of 
the United States and Canada, Local 172 

United Brotherhood of Carpenters and Joiners of America, Local 1 190 
was entering into collective agreements with certain concrete forming 
contractors engaged in Metropolitan Toronto. At this time, Lathers' Local 
562 succeeded in entering into more collective agreements than the Council 
was able to and the Lathers' Local 562 agreements purported to cover 
employees of most of the contractors who were then engaged in the 
Forming Industry. 

(vi) During either late 1968 or early 1969, Local 183 representatives, in an 
attempt to achieve and maintain stability in the Forming Industry, had 
certain discussions with Simone and Zanini with a view of merging the 
Concrete Forming Division of Lathers' Local 562 with Local 183. In 
March, 1969, an agreement was reached in principle with respect to the said 
merger subject to obtaining legal opinions on the feasibility and propriety of 
such merger. On the basis of a legal opinion, the proposed merger was not 
proceeded with and as a result, Local 183 decided to engage in its own 
campaign to organize concrete forming workers and it was to be assisted by 
Simone and Zanini. Since Lathers' Local 562 incurred various expenses in 
connection with its campaign to organize the concrete forming workers, 
Local 183 agreed to reimburse the Lathers' Local 562 for all expenses 
which had been properly incurred during its campaign. It was further 
agreed that Zanini would be reimbursed by Local 183 for any wages he did 
not receive during a particular three month period while engaged in or- 
ganizing the concrete forming workers for Lathers' Local 562. 

Study papers and briefs 71 

A few weeks later, John Stefanini, a representative of Local 183, in- 
quired of Zanini and Simone as to why they had not commenced to organize 
the concrete forming workers for Local 183 as previously agreed. Stefanini 
complained further that contrary to the aforementioned arrangements. 
Zanini and Simone were continuing to organize the workers under Lathers' 
Local 562. Zanini replied that he required more money to cover certain 
other expenses which were not mentioned previously and were supposedly 
incurred during the Lathers' Local 562 organizing campaign. Zanini re- 
quested an additional sum of $25,000.00 to cover these alleged expenses 
which request was refused. 

(vii) On or about May 8th, 1969, Simone, Zanini, representatives of Local 
183 and legal counsel met for the purpose of confirming the arrangements in 
relation to organizing the concrete forming workers under Local 183 as 
aforesaid. At this meeting, those in attendance were once again advised by 
Local 183's legal counsel that the proper procedure of attempting to rep- 
resent the concrete forming workers for collective bargaining purposes was 
for Local 183 to organize these workers rather than purport to transfer 
them from Lathers' Local 562 to Local 183 by way of merger, which advice 
Local 183 accepted. Simone indicated that Lathers' Local 562 would not 
oppose Local 183's campaign to organize the concrete forming workers 
nor would his Union attempt to raise the Local 562 agreement as a bar or 
impediment to the said organizational campaign. It was then left to the 
respective legal counsel to prepare the final documents to confirm these 
arrangements. In the meantime, on or about May 9th, 1969, Zanini and 
Simone met with representatives of the Labourers' International in 
Washington for the purpose of obtaining additional confirmation of the said 
arrangements with Local 183. 

(viii) Local 183, Zanini and Simone were unable to finalize the arrange- 
ments which they had earlier agreed to and in an attempt to clarify and 
finalize these matters, a meeting was held in Chicago on May 23rd, 1969 
attended by representatives of Local 183, Labourers' International, 
Lathers' International, legal counsel and also in attendance as observers 
were representatives of certain concrete forming contractors, namely Nick 
DiLorenzo, John Feracutti and George Orla. The following transpired at 
the said meeting: 

(a) The General President of the Lathers' International acknowledged that 
the said Union had "... no jurisdiction over persons employed in the concrete 
forming industry ...' and in any event, this Union was unable to properly 
represent or service these workers. Attached hereto and marked Exhibit '¥' 

72 Report on the building industry 

is a copy of a telegram dated May 23rd, 1969 from the said General President 
to Simone, which in part confirms this acknowledgment. 

(b) It was agreed that Local 1 83 would attempt to organize these persons and 
that Simone would be employed on a part-time basis for Local 183 as a 
director and advisor to Local 183's Concrete Forming Division and that 
Zanini would assist Simone. Attached hereto and marked Exhibit 'G' is a 
copy of a telegram dated May 23rd, [969 from the General President of the 
Labourers' International to Local 183 confirming that 'Business representa- 
tive Simone of Lathers' Local 562 has been appointed to serve as director of 
the Concrete Forming Division of Labourers' Local 183. Please be advised 
that all other representatives in this industry shall serve under his direction 
and control. Please govern yourself accordingly.' 

(c) It was suggested that once Local 183 succeeded in organizing the workers, 
it would attempt to sign collective agreements with the contractors, which 
agreements would be similar to the existing alleged collective agreements 
between Lathers' Local 562 and the said contractors and further, that any 
new collective agreements would cover Ontario Labour Relations Board 
Geographic Area No. 8 (Metropolitan Toronto and vicinity). 

(ix) On Sunday, June 1st, 1969, a meeting of the concrete forming workers 
in Metropolitan Toronto was held at the Landsdowne Theatre in Toronto, 
which had been arranged for by Zanini and Irvine and was attended 
by approximately 1,000 persons. Although Local 183 representatives 
attempted to enter the premises and address the meeting, they were not 
permitted to do so. Irvine strongly urged the workers to establish their own 
union. Zanini supported Irvine and attempted to persuade the workers that 
they had been '... sold like cattle in Chicago ...' (referring to the aforemen- 
tioned meeting in Chicago on May 23rd, 1969) which statement Zanini 
knew or ought to have known as being completely contrary to what in fact 
had been agreed upon at the May 23rd, 1969 meeting, namely that Local 183 
would attempt to lawfully organize the concrete forming workers so that it 
would then be legally entitled to represent them for collective bargaining 
purposes pursuant to the Ontario Labour Relations Act. 
(x) Shortly thereafter, Zanini and Irvine organized the Canadian Concrete 
Forming Union No. 1 ('No. i'). 

(xi) During June, 1969, Local 183 became a member of the Council which 
hired four bilingual representatives to organize the concrete forming work- 
ers. Generally speaking, the Council succeeded in its campaign until July, 
1969 when Zanini organized a work stoppage of the concrete forming 
workers in Metropolitan Toronto for the apparent purpose of seeking 

Study papers and briefs 73 

enforcement of and amendments to the Local 562 agreement which Zanini 
intended to transfer to the then recently formed No. 1 at the conclusion of 
the work stoppage. 

Approximately two weeks after the commencement of the work stop- 
page, a meeting of the concrete forming workers was held at the York 
Centre Ballroom in Toronto. This meeting was also attended hy Zanini and 
Nick DiLorenzo. the principal owner of one of the then largest concrete 
forming contractors in Metropolitan Toronto. At this meeting. Zanini 
and/or DiLorenzo announced that arrangements had been made with the 
apartment building owners to pay more money to the concrete forming 
contractors to enable them to grant wage increases to the concrete forming 
workers and also that certain amendments to the Local 562 agreement 
were agreed to and that the agreement as amended would now be transfer- 
red and assigned to No. 1 . As a result, the employees returned to work and 
although most of them received partial wage increases, the same were not 
in the amounts as promised to them by Zanini. Furthermore, most if not all 
of the concrete forming workers were still not being classified and paid 
pursuant to the Local 562 agreement, amended as aforesaid. In any event, 
the promises of Zanini and/or DiLorenzo were sufficient to dissuade the 
workers from supporting the Council's campaign to organize and represent 

(xii) On or about July 16th, 1969. and immediately after the cessation of the 
aforementioned work stoppage, a collective agreement was purportedly 
made and entered into between No. 1 and the Forming Contractors* As- 
sociation of Metropolitan Toronto on behalf of its member companies 
whose signatures are affixed thereto ('the No. 1 agreement") which agree- 
ment is attached hereto and marked Exhibit FT. The No. 1 agreement was 
to expire on April 30th, 1972 and contained the following preamble: 

'WHEREAS the Employers have entered into an agreement with the Wood, 
Wire and Metal Lathers' International Union. Local 562. Concrete Forming 
Division (hereinafter called 'Local 562') dated November 4th, [968: 
AND WHEREAS Local 562 has transferred and assigned such agreement 
and all jurisdiction with respect to the employees co\ ered by such agreement 
to the Union [Canadian Concrete Forming Union No. 1 ]: 
AND WHEREAS it appears that the Union has obtained as members as of 
the date hereof a majority of the employees referred to in such agreement: 
AND WHEREAS either by way of amendment to the said agreement dated 
the 4th day of November. 1968 or by way of voluntary recognition at this 
time, the Employers have agreed at the request of the Union to recognize it as 

74 Report on the building industry 

the present bargaining agent of the employees referred to in the said agree- 

AND WHEREAS the parties have agreed that certain changes should be 
made in the present arrangements as to rates of pay and certain other working 

(xiii) During September, 1969, a series of work stoppages occurred on 
residential apartment building projects in Metropolitan Toronto which was 
engaged in by employees who were members of unions affiliated with the 
Toronto Building and Construction Trades Council. These work stoppages 
lasted for approximately two weeks and were in opposition to Zanini's 
attempts to discourage the concrete forming workers from being rep- 
resented by the Council of Concrete-Forming Trade Unions, 
(xiv) On September 20th, 1969, an agreement was entered into between the 
Metropolitan Toronto Apartment Builders' Association and the Toronto 
Building and Construction Trades Council, a copy of which is attached 
hereto and marked Exhibit 'I ' , which agreement was in part responsible for 
restoring a degree of stability in the residential construction industry in 
Metropolitan Toronto and vicinity. 

(xv)OnOctober3ist, 1969, pursuant to Section 45a (now Section 52) of the 
Ontario Labour Relations Act, the Council filed with the Board 26 applica- 
tions to terminate bargaining rights claimed to be held by Lathers' Local 
562, No. 1 and the following concrete forming contractors: 

O.L.R.B. File No. Name of Employer affected by Termination Applica- 

16921-69-R Toronto Forming (1965) Ltd. 

16920-69-R Toronto Forming (1965) Ltd. 

16922-69-R DiLorenzo Construction Co. 

16923-69-R N. DiLorenzo Construction Co. Ltd. 

16924-69-R Dilcrane Equipment Limited 

16925-69-R Dilcrane Equipment Limited 

16926-69-R Hamilton Forming Limited 

16927-69-R Hamilton Forming Limited 

16928-69-R Dilcon Construction Limited 

16929-69-R Dilcon Construction Limited 
(The above companies were controlled mainly by Nick DiLorenzo.) 

16934-69-R Regis Concrete Forming Limited 

16935-69-R Regis Concrete Forming Limited 

16936-69-R Acu Forming Limited 

Study papers and briefs 75 

16937-69-R Acu Forming Limited 

16938-69-R Relli Forms Limited 

16939-69-R Relli Forms Limited 

16940-69-R Faga Forms 

16941-69-R Faga Forms 

16942-69-R Falcon Structural Forming Limited 

16943-69-R Falcon Forming 

16944-69-R Falcon Forming 

16945-69-R Dimiro Construction 

16946-69-R Etobicoke Forming 

16947-69-R Etobicoke Forming 

16948-69-R Triple F Forming Limited 

16949-69-R Triple F Forming Limited 

These applications were of two different types, namely one group of 
applications to terminate any bargaining rights arising out of the No. 1 
agreement and the other group involved terminating any bargaining rights 
arising out of the combination of the Local 562 and No. 1 agreements. 
Attached hereto and marked Exhibits 'J' and 'K' respectively, are exam- 
ples of each of the said applications. 

(xvi) On December 9th, 1969, the Board rendered its decision in connection 
with the said termination applications, a copy of which decision is attached 
hereto and marked Exhibit L' . Paragraph 7 of the decision provides in part 
as follows: 

'Counsel for Local 562, however, advised the Board at the hearing that Local 
562 was not entitled to and did not in fact represent any of the employees of 
any of the signatory companies in the bargaining unit covered by the agree- 
ment. Counsel accordingly admitted that the agreement was void ab initio 
and had no binding affect upon the parties to it. " (emphasis added) 

At paragraph 3 1 , the Board stated that: 

'The Canadian Concrete Forming Union No. 1 accordingly no longer holds 
the bargaining rights for any of the employees of the intervener (Toronto 
Forming(i965) Ltd.), Dilcon Construction Limited, N. DiLorenzo Construc- 
tion Co. Ltd. Falcon Structural Forming Limited, Acu Forming Limited, 
Regis Concrete Forming Limited. Etobicoke Forming. Relli Forms Limited, 
and Triple F Forming Limited.' 

While the Council attempted to pursue its allegations of improper conduct 

76 Report on the building industry 

against the other parties , the latter succeeded in avoiding the consequences 
thereof as they in effect conceded that there were no valid existing collec- 
tive bargaining relationships between them. 

(xvii) On December 12th, 1969, No. 1 applied to the Board to be certified as 
bargaining agent of the employees of Triple F Forming Limited, a forming 
contractor engaged in the Metropolitan Toronto area (o.l.r.b. File No. 
1 7092-69-R) which application was signed by Zanini on behalf of No. 1 . The 
Council intervened in this application, a copy of which intervention is 
attached hereto and marked Exhibit k M' . The Council challenged the status 
of No. 1 as a 'trade union' as well as detailing lengthy allegations of 
improper conduct pertaining to the manner in which No. 1 obtained evi- 
dence of membership filed in this application. The Board issued its decision 
on February 9th, 1972 dismissing No. 1 's application on the grounds that it 
was not a trade union under the Act, a copy of which decision is attached 
hereto and marked Exhibit k N\ 

(xviii) in March, 1970, Zanini and Irvine formed the Concrete Workers' 
Union and although they proceeded to sign up workers, this union did not 
apply for certification nor did it enter into any collective agreements to 
Local 183's knowledge. Shortly thereafter, Zanini became briefly as- 
sociated with the Canadian Union of General Employees, 
(xix) In April, 1970, Zanini became associated with the Canadian Union of 
Construction Workers ('c.u.c.w. ') which commenced a campaign to 
organize the concrete forming workers. This campaign resulted in the 
c.u.c.w. filing with the Board about twelve applications for certification 
of employees of various contractors in the Forming Industry. The Council 
intervened in approximately one-half of these applications and after 
lengthy proceedings before the Board, the c.u.c.w. was certified as 
bargaining agent in certain of these applications. Notwithstanding that 
c.u.c.w. was certified as aforesaid, it apparently did not enter into a 
collective agreement with any of the certified employers, 
(xx) About mid-1970, the Council began another campaign to organize the 
concrete forming workers which resulted in the Council being certified as 
bargaining agent for employees of approximately eight contractors en- 
gaged in the Forming Industry. 

(xxi) In November, 1968, the Council entered into collective agreements 
with seven forming contractors but due to the Forming Industry's instabil- 
ity at that time, the Council encountered much difficulty and opposition in 
its attempts to enforce these agreements. In 1969, the same seven com- 
panies entered into a new collective agreement with the Council, which 
agreement the Council was unable to enforce due to the existing instability 

Study papers and briefs 77 

in the Forming Industry which continued to be plagued with many prob- 
lems . During 1 970 and 1 97 1 , the Council had established collective bargain- 
ing relationships with the following employers: 

Name of Employer 

Leader Masonry Forming Ltd. 

Direct Forming Ltd. 

Randolph Construction Enterprises 

M. C. United Masonry Ltd. 

Bidoll Construction Ltd. 

Bianchini Construction Company 

Fran-Kiri Forming Ltd. 

Century Forming Ltd. 

Associated Forming Contractors Ltd. 

Structform (Central) Ltd. 

Uniform Structures ( 1969) Limited 

Mutamp Investments Ltd. 

Skyline Forming Limited 

Celamor Forming Company Ltd. 

Skyview Forming Limited 

Mirmar Forming 

A.C.V. Cranes Ltd. 

R. C. Building System 

Dove Forming Limited 

Date Collective 
Entered Into 
April 9th, 1970 
April 9th, 1970 
April 9th, 1970 
April 21st, 1970 
April 2 1 st, 1970 
April 2 1 st. 1970 
April 27th. 1970 
April 27th, 1970 
May 22nd, 1970 
June 22nd, 1970 
July 6th, 1970 
August 14th, 1970 
August 14th, 1970 
August 20th, 1970 
October 9th. 1970 
October 27th, 1970 
November 1st, 1970 
July 2nd, 1971 
July 15th, 1971 

(xxii) In April, 1971, the Plasterers' International established Local 733 to 
organize in the Forming Industry and Zanini was placed in charge of this 
Local by Irvine. Thereafter, Zanini commenced a new campaign to or- 
ganize the concrete forming workers. At the same time, the Council held 
meetings of the workers, during which it was revealed that several of the 
forming contractors under agreement with the Council were not complying 
with the monetary conditions of the collective agreement. 

As a result, Local 183 insisted that the Council increase its efforts to 
enforce the collective agreements. Local 183 assigned three of its business 
representatives to ensure that the agreements were being complied with 
and where necessary, to obtain the necessary information from the con- 
crete forming workers so that Court proceedings could be commenced to 
recover unpaid wages and other monetary benefits. Local 183 representa- 

78 Report on the building industry 

tives attended at all of the projects covered by Council collective agree- 
ments and obtained the required information where contractors were in 
non-compliance with the agreements. This investigation lasted for approx- 
imately three weeks after which it was abundantly clear that most, if not all, 
of the forming contractors under agreement with the Council, except 
Structform (Central) Ltd., were failing to pay the workers the wage rates 
provided for in the collective agreement. Attached hereto and marked 
Exhibit 'O' is a sample form used during this time to obtain the required 
information from the workers. 

Although the Council was able to settle a small portion of the wage 
claims, it did not institute any proceedings whatsoever to recover the wage 
deficiencies on behalf of the majority of the employees affected. Local 183 
strenuously objected to the Council's decision not to institute proceedings 
with respect to the wage deficiencies and this disagreement between the 
Council and Local 183 ultimately led to the latter withdrawing from the 
Council on July 30th, 1971. Shortly before Local 183 withdrew from the 
Council, it began its own campaign to organize the concrete forming 
workers in the Forming Industry. Accordingly, at this time, there were 
three organizations competing for bargaining rights for these workers, 

(a) Operative Plasterers' and Cement Masons' International Association of 
the United States and Canada, Local 733 

(b) Council of Concrete-Forming Trade Unions 

(c) Local 183. 

(xxiii) In August, 1971, the concrete forming contractors formed an em- 
ployers' organization known as the Toronto Form Work Association ('As- 
sociation') to which most of the contractors in the Forming Industry 
belonged including the DiLorenzo Group. 

(xxiv) During Local 183's organizational campaign, it would attempt to 
organize a majority of the forming contractors' employees and then request 
the contractor to grant voluntary recognition to Local 183 so that it would 
then become the sole and exclusive bargaining agent for the employees, 
which procedure is evidenced by a letter dated August 4th, 1 97 1 from Local 
183 to Zaph Construction Ltd. marked Exhibit 'P' hereto. This procedure 
is permitted and is indeed encouraged by the provisions of the Ontario 
Labour Relations Act and in particular. Section 52 thereof. 

Local 183 was reluctant to obtain bargaining rights by applying for 
certification to the Ontario Labour Relations Board as this could entail it 
being involved in protracted and expensive legal proceedings with the 
result that the rights of the concrete forming workers to be represented by a 
trade union of their own choice would once again be delayed. 

Study papers and briefs 79 

(xxv) Local 183 satisfied the Association that it was succeeding in its 
campaign to organize the employees of several concrete forming contrac- 
tors in the Forming Industry. As a result, during late August, 1971, the 
Association established a committee to negotiate a collective agreement 
for those contractors which Local 183 established that it represented a 
majority of the employees. On September 7th, 1971, Local 183 and the 
Association agreed upon a form collective agreement to be the basis of the 
collective bargaining relationships between Local 183 and the forming 
contractors where Local 183 had established that it represented a majority 
of the employees. Attached hereto and marked Exhibit k Q' is a copy of the 
said agreement. This agreement substantially improved the working condi- 
tions of the workers. For example, the hourly rate of pay for each worker 
has increased, on the average, approximately $2.00 from that which existed 
prior to the agreement being entered into. 

Thereafter, Local 183 continued its organizational campaign and pro- 
ceeded to enter into collective bargaining relationships with forming con- 
tractors including those who were not members of the Association. To 
date, Local 183 has succeeded in entering into collective bargaining rela- 
tionships with the employers whose names appear on Exhibit 'R' attached 
hereto. With the possible exception of one or two of the smaller companies, 
each of the collective agreements entered into with the companies named in 
exhibit 'R' hereto was entered into only after Local 183 satisfied each of the 
employers that it was entitled to represent a majority of the employees who 
would be covered by the said collective agreement, pursuant to Section 52 
of the Ontario Labour Relations Act. 

(xxvi) On October 12th, 1971, Zanini called a meeting of concrete forming 
workers at the York Centre Ballroom in Toronto. The meeting was at- 
tended by approximately 80 persons including Irvine. At the meeting, 
Zanini informed the workers that Local 733's Charter was being revoked 
by the Plasterers' International and he therefore recommended that the 
workers become members of Local 183. 

(xxvii) Thereafter, while the Council continued its attempts to organize the 
forming workers, generally speaking, it was unsuccessful and to Local 
i83*s knowledge, the Council, while still in existence, has no viable collec- 
tive bargaining relationships. 

(xxviii) Local 183 is proud of the results it has achieved in the Forming 
Industry during the past two and one-half years. The workers have 
benefited from this effort as follows: 

(a) They have obtained substantial wage increases. 

(b) The workers have received proper union representation in all matters 
relating to their relationship to their employer. 

8o Report on the building industry 

(c) Improved working conditions including better safety protection. 

(d) Continuous enforcement of the collective agreement including process- 
ing by Local 183 of grievances against the employers, institution of all 
necessary proceedings required to recover unpaid wages, vacation pay and 
other monetary benefits. 

(e) Local 183 continues to organize employees of any non-union contrac- 
tors thereby enlarging the opportunity of employment for the forming 

Furthermore, Local i83's efforts have been responsible to a large degree 
for the present stability in the Forming Industry which had been previously 
plagued with innumerable labour relations problems. 


The Forming Industry is certainly not without problems. One of the most 
aggravating problems encountered by Local 183 relates to the failure of 
certain forming contractors to pay their employees the full amount of the 
monetary benefits provided for in governing collective agreements. This 
problem is detailed in Exhibit k S' attached hereto. 

There are other problems in the Forming Industry which are similar to 
those which exist in other parts of the construction industry, which prob- 
lems generally relate to deficiencies in Provincial Legislation, for example, 
the Ontario Labour Relations Act and the Employment Standards Act. 
Local 183 would be pleased to elaborate on these problems as well as 
making certain recommendations thereto at such time as may be conve- 
nient to the Commissioner. 

Local 183 wishes to express its gratitude for the opportunity of present- 
ing this brief to the Commissioner. 



Per: (J. Stefanini) 
(Michael O'Brien) 
(Michael J. Reilly) 

January 18th, 1974 


Labourers' International Union of North 
America, Local 183: Proposed 
Amendments to Labour Legislation 


The purpose of the Brief is to analyse some of the problems facing the 
construction trade unions in the field of labour relations. Since time does 
not permit us to examine all of the problems in the industry, we intend to 
examine those which are of particular concern to Labourers' International 
Union of North America, Local 183 ('Local 183'). Each aspect of this Brief 
will be discussed both in terms of the problems experienced by Local 183 
and then specific recommendations will be made as to the steps that must 
be taken in order to solve them. 


Section 37 of the Labour Relations Act of Ontario requires that: 

'Every collective agreement shall provide for the final and binding settlement 
by arbitration, without stoppage of work, of all differences between the 
parties arising from the interpretation, application, administration or alleged 
violation of the agreement, including any question as to whether the matter is 

Critical problems have arisen in several aspects o\' the grievance- 
arbitration procedure some of which are as follow s: 
(a) In Ontario, there has been a serious shortage of sufficiently qualified 

82 Report on the building industry 

arbitrators who are available to hear and determine grievances arising from 
collective agreements. Further, very few of the currently available arbi- 
trators have had previous experience in labour relations matters with the 
exception of those arbitrators who are former Chairmen of the Ontario 
Labour Relations Board. However, even the arbitrators with past experi- 
ence in labour relations, have had very little, if any, practical experience in 
dealing with the construction industry which is a clear prerequisite to a full 
understanding and appreciation of the problems peculiar to this industry. 
At the present time, most arbitrators are law professors whose obvious 
lack of such practical experience must, of necessity, result in a less than 
satisfactory understanding and disposition of the grievances before them. 

(b) Another major obstacle to the proper functioning of the grievance- 
arbitration process is the delays which are presently inherent in the 
scheduling of hearings or the continuation of hearings by arbitrators. 
Again, in view of the general paucity of qualified arbitrators, it is not 
unusual to have a waiting period from the time when the grievance was filed 
until the first date of hearing of some four to six months. 1 Similar delays 
have frequently arisen with respect to the releasing of arbitration decisions: 
in cases involving sole arbitrators, available data indicates that it takes an 
average of 22.9 days for the arbitrator to prepare and release the Award 
following the final hearing and, in cases of tripartite Boards, an average of 
45.6 days for the majority Award to be prepared and ^leased. 2 It seems 
trite to observe that in the construction industry, unlike industrial situa- 
tions, there is a great fluidity and mobility of work force. This state of 
affairs seriously prejudices a union bargaining agent in presenting evidence 
at an arbitration hearing in that the location of the employees is frequently 
unknown, for example, they may have obtained work in another area. 
Consequently, the delay in the scheduling of hearings has resulted in 
resentment on the part of employees affected by a grievance who tend to 
lose interest in it in view of the lengthy passage of time. In short, the phrase 
"justice delayed is justice denied' is clearly applicable to the grievance- 
arbitration process as it now exists in Ontario. 

(c) Further, unions are discouraged from arbitrating grievances because of 
the excessive costs which are incurred thereby. For example, often when 
an arbitration hearing is cancelled at the request of the parties within a 
month prior to the hearing date, an arbitrator may charge a 'cancellation 
fee' of approximately $200.00 or $250.00 if he is otherwise unable to 
schedule another arbitration to be heard on that date. Clearly, such costs 
are not incurred in the event of the cancellation of a hearing by either the 
Labour Relations Board or, for that matter, by the Court. Furthermore, 
arbitrators frequently charge the parties approximately $500.00 per day for 

Study papers and briefs 83 

each day of hearing notwithstanding that the actual hearing may take a half 
day or less. In addition, further expenses are borne by the Union with 
respect to the payment of its nominee to the Board of Arbitration and also 
for legal fees if counsel has been retained. 

(d) At the outset of an arbitration hearing, unions are frequently faced with 
a multiplicity of technical objections, the purpose and often, effect of which 
is to secure the dismissal of the grievance without a hearing on its merits. 
By raising such objections, the employer attempts to frustrate the 
grievance-arbitration process with the result that the unions and their 
members are often forced to seek out further and other means of resolving 
differences that they have with their employer. Examples of such technical 
objections are as follows: 

(i) the failure of the union or individual grievor, as the case may be, to 
strictly observe the time limits set forth in the grievance-arbitration proce- 

(ii) the arbitrability of the grievance and the consequent jurisdiction of the 
arbitrator to entertain the same; 

(iii) the form of the grievance or, in other words, objections to the 
sufficiency of the particulars set forth in the grievance and whether the 
provisions of the collective agreement or of the Labour Relations Act 
which the union claims have been violated have been specifically pleaded 
by the union; 

(iv) whether the grievance is a 'policy' grievance, which may be lodged by 
the trade union itself, or whether it is an 'individual' grievance, which may 
only be lodged by the employees actually affected by the alleged improper 

(e) The result of the aforementioned technical objections is the dismissal of 
the union's grievance without a hearing on its merits or at all. This unsatis- 
factory conclusion results in no small way because of the lack of power in 
the arbitrator to relieve against 'technical irregularities' by means of a 
specific provision in the Labour Relations Act to that effect. Clearly, the 
absence of such authority in the arbitrator tends to lessen the legitimacy of 
the grievance-arbitration process as a viable and meaningful method of 
resolving disputes under a collective agreement in accordance with the 
Labour Relations Act. 


1 . The Ministry of Labour for Ontario should create a separate Arbitration 
Commission and engage full-time qualified personnel to serve as arbitrators 
in order to fulfil the purpose and intent of Section 37 of the Labour 

84 Report on the building industry 

Relations Act. This would effectively reduce the costs of arbitration and 
for that matter expedite the arbitration process. 

ii. An arbitration hearing must be scheduled within thirty days of the 
request by either party for arbitration unless the parties otherwise consent 
in writing to a longer time period. In arbitrations involving disputes over 
financial benefits accruing to the employees or to the union, an arbitration 
hearing must be scheduled within fifteen days from the request for same if 
desired by the grievor. 

in. The arbitration Award should be released no later than fifteen days 
after the final hearing unless the parties otherwise agree. 

iv. The Labour Relations Act ought to be amended to empower arbi- 
trators to relieve against any technical irregularities in the grievance- 
arbitration procedure, including breaches of time limits, and to waive time 
limits on such terms and conditions as the arbitrator deems appropriate. 


(a) Percentage requirement for automatic certification 

The result of the 1971 amendment to the Labour Relations Act whereby 
the required percentage for automatic certification was increased from 
fifty-five percent to sixty-five percent is that far fewer such applications 
have resulted in automatic certification by the Board than previously. At its 
best, the increased percentage was viewed by trade unions as a regressive 
step in the field of labour relations and one which would simply provide 
greater encouragement and opportunity for employers to apply unlawful 
pressure on their employees to compel them to vote against the union. 
Hence, the purpose of this remedial legislation which is reflected in its 
Preamble which states that, ' ... it is in the public interest of the Province of 
Ontario to further harmonious relations between employers and employees 
by encouraging the practice and procedure of collective bargaining ...' and 
Section 3 of the Act which guarantees the freedom '... tojoinatrade union 
of [one's] own choice and to participate in its lawful activities ...' has been 
defeated if not ignored. In seven other Provinces as well as in the Canada 
Labour Code, a simply majority is the only requirement for automatic 
certification of a trade union rather than the unrealistic percentage required 
under the Ontario Act. 

(b) Under Section 7(4) of the Act, the Board may certify a trade union as 
bargaining agent without the necessity of taking a representation vote if the 
Board is satisfied that more than fifty percent of the employees in the unit 

Study papers and briefs 85 

are members of the trade union and that the true wishes of the employees 
are not likely to be disclosed by such vote. However, the relief afforded by 
Section 7(4) is largely unavailable because of the excessive requirement 
upon the union to represent a majority of such employees in circumstances 
where the employer has previously engaged in improper and unlawful 
conduct in its attempt to discourage its employees from joining the union. 

(c) Local 183 has been continually plagued and frustrated by the filing of 
'petitions' in its applications for certification. The practical effect of filing 
such petitions is to delay the ultimate disposition by the Board of the 
application in that a hearing must be scheduled to deal with the petition 
whereas, absent such petition, the Board in construction industry cases 
usually disposes of these applications without scheduling a hearing. (See, 
Section 91(13) of the Act). A further effect of the filing of a petition is that it 
becomes necessary to engage legal counsel in order to represent the 
union's interests at the hearing in order to cross-examine the witnesses in 
support of the petition thereby increasing the costs of the certification 
process to the union. In the vast majority of applications for certification 
where petitions have been filed, it is apparent that these documents were 
originated and inspired by the employer and in certain recent cases, it has 
even been proven that witnesses in support of the petition have perjured 
themselves in their testimony before the Board. Accordingly, extremely 
few of these petitions are ever accepted by the Board as voluntary 
signification by employees of their desire not to be represented by the union 
and for that reason, the practical result of petitions is simply the occasion- 
ing of serious delay and expense to a trade union. 

(c) We understand that other construction trade unions have advocated 
the removal of the 'exceptions' set forth in Section 6(2) of the Labour 
Relations Act concerning the application of the 'craft principle' in the 
determination of the appropriate bargaining unit. In particular, there has 
been a concerted effort to remove the exception which enables the Board to 
certify a union for a bargaining unit covering a group of employees who 
exercise '...a combination of technical skills or is required to perform the 
skills in whole or in part of more than one craft as part of a work crew or 
team, the other members of which are also required to perform in similar 
fashion'. Local 183 submits that in view of technological changes and 
innovations in the construction industry over the last decade, the present 
legislation properly reflects the performance of work by mixed crews or 
teams of employees who are not associated in their work with the tradi- 
tional crafts nor are they, in the main, performing the functions tradition- 
ally associated with the craft unions. 

86 Report on the building industry 

The principle behind the exception of Section 6(2) of the Act with 
reference to the "crew' concept has assisted Local 183 with respect to its 
successful organizational campaign for employees engaged in the concrete 
forming industry at Metropolitan Toronto, which industry has grown up in 
the last few years as a product of technological innovation. The Board has, 
indeed, recognized this important development and has given effect to it in 
the recent case involving Peniche Construction Forming (1974) O.L.R.B. 
Rep. April p. 208. 

(d) It has always been a policy of the Board to expedite the processing of 
applications for certification in the construction industry. During the last 
few years, however, the construction trade unions have generally experi- 
enced certain unreasonable delays in the disposition of these applications. 
We understand, however, that these and other related matters are pres- 
ently under review by the Board, and accordingly, we are fully confident 
that they will be rectified in the near future. 


1. We recommend that the minimum percentage requirement for automatic 
certification of a trade union as bargaining agent be reduced from sixty-five 
percent to a simple majority in accordance with the prevailing comparable 
legislation across Canada. 

11. We recommend that Section 7(4) of the Act be amended to provide 
for certification without the necessity of taking a representation vote where 
the true wishes of the employees are not likely to be disclosed by such vote 
where the trade union represents at least twenty-five percent of the em- 
ployees in the bargaining unit. 

in. There ought to be no amendment made to Section 6 of the Act at this 
time dealing with the application of the 'craft principle' in the determina- 
tion of the appropriate bargaining unit. 


(a) Available statistics establish that there is an extremely low rate of 
success by trade unions in Complaints made under Section 79 of the Act 
involving the discharge or discipline of employees for engaging in union 
activity. Under Section 79. it is extremely difficult, if not impossible, for 
the union to succeed since the onus of proof lies on it to establish that the 
employee was discharged for union activity. Experience has taught that it 

Study papers and briefs 87 

is a relatively rare phenomenon for an employer to openly indicate that an 
employee has been discharged or disciplined by virtue of his union activity. 
In arbitrations and, for that matter, in actions for wrongful dismissal at 
Court, the onus lies upon the employer to establish cause for discharge. 
The result of the reversal of this onus in Section 79 Complaints is that, in 
the fiscal year 1972-73, of the eighty-one Complaints made under Section 
79 of the Act that were heard by the Board, relief was granted in only 
twenty cases while fifty-eight applications were dismissed and three were 
withdrawn which indicates a rate of success of twenty-five percent. 3 

In the Provinces of Quebec, Nova Scotia, Prince Edward Island, 
Manitoba, Saskatchewan and British Columbia as well as in the Canada 
Labour Code, the legislation provides that the onus of proof in discharge 
and discipline cases is on the employer. 


The Act should be amended to provide a presumption in favour of an 
employee that he was discharged or disciplined contrary to the Act and the 
burden of proof that the employee was discharged or disciplined for cause 
be upon the employer. 


(a) Under the Labour Relations Act, there are no limitations placed on the 
right of a provincial, national or international trade union fa parent union') 
to impose trusteeship over a subordinate local union. The sole requirement 
under the Act is that the parent union must file a statement with the Board 
within sixty days of the date of the trusteeship which sets out the terms 
under which the supervision or control is to be exercised (See, Section 
73(1) of the Act). Under Section 73(2) of the Act, however, the parent union 
is required to obtain the consent of the Board in order to continue its 
trusteeship over the affairs of the subordinate local union for a period 
longer than twelve months. 

(b) Accordingly, it is clear that there exists far too much scope for abuse 
with respect to the imposition of a trusteeship over a subordinate local 
union: Plainly, it is possible for the parent union to not only ignore the 
express provisions of its constitution, but also, it may well deny the 
subordinate local union natural justice, in assuming control over its affairs 
and the Board is without jurisdiction to supervise or to check such abuse. 
Arguably, the local union may seek redress at Court but the inherent costs 

88 Report on the building industry 

and delay thereby incurred make the availability of such relief more illu- 
sory than real. In any event, given the Board's jurisdiction to supervise 
trusteeships, there appears to be a gap in the Board's powers with respect 
to the first year of a trusteeship. 


The Act should be amended to provide that no provincial, national or 
international trade union shall place a subordinate local union in trustee- 
ship without the prior consent of the Board. 


(a) Local 183 and no doubt other construction trade unions have been 
continually plagued by problems involving the failure or refusal of em- 
ployers to pay to their employees wages and other employee benefits. Quite 
often, it has become necessary for Local 183 to engage legal counsel to 
commence proceedings at Court or under Provincial legislation such as 
the Mechanics' Lien Act or the Public Works Creditors' Payment Act, or 
federal legislation, such as the Bankruptcy Act of Canada, in order to 
collect unpaid wages and other employee benefits. An example of Local 
183's experience in such matters with respect to concrete forming contrac- 
tors at Metropolitan Toronto is set forth in Exhibit 'S' to Local 183's 
previous Brief to the Royal Commission and marked as Exhibit 916. 

(b) With respect to the payment and collection of vacation pay to 
employees, the problem becomes further aggravated in view of the provi- 
sions of the Employment Standards Act of Ontario and in particular, 
Section 28 thereof, which provides, in part, that: '... in any case the 
employee shall be given his vacation not later than ten months after the end 
of the twelve month period for which the vacation was given . ' Accordingly , 
the employer has an option of postponing payment of vacation pay for a 
period often months after the year in which the vacation pay was earned. 

Some years ago, the Ontario Government abandoned its concept of 
vacation pay stamps which, while it may have been an administrative 
problem for the Government, nevertheless guaranteed the payment of 
employees' vacation pay. In the result, there has simply been no equally 
effective substitute introduced for the guaranteeing of the payment of 
vacation pay. Frequently, construction workers discover, after having 
waited from twelve to twenty-two months, as the case may be, for the 

Study papers and briefs 89 

payment of vacation pay due and owing to them, that their employer fails or 
refuses to pay them and it thus becomes incumbent upon them to take the 
necessary proceedings to recover these monies. In such cases, the em- 
ployees frequently have not maintained any , or at least accurate , records of 
the amounts due to them and this default on their part becomes a serious 
obstacle in the effective recovery of the amount due them. This problem 
has been noticeably aggravated with respect to immigrant construction 
workers who are not familiar with and do not appreciate the intricacies of 
Ontario law in this regard. The situation cries out for a simpler and more 
equitable legislation dealing with the recovery of unpaid vacation benefits . 


1. Before any contract, exceeding $5,000.00 in amount, for the construc- 
tion, alteration, decoration, repair, demolition of any building, structure, 
road, sewer, water or gas main, pipeline, tunnel, bridge, canal or other 
works at the site thereof, is awarded to any person, such person shall be 
required to furnish to the Municipality in the area in which the project is 
located a Performance Bond with surety or sureties satisfactory to the 
Municipality, for the protection of all persons supplying labour in the 
prosecution of the work provided for in the said contract for the use of each 
such person, as follows: 

(a) Where the total amount payable by the terms of the Contract does not 
exceed $1 ,000,000.00, the said payment bond shall be in a sum of 25% of the 
total amount payable by the terms of the contract. 

(b) Where the total amount payable by the terms of the contract exceeds 
$1,000,000.00 but does not exceed $5,000,000.00, the said payment bond 
shall be in a sum of 20% of the total amount payable by the terms of the 

In support of this recommendation, we refer to the Miller Act of the 
United States, 40 U.S. Code Section 270(a) - 270(e) Act of August 24, 1935, 
c. 642, 74th Congress, First Session, 49 Statutes 793, as amended, which 
provides that before any contract is awarded for over $2,000.00 for the 
construction, alteration or repair of any public building or public work of 
the United States, the contractor must execute a payment bond with a 
surety or sureties to protect the wages of all persons supplying labour. 

We respectfully submit that construction workers in projects other than 
Government projects are entitled to similar security with respect to their 
employment benefits. Such performance bonds should continue in exis- 
tence for the duration of the project and for a period of 37 days thereafter. 

90 Report on the building industry 

As an additional protection, the prime contractors should not be permitted 
to obtain building construction permits unless and until they are able to 
supply the municipality with the requisite proof that the aforementioned 
performance bond or bonds, as the case may be, have been furnished to the 

ii. Employers who fail to adequately provide for payment of construc- 
tion workers' employment benefits should be subject to punishment by fine 
and/or imprisonment. Such legislation would certainly act as a deterrent to 
those employers who take unfair advantage of the construction worker. In 
the United States, there is provision in the Anti-Kickback Law and Cope- 
land Act (Act of June 25th, 1948, 18 U.S.C. 874; Act of June 13, 1934, as 
amended, 40 U.S.C. 276(c); Reorganization Plan No. 14 of 1950, (15 F.R. 
3176, 64 Stat. 1267) provides that a person is punishable by a fine up to 
$5,000.00 or by imprisonment up to five years or both, for anyone by force , 
intimidation, threat of procuring dismissal from employment or by any 
other manner whatsoever, to induce an employee on work covered by the 
law to give up any part of the compensation to which he has a right under his 
contract of employment. Such legislation could be made to apply and to 
provide for fines and/or imprisonment, in any case where a person by force , 
intimidation or threat of procuring dismissal from employment or by any 
other manner whatsoever, induces, permits, or causes any person em- 
ployed in the construction, alteration, decoration, repair or demolition of 
buildings, structures, roads, water or gas mains, pipelines, tunnels, 
bridges, canals or other works at the site thereof to give up any part of the 
compensation to which he is entitled under his contract of employment or 
to work for anything less than which he is entitled under his said contract of 

in. With respect to vacation pay, the Employment Standards Act of 
Ontario should be amended to provide that vacation pay be made payable 
twice annually or alternatively, vacation-with-pay stamps should be rein- 


From time to time, the trade unions in this Province have experienced 
grave misgivings and dissatisfaction with respect to the supervision and 
control over trusteed employee benefit plans. More particularly, there has 
been a felt need for the availability of an independent audit of an employer's 

Study papers and briefs 91 

books and records in order to ascertain whether such employer has faith- 
fully remitted the benefits due to its employees under these plans. 


(a) All employee benefit plans in the Province must be joint trusteed so that 
the employer and the trade union be represented fully and adequately with 
respect to the supervision and control over trust monies. 

(b) Provision should be made in the legislation for the right of employees or 
their bargaining agent to request an independent audit of any employer's 
books and records to ascertain whether the full and proper amounts of 
monies are being duly remitted to the plan and further, that the employer's 
books and records are true and accurate in all respects. The plan itself 
should bear the expenses for such an audit, but in the event that an 
employer has been found guilty of misconduct, the full expenses of the 
audit should be borne by it. It seems trite to observe that the introduction of 
such provisions to the legislation may act as a useful deterrent to any 
employer that may seek to avoid its obligations in this regard. 

All of which is respectfully submitted. 

labourers' international union of 
north america, local 1 83 1 

Per: (J. Stefanini) 

August 9th, 1974. 


1 Justice Delayed ... The Arbitration Process In Ontario by the Labour Council of Met- 
ropolitan Toronto at pp. 5-9. 

2 Supra, at pp. 8-10. 

3 Annual Report by the Ontario Department of Labour re Proceedings before the Ontario 
Labour Relations Board, for fiscal year 1972-73 see p. 27-28. 

See also Submission of the Ontario Federation of Labour. Committee on the Labour 
Relations Act and Procedures of the O.L.R.B. February. 1974. Appendix VI at p. 17. 

4 Supra , Appendix V at p. 16; and Part V of the Canada Labour Code, Section 188(3). 


Building & Construction Unions: 
Causes of Change 


Construction & Building Trade Unions are primarily Craft Unions. Craft 
Unions as commonly understood, 'consist of workers who have undergone 
an apprentice training and whose acquired skills enable them to carry 
through to completion on a particular process, usually requiring manual 
dexterity with tools. A Craft Union crosses industry lines since industries 
producing entirely different commodities or services include some proces- 
ses or occupations which are similar. ' ' 

Most, if not all, Craft Unions in the building industry are multi-crafts. 
The Bricklayer, Mason and Plasterer; the Painters, Decorators and 
Paperhangers of America are good examples. Others, although singular in 
craft by name, are in fact representing more than one craft. The Sheet 
Metal Union, for instance, also represents, in many areas, the roofers. In 
the building construction industry there are 18 Craft Unions. 

Craft Unions in North America are the oldest established Unions. 2 They 
survived the test of time, an odyssey for which they deserve the full credit. 
Looking back in history, as far back as the nineteenth century, we have 
ample examples of their ordeals. They had to overcome strong employer 
opposition, economic panics and depressions, anti-labor and punitive legis- 
lations, as well as the almost complete alienations, misunderstandings and 
antagonisms of the courts and restrictive injunctions. 3 

The price paid for their progress was a heavy one. Union members had 
to shed their blood and were subject to untold sacrifices. Sometimes their 
only strength was their courage, their determination and their faith that 

Study papers and briefs 93 

their cause was a just one. Other unions of a more idealistic and industrial 
basis faded away like snow in the April sun . The Knights of Labor 4 and The 
Industrial Workers of The World 5 , or Wobbies, were union organizations 
which belong in this category. 

There are many factors which contributed to the birth, survival and 
growth of Craft Unions. The most important one is their pragmatic ap- 
proach to problems affecting their own members and the craft itself. More 
specifically, the defense of the craft, its welfare and honor and the regula- 
tion of the same. Concepts which are part of the heritage of the Guilds. 
With regard to their regulation, the Craft Unions established a long and 
elaborate apprenticeship system. This in turn generated pride of craftman- 
ship and its resultant cohesion. Craft Unions are in essence 'job conscious' 

The large immigration waves did not affect Craft Unions as vitally as it 
did so many others. Faced with a hostile environment, Craft Unions built 
walls of protection around themselves. The advent of the machine culture, 
however, turned that defense into their biggest obstacle. 

In the twenties, despite a booming economy and a large increase of 
industrial workers, the American Federation of Labor (a.f.l.) was unable 
to make any real progress. The a.f.l. was comprised mostly of Craft 
Unions. Technicological changes had the following impact on the crafts: 

1 . Modification and replacement of skills. 

2. Increased interdependence of skills. 

3. Doing away with a skill altogether. 

In the labor force the semi-skilled or unskilled workers became the major- 
ity - no longer the cry in the wilderness but a large group demanding social 
justice and unions. The New Deal promoted correction of social evil 
through unionism. 

Craft Unions, tied by their own principle and traditions, were unable to 
cope with these new problems. Rome was burning and the A.F.L. was 
fiddling. Finally, there was a showdown in 1935 between the old guard of 
the Craft Unions vs. the more perceptive trade unionists. 6 John L. Lewis 
and his miners were primarily responsible for the birth and growth of a new 
kind of unionism, the Committee of Industrial Organization. 7 

Building and construction unions were not touched by these schisms or 
new unionists. Partially because machines and technocological changes 
were not introduced in such large scale in the industry to seriously affect 
the modification, replacement or elimination of the skills. It would appear, 
however, that this picture is gradually changing. It would also appear that 
the rhythm is accelerating. 

Let us describe now these changes in the construction and building 

94 Report on the building industry 

industry, analyze some of them and later try to evaluate their impact on 
construction unions. 


A complete and accurate description of all the changes in the construction 
industry in the last decade would require lengthy, voluminous and highly 
technical explanations. We will deal, therefore, with some of these changes 
in general terms. 

During the past few years the construction industry was the subject of 
rapid technocological changes. There is every indication that these 
changes will continue with an accelerated speed. They will have an untold 
impact in the industry and also on the structure of the construction and 
building unions. It would appear that the majority of construction innova- 
tions originated in the residential sector (housing and high-rise apartments) 
and were gradually transplanted in the traditional commercial sector. 

Management's dissatisfaction with traditional products, some anti- 
quated, which often required specially trained craftsmen for its installation 
introduced a gradual injection of contemporary materials into construction 
projects. To different degrees it touched almost all aspects of construction 

Synthetics, connected with dry fittings and epoxy glues, replaced the 
traditional 'wet system' of plumbing installation. The 'wet wall' plastering 
system is gradually being substituted with 'dry wall' systems. 

Simultaneous to the injection of synthetic materials was the barrage of 
mass produced prefabricated items available. The shops of the mechanical 
contractor began to produce complete plumbing trees, prefabricated vent 
and waste sections. Factories mass produced completely finished kitchen 
cabinets, complete stair assemblies, 'door-packs' complete with precut, 
prehung and preassembled jambs, casings, stops and door with hardware; 
'window-packs' complete with precut, prehung and preassembled frame, 
hanging style, casing, stool, apron and sash with hardware; and so on. 

The mass production did not stop there. The success with the compo- 
nent led, through natural evolution, to the mass production of complete 
prefabricated walls and floor sections. Prefab mass production also in- 
cludes such items as total kitchens, complete with cabinets, plumbing 
fixtures, electrical fixtures, floor tile and utilities; bathroom sets, complete 
with bathtubs, toilet closet, washbasin, electrical fixtures, ceramic and 
resilient tile. And then the ultimate - the mass produced shop-built, prefab- 
ricated total building. 

Study papers and briefs 95 

The house building in particular is gradually being changed from the 
concept of 'building' to the one of 'assembling.' That is: putting together 
factory prefabricated components. The bricklaying trade, already substi- 
tuted in commercial building by precast walls, is now being replaced by 
units of prefab brick walls. This component is being contracted in factories 
on a mass production basis. 

The house basement, once built by brick, is now done by poured 
concrete. An operation which requires a lower skill and is far superior in 
speed. Computers are now being used in house building and especially in 
truss specifications. Trusses are used for the frame of the house. They are 
put together in factories. Computers speed up truss design and engineering, 
eliminate the margin for human errors, encourage new designs, greater 
flexibility and results in lower cost. The installation of truss components is 
being done by a crew consisting of a carpenter who acts as a foreman and a 
number of men, usually 6 or 7, who are semi-skilled or trained only for that 

Having exposed in general terms some of the most important changes in 
building techniques we shall now deal with one of them: the concrete 
forming industry in the highrise apartment construction in Toronto. We 
shall, in a more detailed description, analyze the impact which tech- 
nocological changes in concrete forming techniques caused to building 
unions in the Toronto area. 


The concrete forming sector, a singular method of framing, also known as 
superstructure, is the shell of a high-rise building. 8 From an architectural 
and engineering point of vie w , it is the most important aspect of a building . 
Its cost is one of the major financial items of a project. But, perhaps even 
more important, is the impact that the superstructure has on the scheduling 
of production of a building. By being the first structure to be constructed 
the concrete forming, therefore, can be called a key sector. 

Before major changes were made to its system, the following was the 
pattern established, from the labor aspect, to build high-rise towers: the 
carpenter, alone, handled each of the hundred components comprising a 
formwork structure and assembled and disassembled each of the hundred 
components for each individual pour. The ironworkers , alone, handled, 
placed and tied each individual piece of reinforcing steel. The cement 
mason, alone, handled, placed and finished each shovelful of concrete. A 
specialist erected the tower crane and a hoisting engineer specialist oper- 

90 Report on the building industry 

ated it during construction. The laborer was relegated to common tasks of 
housekeeping and helper. Fig. I below reflects the then existing labor 
situation. The groups also represent the skill that was required. It is 
obvious from Fig. 1 that the major cost to a builder was on the higher 
groups: eg. carpenters. 


Each block repre- 
sents the various 
rates paid to each 
group and their 
respective class- 
ification within. 

1 Laborer 
II Cement Mason 

III Ironworker 

IV Carpenter 

V Housing Eng. 

9 - 




J L 


Another important factor was the labor supply. Due to the lack of 
qualified tradesmen required and the tight apprenticeship system 9 , it was 
fairly inelastic at that time . We know from basic economics that an inelastic 
curve will produce sooner or later a reduction or elimination of that particu- 
lar demand or supply. 

In Toronto various factors forced a change in the old superstructure 
system. By coincidence, all of these factors took place more or less at the 
same time (toward the end of the 5o's). 

i . A higher demand for apartment suites. The mass influx of population 
coupled with a diminishing supply of land made high-rise apartments a 
highly profitable business. 

2. The restrictive municipal building by-laws. The Toronto municipal 
government introduced building regulations forcing builders to leave a 
certain percentage of 'green space' around the building. The result was 
higher buildings. 

3. The inadequacies of the other systems. The block system permitted 
construction only to a limited number of stories in height. The structural 
steel was too expensive. The precast was not fully developed as yet. 

4. The lack of qualified tradesmen required under the old system. 

Study papers and briefs 97 

5. The large number of immigrants arriving in Toronto. 10 Most of them 
were not permitted to join the established local unions either because their 
skill of the old country was not suitable in the Canadian setting or because 
of the stringent apprenticeship system. 

6. Supply companies promoted new systems to attract demands to their 
products. The Canadian Patent Scaffold Company on licence from a Ger- 
man engineer initiated in Toronto the 'flying form' concept. The Company 
purpose was to promote the use of tubular metalic scaffold materials rather 
than the lumber forms. 

The 'flying forms' system greatly reduced the need and number of 
qualified tradesmen. The main part of installation and operation is more 
concentrated at the semi-skilled base. In terms of economics, Fig. II below 
helps us to see the differences compared to the old system in Fig. I. 

Fig. II 

I Laborer 

II Cement Finisher 

III Rod Placer 


IV Form Setter 



V Crane Operator 







J I I L 

J I I L 

J L 


We can notice immediately the lower percentage of skilled workers and 
the increased number of unskilled or semi-skilled workers required. The 
function of each group was also changed. Thus, the laborers became 
semi-skilled and the level of skill of the other trades was lowered. The 
carpenter, for instance, under the new system can be properly called a form 
setter. Another important factor is that the 'flying form' system requires 
team work. This is one of the keys of its existence. 

The nature of the work performed by the employees may be described as 

1 . The employees are engaged in all phases of concrete forming work for 
which they undergo on-the-job training. 

2. The employees work as a crew under common supervision and 
perform an inter-related series of functions. 

98 Report on the building industry 

3. The employees work along side of each other as part of a cohesive 
work crew or team. 

4. The employees possess varying degrees of technical skills rather than 
any of them possessing skills different from one another. 

5. There is no group of employees who, by reason of skills of crafts, are 
distinguishable from the other employees. 

Workers, therefore, are not divided along the rigid lines of craft jurisdic- 
tion. By necessity most of them perform a number of operations. The skills 
are not only inter-related but also overlapping. The laborer is not relegated 
to menial housekeeping tasks but is an important worker in the overall 
operation. New hourly rates were established to reflect skill realities. A 
new kind of construction worker was born: the concrete forming worker. 

The new system became a success for two main reasons: the substantial 
saving and the high level of productivity and speed. Since its inception 
more than 100 high-rise apartment buildings are blooming in the Toronto 
skyline at any one time. Toronto is one of the fastest growing metropolises 
in the world with an unparalleled construction volume. 

During the 6o's construction unions made many attempts to organize the 
residential sector. This sector became just as large and important as the 
traditional commercial, institutional and industrial one. It was then that the 
unions decided to go out of the walls of their ancient citadel and to organize 
under 'B locals' . Residential builders were becoming increasingly active in 
the traditional commercial sector. 

The unions launched many organizing drives with all the strength and 
efforts they could muster. Their attempts, however, failed. A number of 
reasons contributed to their failure: 

1. Strong employer opposition. Employer opposition was twofold: (a) 
anti-unionism concept and (b) fear that the Craft Unions would destroy the 
new system. 

2. Loopholes in the Labor Relation laws. Until recently an employer 
was able to play much easier the so-called 'number game'. 1 ' Thus offset- 
ting the majority claimed by each union which is required for certification 

3. Continuing disagreements and distrusts among unions despite the fact 
that five building union locals formed a legal Council. 12 Sometimes there 
was more concern as to how to divide the pie even before it was baked. 

4. Dual unionism. Another International Union with no relation to the 
concrete forming industry attempted and almost succeeded in organizing 
the concrete forming workers. Later there was an independent union 13 
created for this purpose. 

Study papers and briefs 99 

Large amounts of money were spent. Many union organizers worked 
hard for a long period of time but to no avail. The industry was plagued by 
many labor unrests, strikes, walkouts, etc. Finally in 1971 our local union 14 
decided to do something about it. We broke away from the Council and 
became engaged in a three-way fight; that is, against the Council and a local 
of another international union. We succeeded in less than one year to 
organize the concrete forming workers. Our policy was to organize on a 
quasi-industrial unit representing all concrete forming workers with the 
exception of the crane operators. A degree of order and stability has been 
finally achieved in the industry. Wages have almost doubled during the last 
three years. 

It is interesting to note that our local, before organizing the residential 
workers, was representing mainly construction miners. Organizers who 
were former miners with no previous experience or connection with the 
concrete forming industry were the ones to win the day. There is a very 
close parallel to the a.f.l. and c.1.0. situation of 1935. 

Will this new multi-skilled bargaining unit concept survive and prosper? 
Although it may be considered a singular situation in North America, it is, 
nev ertheless , important because Toronto is a large city with a big potential . 

A positive result has already been achieved. In 1 970 four major builders , 
perhaps fearing eventual unionizations, set up a factory in Toronto to 
prefabricate concrete units for high-rise apartments. These building tech- 
niques would eliminate the concrete forming system altogether. They 
invested large amounts of capital and brought to Canada expertise from 
England 15 to direct the operation. 

Our local union organized the factory. I visited the premises where the 
men were working. I was impressed in a negative way by the working 
conditions. Although it was a modern plant and efforts were made to install 
the best equipment, I thought that the worker on a construction site was 
much better off. However, the most important factor, in my opinion, was 
the degress of human dignity. In the factory a worker is subjected to the 
monotonous routine of assembly-line work, a process which almost de- 
humanized the individual. Construction workers on sites enjoy a much 
greater freedom and a greater variety of tasks. Construction workers are 
proud people. They prefer the risk of the elements of nature and being in 
the open space rather than being closed within four walls and performing 
menial and repetitious tasks. 

The prefabricated method could not compete against the new concrete 
forming. Our local union carefully preserved in the industry the flexibility 
necessary for acceptable productivity. Contrary to other unions, we 

ioo Report on the building industry 

adopted a concept 'to suit the industry rather than the industry to suit the 
union'. Two years later the factory was closed. The prefab concept had 
employed fewer men than the site concrete pouring method; yet, despite 
this it didn't succeed. The main reason is speed. 16 

In order to have a better appreciation of the labor flexibility factor and its 
impact on building costs, we shall make a comparison of the concrete 
forming prices between Toronto and Miami. In Toronto the present rate for 
high-rise concrete structures is approximately $.6o-$.63 a contact square 
foot for supplying the formwork, including the supply of crane and perfor- 
mance of cement rubbing; $4.50 per square yard for placing and finishing 
concrete; and approximately $60.00 per ton for the placement of rebar. 

In Miami the total cost for providing the formwork is approximately 
$ 1 . 30 to $ 1 .40 per contact square foot; the cost of placement and finishing of 
concrete is approximately $8.oo-$io.oo per square yard; and the cost of 
rebar is approximately $90. oo-$i 10.00 per ton. 

As we can see, the cost for performing the same jobs in Miami, which is 
under much better weather conditions, is twice those in Toronto. Wages in 
Miami and in Toronto are approximately the same. The difference, there- 
fore, is solely due to inefficiencies caused by multi-subcontractors per- 
forming inefficient procedures on the job site. This is partly caused by the 
fact that each job involves a different type of skill. 


The construction industry is undergoing an ever increasing process of 
changes. In the past these changes were of a horizontal nature with little 
impact over established lines of the Craft Unions. It would appear that now 
this trend is changing. At present new techniques are of a vertical nature; 
that is, requiring a construction worker to perform a number of operations 
which may be of different skills. 

The skills needed are not as onerous as in the past. A lengthy appren- 
ticeship system is no longer necessary. Less formal training on-the-job 
programs are gradually replacing the apprenticeship system. Teamwork is 
also important. The new construction workers possess varying degrees of 
technical skills rather than any one of them possessing skills different from 
one another. They perform an interrelated series of functions and are part 
of a cohesive work crew or team with common supervision. 

Before elaborating on this point any further, it would be interesting to 
analyze what causes these changes in the building and construction indus- 
try . We can describe a number of them : 

Study papers and briefs 101 

i. The supply curve of building land available. The less land available 
the higher the price will be. Builders, therefore, will be forced to build 
houses or apartments using the most economical method. 

2. Cost of materials. Certain types of construction materials are at a time 
more economical (or expensive) than others . (The present cost of lumber is 
a classical example.) This in turn would cause the use of different materials 
or the use of the same material under other methods. Either may change the 
requirement of skills necessary for the installation of it. 

3. The availability of material. This point could be closely related to 
point No. 2. However, not all the time is the factor of availability of 
materials related only to cost. A builder may be willing to pay the cost but 
he may not find the material available, thus inducing him to find other 

4. The ingenuity of architects and engineers. Technocological changes 
are often introduced by professionals who may like to experiment with new 
systems because they are more efficient and economical or just because of 
their professional inclination. 

5. The fierce competition among contractors who, in order to compete, 
devise new methods of more productive natures. 

6. The ingenuity of suppliers and/or manufacturers. In many instances a 
manufacturer or supplier in order to promote their products may introduce 
a new material or system which can seriously affect the established craft 

7. The availability of skilled craftsmen. If a contractor finds it difficult to 
recruit his necessary number of skilled tradesmen, he may devise a system 
where he may not need highly skilled tradesmen or reduce the number of 

8. Cost of labor. This factor varies greatly from sector to sector and from 
trade to trade in the construction industry. It all depends on the percentage 
of labor cost in the total volume of the construction cost. 17 However, we 
can safely say that the higher the labor cost of a trade and the number of 
men required of that trade, the stronger the motivation would be for an 
employer to find other alternatives. 

9. The economic situation of the country or region. This factor is highly 
complex in many respects. For instance, we can ask ourselves the follow- 
ing questions: How much is the buyer willing to pay? What are his earn- 
ings? Is the monetary and/or fiscal policy stimulating or contracting con- 
struction? Etc. 

10. The population growth of the country or region or locality. 

Some of the above factors are more important than the others. In a 

102 Report on the building industry 

region there might be a combination of all or part of them at any one time. 
There is an equation, however, which we can describe as follows: The 
higher the number and the stronger the degree of these factors, the faster 
the changes will be introduced into construction. 18 

Any or all of the above factors may influence not only the building 
system but also the volume of construction. Construction is becoming a 
dynamic industry. Is is an important part of the economy of a country. In 
Canada it is the industry which directly or indirectly is employing the 
largest number of Canadians. 

Construction unions are confronted with serious and complex chal- 
lenges. These challenges are in the area of new responsibilities, bargaining, 
organizing, retraining, legislative and, for some of them, survival. Their 
refusal to recognize them is to bury their head in the sand. Their attempt to 
solve them by old policies is to decline acceptance of reality. 

Having mentioned some of the areas of challenges facing construction 
unions, we shall examine them in more detail. 


Most of the construction unions are too narrow in scope. They are as close 
as they can be to 'business unions'. The broader and more liberal concept 
of 'community unionism' must be adopted. Their responsibilities do not 
end at the bargaining table. They should promote the concept of cheaper 
housing not only for the benefit of the community as a whole but also for 
their own members. What is the use of increasing the hourly rate if such an 
increase will still be marginal to the greater increase of the cost of housing? 
Government subsidized housing is not the answer. Government has a clear 
responsibility to reduce or eliminate the windfall profit in land speculation, 
materials and builders' profits. Monetary and fiscal policies are also impor- 
tant, but surely unions should serve as examples in promoting new systems 
or at least not opposing new systems to increase productivity, which will 
make housing within reach of the working people. 

The argument that increased productivity will reduce jobs is a fallacy. It 
may very well result in fewer jobs on a project but the more projects built 
the higher the number of jobs available . ' 9 


The old concept that each union must negotiate by itself has no place in a 

modern and stable building industry. It is creating economic and political 

Study papers and briefs 103 

pressure of high magnitude. The 'leap frogging' is a clear example. A union 
leader is almost forced to go for a higher settlement to those negotiated 
previously by other trades. Strikes are often a chain reaction. When mem- 
bers of a Craft Union settle their dispute they may be out of work just 
because other members of another Craft Union went out on strike, and so 

Extended regional bargaining on a craft basis is not the answer. Many 
employers, government officials and international union representatives 
genuinely have fallen into this detrimental belief. In the long run it will only 
enlarge the problem from an area to a region. It would further implant this 
detrimental bargaining process in deeper roots and it will be more difficult 
to extradicate it. 

The answer lies in multi-trade bargaining. If a dispute will be solved, it 
will be solved not only for the members of a Craft Union but also for all 
workers within a sector. The success of multi-trade bargaining, however, 
depends on a few conditions. The geographical area should reflect uniform 
economic realities and mores. 20 Another important condition is to limit 
multi-trade bargaining to sectors. Thus a strike in the heavy construction 
industry sector will not involve workers in the commercial or residential 
building sectors and visa versa. Sectors, however, may have different 
geographical boundaries. One sector may have a greater geographical 
boundary than another. 

Other objectives in bargaining should also be explored, such as more 
security of employment and guaranteed earnings. 21 The lack of them has 
plagued the construction worker and drove unions to take militant stands 
and demand higher wages. 


There is a growing trend of non-union work being built especially in the 
residential sector. An exception is in those areas where unions adapted 
themselves to the realities of the industry. The success of unionization of 
the concrete forming industry in the residential sector in Toronto should be 
a clear indication to responsible unions. The 'cut' in the hourly rate for 
residential work done by many unions is not the answer. First, it is a 
hypocracy. Sooner or later the rate will be raised to the commercial one 
because members will demand the higher rate. Second, it is discriminatory 
because it creates two classes of union members. The solution is rather to 
accept the degree of flexibility in the operation that an employer is used to 
or established. This in turn will reduce employer opposition to unions. 

104 Report on the building industry 


Due to the changing nature of the construction industry, new skills are 
created and older ones are made obsolete. Full employment also requires a 
construction worker to possess a dexterity of different skills. Only by these 
qualifications can he be slotted to whatever job opportunities are available 
and be employed for as long as possible . Unions have a clear responsibility 
to promote retraining programs in cooperation with employers and gov- 
ernment agencies. Some unions are already fulfilling this obligation. 22 


This objective is more in the province of the Government and Labor 
Boards. The exclusive bargaining units established in the construction 
industry are too narrow and out-of-date with the present situation. The 
Ontario Government has taken a step in the right direction with the revision 
of Sect. 6(2) of the Ontario Labor Relation Act dealing with Craft Unions. 
The revision allows the Board to use its discretion in describing bargaining 
units in the construction industry '... where the group of employees is 
exercising a combination of technical skills or is required to perform the 
skills in whole or in part of more than one craft as part of a work crew or 
team, the other members of which are also required to perform in similar 
fashion.' (emphasis added) 

On April 4, 1974, the Ontario Labor Relation Board, using the above 
statutory right, certified our local for "all construction employees ... en- 
gaged in concrete forming on residential building projects.' 23 

A more complete study should be made by governments regarding 
bargaining units in the construction industry having due regard to unions 
and employers' presentations. 


At this point it would be in order to ask what kind of union reconstruction 
should be done. How many and what unions should exist? It is a difficult 
question to give a satisfactory answer. As Mr. Bluestone, Vice President of 
the U.A.W., said to Senator Kennedy, 'I must say I do not think I have 
answers. I have some questions and some ideas that perhaps might pro- 
voke further discussions.' 24 

The most rational approach would be for construction unions to discuss 
their problems and have a new organizational structure. We all know that it 
will never happen. There are too many empires to protect and too many 

Study papers and briefs 105 

personalities which will interfere. One big union for the construction work- 
ers also would be unrealistic. It may not be able to reflect the aspirations of 
all its members. The answer may lie in a gradual reduction of the number of 
construction unions. This may come either by elimination and/or by a 
merger process. 

The elimination process is twofold. New techniques in the industry may 
remove the necessity of certain skills. Thus unions representing those 
crafts may die a natural death. 25 More aggressive unions may seize upon 
new opportunities and slowly reduce the sphere of influence by the more 
passive unions to a point where it will be difficult for them to survive. 

The surviving unions may not necessarily be the big ones. Some of them 
are structured so rigidly that it is difficult for them to adjust to new 
environments. Centralization of policies sometimes curtails the initiative 
of area officers who are more unaware of new situations to exploit. Many 
battles were lost in wars because 'the man at the top' directed the opera- 
tions from far away denying the front officers the opportunity to capitalize 
on openings. 

Merger of unions will also contribute to stability. Weaker unions may 
see merger as their only salvation. Other unions may see in merger a 
consolidation of their craft because the new organization will have a 
broader basis. The unions which will have a better chance to prosper are 
the more responsible, vibrant, broader thinking and those unions which are 
not afraid of changes. 

Whatever changes may or may not occur in the construction unions, 
there is one aspect of great importance which must be kept in consideration 
at all times: the construction workers and what's good for them. Without 
this guiding principle, changes may be meaningless or even detrimental. 

After all, we cannot lose sight of the fact that it is the statutory right of 
employees to freely designate their representatives and organizations of 
their own choosing. Any narrow, technical and pedantic system which 
obstructs the principle of mass employment in an industrial development 
will inevitably be changed. 

John Stefanini 

Laborers International Union of North America-Local 183 


1 New York University. Sixth Annual Conference on Labor (New York, N . Y.). p. 407 

2 The Bricklayer, Mason and Plasterer International Union of North America was founded 

106 Report on the building industry 

on October 17, 1865 and the International Brotherhood of Carpenters and Joiners of 
America was founded in August, 1881 

3 The anticombination provisions of the Sherman Act enacted on July 2, 1890 were applied 
to unions until 1932 at which time they were repealed by the Norris-La Guardia Act. 
Another anti-labor legal document was the infamous Yellow Dog Contract which was only 
outlawed by the Wagner Act in 1935. 

4 The Knights of Labor were established in 1873 in Philadelphia and vanished around 1894. 

5 The Industrial Workers of The World was founded in Chicago in 1905. This organization 
faded away with the first World War. 

6 As originally constituted the new Committee for Industrial Union was formed by John L. 
Lewis of the United Mine Workers of America, Charles P. Howard of the Typographical 
Union, Sidney Hillman of the Amalgamated Clothing Workers, David Dubinsky of the 
International Ladies Garment Workers, Mark Zaritsky of the United Hatter, Thomas F. 
McMahon of the United Textile Workers, Thomas H. Brown of the Mine, Mill and 

Smelter Workers and Harvey C. Fremming of the Oil Field, Gas Well and Refining 


7 The C.I.O. was founded in Atlantic City on November 9, 1935. Now it is known as The 
Congress of Industrial Organization. 

8 There are 4 basic ways to build the shell of a building: (1) by blocks, (2) by structural steel, 
(3) by precast and (4) by reinforced concrete forming. 

9 Until not long ago in Ontario the law required that a beginning apprentice had to be 2 1 years 
or younger with formal education requirements which were considered fairly high. 

10 Between 1950 and i960 there were 1,648,753 people who immigrated to Canada, 259,871 
were Italians. Most of them settled in Toronto. 

11 If an employer owned two companies, then he could have switched employees from the 
payroll of one of his companies to the other one, thus offsetting the original number of 
employees of that Company for which the union had applied for certification. (Under 
Ontario laws, the day that a union applies for certification is the one on which the 
Government officials take the count of the numbers of employees vs. union members.) 

12 The Council of Concrete Forming Trades Union. Under Ontario law. Unions can form a 
Council which can be certified as the bargaining agent just as a singular union. (Ontario 
Labor Relation Act, Art. 9) 

13 The Canadian Concrete Forming Union, Local 1. 

14 The Laborers International Union of North America, Local 183 

1 5 The system chosen by the builders was the so-called 'English system' . In Britain 53% of all 
high-rises are built by the prefab technique. 

16 Speed may be more important than cost. For example, let us accept the fact that concrete 
forming is a more expensive method of building than the prefab one but if it will take a 
considerably less time to build the shell of a high-rise tower the builder will actually save 
money in the long run. 

17 It may very well be that a tradesman is highly paid, but because of his relative number his 
cost is tolerated by the employer. An example can be found in the crane operator. A 
building may have only one or two crane operators. 

18 Thus, if we consider NF as Number Factor and DF as the Degree of Change for Each 
Factor, we have (NF + DF = TCC) where TCC represents Total Changes in 

19 Let us suppose that due to a new system there will be 20% fewer jobs on a project but 

Study papers and briefs 107 

because it is more economical to build and higher profits are realized (the only motivation 
for a builder) twice as many projects will be built, then the number of jobs will actually be 
increased by 60%. 

20 It would be foolish, for example, to lump together Northern Ontario with Central Ontario 
because of the wide diversities of unionization, custom, relationship and economic 

21 The S.A. S.M.I, plan (Stabilization Agreement of The Sheet Metal Industry) established 
by the Sheet Metal Union is an example. 

22 While attending the T.U.P. at Harvard Business School, I had the opportunity to visit the 
Laborers' Training Acadamy at Hopkington, Mass. I was impressed by its modern 

23 Ontario Labor Relation Board, File No. 4450-73-R. 

24 Testimony of Irving Bluestone, July 26, 1972 - U.S. Senate Subcommittee on Labor. 

25 But they can raise a lot of Hell in the death process, eg. jurisdiction strikes, etc. 


Marble Masons, Tile Layers, Terrazzo 
Workers Union No. 31 


The Marble Masons, Tile Layers, and Terrazzo Workers Union, No. 31 
('Local 31') welcomes the invitation of the Commissioner to present this 
brief to the Royal Commission on Certain Sectors of the Building Industry 
('the Royal Commission'). This brief is submitted to the Royal Commission 
with a view to setting out in some detail both the historical development of 
Local 31 and its bargaining experience in the marble, tile and terrazzo 
industry in Metropolitan Toronto and vicinity. Thereafter, the brief is 
directed to certain more generalized problems that construction trade 
unions have encountered in the industry and which we believe deserve the 
attention and concern of the Royal Commission. 


During the i92o's, the tile setters and terrazzo mechanics were members of 
the Bricklayers', Masons' and Plasterers' International Union of America 
('the Bricklayers' International'), Local 2 thereof. However, during the 
Depression, most of these tradesmen left Local 2 because of the lack of 
work at that time. In 193 1, Local 31 was granted a Charter by the Brick- 
layers' International Union with jurisdiction over marble setters; there- 
after, in approximately 1944, the said tile setters and terrazzo mechanics 
became members of Local 31. Since that time. Local 31 has represented 
marble masons, tile setters and terrazzo mechanics in Ontario. 

no Report on the building industry 

In the i94o's, there were approximately three contractors who were 
engaged at Toronto and vicinity in the said marble, tile and terrazzo 
business. From that time until the present date. Local 31 has continued to 
organize the industry, so that at the present time, there are approximately 
17 contractors under agreement with Local 31. It is noteworthy that the 
three original contractors did a considerable amount of marble, tile and 
terrazzo work in the residential industry in the 1940^ but over the ensuing 
years confined their activities to the commercial sector. 

By the early 1960^, while Local 31 had some 300 members, there were 
approximately 115 contractors in the residential marble, tile and terrazzo 
field. However, most of these contractors were, in essence, one-man firms 
or alternatively, partnerships of two to four persons, all of whom worked 
directly at the trade. 

At or about that time, there were a number of important technological 
innovations which, in general terms, are well documented in Goldenberg 
and Crispo's, Construction Labour Relations at pp. 649, et sequitur. In 
Local 3i's view, its members' productivity greatly improved by reason of 
the introduction of these new methods and materials. For example, 
whereas previously a considerable amount of time was taken with respect 
to the preparation of walls before tile could be applied to them, the intro- 
duction of adhesives and pre-grouted large sheets of tile vastly cut down 
the amount of time and skills required. 

On the other hand, Local 3 i's experience is that, more recently, in many 
large buildings, there has been limited, if any, use of marble, tile or 
terrazzo. In fact, where its members previously laid marble and terrazzo 
floors, at the present time carpeting or other substitutes are installed 
directly over the concrete. Accordingly, on a typical small project, there 
may be two washrooms in which tiling is installed at all. Overall, its 
members often account for only 2% of the total value of work in any 
construction project. 

Against this setting, particularly in the residential sector of the industry, 
the difficulties inherent in organizing may be easily seen. Moreover, these 
difficulties are compounded since unorganized persons in the residential 
sector work on a piece-work basis: for example, they might be paid $10.00 
or less per washroom with respect to the installation of tile, and needless to 
say, without restriction on the number of hours worked. In fact, this is still 
the primary method of payment in the residential sector although the men 
involved often try to correlate their piece-work rate into an hourly rate of 

Simply put, the existence and practice of the piece-work payment is the 

Study papers and briefs 1 1 1 

major stumbling block to successfully organizing these persons in the 
residential sector: the younger men work quickly and in view of the 
monetary rewards on a piece-work basis, the Union has no attraction to 
them. On the other hand, the older workers find that they cannot work as 
quickly and accordingly, feel the necessity for the Union. On the whole 
then, on the basis of numbers alone, there is little chance for successful 
organization of them. 

By 1961, of all the major construction trade unions, Local 31 was the 
only union which did not set up a separate residential local. It believed then, 
as it believes now, that it was for the common benefit of all its members to 
bargain commonly under one local union. However, Local 3i's difficulties 
in organizing the residential field are partially explained by its unwilling- 
ness to have a separate residential local which would have resulted in lower 
wages and other employment benefits as compared to the higher rates 
which were generally paid in the commercial field. In fact, Local 3i's 
efforts in the early 1960s to organize the residential sector were thwarted by 
the combination of the above-mentioned conditions: the entrenchment of 
the piece-work system together with the negative effects of technological 
innovation upon the trade which drastically reduced its manpower re- 
quirements. Moreover, once a contractor was organized by Local 31, it 
was often forced to leave the residential field as it simply could not compete 
against the unorganized contractors which paid their employees on the 
piece-work basis. Similarly, in 1964, Local 31 set up a lower hourly rate of 
pay for contractors with which it bargained collectively in order to enable 
them to work in the residential field. However, this arrangement proved 
unsuccessful because, as before, these contractors were simply unable to 
compete notwithstanding the lower rate of pay. 


As a starting point in appreciating the collective bargaining patterns in the 
marble, tile and terrazzo segment of the construction industry, one must 
have regard for the different employers' associations that are in existence. 
The Terrazzo, Tile & Marble Association of Canada is a national trade 
association, which deals, in the main, with specification writing, industry 
promotion on a national basis, standards, and assisting other professionals 
in the field, such as architects and the like. This Association is not a 
bargaining agent for or on behalf of any employers and accordingly, has 
never entered into collective agreements or otherwise with Local 3 1 or any 
other trade union. 

H2 Report on the building industry 

Secondly, there is the Toronto & District Marble, Tile & Terrazzo 
Contractors' Association ('the Toronto & District Association') which was 
formed in approximately 1957. Prior to the formation of this Association, 
Local 3 1 bargained collectively with each contractor on an individual basis . 
The members of this Association have from time to time included the large 
marble, tile and terrazzo contractors engaged at Toronto and vicinity such 
as Brooks Marble & Tile Co. Ltd., Connolly Marble, Mosaic and Tile Co. 
Ltd., National Terrazzo & Marble Co. Ltd., Terrazzo, Mosaic and Tile 
Co. Ltd., York Marble, Tile and Terrazzo Ltd., De Spirit Marble, Tile and 
Terrazzo Company and Rosemount Marble Tile and Terrazzo Company. 

Thirdly, the Terrazzo, Tile & Marble Guild of Ontario, while in exis- 
tence for several years, has never been active. By virtue of the 1971 
amendment to The Labour Relations Act of Ontario, whereby it was 
provided that an employers' organization might be accredited by the On- 
tario Labour Relations Board as bargaining agent for its member contrac- 
tors, this Association was revitalized as an appropriate body for the co- 
ordination of collective bargaining for marble, tile and terrazzo employers 
on a Provincial basis. 

In view of the accreditation provisions of The Labour Relations Act that 
require employers' organizations which have applied for accreditation to 
accept into membership any contractors, membership in the Guild is open 
to all contractors in this sector of the industry. While the member contrac- 
tors of the Toronto & District Association are also members of the said 
Guild, the following large Toronto contractors which are members of the 
Guild are not members of the Toronto and District Association: Gem- 
Campbell Terrazzo Tile, Maple Terrazzo Marble and Tile Ltd., Mercury 
Terrazzo Co. Ltd. and Omega Vatri Consolidated Marble Ltd. 

In this regard, Local 31 wishes to emphasize that it does not now, nor 
has it ever, restricted its collective bargaining relationships to members of 
the said Toronto & District Association: the Local's primary purpose and, 
in effect, its reason for being, is to organize the entire field irrespective of 
whether a contractor is a member of any organization. For example, with 
respect to the four above-named contractors, Local 31 entered into collec- 
tive agreements with them separately and apart from its collective agree- 
ment with the Toronto & District Association but used the said Toronto & 
District Association's agreement as the format for the collective agree- 
ments with them. 

Furthermore, in addition to the four independent contractors already 
mentioned, Local 31 has had long-standing relationships with the following 
contractors who are neither members of the Toronto & District Associa- 

Study papers and briefs 1 1 3 

tion nor the Guild: Desco of Ontario, Granwood Flooring Ltd., Everlast 
Terrazzo and Tile Co., Bertoss Terrazzo and Tile Co. Ltd., Capital Tile, 
Citti Tile, Permanent Protective Coatings Ltd., Heffernan Floor and Wall 
Products Ltd., Granolite Co. Ltd., and Mardel Contracting. Local 31 
wishes to make it clear that these latter firms as well as the four previously 
mentioned ones are all engaged in the commercial field at Toronto. 

Since 1972, the Ontario Provincial Council of the Bricklayers' , Masons' , 
Plasterers' International Union, has negotiated with the said Guild for 
members of Local 31 as well as 'helpers' on a provincial basis. In the 
Toronto area, however, Local 56 of the International Association of Mar- 
ble, Slate & Stone Polishers, Rubbers and Sawyers, Tile Marble Setters, 
Helpers and Marble Mosaic & Terrazzo Workers Helpers, ('Local 56') 
negotiates directly with the Toronto & District Association. The said 
provincial Collective Agreement is attached as a schedule to any 
memorandum of agreement negotiated between the Council and any con- 
tractors who are not members of the Guild. In other words, the terms and 
conditions of employment are the same as between Guild members and 
non-Guild members: Local 31 in its effort to improve the status of its 
membership at large views a uniformity of collective bargaining in the best 
interests of its membership for reasons of stability of collective bargaining. 

During Mr. DeMonte's testimony before the Commission, some refer- 
ence was made to the then Article 1(h) of the Collective Agreement be- 
tween Local 31 and the Toronto & District Association which stated, in 
part as follows: 

'It is agreed that the joint trade committee shall be three representatives from 
each party and this committee shall have the power to set up apprenticeship 
arrangements, also to screen new contractors, and to hear violations of 
Agreement and deal with same... (emphasis added).' 

As Mr. DeMonte stated under oath before the Commission, Local 31's 
position is that it could bargain with any contractor in the industry whether 
the contractor was a member or not of this or any other Association and 
regardless of any provision for a 'Joint Trade Committee' in the 
Association's Collective Agreement. In a word, this clause was never in 
any manner implemented to Local 31's knowledge, nor did it at any time 
form the basis for any alleged restriction on any contractor's access to the 
commercial marble, tile and terrazzo field in Toronto. 

Certain evidence was adduced before the Commission by Mr. Da Re 
with respect to Local 31's alleged conspiracy to prevent new contractors 

ii4 Report on the building industry 

from entering the commercial field at Toronto. There are no facts before 
the Commission to support this serious allegation against Local 31 nor for 
that matter would any such attempts have been to the benefit of Local 31 . 
On the other hand, Local 31 points out that the very collective agreement 
which was prepared by the solicitor for the Metro Marble, Tile & Terrazzo 
Association for signature by Local 31 contained a number of clauses by 
which the Association sought to restrict the supply of tradesmen to con- 
tractors who were not members of that Association (see, inter alia, Article 
xiv of the said Collective Agreement). Local 31 signed that Agreement in 
an attempt to organize and, accordingly, stabilize the residential sector and 
believed that such Agreement represented a fair starting point. On the 
other hand, Local 31 specifically denies that it had any intention of limiting 
its organizational activities in the residential field by virtue of the said 
Collective Agreement or for that matter, to restrict the right of entry of 
other contractors to that field. 

As stated by several witnesses at the Royal Commission's hearings, 
Local 31 simply could not compete with the Canadian Union of Construc- 
tion Workers when it commenced its organizational activities in the resi- 
dential field and thereafter, made various applications for certification for 
members of the Metro Marble, Tile & Terrazzo Association. The collec- 
tive agreement which had been signed between Local 31 and that Associa- 
tion was executed at a time when Local 31 did not represent the majority of 
the employees of these companies and accordingly, Local 31 was unable to 
discharge the onus upon it of proving that this Agreement was a 'collective 
agreement' within the meaning of The Labour Relations Act. 

On the other hand, the Canadian Union of Construction Workers prom- 
ised the residential employees a substantial increase in wages and other 
employment benefits and Local 31, for its part, simply could not compete 
on the basis of 'bidding' based on such promises. While the Canadian 
Union of Construction Workers succeeded in certifying the various con- 
tractors, it apparently never entered into collective agreements with them 
and to date has accomplished literally nothing on behalf of these persons. 
At the present time, Local 31 is recommencing its efforts to organize these 
persons in order to be entitled to legally represent them. 


During the latter part of 1970, Local 31 was approached by several trades- 
men engaged in the plastering industry at Metropolitan Toronto and vicin- 

Study papers and briefs 115 

ity. In particular, these persons were dissatisfied with the nature and 
quality of their representation by The Operative Plasterers' & Cement Ma- 
sons' International Association of the United States and Canada, Local 
117, ('Local 117') and desired Local 31 to represent them. Accordingly, 
special arrangements were made by Local 31 for the organization of these 
persons who were employed by approximately twelve large plastering 
firms in this area. Once the required numbers of persons were organized by 
Local 31, applications for certification with respect to these companies 
were made to the Ontario Labour Relations Board. In these applications, 
Local 31 requested that a pre-hearing vote be conducted amongst the 
employees of the contractors and that accordingly, Local 31 be certified as 
bargaining agent for them in the place of Local 117. 

The Board held a series of pre-hearing representation votes in these 
applications and in view of the fact that a majority of the votes cast by the 
employees of each of these companies was in favour of Local 31 , the Board 
certified it as bargaining agent for these contracting plasterers in the Met- 
ropolitan Toronto area (see Schedule 'A' attached hereto). 

In the result, Local 31's membership has greatly increased with the 
addition of these plasterers to its membership rolls so that it now has 
approximately 650 members, including some 420 plastering tradesmen. 


As pointed out, supra, the availability of work in the marble, tile and 
terrazzo industry has dramatically declined in recent years. Accordingly, it 
has become increasingly difficult to attract tradesmen into this sector of the 
construction industry and Local 31's experience in this regard is similar to 
that of all of the trowel trades. 

The approximate membership in Ontario of the Bricklayers' Interna- 
tional Union is approximately 5000 journeymen and 120 apprentices. Gen- 
erally, marble, tile and terrazzo mechanics are promoted from the ranks of 
helpers and, with the exception of the Metropolitan Toronto area where 
helpers are members of Local 56, these helpers are members of the various 
locals of the said Bricklayers' International Union. However, the average 
age of the membership in the Bricklayers' International Union is 40 years 

For many years, the Bricklayers' International Union had requested the 
Provincial Government to recognise marble, tile and terrazzo as a separate 
trade for apprenticeship training purposes. Finally, in 1970, the Appren- 

n6 Report on the building industry 

ticeship Branch of the Department of Labour, established an Advisory 
Committee for this purpose. Accordingly, under the present Provincial 
training scheme, a member learns all aspects of the marble, tile and ter- 
razzo trade. On the other hand, the existing membership is unwilling to 
accept changes: for example, marble setters only wish to set marble and do 
not wish to perform work in connection with tile or terrazzo. These persons 
have been influenced in large measure by the North American emphasis on 
specialization and productivity and for that reason are unwilling to become 
'generalists' within the demands of the trowel trades. On the other hand, it 
should be pointed out that many of the marble, tile and terrazzo employers 
retain up to seventy per cent of their employees on their permanent payroll. 
Experience has also taught that when work is not available, these trades- 
men would rather stay at home than have their names placed on the 
Union's referral list. In some large measure, this is derived from the Italian 
concept of ioyalty to the boss' . On one particular occasion when there was 
a shortage of names on Local 3i's referral list, Local 31 had considerable 
difficulty in encouraging workmen, who had been laid off by their em- 
ployers, to accept alternative employment even on a temporary basis. This 
problem was overcome by arranging for the primary employer to 'lend' 
these workers to the contractor who was in need of them. 

As stated, Local 31 maintains and operates a form of 'hiring hall' with 
respect to its unemployed members. In other words, as members become 
unemployed, their names are placed at the bottom of the Union's referral 
list and they are thereafter referred to jobs in accordance with their position 
on the list which in turn directly relates to the length of time they have been 
unemployed. Local 31 maintains this system strictly and does not send 
'better' or 'more qualified' personnel to more 'favoured' employers than 
others. All of the members are entitled to work and are dispatched to jobs, 
as stated, depending on their position on the referral list. 


Generally, a major concern of Local 31 's, as well as other construction 
trade unions, is with respect to the proper and sufficient payment of wages 
and other employment benefits to its members from contractors who have 
encountered financial difficulties. Local 31's experience in this regard 
stems from problems encountered under The Mechanics' Lien Act of 
Ontario as well as The Bankruptcy Act of Canada. A key problem is the 
accepted usage of multiple names and corporate shells by contractors in 
order to ensure difficulties in collecting the employment benefits. 

Study papers and briefs 1 17 

Generally-speaking, the underlying roots of the problem are as follows: 
firstly, the under-capitalization of contractors; secondly, the unwillingness 
of contractors to file mechanics' liens; thirdly, the tactics used by builders 
and developers to have their projects built at the lowest possible price and 
so far as possible, to delay payment to subcontractors for services ren- 

With respect to the first problem, Local 31's experience is that any 
person can enter the construction industry as a trades contractor by simply 
calling himself one. It is a relatively simple matter for these persons to 
thereafter lease equipment and hire the required number of tradesmen. 
While in the commercial sector, some protection is afforded in that, the 
standard form of contract requires the contractor to post a bond, there is no 
such requirement for bonding in the residential field. A crucial recommen- 
dation that Local 31 respectfully makes to the Royal Commission is for the 
universal bonding of all contractors in the construction industry, including 
the residential sector thereof. This one proposal, if accepted, would go a 
great length in alleviating the problems in the industry. 

The problem with respect to mechanics' liens is that it is the unwritten 
law of the industry that if a lien is filed, future work will not be awarded to 
such subcontractor. The practical result is that in a number of situations 
Local 31's tradesmen have not been paid their wages. 

One of the tactics deployed by certain builders and developers which 
has created substantial instability in the industry is the practice of calling 
for tenders on a proposed project to be used only for obtaining mortgage 
funds. After the low bidder has been named, the builder typically 'hunts 
around' for alternative subcontractors to do the work more cheaply. 
Hence, the requirement for an ethical and for that matter, supervised, bid 
depository system governing all construction projects, including those in 
the residential sector. The clear benefit of such bid depository system 
would be to impart greater economic stability to the residential sector 
where it is urgently needed. 


Local 31 sincerely trusts that this Brief may clarify the history and for that 
matter, some of the problems inherent in the marble, tile and terrazzo 
sector of the construction industry and that the Commissioner will give due 
consideration to its submissions. 

n8 Report on the building industry 




Danny De Monte 

March 26, 1974 

Date of 

No. of Ballots 
Cast for Local 
31 Out of Total 
No. of Ballots 

Name of Contractor 

O.L.R.B. File No. 



1 Kingsway Plastering 

Co. Ltd. 


26 January 1973 


2 Sirox Plastering 

Co. Ltd. 


19 March 1973 


3 Lido Plastering 

Co. Ltd. 


19 March 1973 


4 Marel Contractors 


5 April 1973 


5 Spring Plastering 

Co. Ltd. 


19 March 1973 


6 Glenbow Construction 



19 March 1973 


7 Roselawn Plasterers 

Co. Ltd. 


5 April 1973 


8 Gold Star Plastering 

Co. Ltd. 


5 April 1973 


9 Edere Plastering 

& Construction 



5 April 1973 


10 Reliable Plastering 

Co. Ltd. 


5 April 1973 


1 1 Suburban Plastering 

Co. Ltd. 


5 April 1973 


12 Rogers Plastering 

Contractors Limited 


23 May 1973 



Submission by: 
John Meiorin, 

SECRETARY-TREASURER: Bricklayers', Masons' Independent Union 
of Canada, Local i, and PRESIDENT: Canadian Union of Construction 


This brief is a joint submission by the Bricklayers', Masons' Independent 
Union of Canada, Local i and by the Canadian Union of Construction 
Workers. The former union is composed of bricklayers and masons 
whereas the latter embraces other construction trades. Local i has approx- 
imately 1,500 active members whereas, the c.u.c.w., at present, does not 
have an active membership. The reasons for this will be clarified later. 

The difficulties of the industry in general and these two unions in 
particular can best be examined from an historical perspective. I shall 
endeavour to set this out chronologically. 

local 35: 

During the post- World War II building boom in Toronto and the corre- 
sponding influx of immigration, there was only one bricklaying local of the 
Bricklayers', Masons' & Plasterers' International Union of America 
(hereinafter called the 'b.m.p.i.u.') in the Toronto area. Local 2, which 
was then headed by the late William Genovese, had a collective bargaining 
relationship, through the Toronto Construction and Building Trades 
Council, with the members of the Toronto Builders' Exchange (now called 
the Toronto Construction Association). 

Local 2 was not interested in organizing the unorganized residential and 
commercial sectors of the industry. Its activities were restricted to what is 
known as 'downtown' construction. 

1 20 Report on the building industry 

In September or October of 1955, organizational meetings of brick- 
layers, under the leadership of Bruno Zanini, commenced being held at 
Brandon Hall. Zanini had received a charter from the b.m.p.i.u. in 
Washington for Local 35. According to the charter, Local 35 could or- 
ganize every job not then organized by Local 2, that is, every contractor 
who was not a member of the Toronto Builders' Exchange. 

Toward the end of the winter of 1957, Local 35 entered into an agree- 
ment with a group of contractors in the residential sector for a wage rate of 
$2.50 per hour. The agreement lasted for about one month as Local 2 and 35 
were ordered to merge by Tom Murphy, the then Secretary-Treasurer and 
present General President of the b.m.p.i.u. With the merger of Local 35 
into Local 2, Zanini became an organizer for Local 2 where he remained 
until 1959 when he resigned to try to form the Canadian Association of 

local 40: 

Starting in the spring of 1957, work became generally scarce in all construc- 
tion sectors. Men drifted away from the union and accepted work with 
non-union contractors. As well, many new employers were starting-up. 
Competition was very keen. Instead of getting wage increases, men were 
being asked to take cuts so that their employers could remain in business. 

There was a feeling that all trades in the residential field had to be 
organized. In the spring of i960, 5 trades received local charter from their 
internationals in Washington. The b.m.p.i.u. gave Zanini a charter for 
Local 40. As stated above, Zanini had previously left Local 2 in an attempt 
to re-organize the residential sector independently. Zanini remained as 
president of Local 40 until late 1961 or early 1962 when he was replaced by 
Marino Toppan. 

In August i960, after a 3 week strike. Local 40 entered into an agreement 
with a group of residential contractors which provided for a series of wage 
rate increases. By the spring of 196 1, only a few of the large firms were 
paying the agreed wage of $3.05 an hour. Most employers resorted to 

A bitter strike of 7 weeks' duration was called in May, 1961 by the 
Brandon Hall group of unions. It resulted in the signing of a memorandum 
of understanding, but the i960 experience of wage-cutting was repeated 
again due to the fact that not all of the residential sector was organized. 

In the spring of 1962, when the agreement was up for renewal, the 
contractors must be organized. Their argument, for the most part, was not 

Study papers and briefs 1 2 1 

based on anti-union feelings but, neither for economic reasons. They felt 
that there had to be some stability in the industry. About the same time, I 
was elected business agent for Local 40. 

On January 24, 1963, after a series of meeting with Leonard Eden of the 
Masonry Contractors' Association, the Department of Labour was jointly 
approached to establish a schedule under The Industrial Standards Act. A 
conference was held on May 6, 1963 in accordance with the provisions of 
that Act and, in mid-August, a schedule was published. The schedule 
established minimum wages and conditions for the industry and, as a 
result, relations between labour and management improved. 

local 1: 

Contemporaneously, relations between Local 2 and 40 were not smooth. 
The availability of work for members of Local 2 was being reduced by the 
introduction of concrete forming and pre-cast concrete. Local 2 was par- 
ticularly concerned with the industrial and commercial work being per- 
formed by Local 40 contractors who were spreading out from the residen- 
tial field. 

Local 40 members might be working beside other trades which were 
non-union or, in some instances, the bricklayers would be the only trade on 
the site. It was hoped to use Local 40 as a means of getting the unorganized 
contractors to sign agreements with the Building Trades Council. 

At a meeting of representatives of both Locals called by Sam Sasso, the 
then international representative of the b.m.p.i.u. on December 8, 1964, 
at the King Edward Hotel, Local 2 asked Local 40 to respect Building 
Trades Council picket lines. Local 2 stated that once the builder had signed 
with the Council, all his future jobs would be staffed by members of Local 
2. This would have meant the gradual elimination of Local 40 and its 

The events of this meeting were reported to the Local 40 membership on 
January 5, 1965. The members were upset and many wished to form their 
own union. Immediately following the Local 40 meeting, a consensual 
meeting was held and the Bricklayers', Masons' Independent Union of 
Canada, Local 1 came into being. All the members of Local 40 joined 
Local 1. 

For the time, we operated as both Local 40 and as Local 1 . Local 40 had 
received a number of 'no board' reports - that is cases where the Minister 
of Labour decided not to appoint a conciliation board under The Labour 
Relations Act, thus hastening the date when a lawful strike could take 

122 Report on the building industry 

place. After a one day strike, the contractor would frequently sign an 
agreement and the picket line, legally, would have to be removed. The 
Building Trades Council called Local 40 'selfish' for removing pickets as it 
had hoped to use Local 40 as a means for organizing the other trades. Local 
40 then resigned from the Council. 

Local 40 then became a shell. Occasionally, an ultimatum would be 
received from the b.m.p.i.u. that the Local was in arrears of its per capita 
dues and, if they were not paid, the charter would be revoked. This was 
never done. 

As agreements came up for renewal, they were signed in the name of 
Local 1 . Our jobs were harassed by the Building Trades Council. On some 
jobs, the other trades were pulled off while, on others, pickets paraded 
from time to time. This harassment has continued over the years. 

The Council placed pickets for one week on a 400 unit apartment project 
in the Bathurst and Sheppard area which was being built by Jack Binder. 
All the trades were pulled off. Clive Ballentine who was there for the 
Council said they were trying to organize the concrete formers but Mr. 
Binder told me that they were after the bricklayers. 

The same experience was repeated a few days later on a project on Jane 
Street between Wilson and Sheppard. This was a complex of five buildings. 
The pickets were carrying signs which stated, 'No Union Employees On 
This Project'. Signs simply had a question mark on them. 

In 1967, while sitting in an o.l.r.b. witness room where we were both 
testifying in a case, I spoke to Alex Main, the business manager of the 
Building Trades Council of our desire to join the Council. He said that 
membership was open only to locals of internationals. As a result, we have 
not made a formal application to join. 


Local 1 made its first application for certification on November 28, 1972 for 
employees of Guglielmi Brothers Bricklaying, o.l.r.b. File No. 
2926-72-R. As this was our first appearance before the Board, we had to 
lead evidence on the union's formation back in 1965. In the first paragraph 
of its decision of December 21, 1972, the Board found that Local 1 had the 
status of a trade union within the meaning of The Labour Relations Act. 
Local 1 was subsequently certified for employees of Metrus Contracting 
Limited on June 13, 1973, o.l.r.b. File No. 3716-73-R and for employees 
of Barbieri Brothers Masonry Contractors on February 7, 1973, o.l.r.b. 
File No. 3115-72-R. 

Study papers and briefs 123 


In the late 1960^, labour relations in the residential sector were generally 
the same as they were a decade earlier. With the exception of the brick- 
layers, the field was largely unorganized. There was a considerable amount 
of picketing and rivalry. 

On December 8, 1968, the Canadian Union of Construction Workers 
came into being. It was our hope to organize all trades. It was felt that there 
was an immediate need to aid the tile workers. Concurrently, we offered to 
help Bruno Zanini who had established the Canadian Concrete Forming 
Union No. 1 , but Zanini decided that he wanted to be independent. 

In April 1970, Zanini did join the staff of the c.u.c.w. after his own 
union had failed. He and his people stayed until January, 1971 when they 
left to become Local 733 of the Operative Plasterers. The departure was 
caused by two reasons. First, Local 1 had been financing the organizational 
efforts of the concrete formers. Second, there had been friction due to 
personlity differences within Zanini' s group of supporters. 

The o.l.r.b. recognized the legal status of the c.u.c.w. as a trade union 
when it certified the c.u.c.w. as bargaining agent for carpenters employed 
by MANOR Carpenters, o.l.r.b. File No. 15467-68-R. The c.u.c.w. is 
affiliated with the Confederation of Canadian Unions, a national federation 
of independent unions. 


As mentioned above, it was felt that the c.u.c.w. should concentrate its 
initial efforts among the tile, marble and terrazzo workers. Most of the 
workers in this area of the residential sector have traditionally been paid on 
a piece work basis. Because only a few men with the requisite skills are 
needed on a subdivision, the employers could not give them direct supervi- 
sion and, accordingly, placed them under their own control. It was primar- 
ily the older worker who could not keep up with the pace of the younger 
men who desired organization. Generally, the men told us that they would 
join the union when we could get them more than they were earning on a 
piece work basis. 

We commenced organizing toward the end of 1969. On December 17, 
1969, we filed an application for certification for Sterling Tile Company . the 
largest employer in the field and on January 28, 1970, we filed applications 
for an additional employers. At the time, only a few men were aware of an 
agreement between Local 31 and the residential tile contractors' associa- 

124 Report on the building industry 

tion. Local 3 1 had made no effort to sign men up. Indeed, it was not until the 
o.l.r.b. hearing in the Sterling Tile application on January 6, 1970. 

Between April 10, 1970 and June 2, 1970, the o.l.r.b. certified the 
c.u.c.w. for employees of Sterling Tile Company, Bloor Terrazzo Tile & 
Marble Ltd., Continental Terrazzo Marble Company Ltd., Lancia Tile 
Company, Mercury Tile & Terrazzo Ltd., Moscone Tile Company Ltd., 
New Way Terrazzo Ltd., S.M. Tile Company, and Tony Santarossa Tile 

As soon as certification was received, notices to commence bargaining 
were sent out but only two companies replied. A meeting was held in July, 
1970 but only four of the employers sent representatives. The employers 
were concerned about the collective agreement between the Building 
Trades Council and the Metropolitan Toronto Apartment Builders Associ- 
ation which would have prevented them from doing work on high rise 
projects if they signed agreements with the c.u.c.w. 

Accordingly, on September 15, 1970, the c.u.c.w. filed an application 
for a declaration terminating the bargaining rights of the Building Trades 
Council, o.l.r.b. File No. 18378-70-R. A hearing on the merits is still 
pending. I will have more to say on this point below. 

In March of 197 1, we endeavoured to have a second meeting with the 
contractors. This time, none of them showed up. It was felt that until the 
o.l.r.b. disposes of our application to terminate the bargaining rights of 
the Building Trades Council there was little we could do because there are 
so few tile workers on any given project. 


Both Local 1 and the Canadian Union of Construction Workers would like 
to take this opportunity to outline some of the difficulties we face. If these 
problems can be solved, and for some we do not have any possible solu- 
tions, conditions in the construction industry would be very much im- 


The major concern of both unions is the treatment we receive when 
appearing before the o.l.r.b. When no other union is involved in a case, 
we find that we are treated quite fairly. However, when one of the interna- 
tional unions is involved, our experience is very different. 

Basically, the international unions use the power of their larger member- 

Study papers and briefs 125 

ships to hurt the smaller unions. By use of adjournments and other pro- 
cedural tactics, they have made proceedings before the Board very legal 
and very complex. This is contrary to the initial conception of the Board 
which was seen as a relatively informal tribunal. To illustrate our concerns 
in this area, we are attaching, as an appendix, a copy of a brief which was 
submitted to the Minister of Labour, the Honourable Fernand Guindon, in 
February of 1972. The brief touches upon the experiences of the c.u.c.w. 
before the Board in a number of cases involving the organizing of concrete 
forming contractors. For the sake of brevity , the details of these cases were 
not set out in the body of this brief. 

The root of the problem goes to the very composition of the Board. Mr. 
Ed Boyer, the labour representative on the construction panel of the 
Board, is a former secretary of the Provincial Council of the United 
Brotherhood of Carpenters and Joiners of America. In our view, there is a 
very real question of bias when we have to face an international union in a 
given case. 

We also question the right of Mr. Alex Main, business manager of the 
Toronto Building Trades Council, to sit as a member of the Board. In 1969, 
Mr. Main led the Building Trades Council which used unlawful picketing 
and other tactics in an attempt to put both Local 1 and Zanini's Canadian 
Concrete Forming Union No. 1 out of existence. Charges were laid against 
him yet he sits on the Board and plays an important role in its policy-making 
process. In his other capacity, he will not allow independent unions to join 
the Council. His very presence on the Board creates very real difficulties 
for unions such as ours and other non-affiliates of the internationals. 

At the least, we feel that there ought to be representation from the 
independent unions on the membership of the Board. This would give us 
some representation at the policy level and some protection at the 
decision-making level. 


In the main body of the brief, we stated that, in 1963, a schedule was 
established under The Industrial Standards Act to set certain uniform, 
minimum wages and conditions in bricklaying and masonry. The estab- 
lishment of these 'floors', which are enforced by the Government, helped 
eliminate the cut-throat competition and helped give the industry some 
semblance of stability. 

Unfortunately, the Schedule has not been amended since 1968. The 
minimum wage in the schedule is $5.50 per hour whereas Local i's current 

126 Report on the building industry 

negotiated rate is $7.45. If the gap between the two rates continues to grow, 
we, in the residential field, could find ourselves back in pre- 1963 circum- 
stances where collective agreements were meaningless and wage-cutting 
was common. If the gap continues to grow, developers will be tempted to 
award work to non-organized contractors and the organized contractors 
would probably endeavour to breach their agreements in order to stay in 

In February, 1973, Mr. Donald Hushion, Executive Director, Employ- 
ment Services of the Ministry of Labour convened a meeting of all parties 
covered by the Act. He informed us that the Ministry would like to abolish 
the system of industrial standards. The response was that the system was 
vitally important at least in the construction industry. 

In our submission, The Industrial Standards Act gives much-needed 
stability to the residential sector of the construction industry. The 
Schedules should be kept up-to-date and should be vigorously enforced to 
ensure that tradesmen are fairly treated. The removal of the Schedules or 
even the failure to amend them to meet the needs of the times could have 
the effect of returning our sector of the industry to chaotic conditions. 

3. wage protection: 

Local 1, like all other unions, faces serious problems in collection unpaid 
wages and benefits particularly when a contractor has financial problems. 
From our experience. The Mechanics' Liens Act and the Federal Bank- 
ruptcy Act is not an appropriate vehicle for the collection of wages. Unfor- 
tunately, the proceedings can be very complex and drawn-out to the 
detriment of the unpaid worker. 

With respect to bankruptcies, it is only too common for a bankrupt 
contractor to re-appear the next day under the name of a new company and 
even to assume the work of his pre-existing firm. As long as there is not full 
employment in the industry, he can always attract labour. In our submis- 
sion, the federal Bankruptcy Act should provide for associated employers 
in a like manner to section 1(4) of The Labour Relations Act and the 
bankruptcy authorities should be able to look beyond the 'Corporate veil' 
to ensure that tradesmen get properly paid. 

Furthermore, in the heavy and industrial sectors of the construction 
industry, it is a common requirement that contractors obtain performance 
bonds. This is not so in the residential sector. We feel that such bonds 
should be made mandatory but we admit that we cannot suggest the 
appropriate mechanics for implementing this suggestion. 

Study papers and briefs 127 


Our major concern is the attempts by the a.f.l.-c.i.o. unions, by the use 
of undue pressure and unlawful methods, to gain a total monopoly of the 
construction industry. Our members wish to be represented by our unions 
and their choice should not be hindered by coercive methods. 

From time to time, as stated earlier, the internationals will put pressure 
on the builders or developers to sign agreements that they will recognize 
only the a.f.l.-c.i.o. trades. In the main, their aim is to replace a 
contractor employing our members with one employing members of Local 
2 of the b.m.p.i.u. They may or may not resort to picket lines. 

The builder, who is in a hurry to get his project completed, usually 
expects the worse and often readily gives in. The Local 1 contractor, as a 
rule, does not have the resources to fight for his contractual rights. The 
processes of the Ontario Labour Relations Board are too long and arduous 
to be of any assistance and judicial relief is difficult because of the wording 
of section 2 of The Rights of Labour Act. In our submission, there must be a 
ready remedy available to cure such situations. 

Both Local 1 and the Canadian Union of Construction Workers 
welcome this opportunity to present their views to the Royal Commission. 
We trust that our submission will be helpful to the work of the Commission 
and that the contents of this brief are in accordance with the 
Commissioner's direction of November 20th, 1973 (page 4342 of the Report 
of the Proceedings). All of which is respectfully submitted, 

John Meiorin 
April 4th, 1974 


The Christian Labour Association 
of Canada 

We wish to express our appreciation for the opportunity to present our 
submissions on the problems under investigation by your Commission. It is 
our conviction that these problems, rather than being isolated features in an 
otherwise healthy labour relations system, are microcosms of that system 
as a whole. We also believe that genuine solutions can only be found if we 
are willing to re-examine and re-evaluate the basic motives that have 
shaped our social-economic order. Failing to do so will result in symptom 
treatments which leave the disease itself untouched. 

In this paper we will present an outline of some basic problematics as 
well as some provisional recommendations. In addition we are presenting 
the following supplements providing some details and statistical data: 
Supplement 'A' Income Distribution in Ontario 
Supplement '£T Craft Unions and Trade Jurisdictions 
Supplement 'C Random Sample of Restrictive Hiring and Subcontract- 
ing Clauses in Construction Collective Agreements 
Supplement 'D' Selected list of cases in which CLAC-organized work- 
crews and their employers were subjected to interfer- 
ence, boycotts and strikes by AFL-cio-CLC-affiliated 
building trade unions. 
(The supplements are not printed in this volume, but are attached to the 
original brief.) 

We wish to point out that the Christian Labour Association of Canada is 
a trade union movement which has been certified by the Ontario Labour 
Relations Board on approximately 200 occasions during the past 1 1 years. 

130 Report on the building industry 

Presently clac has about 120 collective labour agreements in the Ontario 
construction industry with concentrations in Windsor, Sarnia, Niagara 
Peninsula, Brantford, Barrie, Orillia, Peterborough, Trenton, Belleville 
and Sault Ste. Marie. In addition, it has 27 collective agreements with firms 
outside the construction industry. Finally, clac is a government-certified 
trade union in British Columbia and Alberta having a number of collective 
agreements with construction and non-construction firms in those pro- 


Our present social-economic order is motivated by a spirit of corporate 
capitalism which views business, industrial relations and even the whole of 
life in an economistic perspective. Capitalism, with its roots reaching back 
to the humanism of the fifteenth and eighteenth centuries (Renaissance and 
Enlightenment), transforms the factors of production into mere money 
values. Our pre-occupation with economic progress, profits and wages in 
many ways shapes the direction of our Western culture. This was clearly 
expressed by one of our leading economists, Milton Friedman, who wrote 
in 1962: 

Few trends could so thoroughly undermine the very foundations of our free 
society as the acceptance by corporate officials of a social responsibility 
other than to make as much money for their stockholders as possible. This is 
a fundamentally subversive doctrine. (Milton Friedman, Capitalism and 
Freedom, Chicago: The University of Chicago Press 1962, page 133) 

In a 1972 speech for the Women's Canadian Club of Hamilton, Mr. J. Peter 
Gordon, president of Stelco, stated: 

The drive by industry to find more efficient ways of producing improved 
goods and services which create jobs and higher living standards, is inspired 
by the profit motive. Profit is essentially a principle of social organization that 
ensures that the creation instincts of each of us will be applied toward 
economic progress ... The best way to improve everybody's lot is to make a 
bigger pie! (emphasis added) 

This absolutization of economic progress, profits and wages, coupled 
with a strong influence of individualism, (especially before 1940), has led to 
a concept of industrial relations in which self-interest, group-interest and 

Study papers and briefs 131 

perpetual conflict play a dominating role. It clearly indicates a religious 
faith in man as 'homo economicus'. Within this concept, the enterprise is 
regarded primarily as a profit-creating device in which the worker is re- 
duced to a mere economic factor, useful only in the measure that he 
contributes to the realization of more profits. Workers themselves, either 
consciously or subconsciously, experience this dehumanizing situation 
when they are expected to perform mainly mechanical and often meaning- 
less tasks in our industries. In the construction industry they undergo this 
degradation by being hired, paid and fired by the hour. In union hiring halls 
they are shelf items waiting to be sold or rented like merchandise. Their 
usefulness to society is determined by the economic value of their skills and 


As a result, the conflict situation and the adversary mentality is a built-in 
feature of our industrial structures. Many management and union spokes- 
men have come to regard conflict as normal and inevitable. Even an astute 
statesman such as T.C. Douglas writes: 'The essence of industrial relations 
is conflict' (Labour Problems in Christian Perspective, Grand Rapids: 
Eerdmans, 1970, page 11). We believe that much of the unrest in Ontario 
stems from this deeply embedded antagonism between managements and 
trade unions. The two consider themselves as natural enemies in a con- 
tinuous state of war over the question who will get what in terms of money 
(either in profits or wages). The collective agreement is a cease fire docu- 
ment, introducing a terminal period of co-existence, and its termination 
frequently means a resumption of hostilities. In collective bargaining, gains 
for one side are invariably considered losses for the other, and vice versa. 
There is an almost complete lack of recognition that both management and 
workers ought to be engaged in the same undertaking to provide goods and 
services for the fulfilment of genuine needs in society, and that the render- 
ing of such true service should be the dominant and primary goal of the 

We fully realize that the existing seasonal character of the construction 
industry makes it very difficult to establish work communities of both 
'managers' and 'workers' in which every participant has his rightful and 
permanent place. We are also aware that, even under the most advantage- 
ous circumstances, workers may switch their allegiance from one firm to 
the other if they so desire. Also, we do not advocate abolition of all 
competitive relationships between various companies, although cut-throat 

132 Report on the building industry 

competition is an inhuman way of handling any industrial problem. But it is 
our considered opinion that the general pre-occupation with monetary 
gains, financial status, and economic power (on the part of developers, 
contractors and unions), and the lack of lasting bonds between employers 
and employees, especially in the construction industry, has greatly contri- 
buted to an elimination and degradation of values such as dignity, work 
satisfaction, recognition of the individual worker, harmony, justice and 
peace. The result has been alienation between employers and employees, 
as well as among employees themselves. 


We believe that both industry and trade unions are co-responsible for the 
excessive emphasis in our culture on economic gain and material well- 
being. A society in which people measure each according to income and 
financial status and in which the gross economic product is the key priority, 
is a society which becomes fundamentally distorted. The chronic inflation 
which plagues Canada, the United States and Western Europe is, in many 
respects, but the fever of a production-obsessed industry and a 
consumption-conditioned public. Our own Canadian society is showing 
signs of such distortion in, for example, the unjustified disparities between 
various categories of people. (Supplement 'A' provides some details in this 
respect.) In the unionized construction industry hourly rates plus benefits 
often amount to seven, eight and even nine dollars and many of the unions 
are demanding 10 to 15% increases. This contrasts sharply with the 
thousands of industrial workers, unionized and non-unionized, whose 
hourly rate continues to stay below three or four dollars. Just as serious are 
the income differentials between people living on fixed incomes (pension- 
ers) and those belonging to the labour force; between workers in so-called 
marginal industries and those employed by wealthy corporations; between 
shrewd investors and land speculators and often poorly-paid hourly work- 
ers, as well as between those in geographically different economic areas. In 
addition, we are faced with the fact that certain types of important work 
(for example, social workers, hospital staff, and artists) are very 
insufficiently rewarded, because our economistically-oriented society fails 
to appreciate such work. Workers in these sectors supposedly do not 
contribute to economically profitable production. 

Last, but not least, there is a poignant contrast between the standards of 
living in our own nation and the so-called development countries. Statistics 
show that the 1970 per capita income in South East Asia was one-third of 
the North American per capita income as it was a hundred years ago. 

Study papers and briefs 133 


The core of our problematics is not just a matter of redistribution of 
income, although this is highly necessary. The heart of the matter concerns 
the deeply religious question 'Who is man?' We use the word 'religious' to 
describe the nature of this question, not because it is of relevance only to 
people of certain denominational preference, but because it is a 
fundamental and central question for all men and all societies. Is man a 
mere economic animal whose economic needs must first be fulfilled? Must 
he be pushed towards more production and consumption, if necessary by 
the subtle influence of the industry-controlled media? Must his instincts, 
shaped by the profit principle, be applied towards economic 'progress', as 
Mr. Gordon would like us believe? The Christian Labour Association of 
Canada rejects such a reductionist inhuman view of man, because it is 
radically at odds with a Christian view of man, in which human 
responsibility, freedom to work and serve, stewardship and equality are 
central. The inspired sources of the Christian religion, the Holy Scriptures 
of the Old and New Testaments, leave us no uncertainty that these are 
essential characteristics of man. Man's destiny, according to the Bible is to 
be responsible for the management and development of God's creation, 
which is to be a home for mankind. Man is expected to deal responsibly in 
the service of his Lord with his fellowman, the earth and its resources. Men 
have the mutual obligation to promote each other's wellbeing as creatures 
of the same Lord and Creator. The biblical admonition to seek the things 
which are above, is not, as Christians have often thought, a call to shun 
involvement. Instead, it is an incitement to order human relationships in 
harmony with the Creator's good and perfect will, with His command to 
love one another. The well known German theologian and martyr of the 
Nazi regime, Dietrich Bonhoeffer, once wrote: 

Aspire after the things on earth. Today it is of decisive importance that we. 
Christians, are not dreamers but stand with both feet firmly planted on the 
ground. That we don't leave things just as they are. and that our faith is not an 
opiate which makes us satisfied in the midst of an unjust world. On the 
contrary, precisely because we aspire to the things above, our protest on this 
earth must be the more stubborn and purposeful. 

This is what the Christian Labour Association of Canada is all about. It 
is concerned, first and foremost, with the revival and implementation of the 
fundamental motifs of the Christian faith as these pertain to the economic 
sector. We believe that the clac can make a distinct contribution to our 

134 Report on the building industry 

Canadian society, especially in our time in which the influence of these 
motifs is being radically eliminated. 


The tragedy of the Third Reich was that minority convictions such as 
Bonhoeffer's were not tolerated. Whenever totalitarian ideologies, 
whether they be fascist, communist, or capitalist, deny full freedom and 
opportunity to differently-motivated groups, the nation suffers. There is 
indeed a strong tendency also in our society to stifle dissent and to suppress 
movements which go contrary to established patterns and convictions. To 
be sure, the clac is a government-recognized and certified trade union 
movement in Ontario, but it took many years of legal struggle, culminating 
in Supreme Court action, to have such formal recognition established. 
Moreover, mere legal recognition is by no means a guarantee of unhindered 
development. Time and again, CLAC-organized workers meet with 
boycotts and interference because they, rather than belonging to a union 
adhering to the adversary mentality, chose to be represented by an organi- 
zation which attempts to work out of a Christian view of man and society. 
(See the detailed list of incidents in Supplement TJ'.) we wish to make it 
clear that we are not singling out the AFL-cio-CLC-affiliated unions as 
clac's only opponents. As noted earlier, the problematics we are dealing 
with have deep roots within our society in all its manifestations. In the field 
of industrial relations, clac is continually engaged in a struggle against the 
in-human capitalist spirit which often dominates management. Frequently 
we experience that companies, out of fear for financial loss, give in to illegal 
pressures of other unions and cancel their contracts with CLAC-organized 
firms. Also, many firms favour clac over other unions, because they hope 
to gain financial benefits from such a relationship. The moment they 
discover that this is not necessarily the case, their enthusiasm cools mar- 
kedly. This is not the complete picture. We are grateful that a number of 
employers, whose construction workers are represented by clac, have 
responded positively to clac's attempts to establish more lasting bonds 
between employer and employees, to view their workers as genuine part- 
ners in the enterprise rather than hourly-paid tools, and to foster a spirit of 
cooperation and consultation both between employers and employees and 
among workers themselves, clac's practice of organizing all trades has 
thus far eliminated all forms of jurisdictional disputes. At the same time, we 
are keenly aware of the fact that we have barely begun and that the task of 
establishing true justice and harmony is a gigantic and never-ending as- 
signment to all. 

Study papers and briefs 135 


It is frequently argued by labour spokesmen that unity and solidarity 
among workers is essential for the establishment of just labour relations 
and working conditions. This view presupposes a natural adversary rela- 
tionship between employers and employees, a relationship in which the 
former are the oppressors and the latter the oppressed. Within this 
framework of thought a movement such as the clac can only be experi- 
enced as a threat, as indeed it is. We do not think that the line between good 
and evil runs between employers and employees, nor do we believe in an 
inevitable conflict of interest between the two. History abounds with cases 
in which the union acted to the detriment of the workers. There are also 
examples of employers who showed genuine concern for and interest in the 
wellbeing of their employees. 

As could be expected, reality does not show two homogeneous power- 
blocks. It is abundantly clear that the economistic view of man and society, 
centering on the pursuit of self-interest and financial gain, and shared by 
many managements and unions, has resulted in bitter animosity and severe 
fragmentation. Egotism never unites for it is by definition a disintegrating 

Contractors and their associations are far from unanimous in their 
policies. The construction trade union structure consists of some 20 au- 
tonomous craft unions, each attempting to outdo the other in obtaining the 
highest gains and each jealously guarding certain jurisdictional borderlines. 
(We believe the government has aggravated the situation by legislation 
which grants special privileged status to those unions which organize 
workers of one craft only. See Sec. 6.2, The Labour Relations Act.) 

If one could ever speak of total fragmentation, it can be found here. The 
inter-union struggle in the plastering, lathing and dry-walling industry 
clearly illustrates this fragmentation. So do the attempts by the Quebec- 
based qfl (AFL-cio-CLc)-affiliated unions to penetrate and dominate 
the Ottawa area. Last year's strike by a small number of elevator workers 
and the resulting lengthy layoffs in the construction industry is another one 
of the more recent examples. 

This brings us to the seemingly paradoxical situation of a severely 
fragmented labour movement which nevertheless occupies a monopolistic 
power position. This paradox is more apparent than real. The fact that the 
law recognizes only one union as the bargaining agent of all employees in a 
given bargaining unit (even though that union may have no more than 51% 
of the workers signed up) thus giving that union a monopoly position, sets 
the stage for future struggles with other unions vying for the same position 

136 Report on the building industry 

of power. The single representation system leaves no room for the de- 
velopment of a different approach among the workers other than a possible 
wholesale takeover by another union during the 'open season'. This 
winner-take-all system, aggravated by the widespread practice of compul- 
sory support (closed shop, etc.) is to a very large degree responsible for the 
abuses of power in the labour movement, as well as for the high degree of 
inter-union rivalry. Many if not most of the problems and incidents investi- 
gated by your Commission can be directly traced to a labour relations 
system which recognizes only one union as the representative of all work- 
ers and which sanctions provisions making support of that union a condi- 
tion of employment. This labour relations system, in turn, is based on the 
mistaken belief that trade unions are religiously neutral organizations and 
that fundamentally different beliefs and convictions among workers about 
work and workrelationships either do not exist or are illegitimate. 

The monopolistic power position of the construction trade unions has 
also other serious consequences for the social and economic conditions of 
the country. Hiringhall clauses in virtually all collective agreements oblige 
contractors to obtain their manpower from the craft union involved. (See 
Supplement "C".) This arrangement provides these unions with an ap- 
paratus by which they can and do create an artificial scarcity of skilled 
workers. Tradesmen, visiting our offices in search for work, openly ex- 
press their fear of reprisals from their own union and their reluctance to 
accept work when they learn that the clac is an independent union. Many 
of them turn down well-paid jobs, knowing that after eventual layoffs they 
will be at the mercy of their own union. Others are simply unable to join a 
craft union, either because the union refuses to take in new members or 
because of the exorbitant high initiation fees. (From different sources we 
learned that the Kitchener Local of the U.A. Plumbers and Pipefitters 
Union charges an initiation fee of $700.) Another example of the uninhi- 
bited control exercised by craft unions is the fine system. We possess 
documents proving that certain skilled tradesmen were fined by their 
international union the sum of $5,000.00 for performing emergency work 
during a strike. Other tradesmen, when the majority of their fellow workers 
elected the clac as their representative union, were summarily ordered 
by their union to quit their employment with the company involved and go 
on the hiringhall list. 

The artificial scarcity of skilled tradesmen, together with the craft 
unions' control of available manpower, has greatly contributed to the dis- 
proportionate hourly rate increases over the past ten years in the construc- 
tion industry. Moreover, it has sharpened the already unjust differences 

Study papers and briefs 137 

in income levels and it has indirectly added to the general atmosphere of 
dissatisfaction and unrest in the country. Contractors, too, must share 
much of the blame for the unwholesome situation. It is no secret that a very 
large percentage of Ontario's construction is done by a relatively small 
group of large construction and development companies. This group, 
driven by economistic motives, exercises vast power and influence which 
is detrimental to the wellbeing of the workers, the economy and the public. 
Their pre-occupation with financial gain and their fear of costly delays have 
often caused them to sacrifice the rights of workers and to grant unjustified 
wage increases in exchange for labour 'peace' at the expense of taxpayer 
and consumer. CLAC-organized sub-contracting firms have lost several 
contracts because of such deals. (The fact that owner-clients often demand 
tight work-schedules and tolerate no delays illustrates that the construction 
industry is not an isolated field which can be treated separately from 
non-construction areas.) The sheer size and influence of this small group of 
construction firms enables them to stay competitive in a cutthroat manner 
and to act as pace setters in the industry. A large number of medium- and 
small-sized firms are subsequently forced to fall in line. 

We believe that within the present situation the clac, inspired by 
radically different convictions , rather than being divisive , can contribute to 
renewal and establishment of genuine harmony. As a Christian labour 
movement the clac is vitally concerned about bringing wholeness and 
healing in our strife-torn labour scene. 

We realize that legislative measures do not automatically change 
people's mentalities and motivations, although the influence of positive 
legislation should not be underestimated. But it is equally true that legisla- 
tive restrictions which prevent or hinder forces of renewal and restoration 
to make their influence felt, can do untold harm to serve to continue an 
unhealthy stalemate. There are thousands of Ontario construction workers 
who do not relish the perpetuation of a labour climate in which hatred, 
compulsion, corruption, intolerance, greed, strife and strikes dominate. 
Under the present legal structure these workers are often deprived of 
making an alternative choice of their own and, consequently, they cannot 
make a contribution toward real improvement. 


We are aware of the fact that the scope of your inquiry is a limited one. We 
earnestly hope, however, that the Commission will realize the intricate 
relationship between the immediate problems before it and the total 

138 Report on the building industry 

framework of industrial relations. We also hope that the Commission's 
final recommendations will not be restricted to the immediate situation in 
the plastering, lathing and dry- walling industry, nor, for that matter, to the 
construction industry, but that they will address themselves to the entire 
spectrum of labour relations within the province. 

To bring about real and lasting improvements it is necessary that the 
government, as the administrator of public justice, create conditions which 
allow and encourage the free development of groups and movements 
operating out of different life perspectives. The government should not 
hesitate to curb those societal structures, be they industries or trade 
unions, which infringe on or disregard the freedom and wellbeing of others. 
For example, a government which prohibits industrial pollution is thereby 
not infringing on the freedom of the enterprise; it is merely fulfilling its task 
of protecting society against industry's abuse of freedom. Similarly, a legal 
bar against compulsory support of a particular union is not an attack on 
freedom of association. On the contrary, it protects workers, as well as 
others, against the imposition of group-interests at the cost of the public 
wellbeing. Again, curbing the power of a group of firms to act as pace 
setters of both wages and prices which are detrimental to the economy, is a 
matter of public- and, therefore, governmental concern. The foregoing 
implies that the task of government with respect to industrial relations and 
social economic matters is much larger than is generally assumed. 

We wish to emphasize that the lack of freedom of conscience with 
respect to union support is a pressing problem that must be solved under all 
circumstances. However, we recognize that mere enactment of so-called 
right to work laws will not bring about justice and labour peace. In fact, 
such legislation might well aggravate the situation. Selfish employers 
would exploit such a situation to the detriment of workers and unions. 

We firmly believe that the labour movement should receive much more 
recognition in social and economic matters of the nation than has thus far 
been the case. We do not think it right that the employees in a bargaining 
unit remain without representation until at least 51% decide to join one 
particular union. Nor do we agree with a system which allows a union that 
has a majority to compel a minority to support it. The present situation 
fosters industrial strife and cutthroat competition, since non-union firms 
(firms where less than 51% of the workers agree on the choice of one 
particular union) often severely and unfairly threaten the competitive 
position of unionized firms. In addition, such non-union firms frequently 
use every opportunity to discourage their workers from joining a union. 

We also disagree with the present practice to view the construction 

Study papers and briefs 139 

industry as a collection of thousands of individual bargaining units each 
with the option to be or not to be part of the wage and working conditions 
structure negotiated by unions and employers associations. The total con- 
struction industry should be considered one large bargaining unit (albeit 
with different sectors and geographic areas) and no group of construction 
employees should be exempted from the province-wide provisions regard- 
ing wages and working conditions. In our opinion the labour movement 
(provided this term is not reserved for one particular group of trade unions 
such as the afl-cio-clc sharing the same philosophy) should be recog- 
nized as the legitimate representative of the workers and, as such, be 
accorded an important place in the process of province-wide negotiations 
on wages and working conditions. Therefore, all trade unions, legally 
recognized to pertain to the construction industry, should have the right to 
participate in the negotiations. We want to stress that access to this 
province-wide structure must be open to all associations of workers, irre- 
spective of their affiliation or lack of it, subject to certain minimal standards 
regarding constitutional requirements and practices. (In our view the pres- 
ent development in the Quebec construction industry must be avoided at 
all costs in Ontario.) 

Contractors associations, also composed of various voluntary group- 
ings, should be recognized as the legitimate representatives of the man- 
agements involved during the negotiations. 

Negotiations, however, should not be restricted to these two parties, 
since the outcome of the negotiations has an important effect on the 
economy and on other large segments of society. Public justice requires 
that the government, as the administrator and guardian of public justice, 
involves these other segments in the negotiating process. It should create a 
Provincial Social Economic Council composed of knowledgeable rep- 
resentatives of the government itself and of such groupings as the consum- 
ers and ratepayers associations as well as representatives of employers' 
associations and trade unions. This Provincial Social Economic Council, 
as a permanent third party, should participate in the negotiations and, in 
cases of deadlock between contractors and unions, have the right to issue 
final and binding settlements regarding monetary issues and duration 

Upon reaching a settlement (which should be negotiated province-wide) 
the Government should issue a decree making the negotiated wage rates 
and working-conditions mandatory in the construction industry through- 
out the province. We believe that an industrial relations system along the 
above-mentioned lines would greatly help to reduce unjust working condi- 

140 Report on the building industry 

tions, exorbitant wage rates, vast wage disparities between construction 
and non-construction workers , unfair competition, exploitation by employ- 
ers, inter-union rivalry, monopoly use and abuse of power, and compul- 
sory union membership. It would foster uniformity of wages and working 
conditions everywhere, allow each worker to join the union of his own 
choice, and encourage unions to communicate and deal with their members 
in a spirit of freedom without fear of raids and reprisals. It would also allow 
and stimulate unions to look after the real interests of their members by 
offering them employment opportunity services, and provide them with 
advice and assistance on a host of subjects, including grievance processing, 
obtaining unemployment insurance, upgrading skills, etc. 

Finally, we believe that the government should strongly stimulate coop- 
eration and coordination between construction firms, owner-clients, de- 
velopers and trade unions in levelling out the demand for construction 
services, thus alleviating the hardships of the cyclical and seasonal nature 
of the construction industry. Construction of public works should, as much 
as possible, be undertaken on an anti-cyclical basis. 


In conclusion, we respectfully request the Commission to include the 
following recommendations in its report: 

(i) Introduction of legislation which allows construction workers to join, 
support, and be represented by the trade union of their own choosing. 

(2) Introduction of legislation which prohibits secondary and product 

(3) Introduction of legislation which prohibits clauses in collective agree- 
ments stipulating that only members of a certain trade union or certain 
trade unions will be permitted to perform work. 

(4) Introduction of legislation which prohibits clauses in collective agree- 
ments stipulating that a company will only engage subcontractors who 
employ members of a certain trade union or council of trade unions. 

(5) Introduction of legislation which stipulates that collective bargaining 
pertaining to issues such as wage rates (including overtime rates) vacation 
pay, benefits and duration clauses, take place on a province- wide, multi- 
trade, multi-party basis, with all trade unions, legally recognized to pertain 
to the construction industry, participating. With respect to issues other 
than those mentioned above, provision must be made for the different trade 
unions and contractor associations to work out agreements suited to the 
peculiar trades and convictions of the parties involved. 

Study papers and briefs 141 

(6) Establishment by the Government of a Provincial Social Economic 
Council, consisting of representatives of the construction industry (both 
employers and trade unions) and social and economic experts from other 
sectors, including the government and the consumers. The Council consti- 
tutes the third party and participates in all negotiations. In cases of a 
deadlock, the Council may issue final and binding settlements regarding all 
monetary issues and duration clauses. 

(7) Government stimulation of coordination and cooperation between con- 
struction firms, owner-clients, and trade unions in levelling out the demand 
for construction services. 

(8) Undertaking of public works construction, as much as possible, on an 
anti-cyclical and anti-seasonal basis. 

(9) Repeal of Section 6(2) of the Labour Relations Act granting special craft 
status to certain unions. 

(10) Repeal of Section 81(14) of The Labour Relations Act regarding 
voluntary tribunals in jurisdictional disputes, and introduction of legisla- 
tion requiring automatic referral of such disputes to the Ontario Labour 
Relations Board for final and binding settlement. 

On page 1 of this paper we stated that our recommendations are provi- 
sional in nature. We did not intend to present the Commission with a 
legislative blueprint. Nor do we pretend to have at our disposal all kinds of 
ready-made solutions. We realize that the problematics are too complex 
and involved and that a simplistic approach will inevitably lead to failure 
and disappointment. 

We do believe, however, that our fundamental critique and farreaching 
recommendations warrant serious consideration, since they form a mean- 
ingful alternative to the crisis-ridden state of present-day industrial rela- 
tions in all phases of the Ontario construction industry. 

Respectfully submitted, 

for the National Board of the 

Christian Labour Association of Canada 

Edward Vanderkloet 
Executive Secretary 


Toronto Building and Construction 
Trades Council 

The Toronto Building and Construction Trades Council, a coordinating 
body servicing approximately ioo representatives of 22 Local Unions, 
representing close to 30,000 building tradesmen in various sections of the 
building and construction trades in the Metro Toronto area, welcomes this 
opportunity to present this submission to your Commission. As a supple- 
ment, attached is the completed questionnaire that was sent out by your 
Commission - Exhibit 1 . This brief is additional to the last question in your 
questionnaire referred to as 'General' and is a brief statement of our 
philosophy, policies and a re-emphasis of our main proposals. 

The t.b. & c.t.c. represents all the unions in the industry with the 
exception of the Operative Plasterers and Cement Masons International 
Association, Locals 48, 172 and 598 and the Independent Bricklayers. We 
have a contractual relationship with over 400 general contractors half of 
whom are within the Toronto Construction Association. 

The t.b. & c.t.c. is most anxious to cooperate with the Commission 
to help resolve the problems under purview as outlined in the 
Commission's terms of reference. 

We are greatly perturbed that as a result of the activities of a few 
individuals the whole industry, in the eyes of the public, has been be- 
smirched. We are confident that your Commission will see that justice is 
done. But we are most anxious that your report specifically and publicly 
clears those of us, the great majority, who have abided by the law and who 
have operated fairly and observed the highest principles of honest trade 
unionism. We believe this is necessary in view of the wide coverage the 

144 Report on the building industry 

press gave to the misdeeds of the few without too much attention to 
exonerating the innocent. 

Your report can do much to restore confidence in the industry and the 
legitimate unions operating in this field and can contribute to achieving a 
stabilization of the industry and a necessary degree of peace. 

We agree with the position taken in the submission of the Provincial 
Building Trades Council that if the Construction Industry Review Panel 
proposals contained in their 'Package' are adopted, we will have gone a 
long way toward creating an atmosphere of mutual trust in this industry 
that will be conducive to a more harmonious relationship and bring peace 
and stability to the industry. 

The Construction Industry Review Panel was structured by the Gov- 
ernment of Ontario with the purpose and function of alleviating the prob- 
lems of the industry and keeping conflict down to a minimum during the 
collective bargaining process. 

The Commission's investigation has centred around the Residential part 
of the industry. This industry, besides being the least organized, consti- 
tutes only about a third of our membership. The bulk of our membership is 
concentrated in sections of the industry practically free from the problems 
under investigation. 

The Residential sector of the industry has had a long history of problems 
going back some fifteen years. This is well documented in the Goldenberg 
report and other studies since. 

Since that time through an evolutionary program many of the problems 
that existed have been overcome. Out of the shutdown of the builders' 
projects initiated by this Council in 1969 has come greater stability in the 
industry. The evidence coming forth at the Commission hearing has ema- 
nated predominately from the period prior to and including the years 
1 969- 1 970. 

Although this Council has been in a contractual relationship with the 
apartment builders since 1969 and admittedly much progress has been 
made, the causes of the turmoil do not leave the builders blameless. The 
Goldenberg Report verified that there was widespread exploitation by 
sub-contractors. The fact is, these contractors in the main were created by 
the builders, whom they afterwards manipulated to their liking and gener- 
ally kept the sub-contractors subservient to them. One of the things that 
bothers the builder today is where the Trades have organized and subse- 
quently the Trade Contractors Association has been structured, he, the 
builder, does not have the control he previously enjoyed. 

To assist the Commission for their verification we are enclosing a brief 

Study papers and briefs 145 

document called 'History of Bruno Zaninf - Exhibit 2, that was compiled 
in 1971 by Clive Ballentine from his day book. 

Although the Commissions investigation has touched only a very few 
unions and representatives, this unfortunately has created a bad reflection 
on our total organization. The majority of local unions have been in 
existence for 75 years with no blemish on their record. At this time they 
understandably are full of resentment and frustration as a result of the false 
accusations that they are unscrupulous and corrupt. 

We want to re-emphasize that the single dwelling Residential section of 
the industry is practically non-union. The home builders have very adroitly 
built a piece work system that virtually makes it impossible for our unions 
to organize. We are convinced that exploitation of the workers and viola- 
tion of various statutes prevail in this section as was the case in apartment 
building back in the fifties and sixties. Again, the Review Panel Package, if 
adopted, will assist in resolving the problems in this area. 

Although we have mainly dealt with the Residential section of construc- 
tion in our answers to specific questions in your questionnaire, the Com- 
mercial and Industrial section of the industry is not without problems. One 
of the main problems in this section that also exists in the Residential 
section, is the subsidiary company problem. Most of the attention in this 
area has centred around the Di Lorenzo cases and other sub-contractors 
sections, but the problem is much broader than that. We have exposed time 
and again the so-called fair contractors who are members of the Toronto 
Construction Association and contractors signed to our Working Agree- 
ment who have structure and have used the subsidiary company system. 

We have on record cases where the fair union company tendered the 
project and was awarded the contract, but later changed to the non-union 
subsidiary company and then proceeded to construct the building and 
engage non-union sub-contractors and/or non-union tradesmen. The fol- 
lowing are a number of examples. 

Bramalea General Contractors - a member of Toronto Construction 
Association 1970 was awarded the Burlington Carpet project in Bramalea 
and then proceeded to construct same with a subsidiary company - Bradsil 
Contracting Company. This situation was corrected after our Council 
contacted the architect and owners. 

1973 Vanbots Limited, a member of t.c.a., was awarded the Metro 
Senior Citizens Danforth Avenue contract and then constructed the project 
under a subsidiary company called Bacam Construction. A number of 
grievances were filed and as a last resort a picket line resulted in the project 
being stopped. The result was that Vanbots agreed not to use Bacam in the 

146 Report on the building industry 

future. In the same year Bramalea General Contractors used Bradsil again 
to construct a Metro Senior Citizens project at Morningside Drive in 
Scarborough. A grievance was filed which resulted in Bramalea agreeing 
not to use Bradsil on a tendering basis in the future. 

At present we have a situation where Janin Building and Civil Works 
Limited, a member of t.c.a., was awarded the Lionstar Investments 
project at King Street and Weston Road. They now have a sign up on the 
site indicating that Sword Construction is doing the job. We have informed 
Janin that they are not going to get away with it. Enclosed are copies of 
reports from the Daily Commercial News - Exhibit 3. 

This Council has carried the battle against this system on every level 
possible. We have a case pending before the Labour Relations Board which 
we initiated in June last year against Bruce N . Huntley Limited and Elmont 
Construction. The Board heard the case in October and we still have not 
received the decision. The purpose of this case is to test the relevance of 
Section 1.04 of the Labour Act. We do not believe that 1.04 or present 
Board procedure is satisfactory to correct this problem. This issue has 
been considered by the Review Panel and a recommended change to 1 .04 is 
part of the Package. 

We could site case after case where this problem has created frustra- 
tion and disruptions. Enclosed is a list of firms that we have exposed - 
Exhibit 4. 

There are several general points of policy and practice in the industry 
that we wish to clarify and emphasize. 

The Unions of our Council are committed to the organizing of the whole 
industry and much progress has been accomplished in the high rise apart- 
ment field. A construction worker has the right to join a Union of the 
appropriate craft and most of our Unions seldom restrict admission to the 
Union providing the worker is qualified to perform under the standards 
which have been demanded by the industry. 

Judging of qualifications must be left to each segment of the industry and 
at present is adequately handled especially in the Mechanical Trades 
section through Joint Conference Boards. 

The question of sub-contract clauses in collective agreements is a 
necessity to stability in the industry. The obligation to the prime contractor 
and/or builder who is in a contractual relationship with our Council is to 
engage only sub-contractors who are in contractual relations with the 
Council's affiliated Unions. 

Many of the problems created especially in the Residential field resulted 
from the builder creating new sub-contractors to replace the contractors 
who had been organized by our Unions. Prior to 1969 and the establishing 

Study papers and briefs 147 

of the Overall Agreement with the Metropolitan Toronto Apartment Buil- 
ders Association, the builders were creating new sub-contractors over- 
night; this was to frustrate our Unions' organizational program. Any tam- 
pering with the sub-contractors system in collective agreement would 
throw the industry back to the jungle. 

We are also concerned that the Hiring Hall principle be maintained. 

The basic principle of the Hiring Hall system is to distribute as fairly as 
possible the available employment during periods of unemployment and 
we have many of these periods in the construction industry. The industry 
benefits from the Hiring Hall system, although some management groups 
may disagree. The Hiring Hall system retains the work force during reces- 
sion periods so that they are available for periods of demand. Availability 
of qualified tradesmen on a continuing basis is important to the industry, 
especially in a large metropolis such as the Metro Toronto area. 

Any union representative will tell you that one of their toughest jobs is 
running the Hiring Hall system, without it, total deterioration would result. 
Building tradesmen stay with the industry when laid off; this is the opposite 
to the case in other industries. It is generally considered that one of the 
main responsibilities of a union in the construction industry is to place 
members in suitable employment when the opportunity presents itself. The 
vast majority of our local unions run the system on the principles men- 
tioned and to the best interest of the industry. 

Attached is a list of the various Hiring Hall systems our Council supplied 
to the u.i.c. a year ago - Exhibit 5. Any tampering with the system would 
bring chaos. The Hiring Hall control must stay with the local union. 

In conclusion we wish to categorically state that this council will in no 
way condone or defend unions or representatives who may have shown 
indiscretions and have betrayed the trust of the workers they represent. If 
you closely examine our union structure in Metro Toronto and other large 
metropolises on the North American continent we believe you will find that 
we have one of the best and most efficient structures that exists. 

As the Manager of the Toronto Building and Construction Trades 
Council I assure the Commission that we have answered the questions 
sincerely, honestly and to the best of our ability. If I can be of any other 
assistance to the Commission I will make myself available. I am prepared 
to be publicly questioned. 

C.A. Ballentine, 
Business Manager, 
Toronto Building and Construction 
Trades Council 


Ontario Council of the Housing & Urban 
Development Association of Canada 
Association Canadienne de 1' habitation et 
du Developpement Urbain 

Having been directly involved in Construction Labour Relations at the 
level of the two leading industry-wide national employer organizations 
(c.c.a. and hudac) since 1958, I am pleased to comply with the invita- 
tion of Prof. H.D. Woods to present a few comments on some fundamental 
aspects of the items under review by this Royal Commission. 

I some historical/philosophical aspects 

Perhaps the current Special Session of the United Nations called to attempt 
to develop better solutions to the fair share distribution of material wealth 
among the nations of this planet draws attention to the root problems which 
have forced the Government of Ontario - after considerable soul searching 
- to concede an opposition demand to establish this rather unusual Royal 

The fight for survival, greed and jealousy are basic instincts which the 
human race unquestionably inherited from its parent form of life - the 
world of the animal. 

The inequality of the capabilities of fully developed human beings will 
surely persist as long as humans survive. In a way, the world will be the 
better for it because life among humans of equal ability would surely be 
terribly dull due to lack of challenge. In any event, humans can fortunately 
never be equal, if only because of the process of the life cycle itself -the 
ageing process. 

Other recent Ontario Royal Commissions - and particularly those of Mr . 

150 Report on the building industry 

Justice Ivan C. Rand and Senator H. Carl Goldenberg - have studied much 
of the very same ground, now again under review, though in this instance 
rather more specific on one aspect of the broader issues. 

Both Royal Commissions offered Conclusions and Recommendations. 
However, since 'the first duty of any democratically elected government' 
was centuries ago agreed by such authorities as Robert Walpole and 
William Pitt to be 'to assure its re-election', the recommendations of 
Senator Goldenberg of March 1962 were only adopted in part and those of 
Mr. Justice Rand of August 1968 were never implemented - though they 
may have been used as a threat on occasion and thereby perhaps did serve a 
useful purpose. 

Another political aspect of key consequence to any Royal Commission's 
recommendations has to be the Commissioner's and subsequently the 
Government's appraisal of 'How Much' change can be introduced 'How 
Fast'. These are judgements requiring the evaluation of many factors - 
some of them entirely unrelated to the issues at hand. 

These considerations may lead to questioning the contention that the 
British System of Parliamentary Democracy is not only the most viable and 
effective form of government, but also the most beneficial. Some forms of 
paternalistic dictatorships may in certain circumstances be both more 
effective as well as beneficial to their people in the long run. 

There is however one feature historically primarily practised by the 
Swiss, and more recently by the Belgians and the Australians in one of its 
aspects, which would seem to warrant wider adoption in truly democratic 
forms of government. This is a compulsory constitutional requirement for 
voters to participate in a referendum on issues of consequence, e.g. expen- 
ditures above a set amount or other stated issues of major consequence. 

In a way, the Ontario Labour Relations Board followed this practice not 
too long ago when taking its vote on some issue(s?) at the International 
Nickel Company enterprise at Sudbury. On that occasion the Board di- 
rected a mail vote addressed to the homes of the employees to be taken. 

Such a practice inevitably must result in decisions being made which 
better represent the well-considered view of the electorate than those 
arrived at under other circumstances. 

The freedom of the individual, equality of opportunity and the rule of the 
majority are the cornerstones of democracy - be it in the form of a nation's 
government or its social or economic organizations. These too are the 
freely adopted principles intended to govern the affairs of labour and 
management organizations in democratically governed countries. There 
have, however, been some blatant infringements of the rule of democracy 

Study papers and briefs 151 

and the invasion of criminal elements in a small number of u.s. interna- 
tional labour organizations operating in Canada confirmed by Court 
judgements in recent years, e.g. the Hoffa and Boyle cases to cite only two. 

One further historical point of indirect influence on the usefulness of 
Royal Commissions for the correction of obvious malpractices in labour- 
management relations should be the findings of Dr. Joseph Shister in a 
study of the actual value of the political support of trade unions in deliver- 
ing the votes of their members in the United States. The findings of this 
research project of the early 1950s rejected the claim by union leaders of 
being able to 'deliver the vote'. The same is clearly generally true in 
Canada and still remains so in the u.s. even today. Neither campaign funds 
nor the provision of trained full-time union organizers as election campaign 
staff would appear to have affected any major elections decisively - not 
even those recently held in British Columbia, Saskatchewan or Manitoba. 

The more recent selfish and greedy behaviour of 'Big Labour' -just like 
that of some 'Big Business' - has most likely been a key factor in spurring 
public antagonism against both these interest groups. 

It should be noted here that even the largest construction management 
enterprises have continued to remain 'Small Business' when compared to 
national or multi-national industrial giants. 


In this Province construction workers were first organized at the turn of 
the century by immigrant members of the leading British building trades 
unions, primarily the carpenters and the bricklayers/stonemasons, for 
major commercial and institutional projects. The Toronto Construction 
Association (then Builders' Exchange) was formed at about the same time 
to represent construction management. 

These u.k. based unions soon found themselves to be too remote from 
their Toronto members so that by about 191 2 these construction trade 
unionists themselves sought the help of u.s. afl building trades craft 
unions which agreed to assist the Canadian brethren. 

The first major legislative step taken by an Ontario Government in 
support of construction unions - and management for that matter - was the 
adoption of the Apprenticeship Act of 1929. This provided the craft unions 
with wide influence over the supply of labour for their own trades and at the 
same time offered employers an assured source of better trained Canadian 
labour in days when new immigrants had been sparse in numbers. 

Although the Quebec Government saw fit in 1935 to introduce the 

152 Report on the building industry 

Collective Agreement Act to govern working conditions in construction 
along with several other specified industries as a measure to protect work- 
ers against exploitation and their employers against competitive pressures 
of their clients during the recession, no similar type of legislation was 
adopted in Ontario. 

During World War n the National Joint Board for the Construction 
Industry - paralleling a similar Board which had operated from 1914 until 
192 1 - governed construction labour-management relations on wages and 
working conditions throughout Canada under p.c. 1001. Formalized col- 
lective bargaining in construction then re-commenced in 1948 with the 
adoption of the Ontario Labour Relations Act. 

The concerns of this Royal Commission are believed to have had their 
root in the disturbances, particularly in the residential sector of the indus- 
try of 1 96 1 which had been preceded by work stoppages of various kinds 
during 1957, 1958 and i960. 

In 1 96 1 Mr. Charles Irvine, a former trade contractor, as the Canadian 
Vice-President of the Operative Plasterers and Cement Masons Interna- 
tional Association headed the so-called 'Brandon Hall' Group which at- 
tempted to organize Toronto workers of various occupations in the resi- 
dential sector. The organizing campaign peaked with a mass meeting at the 
c.n.e. Stadium which included an address by Mr. Edward Leonard, the 
General President of Mr. Irvine's union from Washington, d.c. 

The realization that the Brandon Hall campaign had been not only a 
failure but had in fact hurt the labour movement only came slowly. It had 
failed because even at its peak it had barely brought 50% of the total 
Toronto residential construction labour force into the ranks of specially, 
newly chartered residential 'Locals'. These new bargaining units had, it is 
true, negotiated first agreements offering higher wages and improved work- 
ing conditions. 

The campaign in due course backfired, however, because: 

a) The campaign had failed to gain control over the residential labour 
market for Toronto, 

b) Trade contractors signatory to the new collective agreements soon 
found themselves unable to obtain new jobs due to strong surviving non- 
union competition, and 

c) Too many of the members of the new residential 'Locals' had not only 
committed themselves to pay heavy 'Initiation' fees (then up to $250.00 by 
installments), but before long moreover found themselves unemployed and 
forced to seek work on jobs of non-union trade contractors. 

The Toronto Building & Construction Trades Council, long suspicious 
of the activities of Mr. Irvine, the ex-contractor, soon withdrew its support 

Study papers and briefs 153 

of the Brandon Hall Group -given only belatedly in any event. Although 
this local Council quickly spotted the weaknesses and serious risks of the 
Brandon Hall campaign , the same was not the case for the leadership of Mr . 
Irvine's union head office leaders in Washington, d.c. Judging on the basis 
of personal experience, it appears that the Brandon Hall efforts led by Mr. 
Irvine firmly cemented the latter's position with his u.s. based top union 

The North America-wide rivalry between the plasterers and the lathers 
unions undoubtedly also helped Mr. Irvine's stature at his union's 
Washington head office -just as it had its repercussions at Toronto apart- 
ment building sites. 

Finally, it can be stated that Mr. Irvine's ability to raise his union's 
membership (in a slowly dying trade) very considerably across Canada and 
to sign above-average contracts unquestionably further strengthened his 
Washington support. The methods used to perform such 'Miracles' were 
likely never questioned since there were never any complaints filed or 
prosecutions undertaken against Mr. Irvine under any Canadian legislation 
- if only for lack of evidence . 


The inherent instability arising from the very nature of the construction 
industry has firmly left its marks on both labour and management. During 
periods of lack of work, both labour and management suffer basically the 
same fate and their relationship to each other gives little cause for serious 
conflict between them - with only rare exceptions. 

On the other hand, in days of high demands for construction services, 
organized labour is able to exert great pressure on its employer groups and 
has time and again taken every advantage of such circumstances. The 
reasons for labour's ability to do so are: 

(a) Its virtual monopoly control over the supply of union men, 

(b) The traditional lack of interest or desire to resist on the part of the 
industry's clients - be they public or non-public, 

(c) The absence of effective voluntary employer unity due to ineffective 

(d) The persisting reticence of government to intervene - either directly or 
by legislative changes, 

(e) The indifference of the public to almost all construction conflicts, and 

(f) The existing modified Closed or Union Shop and Hiring Hall clauses of 
most collective agreements. 

The above particularly applies to the commercial, industrial and institu- 

154 Report on the building industry 

tional sector of the industry which is today virtually completely unionized. 
The same however is not necessarily true for the roadbuilding or the 
residential sectors of the industry. 

Unions so far only control major roadbuilding work at or near larger 
centres and for residential jobs only all work at Thunder Bay and Windsor 
and most high rise projects at Toronto . At present Ontario' s total construc- 
tion labour force likely comprises 250,000 men of whom probably 200,000 
work full time. About less than half of these, i.e. 90,000 men are union 

It should be noted that the Christian Labour Association of Canada does 
have enough construction tradesmen as members in S.W. Ontario to be 
able to man major residential high rise projects at a city such as Windsor. 

The latter situation has given one leading Windsor residential construc- 
tion firm having labour agreements with both c.l.a.c. as well as the afl 
craft unions a unique strength at the bargaining table - a situation which in 
Windsor - where the residential share of the total volume of construction 
has been particularly high in recent years - has at least provided some 
balance of power at the bargaining table. 

It should also be noted that at least two prominent construction union 
leaders who reside(d) outside Toronto have in the past been charged and 
convicted (one case at least) of assault of members of their own Locals. 

For about 2V2 years now the (Joint) Construction Industry Review Panel 
appointed by the Ontario Minister of Labour has attempted to exert a 
sobering influence on the unionized sector of the industry. These efforts 
proved reasonably successful during the 1 973 negotiations . Since then pilot 
research has been undertaken in an attempt to forecast the labour require- 
ments for unionized projects with the intent to reduce the considerable 
fluctuations in the volume of work from year to year. The objective of 
stabilizing the industry onto a steady growth path to overcome cyclical 
changes in volume, thereby assuring improved stability of workers' in- 
comes, is obviously well worthwhile. However, even if such an intricate 
operation should prove successful once an adequate methodology has been 
found, it is doubtful if the consequent income stability will reduce union 
demands at the bargaining table - especially during periods of rapid 

Structural instability in the bargaining process will likely continue to be 
the most vital factor giving cause to disputes between construction labour 
and management. As long as negotiations are conducted trade by trade at 
every sizeable Ontario city, the industry will inevitably suffer under exces- 
sive opportunities for conflict, consecutive disruption through strikes and 

Study papers and briefs 155 

further inflationary settlements. Except for a very few trades, efforts to 
negotiate province-wide or multi-trade wide at the local level during the 
last decade mostly failed. 

Finally, the fact that Closed and Union Shop and Hiring Hall clauses in 
construction inevitably place the employer as well as an employee at the 
mercy of a union official cannot be ignored. Such clauses were rarely 
gained in this industry on what could be termed a 'legitimate' basis. Most of 
these clauses were conceded by management as a short-term expediency 
because they did not involve any immediate cost increases on any projects 
already under way on a firm price basis. The submission of the Canadian 
Labour Congress to Mr. Justice Norris concerning the s.i.u. adequately 
dealt with the evils of a union run hiring hall, it should be noted. Closed and 
Union Shops normally are in violation of the freedom of the individual to 
join or refrain from joining a given union. It has to be conceded here that 
due to the craft structure of the afl construction unions any tradesman 
automatically de facto surrenders his right 'to join the union of his choice.' 
On the other hand, both clac and the cntu have their construction 
workers structured industry-wide. 


(a) Appropriate amendments of the Federal Combines Investigation Act 
(Section 4) which still exempts 'combinations of workmen' (Trade Unions) 
from the provisions of this Act as far as 'their own reasonable protection' is 
concerned so that at least union officials will come under some effective 
control, perhaps by a cross reference to Section 32 (1 & 3) at least. 

(b) Introduction of a compulsory Ontario Trade Union Act requiring 
unions operating in this Province to include certain requirements in their 
constitutions concerning rights and responsibilities of their members as 
well as their elected and appointed officers and also the financial accounta- 
bility to their memberships. 

(c) Amendments to the Construction Industry Sections of the Ontario 
Labour Relations Act to provide for: 

i) The elimination of Closed or Union Shop agreements of any kind as well 
as of union operated Hiring Halls, and 

ii) Compulsory province- wide, industry sector wide multi-trade bargaining 
for 4 or 5 defined wage zones. 

(d) Repeal of the Rights of Labour Act so that unions may be sued as legal 

156 Report on the building industry 

It is hoped that the above information, comment and proposed solutions 
will commend themselves to the Commission. 

The undersigned would be pleased to elaborate further, answer any 
questions and make himself available to the Commission. 

Respectfully submitted, 

Peter Stevens, 
Executive Secretary. 


Masonry Contractors' Association 

We the members of the Masonry Contractors' Association of Toronto, Inc. 
welcome this opportunity to present our submissions on certain freedoms 
which we do not have presently within the Construction Industry. 

The matters we submit with this letter outlines our concern, and a 
proposal from our Association regarding new legislation, if adopted, would 
solve some of the problems besetting the Construction Industry to-day. 

We believe our proposals would satisfy both Labour and Management. 


The Masonry Contractors' Association of Toronto, Inc. has been in exis- 
tence since June 27, 1956 and the ninety-five members, to date, of our 
Association employ approximately 1,800, consisting of bricklayers and 
labourers. This does not include our supervisory staff, owners and their 
partners who also lay masonry. This gives us a working force of approxi- 
mately 2,000. With the information which we have we are doing approxi- 
mately 70% of all Masonry Construction in the Municipality of Metropoli- 
tan Toronto and 98% of apartment projects. 

All of the employees of the ninety-five members of our Association 
belong to either Local # 1 or the Bricklayers Masons Independant Union of 
Canada or Local #1 of the Bricklayers Assistants Union. Their unions are 
recognized by the Ontario Labour Relations Board and our members have 
had a collective agreement with these unions since 1965. 

158 Report on the building industry 


We have had the opportunity of reading Agreements entered into, and 
presently exist between: 

a) Metropolitan Toronto Apartment Builders' Association & Toronto 
Building and Construction Trades Council. 

b) Toronto Construction Association & Toronto Building Trades Council. 
It is the concern of our members that in these two Agreements the 

Builder or General Contractors are in fact bound to use only Masonry 
Contractors whose bricklayers and labourers belong to a certain union for 
Commercial, Industrial and Institutional and Residential Masonry Work. 
Whereas our members can only do Masonry Work for those Builders and 
General Contractors who are not attached at all to a certain union. In 
Agreement a) we are recognized, but only to do Residential Masonry Work 
and not the Commercial, Industrial and Institutional work, whereas the 
Masonry Contractors employees of the other union can freely do all seg- 
ments of masonry work mentioned. 

In Agreement b) we are not recognized at all. 


Agreements a) and b) are types of an Agreement that the City of Toronto 
had previous to 1971 which read under the heading of Workmans' Rights: 

'In the case of a contract for the repair, construction or alteration of any 
buildings, erection or structure, swimming or wading pool , the contractor and 
his subcontractors, shall be in contractual relationship with Unions affiliated 
with the Building and Construction Trades Council of Toronto and Vicinity. ' 

Which presently reads 

'Where the contractor is in contractual relationship with a union in the 
Metropolitan Area recognized by the Ontario Labour Relations Board as the 
bargaining agent for the relevant workmen during the performance of a 
contract shall be the rate set out in the collective agreement and where there is 
no such contractual relationship the rate of wages shall be the rate set out in 
the Fair Wage Schedule as amended from time to time.' 

This is the type of legislation we respectfully recommend to the Royal 
Commission for their report to the Ontario Government and citizens. 

Study papers and briefs 159 


We have had the opportunity of reading the brief sent to the Royal Com- 
mission by Mr. John Meiorin, of the Bricklayers Masons Independant 
Union of Canada, Local #1 and Bricklayers Assistants, with reference to 
boycotts and harassments from Toronto Building Trades Council, we can 
only say in brief, that their dilemma and denied freedoms are ours also. 

We would be pleased to supply any other information you may require in 
regard to our Association or individual members. 

Thank you for giving us this opportunity to express our views to the 
Royal Commission. 

Yours truly, 

Leonard Corrado, 
Manager, m.c.a.t. 

A. DiRocco, 
President, m.c.a.t. 


The Building and Construction Trades 
Council of Ottawa, Hull and District 

The Building and Construction Trades Council of Ottawa- Hull and District 
(hereinafter called the Council) is a Council of construction trade unions 
having jurisdiction in the Eastern Ontario and Western Quebec Regions. 
The unions comprising the Council are as follows: 

Carpenters, Local Union 93 Plasterers and Cement Masons, 

Carpenters, Local Union 2041 Local Union 124 

Elevator Constructors , Local Bricklayers , Tile and Terazzo , 

Union 96 Local Union 7 

Asbestos Workers , Local Union 58 International Brotherhood of Elec- 
Operating Engineers, Local Union trical Workers, Local Union 586 

793 Iron Workers, Local Union 765 

Millwrights (Kingston Local) Painters, Local Union 200 

Plumbers, Local Union 71 Teamsters, Local Union 91 

Sheet Metal Workers, Local Union Teamsters, Local Union 230 


The elected officers of the Council are the following: President - Jean 
Guy Denis (Plasterers and Cement Masons) Vice-President - Raymond 
Guertin (Sheet Metal Workers). 

Many of the problems confronting construction trade unions generally 
throughout Ontario are also experienced by the unions comprising the 
Council; however, because of the fact that there is considerable mobility 
back and forth across the border between Ontario and Quebec , the Council 

162 Report on the building industry 

Unions experience severe problems not experienced by locals operating 
solely within Ontario. The mobility of labour is primarily that of Quebec 
residents working in Ontario - the converse situation does not exist to any 
great degree due to the peculiarities of the Quebec Labour situation, which, 
it is appreciated is perhaps outside the jurisdiction of the Royal Commis- 
sion. Suffice it to say that individuals associated with the unions comprising 
the Council are encountering severe problems obtaining employment in 
Quebec regardless of the fact that many actually reside there. 

The Ottawa area construction scene has over the past several years 
contained a large number of Quebec based construction companies. The 
Council does not take the position that these companies should not be 
permitted to operate in Ontario but does suggest that some sort of registra- 
tion system be developed requiring them to register here and file details of 
the names and addresses of their head offices and boards of directors. 
While many collective agreements have been negotiated with these com- 
panies, various problems have been encountered in the enforcement of the 
terms of these collective agreements. One particular problem that has been 
encountered over and over again is the problem of serving summonses and 
subpoenas on these companies and their officers. It is appreciated that 
under various provincial statutes, companies incorporated outside of On- 
tario are required to obtain extra provincial licences before commencing 
operations here; however, it is the experience of the Council that these 
requirements are neither being complied with nor enforced. 

Of greater concern than the foregoing is the problem being encountered 
in the Ottawa area as a result of Quebec based workers not possessing 
sufficient trade training and qualifications and competing here with 
qualified tradesmen. It is submitted that some minimum standards should 
and must be applied. This particular problem would be overcome by the 
Province adopting the practice of compulsory certification of all trades and, 
of course, enforcing such compulsory certification. 

Formerly, this latter problem was to some degree controlled by the 
Industrial Standards Act through the co-operation of the Industrial Stan- 
dards Branch and the local unions. This Act, to-day, is not being applied to 
any great degree and in its present form is of little assistance. 

Mention has already been made of legislation that is not being enforced 
by the Province. It is the Council's opinion, that generally speaking legisla- 
tion does exist whereby, if enforced, many of the problems being encoun- 
tered here could be solved, or, at least, controlled to some degree. For 
instance. The Apprenticeship and Tradesmen Qualification Act and Regu- 
lations, if diligently applied and enforced, would be an excellent vehicle to 

Study papers and briefs 163 

ensure that only qualified tradesmen are performing work requiring ac- 
quired skills. The Act provides for the establishment of 'joint advisory 
committees' to assist in the administration of the Act; however, in this area 
at least the joint committee is ignored and in practice has a very unimpor- 
tant role to play. There seems to be a real lack of co-operation in this regard 
on behalf of the Ministry of Universities and Colleges. 

As is well known, there are several Ontario statutes dealing with labour 
relations as well as employer-employee relations generally. It is the 
Council's view that the Legislature should make an effort to consolidate 
these statutes where possible and practical into a 'labour code' along the 
lines of the Dominion Labour Code. Of greater importance would be the 
placing of all the statutes under one governmental arm so that the adminis- 
tration and enforcement of same would be uniform and perhaps more 
diligent than at present. In the event that it is not practical to consolidate all 
of the present labour statutes, as a minimum requirement, those statutes 
dealing with the construction industry should be consolidated. 

The above problems are of a general nature, but nevertheless are of 
great concern to this Council. 


There are many specific problems and areas of difficulty which we would 
draw to your attention. These are set out on the following pages. 


The Council appreciates that to some extent it has a vested interest in not 
being favourably inclined towards the concept of piecework generally. 
However, the Council wishes to stress that it exists with a view to protect- 
ing and representing construction employees and its experience with 
piecework has demonstrated beyond any doubt that individuals working on 
a piecework basis are not serving themselves or the community, or for that 
matter, the contractor, in the long run. 

All too often, however, piecework is resorted to by contractors not 
simply wishing to avoid the usual obligations and requirements placed on 
the contractor under collective agreements, which is quite often the case, 
but is resorted to with a view to exploiting the worker. In most instances, 
piecework is employed by the contractor with a view to doing away entirely 
with the employer-employee relationship and the pieceworker is dealt with 
as though he was an independent contractor. This usually results in income 
tax not being paid, workmen's compensation charges not being submitted. 

164 Report on the building industry 

workmen's compensation benefits being lost, Unemployment Insurance 
premiums not being paid, Canada Pension Plan payments not being made, 
vacation pay benefits being lost, and fringe benefits which other employees 
receive not being obtained, and generally results in the worker not using 
most of the social legislation benefits designed to protect him. Serious 
problems are now being encountered here by numerous workers who have 
been employed as independent contractors (pieceworkers) and on whose 
behalf no income tax has been deducted by the contractor nor paid by the 
pieceworker. The Department of National Revenue is reassessing several 
of these persons some of whom probably considered that they were not 
independent contractors but employees. 

It may be argued by those who support the pieceworking theory that this 
system rewards the skilled man who is prepared to work hard. This argu- 
ment, of course, stands up only if the worker is not exploited and only if his 
work habits do not lead to a tendency to get the job done simply to move on 
to the next 'piece.' The Council's experience has been that piecework 
generally results not only in the exploitation of the worker but also, and just 
as important, in the job not being done properly and safety on the job, both 
while under construction and after completion, is a matter of great concern 
to the Council as well, of course, to the ultimate consumer. To a large 
extent safety considerations and measures are virtually non existent on 
projects involving piecework to any substantial degree because of the 
multiplicity of employers and the lack of any common direction. 

It is recognized that it does not necessarily follow that pieceworkers 
become independent contractors. It is possible that a man can be a piece- 
worker and, at the same time, an employee. Again, however, the Council 
needs only to look to its experience in this field to come to the conclusion 
that piecework is simply not compatible with an employer-employee rela- 
tionship. The Council wishes to state quite clearly that it is not opposed to 
new firms being formed; however, the Council's experience is that very 
seldom, if ever, does a firm ever result from a man doing piecework. 

Province-wide Locals 

Some locals have recently been established with a view to representing 
employees employed throughout the Province with respect to a certain 
trade, sub-trade, or particular kinds of work even where in certain areas 
these persons or this particular kind of work has traditionally been within 
the jurisdiction of one or more particular established union. 

The Ontario Labour Relations Act recognizes certain peculiarities in 
the construction industry that distinguish it from other industries and to 
this end has adopted the concept of area certifications. 

Study papers and briefs 165 

It is submitted that the Ontario Labour Relations Act should be 
amended to provide that where in a particular area one or more unions have 
traditionally represented a certain trade or type of work, that these unions 
be given precedence over the province-wide local in circumstances where 
there is a contest for the right to represent such employees. 

Board Examiners 

From time to time the Ontario Labour Relations Board appoints examiners 
to inquire into various matters in connection with applications before the 
Board and to report to the Board thereon. 

Quite often, these gentlemen do not possess any expertise or experience 
in the construction field and it is submitted that their reports are quite often 
of little assistance to the Board and often miss the point entirely. Too much 
emphasis, for instance, in applications for certification, is placed on what 
a particular employee was doing on a particular day. Sometimes the 
examiner's inquiry is held months after the date of the application for 
certification and it is usually impossible to determine what a particular man 
was doing on a particular day or, for that matter, in a particular week. 

The appointment of experienced construction personnel as examiners in 
the construction area is essential. 

These examiners, it is submitted, should also be clothed with more 
authority than they now possess so that when they inquire into such things 
as who was an employee on a particular day, they are not left to the whim of 
the employer as to what evidence they may be permitted to see. Rather 
than be classified simply as an examiner, they should rather be classified 
and clothed with the powers of an investigator. 

An example of how these examiners can be frustrated in their examina- 
tions because of lack of powers can be seen in a case now before the 
Ontario Labour Relations Board involving an application for certification 
by Carpenters Local 93 concerning the Delzotto group of companies. In 
that case the Minister caused an inquiry to be made under the Employment 
Standards Act and came up with evidence to the effect that company 'A 1 
was the employer. The examiners' investigation or examination concluded 
that this company was not the employer. As previously mentioned, this 
Delzotto case is presently before the Labour Board and no final decision 
has been made. 

Associated or Related Businesses 

Of great concern to the unions representing employees in the construction 
industry is the recent trend by many employers to operate their businesses 
through a series of companies, sometimes even exceeding 100 in number. 

1 66 Report on the building industry 

In far too many instances the employees and indeed, even the foreman and 
superintendent do not know the company by whom they are actually 
employed. Usually an employee will be aware in a general way that he is 
employed by the, for instance, 'A, B, C, group' but quite often they are not 
able to identify which particular company in the group is the actual em- 
ployer. All too often the 'employer' is not in point of fact an employer in the 
usual sense but is simply a shell on whose books the men are listed as 

A related problem is found in situations where a new company is formed 
to avoid the effect of certification upon an existing company thus some- 
times defeating the purpose of certification. This also occurs where com- 
pany A , for instance, has entered into a collective agreement and wishing to 
avoid the effects of same, forms a new company -i.e. company B. Another 
related problem arises where one company that is paying Workmen's 
Compensation premiums will form a new company to avoid a bad accident 
record and the consequences which follow therefrom. 

The Ontario Labour Relations Act makes an attempt to deal with such 
situations; however, it is submitted that the Act does not go nearly far 

Section i, subsection 4, of The Labour Relations Act provides as 

'Where, in the opinion of the Board, associated or related activities or 
businesses are carried on by or through more than one corporation, indi- 
vidual, firm, syndicate or association, or any combination thereof, under 
common control or direction, the Board may treat the corporations, indi- 
viduals, firms, syndicates or associations or any combination thereof as 
constituting one employer for the purposes of this Act' . 

However, nowhere in the Act is there any vehicle whereby the em- 
ployees can directly seek a declaration to this effect. In other words, the 
Board exercises its powers under this section only when the issue arises as 
a collateral issue in an application made to it under some other section. The 
section is helpful in some instances but falls far short of accomplishing its 
purpose. For instance, union A might obtain a certificate regarding com- 
pany B and then find that company B has phased out or discontinued and 
company C formed . (It is assumed here that company C is not a company to 
which there has been a 'sale of the business' of company B). It is submitted 
that a union should have the right at any time to bring an application to the 
Board for a declaration that two or more companies are related employers 
and, in particular, a union holding a certificate should be given an opportun- 

Study papers and briefs 167 

ity of applying for a declaration that its certificate should be amended to add 
company C as the employer. 

The Labour Board has laid down guidelines for determining whether a 
particular company is a 'related or associated company' and it is submitted 
that these are unrealistic in that all too often the union is faced with an 
impossible evidentiary problem since it is not privy to the relevant informa- 
tion. The tests which have been laid down by the Board are as follows: 

1. Common ownership or financial control; 

2. Common management; 

3. Inter-relationship of operations; 

4. Representation to the public as a single, integrated enterprise; 

5. Centralized control of labour relations; 

The Board places the onus on the applicant union which onus, as 
previously stated, the union is quite often not able to meet. It is submitted 
that the Board should have and exercise the right to require the named 
company or companies to appear before it and produce the relevant infor- 
mation and be subject to cross-examination thereon. 

In situations where the union is aware that possibly one out of a group of 
companies is the employer but is not sure which one, it is forced to name all 
companies and then is accused of setting out on a fishing expedition . This is 
putting the union and the employees in an impossible position not to 
mention the serious financial implications to the union and its members. 

It is significant to note that the Employment Standards Act makes an 
attempt to regulate several facets of the employer-employee relationship 
and to this end spells out what information must be supplied at the time 
wages are paid. However, there is no requirement that the name of the 
employer be set out. 

In many instances, it should be pointed out, the employees are paid by a 
payroll company and thus cannot conclude therefrom the identity of the 
actual employer. It may be good business practice for an employer or 
employers to utilize a payroll company; however, there should be a 
minimum requirement that the name of the real employer appear on the 
cheque or cheque stub. 

The issue as to the identity of the employer is extremely important and 
accordingly, there should be some vehicle by which an application can be 
made to the Board for a determination of the issue. A separate application 
under Section 1, subsection 4 is part of the answer but does not solve the 
entire question. Some requirement must be placed on the 'real employer' to 
advise the employees of its existence either by posting a notice to this effect 
or by reference being made to it in its payroll. 

An employee who does not know the identity of his employer is 

1 68 Report on the building industry 

deprived of the benefit of almost all provincial and federal legislation 
dealing with labour relations and employer-employee relations generally. 
Some examples of the problems that may be encountered are as follows: 
i . The union is not able to file an application for certification since it cannot 
name the employer. 

2. No proceedings for non-payment of wages can be taken under the Master 
and Servant Act. 

3. Mechanics Liens cannot be filed. 

4. The Workmen's Compensation benefits cannot be claimed. 

5. Unemployment Insurance benefits cannot be claimed. 

6. No benefits under the Employment Standards Act can be effectively 

7. Canada Pension Plan benefits may be lost. 

8. Benefits under The Bankruptcy Act may be lost. 

In summary then, a whole new approach should be adopted when 
dealing with the question of related employers or cases where the identity 
of the employer is unknown. Far too much emphasis has been placed on the 
adversary system. It is submitted that these matters should be dealt with by 
the legislature and not left up to the unions or the employees to enforce the 

Successor Rights (Section 55 - Ontario Labour Relations Act) 
The Ontario Labour Relations Act attempts to deal with the concept of the 
successor employer and again it is submitted that to a large extent the 
provisions of the Act are inadequate. Too often, the effects of certification 
are avoided by a 'sale of the business'. Again, as in the preceding matter, 
the burden of proving a sale of the business is placed on the Union and again 
far too often the Union cannot proceed since it is not privy to the relevant 
information. It is submitted that in a case where a sale is alleged, the Board 
should have the power to demand full disclosure from the employer or 
companies involved once a prima facie case is made out by the Union. In 
other words, some better system then the mere adversary system must be 
applied to this type of situation. A reading of the section would appear to 
give the Board powers to obtain the necessary information; however, it is 
submitted that the Board has failed to use these powers. 

It is also submitted that the Section as it presently stands is deficient. It 
states that until the Board otherwise declares, the employer to whom the 
business is sold is bound by any Collective Agreement to which the vendor 
was a party. However, no vehicle is clearly set out by which the Union can 
apply for a declaration that the purchaser is in fact a successor employer. 

In any event, it is submitted that in fact, a sale of the business may only 

Study papers and briefs 169 

be one of many ways in which a business can be wound up under one name 
and commenced under another. There are in the construction field many 
companies with little or no assets which, rather than sell their business, 
need only discontinue the existing company and form a new one. Again we 
would point out a problem which is being encountered all too frequently - 
i.e. a company may have a very bad accident or safety record and to avoid 
double assessment under the Workmens Compensation Act, simply winds 
up the company and forms another one thus avoiding the burdens of the 
Act. The section should be extended to cover these circumstances. 

Enforcement of the Collective Agreement 

Basically, the Collective Agreement is enforced by means of the grievance 
and arbitration procedures contained therein or as deemed to apply by the 
Ontario Labour Relations Act. Generally speaking this system is adequate. 

However, there are instances where the system breaks down such as the 
situation where an employer completely disregards the agreement. 

One such case has been frequently experienced here in Ottawa in the 
construction industry concerning provisions in Collective Agreements re- 
quiring an employer to hire only employees who are union members and/or 
requiring an employer to sub contract work only to such sub contractors 
who also are parties to collective agreements with the Union. Grievances 
can, of course, be filed; however, quite often the project is completed by 
the time the matter is fully arbitrated. 

Because of the Rights of Labour Act, no Court action can be proceeded 
with to enforce the Collective Agreement or to obtain an injunction. The 
grievance remedy is, therefor, inadequate in this type of situation. 

It is submitted that one possible solution is to add to the Ontario Labour 
relations Act a provision allowing a party to a Collective Agreement to 
apply in a case of an emergency to the Ontario Labour Relations Board for 
a speedy determination of such disputes. The burden of establishing 
urgency should, of course, rest with the grievor. 

Applications to the Ontario Labour Relations Board by 'Strangers to the 
Proceedings before the Board' 

The Board has adopted a policy of not hearing 'strangers to a proceeding' . 
It is submitted that such a practice can and has led to the possibility of 
frauds being perpetrated upon the Board. An example of such an applica- 
tion is set out in the Board's reasons for decision in file number 2618-72-R. 
A copy of this decision is attached as Schedule 1 together with the applica- 
tion itself. 

It is accordingly submitted that the Board should not adopt the very 

iyo Report on the building industry 

technical approach it in fact adopted in this case and has adopted in similar 
cases. This problem could, of course, be overcome by giving to 'strangers' 
some right to apply to the Board for reconsideration of any of its decisions 
affecting such 'strangers'. 

In this regard perhaps a general comment should be made that there is a 
growing tendency in the Labour Board to adopt far too technical an 
approach generally in matters which come before it. It is submitted that the 
Board is not a Court of Law and that it should not conduct itself as one in 
the sense of becoming too technical. Over the years several practices have 
been developed and followed but for one reason or another these practices 
have not been incorporated into the Act, the Rules, or the Regulations (e.g. 
- age of membership applications; rights of cross examination of parties 
such as interested employee petitions). In a recent case involving a local 
construction Union an application was dismissed on the basis that the 
original membership evidence was not filed, but rather xerox copies of 
same were filed. 

Surely the Board should be adopting a more liberal approach and should 
spell out any of its procedures that failure to comply with might result in an 
application being dismissed. 

Applications for consent to prosecute under the Ontario Labour Relations 
Act and Enforcement of Labour Laws Generally 

Generally speaking, the enforcement of the provisions of the Ontario 
Labour Relations Act and most other labour legislation is left up to the 
employer, the Union, or the employee affected by the violation of the Act 
by another. 

It is submitted that the Ministry of Labour itself should assume the 
obligation of policing the Labour Statutes. 

The Ontario Labour Relations Act provides certain criminal sanctions 
for breaches of its provisions but no prosecutions are laid until the Board 
issues a consent to prosecute. A more effective enforcement of the Act, it is 
submitted, would follow from a system whereby a complainant could lay a 
complaint with the Ministry in the same manner as an information is laid 
under the Criminal Code. 

In addition, it is unrealistic to require the complainant to finance and 
personally prosecute the offences. This, it is submitted, should be the 
responsibility of the Ministry of Labour. 

All too often, legislation is drafted without any regard to the problems of 
dollars and cents. It is unreasonable to assume that a small Local would be 
willing to spend up to $2,000.00 to obtain a conviction against the party who 

Study papers and briefs 1 7 1 

violates the provisions of the Act when all too often it is impossible to 
obtain a conviction and. when obtained, the fine is completely meaning- 
less. The Sheet Metal Workers Union encountered this very problem 
several years ago involving a company by the name of Alexander Metals. 


The right of a Union to picket has been recognized for years. However, the 
Courts have shown a tendency to severely limit this right. 

In many instances, picketing that is otherwise lawful has been so se- 
verely limited in numbers and otherwise so as to virtually render it ineffec- 
tive. The Courts have also developed the doctrine of secondary picketing, 
a doctrine, which if its present extension continues will result in picketing 
being done away with entirely. 

It has also been held in various decisions of the Board that clauses in a 
Collective Agreement to the effect that employees shall not be deemed to 
be on strike when refusing to cross a lawful picket line are w ithout effect as 
they are in conflict with the provisions of the Act concerning no strikes 
during the term of a Collective Agreement. 

It is submitted that the legislature should enact legislation as part of the 
Labour Relations Act extending and clearly setting out the rights to picket 
and to respect other lawful picket lines. 

The common law has not been able adequately to deal with picketing 
situations and to a large extent the question as to whether or not picketing is 
to be permitted is left to the whim of a particular Judge hearing the matter 
and all too often such Judge does not possess a sufficient understanding of 
labour relations law. 


The hearings conducted by the commission have, of course, generated a 
great deal of press some of which has already resulted in criticism of 
existing practices as well as suggestions for change. 

The 'hiring hall" concept has received some publicit\ and certain pos- 
sible evils have been brought to light and. in particular, favouritism of 
employees and certain employers has been show n. The council recognizes 
the potential for abuse: however, it should not automatically be concluded 
that because of abuses in the past, by certain individuals, the system is 
unworkable. On the contrary, the system has worked well and is working 
well in this area. The lack of any objection by the construction workers in 
this area is alone sufficient proof of the fact that the system \\ oiks. 

More so than in any other industry, the construction industn requires 

1 72 Report on the building industry 

an organized pool of workers from which employers may draw. The hiring 
hall, it is submitted, fills this bill. 

If the Legislature feels obliged to control such hiring halls, that is one 
thing, but to do away with them because of some abuses by a few individu- 
als would be a mistake. 

It cannot be forgotten that a few publicized abuses involving a couple of 
unions does not mean that the abuses are widespread. Surely, the govern- 
ment can take proceedings against the offenders without prejudicing the 
innocent parties. 

The press has also suggested that specialized committees composed of 
accountants, financial advisors, actuaries, lawyers, and other profession- 
als be used to administer the various welfare and pension plans set up under 
collective agreements. At first glance, this seems very logical. However, 
one cannot lose sight of the fact that such a committee would be an 
extremely costly affair completely unwarranted by the size of most of these 
welfare or pension funds. Also, as of this time, all such funds, at least in this 
area, employ experienced administrators who must account to the trustees 
and to the employers and employees. 

It is too smug for someone to state that a plumber or bricklayer is not 
sophisticated enough to participate in the administration of these plans. 
With respect, it is submitted that these tradesmen have a contribution to 
make as trustees as the plans are usually geared to their peculiar needs. 

It is, therefore, submitted that the present set-up which usually involves 
a committee of trustees with a professional administrator advising and 
administering the fund, is quite sufficient. Again, the fact that there may 
have been abuses does not automatically mean that the status quo should 
be tossed out. 

The existing common law and statute law, both civil and criminal, is 
quite adequate to deal with any mismanagement of trust monies. 

The commission has served to make public, in a very dramatic way, 
many abuses in the construction industry. Abuses of the law have been 
shown both on the part of the employers and some unions. However, it is 
submitted that the problem is much larger than simply the question of 
abuses by individuals. It is submitted that many of the problems and the 
violence in the construction industry has resulted from the following: 

1 . The Government's failure to enforce existing legislation; 

2. Inadequate legislation; 

3. The existence of the criminal element in the industry, resulting in 
collusive agreements and arrangements between some employers and 
some so-called 'unions'. 

Study papers and briefs 173 

The council is appreciative of the work carried out by the commission 
and is appreciative to Mr. Albert Roy for his insistence that Ottawa be 
included within the scope of the inquiry. The inclusion of Ottawa has 
served to focus attention on the Ottawa- Hull scene at a time when violence 
in the industry was just becoming an important factor. Hopefully, public 
exposure will serve to keep the undesirable element out of the local con- 
struction scene. 

The council has one fear at this time and that is that the abuses of some 
so-called unions may result in legislation penalizing all bona fide unions and 
thus penalizing those employees who are prepared to work and operate 
within the law. Hopefully, this will not occur. 

All of which is respectfully submitted. 

Jean Guy Denis - President 

Building and Construction Trades Council 

of Ottawa-Hull and District 


This letter is intended to supplement the Brief submitted to you on behalf of 
The Building and Construction Trades Council of Ottawa-Hull and District 
and, in particular, with respect to the question of 'hiring halls' briefly 
alluded to on page 20 of that Brief. Since the time of submitting the Brief the 
question of hiring halls has received further comment in the press and. 
accordingly, the Council feels that certain relevant matters should be 
immediately brought to your attention. 

There are approximately 400 construction locals throughout Ontario 
and, therefore, something slightly less than 400 hiring halls. Your enquiry 
heard evidence with respect to a few of these halls and, no doubt, other 
investigations have been carried out; however, the council wishes to stress 
the danger of any general conclusions being reached on the basis of any- 
thing but the most complete evidence. 

You have been quoted in the newspapers as follows - 'One of the glaring 
illegalities that manifested itself in our hearing was the abuse of that hiring 
hall system.' You have also been quoted to the effect that you and your 
advisers were considering an impartial, possibly computer backed, job 
allocation system for unemployed union workers so union officials will no 
longer have a so-called commodity to sell. It is submitted that the present 
day systems employed by unions are for the mutual benefit of the workers 
and the employers and that, as is often the case, a few bad apples are 
tending to 'spoil the whole barrel.' 

174 Report on the building industry 

The concept of the hiring hall has always been at the heart of the labour 
movement in the construction industry in this province. The systems 
employed by the individual hiring halls vary from one union and from one 
location to another depending on the needs of both the persons seeking 
employment and the employers seeking workers. Accordingly, it is 
dangerous to generalize when talking of hiring halls . For greater clarity , the 
following is a list of some of the types of hiring halls in use in this province: 

(a) strict numerical order of lay-off and return to work - with or without 
recall provisions. 

(b) numerical order of lay-off but return to work at whim of employer. 

(c) regular order of lay-off registration - return to work on a 50-50 basis; 
(i) first choice by employer and 

(ii) choice by union 

(with one week to three weeks minimum employment requirement before 

being dropped from listing) 

(d) Regular order of lay-off registration, return to work according to qual- 
ifying needs (employer-employee) 

(e) Voluntary registration following lay-off-recalls-no recalls. Freedom by 
member to seek and find work with obligation to report return to work 
through union office and, in some cases, no obligation to report to office if 
return to work. 

We would be prepared to discuss these and other systems with you. 

It should also be noted that many hiring halls, if not all, are the result of 
negotiations between employers and the unions concerned and are quite 
often tailored to the particular needs of the relevant trade. To a large extent 
the Union and the contractor must co-operate in the supply and hiring of 
men. For instance, some trades require skills of a high level and a prospec- 
tive employer usually wishes to reserve to itself the power to accept only 
qualified personnel. Qualifications are not the only criteria prospective 
employers may look up to - there are several other lawful and realistic 
considerations which are relevant such as the employer's possible past 
relationship with a particular employee and the fact that a particular em- 
ployer may consider it impractical to fit the employee into his system of 
operation (these considerations, of course, work both ways). Accordingly, 
it is not possible to have a situation where men are sent to an employer 
simply on the basis of a numerical or computer kept list. 

The hiring hall of a local representing skilled tradesmen will most 
certainly use a system quite different than that employed by a Union 
representing unskilled persons or persons not requiring skills of such a high 

Study papers and briefs 175 

The council is very fearful that excessive government intervention in 
hiring halls could only result in arbitrary rules being laid down which would 
affect not only the efficiency of the contractor but would most certainly be 
to the detriment of the workers and would also seriously undermine the free 
collective bargaining between a Union and a contractor which is, of course, 
sanctioned by labour relations legislation. 

Also, it cannot be forgotten that the system used by a particular Union 
hiring hall is not the creation of a couple of individuals but in the case of any 
bona fide Union is the result of the wishes of a majority of the members of 
that Union. The business agents and other Union personnel involved in the 
administration of the hiring halls are well acquainted with their Union 
membership and this knowledge results in the appropriate persons being 
sent to a particular employer. 

Again, the council is prepared to accept the possibility of potential for 
abuse - however, the system has survived for years in Ontario and has not 
been a matter of concern for either the workers or the contractors them- 
selves. This lack of conflict should be considered in weighing the abuses 
brought to the attention of the commission. The abuses of favouritism and 
bribes are not common to the Unions and the construction industry at large 
and the recent notoriety has been centered around a few unions which are 
not bona fide unions in the first place. 

Labour legislation in Ontario and throughout Canada has recognized the 
validity of the union shop and closed shop agreements. In the construction 
industry which, of course, cannot be equated to other industries because of 
the need for mobility of labour and the short duration of projects, the union 
and closed shop principles are accomplished to some extent through the 
hiring hall practices. 

There is no magic formula for the successful operation of a hiring hall. 
However, some factors and skills are essential to those persons charged 
with their administration - i.e. experience in the particular trade - know- 
ledge of the area concerned - knowledge of the companies concerned - 
knowledge of the supply of labour -and, needless to say, co-operation with 
the employers concerned. The council feels that to take the hiring hall from 
the Unions and place it in the hands of a government agency would destroy 
what has taken Unions and employers to build up through years of collec- 
tive bargaining. 

There is too often to-day a tendency on the part of government to 
intervene in areas formerly controlled by the private sector. There is also 
too often a tendency to think that because the body is a government one 
there will be no abuses. As pointed out in our earlier brief, a good deal of 

176 Report on the building industry 

existing legislation is not being enforced. The council feels that had such 
statutes as The Industrial Standards Act, The Employment Standards Act, 
The Apprenticeship Act. The Labour Relations Act, and other labour and 
criminal legislation been enforced, there might have been no need for the 
commission in the first place. We would also point out that there has been 
some recent examples of Ontario Housing Corporation personnel involved 
in corrupt practices. 

The Manpower Centres throughout Canada have failed to fulfil the 
manpower requirements of employers in most fields of work. Accordingly, 
Government intervention for the sake of intervention is not the answer. A 
specific example can be found in the Province of Quebec where experience 
over the past few years has proven that The Canada Manpower Centres 
and Quebec Manpower Centres have not been able to effectively replace 
the Union hiring halls and, consequently, the Union hiring halls have been 
the employer's best source of labour. The council does not wish to rely too 
heavily on the construction industry practices in Quebec except to point 
out that Government intervention is not necessarily the answer. There is a 
statute in Quebec by the name of Employment Bureaus Act - Chapter 147 
r.s.q. 1964. We have reviewed this Act and note that it anticipates the 
continuation of Union hiring halls. Our information is to the effect that, as 
above stated, the Union hiring halls are still the main source of employment 
of employees. 

The council does not want to create the impression that all construction 
employers favour the hiring hall system. It is relevant, though, to point out 
that most of the employers who are opposed to it are those who are opposed 
to unions in general. 

The council feels that the hiring of persons and the supply of Labour 
cannot be handled by a computer or by inexperienced personnel. Both 
concepts involve the need for human relations by experienced people. 

Government intervention in this matter may lead to the growth of 
private employment agencies which will in turn lead to the diversion of 
wages that should to to the employees concerned to the pockets of those 
persons supplying the labour. Problems are already being encountered 
here in Ottawa with respect to these employment agencies -i.e. it becomes 
very difficult to determine just who the workers are employed by - i.e. the 
employment agency or the particular contractor for whom they are per- 
forming services. 

In conclusion, the council submits that what is required is generally 
more action by the Government to enforce existing labour and social 
legislation and not government take over of something which has been 

Study papers and briefs 177 

efficiently handled by the private sector. The council is as concerned about 
abuses as is your commission and looks forward to those individuals and 
companies involved in illegal and corrupt practices being prosecuted and is 
also hopeful that the non bona fide unions will be put out of existence. 

The council would have no obligation to some form of limited govern- 
ment requirement with respect to hiring hall practices and, as well, would 
have no objection to government inspections, and perhaps penalties for 
abuses. However, it is submitted that any government control should not 
exceed a 'policing role.' In other words, the nature of the industry calls for 
flexibility and any form of government control would destroy this 

All of which is respectfully submitted. 

Jean-Guy Denis 

President of the Ottawa- Hull Building and Construction Trades Council 


The Construction Labour Relations 
Association of Ontario 


The construction industry is unlike any other. It is best described by the 
word 'instability.' It would be almost impossible to single out one firm and 
declare that it was an 'average' construction company; for there are few 
norms. The amount of business carried by any given company can vary 
widely over the course of a year. Today's winning bidder is tomorrow's 
loser. Today's full employment is tomorrow's layoffs. The labour force is 
fluid and mercenary. Tenure of employment is brief, and loyalty is almost 
unknown. Labour takes what it gets from the hiring hall. And so does 
management. Workers go where the job is, then on to the next one. 

Most of the problems of the construction industry can be attributed to 
this instability and the measures taken to correct it, which in turn have 
given rise to further problems. The role of the Construction Labour Rela- 
tions Association of Ontario has been to tackle one problem in particular - 
the chaotic bargaining state that exists in the construction industry in this 
province, clrao seeks agreement for some form of rational bargaining 
or, failing agreement, imposition of orderly bargaining procedures by the 
government. Our suggestions to the Commission are offered in light of this 


Warren K. Winkler, in his thesis entitled 'A Study of Labour Relations 

i8o Report on the building industry 

Law in the Construction Industry in Ontario' (1964), wrote: 

'The construction industry is characterized by the fact that job organizations 
and working crews are rapidly formed and liquidated depending upon the 
number of jobs that an employer has underway . Only a nucleus of key 
personnel are maintained in employment in the interval between jobs. Work- 
men are generally hired on a job-to-job basis depending upon the amount of 
work under contract. During any given work year a workman may be em- 
ployed by several contractors on several job sites and, as a rule, no perma- 
nent employment relationship is maintained. Each craft comes on to a job 
and performs its portion of the work at different times, increasing to a peak 
number of workmen and decreasing as the job proceeds, perhaps disappear- 
ing altogether for a time and returning to finish tasks at different points in the 
construction process. Each craft may peak at a different time since the 
production process invariably requires different crafts at different times. 
Workmen are more attached to their trade in a particular geographical area 
than to any employer.' 

John H.G. Crispo, co-editor of Construction Labour Relations' (1968) 
together with Carl Goldenberg, wrote: 

'The tenuous nature of the typical employer-employee relationship greatly 
influences the attitudes of both contractors and workers . Unlike employers in 
most other industries , many contractors feel no particular obligation towards 
most of their workers, who in turn offer no real loyalty to them. These 
attitudes and the factors which underlie them explain many of the industry's 

The situation as described in the foregoing quotations is unlikely to 
undergo any marked change in the foreseeable future. The nature of the 
industry is unlikely to change to the point where many individual contrac- 
tors will employ significant numbers of work people on a year-round basis. 

This we must accept. However, we do feel that there are changes that 
can be made which would have the effect of making the construction 
industry a more stable market place for all concerned - contractors, con- 
struction workmen, purchasers of construction and the public. 


The present bargaining structures and the multiplicity of agreements create 
and encourage instability in the construction industry. 

Study papers and briefs 181 

There is ample evidence to demonstrate that, with more than 200 
pattern-setting agreements in Ontario, the results of negotiations for re- 
newal of these agreements bear little or no relationship to current economic 

Generally speaking, there has been little progress in Ontario towards (a) 
rationalizing the bargaining structures, and (b) reducing the number of 
bargaining units. In fact, with the trend to more specialized types of 
contracting (e.g. forming, waterproofing, resilient floor laying, precast) 
construction bargaining may become more fragmented as the industry 
attempts to adjust to rapidly changing technology. 

It is, therefore, safe to assume that in the short term, no significant 
changes will be brought about except by legislative or regulatory action. To 
this end clrao is in agreement with proposals for Wider Area Consoli- 
dated Bargaining that have been suggested to government by the Construc- 
tion Industry Review Panel. We understand these proposals have been 
discussed with the Commission, and, therefore, it is not our intention to 
detail them here. However, we would be willing to elaborate on them orally 
if the Commission should so desire. 

We would like to comment briefly on the question of the accreditation of 
employer organizations. 

Accreditation has the potential for being a great stabilizing influence on 
the industry, but this will never be realized unless the overall number of 
collective agreements is reduced. Accreditation alone cannot control 
whip-sawing and leap-frogging of settlements and wages. In anticipation of 
changes being made to the structure of bargaining, five changes are re- 
quired to make the accreditation provisions more meaningful. 

First, it must be made possible for an accredited organization to make a 
legal assignment of its accreditation order. 

Second, the procedure for obtaining accreditation should be simplified. 
We would suggest that accreditation should be automatically granted when 
an organization can demonstrate support from 65 percent of the unionized 
employers concerned or when it can demonstrate support from 35 per cent 
of the unionized employers concerned who employ a majority of the union 
members concerned. 

Third, subsection 3 of Section 119 must be removed from the Labour 
Relations Act, since it shatters any semblance of solidarity by allowing 
employers to continue working during a strike or a lockout. A shutdown 
must be a total shutdown if it is to be at all effective. 

Fourth, the various construction industry sectors established by the 
Labour Relations Act (Section 106 (e)) must be defined. We wish to suggest 
the following definitions for each sector: 

182 Report on the building industry 


All roads and parking lot construction including paving, curbs, sidewalks 
and other work incidental thereto. 


All sewer and watermain construction outside the foundation walls of a 
building including any necessary tunnels and other work incidental thereto. 


Subways, bridges, underpasses, overpasses, wingwalls, large retaining 
walls and other work incidental thereto. 


All segments of construction of industrial, commercial and institutional 
buildings including the necessary excavations for such buildings and all 
work incidental thereto. 


Residential construction shall be all work performed in and incidental to 
the following: 

single family dwellings 
multiple family dwellings 
town houses and row housing 

buildings where the preponderance of building area is allocated for residen- 
tial occupancy. 


Installation of underground piping for the transmission in bulk of gas, oil, 
water or steam including all necessary excavations work and other tempor- 
ary or permanent work incidental thereto. 

Fifth, the Ontario Labour Relations Board should use flexibility in 
determining appropriate sectors for the construction industry, rather than 
adhering rigidly to the sectors spelled out in the Labour Relations Act. 

Study papers and briefs 183 


During 1972 the Ministry of Labour brought into being the Construction 
Industry Review Panel made up of union and management representatives 
with an independent Chairman and a staff assistant. The Panel's immediate 
function was to assist with 1973 bargaining in the construction trades. 
Generally speaking it was given free rein to establish its own terms of 
reference and already it has made recommendations for the future conduct 
of labour relations in the construction industry and it is our hope that the 
Government will give very full consideration to the early implementation of 
these recommendations. 

clrao regards the establishment of the Panel as a particularly positive 
step by the Ministry of Labour. No other body has greater potential for 
solving the problems of the construction industry. Therefore we are anx- 
ious to see the government establish the Panel on a permanent basis under 
the chairmanship of a person of the standing of a deputy minister. However 
adequate provision must always be made to ensure that the members of the 
Panel are fully and actively representative of the interests which they 


Testimony before the Commission indicated irregularities in management 
of some trust funds. 

clrao believes joint trusteeship of trust funds and production of 
audited statements on an annual basis are an immediate necessity. But we 
must go further. The situation calls for a new initiative by government. 

Therefore, we recommend that a Provincial Construction Benefits 
Council be established by legislation. The Council would have an equal 
number of union and employer representatives appointed by labour and 
management groups. They in turn would appoint an independent chairman 
and vice-chairman. 

All payments made under the provisions of collective agreements for 
welfare and pension should be standardized and such payments should be 
made to the Council. 

The Council should then establish and administer welfare and pension 
benefits for all trades for the province. 

Some of the advantages for the construction industry would be: 
1 . The full portability of all welfare and pension benefits throughout the 

1 84 Report on the building industry 

2. The elimination of the possibility of the misuse of funds. 

3. The elimination of the possibility of employers being able to avoid 
making payments. 

4. The provision of better welfare and pension benefits at lower costs. 


Section 81 of the Labour Relations Act gives Ontario legal machinery for 
resolving jurisdictional disputes by the Labour Relations Board. However, 
sub-section 14 allows the disputants to agree upon a tribunal other than the 

As a result, many collective agreements in the construction industry in 
Ontario specify that disputes will be referred to the Impartial Jurisdictional 
Disputes Board, based in Washington. 

The Ontario Labour Relations Board seldom is used to settle disputes 
between building trades unions in Ontario. It is suggested one reason the 
Board is bypassed is that its procedures are highly legalistic, expensive and 
time consuming. 

clrao feels Ontario must have simple, speedy enforceable and non- 
legalistic machinery for the resolution of jurisdictional disputes. 

We therefore suggest the unions involved in the dispute, and interested 
parties such as the employers, should be referred for hearing and decision 
to a union/employer committee appointed by the Construction Industry 
Review Panel. The committee would be served by an independent chair- 
man. Decisions of the committee would be rendered in writing and would 
be final and binding. 


Methods of financing unions and employer organizations seem to require 
clarification. The instability of the industry overall is reflected by the lack 
of controlled and sound financial procedures. 

clrao believes the Labour Relations Act requires considerable 
strengthening in this regard. For instance, Section 76 requires the produc- 
tion of an audited statement by a union on request of any of its members. 
We feel production of an audited statement should be mandatory for both 
unions and employer associations and that the audit should be conducted 
by an independent firm of chartered accountants. 

Study papers and briefs 185 


Good work is being done by the Ministry of Labour on obtaining statistical 
data, but its progress is impeded by the lack of accurate sources from which 
to gather information. 

The implementation of a centralized welfare, pension and fringe benefit 
scheme would provide a ready vehicle for (a) establishing a construction 
manpower inventory, and (b) establishing the average hours worked and 
the average earnings by trade and area. 

These statistics are required to help combat instability, but they are not 
now available. 


At present no system or agency exists which attempts to forecast future 
construction needs - and therefore future manpower requirements - in the 
province, clrao believes accurate construction forecasts would help 
lend stability to the industry. 

It should be noted the value of forecasts would be manifested only if 
major purchasers of construction could be influenced to dovetail their 
construction requirements so that peaks and valleys in the industry would 
be levelled off. 

Last year the Construction Industry Review Panel was instrumental in 
launching a forecasting study through the firm of Peter Barnard Associates, 
entitled Reducing Cyclical Unemployment in the Construction Industry. 
Mr. Barnard has submitted two interim reports, Feasibility of Forecasting, 
and the Approach to Forecasting. At present, he is carrying out a pilot 
project on forecasting in the Kitchener- Waterloo area. 

clrao believes governments should consider now how knowledge 
obtained through forecasting can be applied to the industry to convince 
purchasers of construction of the necessity to accelerate or decelerate the 
construction plans, depending on the projected state of the industry. 

Responsibility would fall on both the federal and provincial govern- 
ments to influence the rate of construction in both the public and the private 
sectors at any given time in order to maintain stability in manpower 

The cyclical nature of the construction industry relates as well to the 
number of new persons entering the construction labour force. Forecasts 
of construction requirements should be the basis of realistic planning by 

1 86 Report on the building industry 

employers, unions and government of training programs tailored to the 
needs of the industry and designed to achieve a balance between intake and 


The Construction Labour Relations Association realizes some of the 
points put forward in this submission are possibly beyond the scope of the 
Commission, considering its term of reference. Nonetheless, clrao also 
recognizes the interest of the Commissioner and his desire to obtain in- 
formed viewpoints on all facets of the construction industry. 

Neither unions nor employers have made any significant contributions 
in recent years to the development of an atmosphere of stability in the 
construction industry. Our Association hopes to rectify this in part by 
pressing for a fair and viable means of conducting bargaining in the 
unionized segment of the industry. 

clrao is rapidly approaching the position where it can claim authority 
to speak for the majority of unionized construction industry employers in 
Ontario. We feel that our viewpoint reflects the opinions of Ontario's 
unionized contractors and their various associations and we ask the Com- 
mission to accept our submission in this light. 


Sheet Metal Workers' International 
Association, Local 285 

On behalf of Local 285 of the Sheet Metal Workers' Union, thank you for 
this opportunity of appearing before you. We can well agree with some of 
the statements made here, that the law of the jungle prevails in some 
sectors of the construction industry. However, we take objection to the 
general tenor of the publicity coming out of these hearings, that has given 
the impression that the building trade unions are full of shake-down artists 
and gangsters. Although no one can object to the exposure of these shady 
elements within the industry, there was no need to smear the whole of the 
construction trades. 

Our Local is mainly involved in residential work. That is the cesspool 
from which this hearing emanated, and where you will probably look for 
ways and means to eliminate the conditions under investigation and stop 
any reoccurrence. We have a few comments to make which we hope will 
assist you in your investigation. No enquiry into the problems of the 
construction industry would be complete without exposure to the workings 
in the home building sector. Our observations will deal with a small seg- 
ment of that part of the industry where we have some organized strength. 

Homes built in Ontario are mainly going up non-union today. You can be 
sure that this condition will not last forever, and the day will come when the 
home builders will be fully organized as are other parts of the construction 
industry. How this can be done peacefully is the natural concern of this 
Commission. The experiences of 1 960-1961 under the leadership of 
Messrs. Bruno Zanini and Charles Irvine (Brandon Hall Group) would 
probably indicate the most undesirable of several paths to take. But or- 

1 88 Report on the building industry 

ganizing shop by shop is almost impossible in the construction industry, 
under the present set-up. We have a case before the Ontario Labour 
Relations Board that will be two years old in July. There are only two of the 
original sixteen left in the original bargaining unit. It's quite possible that 
within the framework of the system, that the numbers involved could have 
diminished to zero before the first winter was out . We are still in the process 
of applying for certification. After being certified, we still have the problem 
of getting an agreement. Because of the small numbers of employees 
involved in these shops, the intimidation by the employers is generally such 
as to scare off participation of the workers in the union once the company 
has been notified of our application. This, of course, is in violation of the 
law, but what else is new and what can you do about it? It is most difficult to 

A lot of things go on in the trade that are against the law. Violent acts 
within the industry have been given prominence. Blowing the place up is 
using brute force to cut down your competition. This dastardly method can 
be easily seen and condemned . Unfair competition can do the same thing to 
a business, trade or industry. By the simple expediency of classifying 
piece-workers as sub-contractors, we have seen violations of the 
Workmen's Compensation Act, the Unemployment Insurance Act, the 
Employment Standards Act, the Lords' Day Act and the Apprenticeship 
Training and Tradesmen's Qualifications Act. 

Under the law in Ontario, anyone working at the sheet metal trade must 
be a journeyman or a registered apprentice. A sub-contractor hires men off 
the street, dubs them 'sub-contractor', and then absolves himself of re- 
sponsiblity under the Act. Is it fair that one contractor abiding by the law 
set down by the province should have to compete with another who makes 
his own rules? This seemingly small deviation from the law affects the 
competitors in the trade and the training of future tradesmen in the pro- 
vince. It is also detrimental to the unwary public, the new home buyer, who 
the law was designed to protect. 

The results of such a policy can be seen in a few snapshots which I have 
here, taken while I was on the road. Expensive homes, built in exclusive 
neighbourhoods did not escape the slaughter of butchers working as heat- 
ing installers. One of these pictures shows joists hanging unsupported, 
where cuts were made to accommodate heat runs and return airs from 
upper floors. Neither were steel support bars used, or block ends in the 
return air joists to make the system more efficient. Dangers to the health 
and safety of people buying new homes can be seen by some of the B-vent 
installations. These gas flues are supposed to go through the house in such a 

Study papers and briefs 189 

manner as to prevent fumes from going into the house if they should 
somehow happen to leak. The flue here is connected through the same joist 
space that is connected to the furnace through the return air, and re- 
circulated through the house. 

This is just an example to illustrate the need for law enforcement in the 
trade. I have spoken before about the crime of workers employed on 
construction without the benefits of the Workmen's Compensation Act. 
Why should this be allowed under any pretext? Why should a man hobble 
around trying to install a duct system, with his foot in a cast because 'he 
was not sure if he was covered by Workmen's Compensation'. 

Quoting from an examiners report looking into whether or not a group of 
workers would be classed as employees or sub-contractors, we read his 
report on several of the witnesses: 

28. (He does not know if he is covered by Workmen's Compensation but 

he has never paid for coverage by Workmen's Compensation himself. He 

does not pay for Unemployment Insurance coverage himself and he doesn't 

think he is covered for Unemployment Insurance. He said he has not paid for 

coverage in the Canada Pension plan yet, but he will pay for that at the end of 

the year). 

79. (Continuing, the witness said that once he had to pay Workmen's 

Compensation for the year 1969, and he asked the office to deduct that from 

his next cheque. The deduction was made around April, 1970). 

133 (He does not think he is covered by the Canada Pension Plan, nor the 

Workmen's Compensation Plan.) 

200 (He is not covered by the Canada Pension Plan or the Unemployment 

Insurance Plan. He is not covered by the Workmen's Compensation Plan, but 

he is looking into that situation.) 

258 (The witness said he pays his own Workmen's Compensation. It is 

not deducted from his cheque by the respondent. In addition he pays his own 

Unemployment Insurance and likewise those premiums not deducted from 

his pay cheque.) 

These were the comments made at one hearing. We have not yet had the 
examiner's report on the current hearings, but the situation is apparently 
much the same, where some of the workers also were not sure if they were 
covered by Workmen's Compensation. 

We have here a copy of a time sheet showing a 2% deduction for 
Workmen's Compensation. I always thought that such a practice was 
illegal. I also have a copy of a telegram, where the employer wanted the 

190 Report on the building industry 

man to prove that he was covered by Workmen's Compensation before 
paying his last cheque. I always thought that the prime contractor was 
responsible for seeing that the sub-contractors were covered. Here we 
have the sub-contractor checking up on his employees to see if they were 
covered while working for him. The last I heard about this matter, was that 
the two men involved were never paid the money owing to them. Another 
way of cheating men out of their money is to tell them that repairs had to be 
made on their work, and I'm told that this practice also prevails in other 

The organized sector of the construction trades does not have these 
problems, of course. Neither are they faced with competitors working the 
7-day week. In the commercial section, some shops are already on the 36 
hour week. When I was on the road, I occasionally went out on Sundays 
and holidays to see what was going on. It was a rare Sunday that someone 
wasn't working on the Lords' Day or the statutory holiday. It was once told 
to me that it should be the right of anyone to work those hours if they so 
desire. 'Maybe they work on Sunday,' the story goes, 'and take off Mon- 
day.' Maybe they do, or maybe they don't, but they surely do contribute to 
the law of the jungle in the construction industry. 

It has also been said that piece-workers are making a big buck, and so 
you can't say that they are exploited for not receiving unemployment 
insurance when laid off, or benefits of the Employment Standards Act and 
so on. I say that the industry is being exploited, and that we all suffer 
because of these conditions. It's the breeding ground for lawlessness. Fast 
buck artists can be found among the men, as well as in management. 
Between them, they can make quite a mess. These conditions are not 
confined to heating installations, but are widespread in the other trades. 
Something should be done about these matters, if a climate is to be gener- 
ated where proper business practices can flourish and proper labour- 
management relations developed. 

The question of dual shops has often been raised by Mr. Clive Ballen- 
tine, of the Toronto Building and Construction Trades Council. We have a 
classic example of such a problem with one of our shops, organized the 
hard way. Another shop was set up within the year to operate non-union. It 
must have taken about six months or more, of ceaseless wrangling, to get 
the sub-contractor to sign another agreement covering the new shop. Two 
more shops were set up last year. One closed up, apparently due to our 
insistance that it be covered by our standard agreement. An agreement for 
the other shop was eventually signed. Another shop, under a new name. 

Study papers and briefs 191 

has just recently been opened, which has also signed up due to a prior 

If these contractors can open a shop on every corner, there should be 
some way to guarantee that they will be covered by the union agreement. 
There should be no need for the union to become entangled in legal 
wrangles to ensure this. Such hassles can do nothing but to further aggra- 
vate labour relations within the industry. 

Thank you again for your time and attention to some of our views on the 
problems facing the construction industry. We hope that they will be of 
some value to you . We are available for any other help we can give, in order 
to promote our trade and the industry in which we work. 

We trust that your work will bear good fruit. 

Respectfully submitted (J. Kurchak) 

On behalf of Local 285, Sheet Metal Workers' International Associa- 


The Council of Concrete Forming Trade 
Unions, Toronto 

i . The Council of Concrete Forming Trade Unions (hereinafter called the 
'Council') values the opportunity to present this brief to the Commission, 
and hopes that by outlining both past and present problems that have 
plagued the construction industry, it will in some small way promote the 
industry's future stability. Indeed, the main purpose of the Council in 
presenting this brief is to express its concern that certain segments of the 
labour movement and certain employers in the residential forming field 
have and continue to conspire to break down traditional and stable bargain- 
ing patterns in the forming industry to the detriment of sound industrial 


2. The industry has been felt to pose such special working conditions and 
problems as to merit special legislation under the Labour Relations Act, 
r.s.o. 1970, Ch.232. These provisions are found largely in Sections 
106-124 of the Act. The Act recognizes a distinction between residential 
and commercial sectors, which division recognized past industry prac- 
tices, and it may be said generally, that the commercial sector of the 
industry controlled by large developers, commercial contractors and well 
organized craft unions has, until recently , known relative stability, a stabil- 
ity which contrasts sharply with the troubles that have been common in the 
residential sector. 

194 Report on the building industry 

3. Some of the problems more typical to the residential sector are as 

(a) The residential sector of the industry has, with a few notable excep- 
tions, always been plagued by a large number of small scale contractors 
often inexperienced in business operations; the Workmen's Compensation 
Board lists 25,000 employers in its various construction classifications. 
Their numbers and fierce competiveness makes them the subject of various 
practices leading often to the exploitation of their employees, whether 
unionized or not. 

(b) Often a contractor underbids a project and thereby renders himself 
unable to pay his employees. Job bidding is not as carefully regulated as in 
the commercial sector and abuses of the system are tempting and common. 
In an industry only partially organized, the unionized contractors have to 
also concern themselves with being undercut by their non-unionized col- 
leagues. This has led to forming contractors using corporate alternates to 
deal with different unions or to be 'non-union', depending on the circum- 

(c) Contractors have also abused the procedure and practice of the Ontario 
Labour Relations Board to great effect. One common practice is to delay 
certification proceedings before the Board until the work in the area where 
certification is sought is complete, at which point the contractor transfers 
his operations out of the area and the Board refuses to continue hearing the 
application. There is also a history, well illustrated in the Labourers' 
International Union ofNorth America, Local 183 (hereinafter called 'Local 
183') brief of outright corporate manipulation of employees and also of 
outright falsification of essential evidence. 

(d) When faced with unwelcome union organization, a contractor might 
sub-contract to his new corporation or employ a number of variations of 
this practice. With greater sophistication and the fact that most major 
employers are now unionized, the greatest blockade to an 'unwelcome' 
legitimate craft union or council of craft unions is the continuous entering 
into of new collective agreements with 'welcome' trade unions, now nota- 
bly Local 183, which agreements meet the minimum requirements to 
constitute a bar to organizing new projects. 

(e) Improper work assignments are another favourite device to avoid the 
terms of more 'expensive' collective agreements that properly reflect ju- 
risdiction. If the work is still continuing on by the time the Board makes a 
decision, the contractor and the benefited union can be assured that one of 
the Board's major considerations in awarding the work will be the expense 
involved in assigning it to a particular union. The 'welcome' union is 

Study papers and briefs 195 

inevitably cheaper. A notable example of this is the judgment of the Ontario 
Labour Relations Board in the Beer Precast case. (Labourers' Interna- 
tional Union of North America, Local 506 (Complainant) v International 
Association of Bridge, Structural and Ornamental Ironworkers, Local 72 1 , 
Beer Precast Concrete Limited and E.G.M. Cape & Company Ltd. (Re- 
spondents) - Board File 17338 (A)-69-JD Ontario Labour Relations 
Board Reports, August, 1970-P.610) The Council would like to emphasize 
that the legislature never intended that the Board become entrusted with 
regulating the cost of construction. 


4. It is against this background that the Council came into existence on 
the 8th day of March, 1967. Consisting initially of the International Union 
of Operating Engineers, Local 793 (hereinafter called 'Local 793'), the 
International Association of Bridge, Structural and Ornamental Iron- 
workers, Local 721 (hereinafter called 'Local 721'), the Labourers' Inter- 
national Union of North America, Local 506 (hereinafter called 'Local 
506'), the Operative Plasterers' and Cement Masons' International As- 
sociation of the United States and Canada, Local 172 (hereinafter called 
'Local 172'), and the United Brotherhood of Carpenters and Joiners of 
America, Local 1 190 (hereinafter called 'Local 1 190'), its intention was to 
bring stability to the industry. The Council was formed to take advantage of 
the newly-enacted provisions of the Labour Relations Act permitting 
certification of councils of trade unions and was in fact certified under what 
is now Section 9 of the Act. 

5. The Council agrees with the Report of the Royal Commission on 
Labour-Management Relations in the Construction Industry chaired by H. 
Carl Goldenberg, o.b.e., q.c, which felt: 

'Without a uniform rate there might be a continuous pressure on the wage 
scale. Successful bidders would be the contractors who had best succeeded 
in reducing wage rates and other economic conditions of employment below 
those of their competitors. Actually, there appears to be a situation in 
construction in which the technical organization of the competitive market 
itself is partly responsible for exerting a downward pressure on the bids 
submitted by competing contractors. Many of the devices developed by 
contractors to regulate the market and avoid instability seem to be related to 
this type of pressure. Ultimately also, the contingencies of incorrect estimat- 

196 Report on the building industry 

ing. unexpected delays because of climatic conditions, unforeseen difficulties 
in construction, or limited cash resources might force a successful bidder to 
attempt wage reduction. The building trades unions are one agency capable 
of enforcing minimum equal standards in wage rates and other conditions of 
employment in a competitive area. 

6. The unions constituting the Council had always represented persons 
employed in concrete forming throughout the construction industry 
wherever it was organized. Jurisdiction was always clear and unques- 

7. The work performed by the employees covered by the Council had the 
historical quality of being commonly performed by the particular crafts 
represented in the Council. It has been held that, in the construction 
industry, where organization has traditionally been carried on a craft basis, 
great weight must be given to craft interests. (Kent Tile and Marble Co. 
Ltd. -61 cllc 1620.) 

8. The Council first entered the field of residential concrete forming in 
1968 and initially concluded eight agreements. It was greatly hampered in 
its organizational work, however, by the tactics of the Wood, Wire and 
Metal Lathers' International Union, Local 562 (hereinafter called 'Local 
562'). With the assistance of Nick DiLorenzo who as a contractor- 
employer, Local 562 had little difficulty in signing men up from twenty-five 

9. It was later learned that Local 183 was attempting to absorb Local 562. 
These activities by Local 183 were directly adverse to Local 506, a Council 
member which according to its charter had exclusive bargaining rights with 
the concrete forming workers. The union that finally succeeded Local 562, 
the Canadian Concrete Forming Union, No. 1 (hereinafter called 'No. 1') 
was through Council efforts, finally disqualified on the grounds that it did 
not constitute a trade union within the meaning of the Act. 

10. The existence of the Council definitely pre-dates the activities of 
Local 183 in the concrete forming field. Local 183 and its predecessor in the 
Council, Local 506, have implicitly conceded the jurisdictional authority of 
the members of the Council by joining with them in it. 

1 1 . Local 183 has established no jurisdiction in the concrete forming field 
except as general labourers, and any internal decision by the Labourers' 
International to clothe Local 183 with jurisdiction in this field, amounts to 
no more than an internal move. In the absence of ajurisdictional agreement 
with the other concerned unions, it has no significance. The gesture of 

Study papers and briefs 197 

granting itself jurisdiction was little more than a declaration that it was 
prepared to disrupt existing relationships. 

12. The employing contractors have recognized the jurisdiction of the 
Council in the concrete forming industry in the great many collective 
agreements signed since the formation of the Council in 1967. During the 
years of 1970 and 1971, the Council entered into collective bargaining 
relationships with some nineteen forming contractors and had succeeded in 
greatly strengthening its own organization and the protection of construc- 
tion workers in the concrete forming industry. 

1 3 . There is no doubt that the efforts of the Council have advanced the lot 
of the concrete forming worker to a great extent in terms of the training and 
the developing of work skills, the raising of safety standards, the improving 
of workers' wages and benefits, all of which lend a stability to the industry 
that enhances the contractors' interests in efficiency and economy. 


14. While Local 183 has not been the only disruptive force to upset the 
Council's jurisdiction, that local has been instrumental in undermining the 
Council's organizing efforts to a point where the Council virtually lost all of 
its bargaining rights in the residential concrete forming field as of the Fall of 
1972, after having organized approximately sixty per cent of the existing 
concrete forming workers. 

15. An earlier relatively unimportant assault upon the jurisdiction of the 
Council on the part of No. 1 has been well documented in the brief by Local 
183 which has been prepared for the Commission. We propose to describe 
the activities of Local 183 in relation to the Council's organizing efforts, 
and to show in stages the manipulation for control over the concrete 
forming industry which has, for now, resulted in the present impasse. 

stage 1 

The Labourers attempt a takeover 

16. Even when Local 183 first became concerned with the concrete 
forming trade in the early part of 1969, its activities immediately took the 
form of a very definite disposition towards horse-trading and backroom 
deals , in contrast with many other trade unions in the construction industry 
who were actively engaged in the organization of these mainly non-union 
workers. The Labourers' brief to the Commission at page 19 describes the 

198 Report on the building industry 

attempt of Local 183 to organize the already organized in the forming 

'During either late 1968 or early 1969, Local 183 representatives in an attempt 
to achieve and maintain stability in the forming industry, had certain discus- 
sions with Simone and Zanini with a view of merging the concrete forming 
division of Lathers' Local 562, with Local 183' 

17. In the hearings before the Commission on February 6, 1974, the 
business manager of Local 183, John Stefanini, was examined as to the 
reasons for the desire on the part of Local 183 to take over Local 562, which 
at the time had organized most of the workers in the residential concrete 
forming field. At page 7093, Mr. Stefanini responded to this question by 
stating that: 

'Because the Lathers' International Union is one of the smallest in the 
building trades and in our opinion, the other unions - including ourselves - 
would naturally complain to the building trades department, we didn't think 
the Lathers' International Union could stand this protest.' 

18. The assumption implicit in this comment seems to be that the larger 
internationals should naturally take over the locals of the smaller interna- 
tionals in order to ensure stability in the construction industry, regardless 
of the ability of the smaller international to bargain on behalf of its mem- 
bers. Of course, neither union had the jurisdiction within the building 
trades structure. 

19. Once this course of action had been decided upon it seemed that 
Local 183 had very little concern for the ethical aspects of its position. At 
page 7100 of the transcripts taken on February 6, 1974, before the Commis- 
sion, John Stefanini was asked about his local's actions in soliciting the 
support of the president of the Labourers' International in providing Local 
183 with the Labourers' jurisdiction in the residential concrete forming 
field against the interest of Local 506. 

Q. Did it trouble you at all that having these exploratory discussions with 562 
you would appear to be acting adverse to the interests of Local 506 and in 
respect of a jurisdiction which you did not then have. 
A. We were thinking we were going under the best interests of the Interna- 
tional because we were under the impression that the industry was organized 
by Local 562. 

Study papers and briefs 199 

20. Many questions have been raised in the hearings before the Commis- 
sion as to what Local 183 intended to provide in exchange for the bargain- 
ing rights presently held by Local 562. At page 7098 of the February 6, 1974, 
transcript, John Stefanini is asked: 

Q. What I am puzzled about. Mr. Stefanini, and perhaps you cannot help me, 
I should have thought that Mr. Simone or certainly Mr. Zanini or both of them 
would have said to you we are representing these men; we have organized 
them when no one else was able to do so. and why on earth should we hand 
them over to Local 1 83 ? Leaving aside whether that ought to have been their 
answer, I am surprised it was not their answer. 
A. No, it was not their answer. 

21. It soon became clear that Zanini and Simone would be taken care of 
financially for their organizing efforts and their persuasion of the members 
of Local 562 to join Local 183. At page 7103 of the transcript taken on 
February 6, 1974, John Stefanini is questioned as to the arrangements made 
for Mr. Zanini and Mr. Simone: 

Q. So Mr. Zanini was to have three years employment and was also to be 

given three months salary because he contended that he had not been paid in 

respect to the first three months that he had been engaged in organizing these 


A. Yes sir. 

A. And we made a committment that we would recommend that these 

legitimate expenses that Local 562 could prove would be reimbursed. 

22. In the evidence later adduced in the proceedings before the Commis- 
sion showed that both Zanini and Simone had been offered terms of 

23. The next startling event in these negotiations was the meeting in 
Chicago, at the Regional Office of the Labourers' International Union that 
was attended by members of both unions, and curiously enough, by three 
well-known forming contractors, Mr. DiLorenzo, Mr. Orla and also Mr. 

24. In inviting contractors to this meeting in Chicago 'to find out who was 
telling the truth' , all of the union-related personalities seem to be oblivious 
of the obvious implication of collusion with the very employers that hired 
the concrete workers represented by Local 562. The inference that these 
men were necessary to consummate the deal is inescapable. 

200 Report on the building industry 

25. To summarize, in terms of any established jurisdictional claims. 
Local 183 had no right to organize any of the concrete forming workers, 
except as general labourers in that field. When Local 183 found that Local 
562 had organized most of the concrete forming work, they endeavoured to 
get the leaders of Local 562 to transfer their workers into Local 183 with 
promises to those leaders of jobs and payment of various organizing ex- 
penses. Local 183 then undermined the jurisdiction of Local 506, its sister 
union, which was a member of the Council at that time, and persuaded the 
International Labourers' Executive to turn over the Local 506 jurisdiction 
to them so they would have free rein of the concrete forming work. 

26. However, their attempts to orchestrate a take over of the Lathers 
union proved to be abortive, as Zanini and Irvine decided against the 
takeover plan and attempted to organize the workers into No. 1 . 

stage 2 

Local 183 Joins the Council 

27. Local 183, which up until the maverick Canadian Concrete Forming 
Union No. 1 was formed, was following its own interests applied in June, 
1969 to join the Council, and was accepted. Local i83's membership was 
seen as a positive step towards worker solidarity in the building trades. 

28. At the outset, the Council was pleased with Local i83's decision to 
join the Council and assist the Council with its organizing efforts, but it 
soon became clear to the Council that Local 183 was interested in more 
than a simple partnership with the other Council craft unions. At the 
hearing before the Commission on the 6th of February, 1974, Counsel for 
the Commission set out the position of the Forming Council as to the 
strategy of Local 183, and its reasons for joining the Council: 

Q. The Forming Council suggests, do they not, Mr Stefanini, that all the 
Local 183 did was become part of the Council and remain there for a time and 
then give notice, as they were entitled to do, and then go out and organize, as 
the Forming Council would allege, the same men, or in many instances the 
same men the Council already had, but the employers would incorporate a 
new company or take a company off the shelf which company was not in 
association with the Forming Council, and thereby Local 183 got all the men 
working for new companies and the Forming Council was left with companies 
which were defunct. They didn't work any longer. That is substantially what 
they say, is it not? 

Study papers and briefs 201 

A. They may say. but that's entirely incorrect, Mr. Shepherd. And to sub- 
stantiate what I am saying, we can prove that the active companies, when the 
industry left the Council in the concrete forming industry, were largely 
non-union. More than 75% of them were non-union. 

Second, if there was anything like this existed, there were provisions under 
the Ontario Labour Relations Act for them to correct the matter. 
I know that if a situation like that would be talked to us, our local would take 
immediate action to correct it, and they did in many instances. 
And also another important fact that in the concrete forming industry a 
company - there is a pattern of companies coming up like mushrooms that 
has nothing to do with unions. Whether mostly for tax purposes or other 
things, and you see the notice of debt, that there were many companies went 
out of business since we signed collective agreement, and I think this will 
substantiate what I say, sir. 

29. By the Spring of 1971 , the Council had organized sixty percent of the 
concrete forming industry. However, since all of the Council contracts 
were to expire October 31, 197 1, it became clear to Local 183 that they 
would have an opportunity to take over the jurisdiction that the Council, 
including themselves, had organized, if they were able to withdraw from 
the Council some time before October 31, 1971, and induce the forming 
contractors to voluntarily recognize Local 183 as the bargaining agent for 
the forming workers then organized under the Council. 

30. It therefore appeared that some excuse had to be manufactured by 
Local 183 to provide justification for their withdrawal from the Council. 
The ruse that Local 183 decided upon is set out at page 35 of Local i83's 
Brief to the Commission: 

'Local 183 strenuously objected to the Council's decision not to institute 
proceedings with respect to the wage deficiencies and this disagreement 
between the Council and Local 183 ultimately led to the latter withdrawing 
from the Council on July 30, 1971.' 

31. A withdrawal on July 31, 1971, would give Local 183 enough time to 
lobby the forming contractors to recognize Local 183 as the bargaining 
agent for the workers under the Council, since the Council contracts 
expired October 31, 1971. 

32. The statement that the Council was not enforcing its collective agree- 
ment with the forming contractors, was a complete misrepresentation of 

202 Report on the building industry 

the situation from a practical standpoint, and implied that Local 183 could 
have provided much better conditions for the concrete forming worker. To 
the uninformed, it might seem that the Council had not been doing a proper 
job of enforcing its collective agreements. However, the Council was made 
up of experienced unions who certainly knew how to enforce contracts, 
and it is submitted that in many cases the agreed upon level of remuneration 
and employee benefits could not be maintained because of existing condi- 
tions in the concrete forming industry for which the Council could not have 
been responsible. The Council in its organizing efforts, was always in the 
position of performing a balancing act between the desirability of enforcing 
the contract against a contractor likely forcing him to go out of business 
because of the precarious financial base of his operations and satisfying 
present employee needs for employment. 

33. Because of a number of factors, including the surplus concrete 
forming labour market, the sudden proliferation of poorly financed 
contractors who could compete with very little capital investment, the fact 
that many sub-contractors were paid in stages and were in financial 
difficulties between these stages, and for other reasons previously 
mentioned in this brief, the Council (including Local 183) allowed an 
addendum to be appended to the collective agreements with a number of 
the forming contractors which stated: 

It is recognized and understood by all parties to this agreement that as part of 
this agreement an indefinite time will be required by an employer to adjust 
costing and wage structure to an economically satisfactory position. There- 
fore, upon signing this agreement a degree of flexibility is to be interpreted as 
part of the said agreement and only to the mutual satisfaction of all parties 
shall this intent be waived and upon such action this clause will be removed 
from the agreement. 

Due to the extremely general terms of this clause it is also understood that 
any abuse of this clause will result in necessary remedial actions as outlined in 
Article V of this agreement. 

34. This was seen as the only practical way of dealing with the precarious 
nature of this industry from the point of view of any trade union; it allowed 
a certain amount of flexibility in a collective agreement; it met the need to 
keep the workers employed; it prevented any abuse of the addendum by 
permitting legal action to prevent any abuse of cost and wage adjustment 

Study papers and briefs 203 

35. Throughout this period, Local 183 must be taken to have known that 
any efforts in the direction of legal enforcement of the contracts had to be 
taken only as a last resort, where the need to protect the worker from 
unscrupulous practices, outweighed the workers' need to remain em- 
ployed. Throughout this period of organization, Local 183 was in favour of 
dropping the welfare provisions from the collective agreements, but were 
to later accuse the Council of failing to enforce those same welfare clauses. 
The Council is prepared to produce evidence of its consistent efforts to 
enforce the welfare clauses in the collective agreements. 

36. It is submitted that the Council achieved as high a level of compliance 
with the individual collective agreements as any other trade union could 
have in the concrete forming industry, given the nature of the particular 
conditions operating in the field at that time. 

37. Local 183, in the closing days of their affiliation with the Council, 
have acted in an unprincipled and unethical manner, continually mouthing 
the rhetoric of protecting the workers' interests, and promoting industry 
wide stability while at the same time embroiling the industry in political 
intrigue and instability to the detriment of all elements of the construction 
industry. At page 7165 of the transcript of the examination of John Stefanini 
before the Commission, the following evidence was given: 

Q. Did Local 183 give notice to the Council of its intention to withdraw? 

A. We did that. And, however, we start organizing even before we give 

notice, and doing that -. 

Q. Organizing on behalf of 183 then? 

A. Correct. 


Local 183 Makes a Deal With the Forming Contractors 

38. At the very same time as the Council negotiating team was involved in 
bargaining sessions with the forming contractors, the Labourers were 
secretly meeting with the same forming contractors operating under differ- 
ent company names, seeking to be voluntarily recognized as the bargaining 
agent for their contractors' workers. Having been privy to the internal 
policy discussions of the Council with respect to wage and benefit de- 
mands, Local 183 was continually in a position of being able to undercut the 
Council's proposals, which quickly led to widespread voluntary recogni- 

204 Report on the building industry 

39. While publicly suggesting that they are protecting the workers' in- 
terests, Local 183 met with the companies organized by the Council and 
offered to take lower wages and less benefits than demanded by the Coun- 
cil, thereby nullifying both the labour standards and the stability that the 
Council had been able to establish since 1967. 

40. Local 183 could not have accomplished such an overwhelming inva- 
sion of the Council's jurisdiction, without some collusion on the part of the 
forming contractors, these same men simply activated corporations that 
were not party to Council agreements, and subsequently signed through 
these companies with Local 183 for the same concrete forming workers. 
The Council was left with companies that very quickly went out of business 
as their projects were completed. 

41. It may be demonstrated that the principals of companies that had 
signed existing collective agreements with the Council were the very same 
principals involved in negotiating and signing collective agreements with 
Local 183 under different corporate names but for substantially the same 
work force. Eight companies actually made collective agreements with 
Local 183 for workers that had been organized by the Council prior to the 
expiry date of the Council collective agreements, and these eight com- 
panies involved principals that had figured significantly in the administra- 
tion of a number of Council companies. 

42. James Dawe had been the signatory to collective agreements with the 
Council on behalf of Direct Forming Limited and Randolph Construction, 
and he was also a principal of a company, Picola Construction Limited 
which entered into a collective agreement with Local 1 83 on September 29, 

43. Guerino Verrelli had been a principal of Dove Forming Limited which 
signed an agreement with the Council and he was also a principal of Rilli 
Brothers Forming Limited which entered into a collective agreement with 
Local 183 on September 20, 1971. 

44. Alex DiMatteo had been a principal of Skyview Forming Limited 
which signed a collective agreement with the Council, and he was also a 
principal of Sundown Construction Limited which entered into a collective 
agreement with Local 183 on September 20, 1971 . 

45. Elvio DelZotto was a principal of Mirmar Forming which signed a 
collective agreement with the Council and he also was significantly in- 
volved with a company, Zaph Construction Limited, which entered into a 
collective agreement with Local 183 on September 10, 1971 . 

46. Frank Cortese and Sandy Vlahos were principals who entered into a 

Study papers and briefs 205 

collective agreement with the Council on behalf of AC V Cranes Limited, as 
well as Fran-Kiri Forming Co. Ltd., and they were also the principals of a 
company. Independent Forming Company Limited, which entered into a 
collective agreement with Local 183 on October 7, 1971 . 

47. Italo Cerone was the signatory to two collective agreements entered 
into with the Council on behalf of Skyline Forming Limited and R.C. 
Building Systems, and he was also a principal of a company, Highrise 
Forming Limited , which entered into a collective agreement with Local 1 83 
on October 5, 1971. 

48. John DiLorenzo was a principal of a company, Dove Forming Li- 
mited that entered into a collective agreement with the Council and he was 
also the principal of a company, Ilene Construction Limited that entered a 
collective agreement with Local 183 on September 24, 1971. 

49. Nick DiLorenzo was a principal of a company, Mutamp Investments 
Limited and Zloty Investments Limited which entered into a collective 
agreement with the Council and he was also a principal of a company, 
Distinct Construction Limited which entered into a collective agreement 
with Local 183 on September 11, 1971. 


50. A new phase of opportunism has presently been launched by Local 
183 in an effort to carve out bargaining rights in the commercial field. This 
new jurisdictional invasion has been justified on the basis of an owner- 
builder clause that was included in an agreement entered into on September 
20, 1969, between the Metropolitan Toronto Apartment Builders Associa- 
tion and the Toronto Building and Construction Trades Council, to settle 
conflicts in the residential field and to ensure a standard of safety and 
efficiency for the protection of construction workers and the public. 

51. This owner-builder clause permits residential construction workers 
represented by the Council to work on commercial buildings if they are 
being erected by owner-builders. In the face of considerable labour unrest, 
this agreement was signed by the Building Trades Council to induce some 
stability and protection for the worker in the residential industry. The 
agreement was made with major developers represented by the Metropoli- 
tan Toronto Apartment Builders Association and the Toronto and District 
Building Trades Council of which the Council was and is the Residential 

206 Report on the building industry 

52. When the agreement was made Local 183 was a member of the 
Council, and the benefits of the agreement accrued in part to Local 183 as a 
member of the Council only. 

53. Local 183 and the Metropolitan Toronto Apartment Builders Associ- 
ation are presently trying to use the terms of this agreement to import Local 
183 into the commercial field. The Association has expanded substantially 
and its members let contracts for concrete forming to contractors employ- 
ing members of Local 183 on a broad range of commercial projects while 
paying cheaper residential labour costs. This is detrimental to the interests 
of the craft unions who have organized and represented workers in the 
commercial forming field as well as their employers. 

54. The Association members have stated that although they were bound 
by the terms of the agreement they could not locate any sub-contractors 
who were in contractual relationship with the Council. Therefore, they had 
no alternative but to give the work to the Labourers who had organized 
almost all of the field. Evidence given at a recent hearing before the Ontario 
Labour Relations Board in a jurisdictional dispute concerning Local 721, 
Ilena Construction Limited and Local 183 revealed that the developers 
were calling the same persons as before, but avoiding the old companies 
while claiming they could not reach the old companies which had gone out 
of business. Even in an industry where not much is surprising, this consti- 
tutes an incredible hypocrisy. 

55. John Stefanini speaking on behalf of Local 183 before the Commis- 
sion has stated the rationale at page 7178 of the February 6, 1974 transcript, 
whereby Local 183 feels that it is entitled to venture into the commercial 
sector of the concrete forming field. 

A. Actually, the memorandums stated that they should employ contractor in 
agreement with the Forming Council. However, when the builders asked for 
the list they don't have any active forming contractors so for all intents and 
purposes they believe that there is not such a thing as a Forming Council any 
longer so they may still be a legal entity , but if we look at the realities we know 
that Local 183 represents the residential concrete formers. 

56. In addition, the concrete forming contractors justify Local i83's 
intervention into commercial field on the basis that there are no council 
sub-contracting companies to undertake the work. This line of argument is 
equally hypocritical on the part of both the union and the contractors 
inasmuch as they have acted in concert to create the present situation. 

Study papers and briefs 207 


57. It is easy to be distracted by the dishonesty and lack of integrity which 
marks much of the conduct described in this brief. However, the real 
problem is not the conduct itself, but the instability in an industrial relations 
sense which it brings. 

58. Work stoppages have already occurred where Local 183 members 
have performed the work of the established crafts on commercial projects. 
Until the traditional patterns of organization are re-established in the 
residential field the possibility of further upheavals looms large. 

59. The history of organization is short in the residential field however 
and, in the near future the commercial sector will likely become a battle- 
ground as the building trades act to preserve the standards and conditions 
for which they have struggled since concrete forming became a building 
technique many years ago. The building trades remember parallel situa- 
tions in which the lathers were destroyed as a commercial union by the 
importation of residential standards and will not permit it to happen again. 

60. The Council and its sponsoring trade unions believe that the conduct 
of both Local 183 and the forming contractors is worthly only of condemna- 
tion and they are pledged to restore the normal balance and stability of 
traditional labour organization to all segments of the construction industry . 


Supplementary Submission from the 
International Union of Operating 
Engineers, Hoisting Division 
Local 793 A-B-C-D 

We understand that on or about May 10th, 1974 a brief was submitted to 
you purporting to be on behalf of the Council of Concrete Forming Trade 
Unions, a copy of which we now have. 

208 Report on the building industry 

Although our Union is a member of the Council, and we were in favour 
of preparing a brief pertaining to the concrete forming industry, the mem- 
bers of the Council agreed that they would be allowed an opportunity of 
approving the brief before it was submitted to you. Notwithstanding this 
arrangement, those responsible for the brief presented it without our hav- 
ing had an opportunity of examining the same and approving or disapprov- 
ing of its contents. Upon discovering that the brief had been submitted, we 
wrote to Mr. Fred Leach, Recording Secretary of the Council, on June 7th, 
1974, a copy of which letter we enclose, advising him that we did not have 
an opportunity of perusing the brief and we requested a copy of it. 

We have now carefully considered the contents of the brief and in view 
of the circumstances, we must advise that our Union cannot, in all consci- 
ence, subscribe to or associate itself with the same. 

Our Union has had considerable involvement in the residential concrete 
forming industry in Metropolitan Toronto, including having collective 
agreements with most of the forming contractors, covering crane 
operators. Based upon this experience and our knowledge of the industry it 
is our opinion that the brief: 

1. Does not accurately describe the historical development of the residen- 
tial concrete forming industry in Metropolitan Toronto. 

2. Contains many distorted and untrue facts. 

3. Contains allegations of improper conduct by the forming contractors, 
Labourers' Union Local 183 and its representatives, without presenting 
any meaningful evidence in support of such allegations. 

4. Represents an improper attempt to attack and discredit the efforts of 
Labourers' Union Local 183 in connection with their attempts to organize 
and represent the workers of this industry. 

While we do not intend to comment upon the entire brief, we wish to 
briefly discuss certain aspects of the same: 

(a) In relation to paragraph 32, at page 15 of the brief, as a result of our 
involvement in the industry, we are certainly satisfied that the Labourers' 
Local 183 concrete forming agreements and the steps taken by that Union 
to enforce the provisions thereof and its attempts to properly service the 
employees covered by these agreements, have in fact resulted in greatly 
improved working conditions for the concrete forming worker. There can 
be no doubt that the establishment of collective bargaining relationships 
between Labourers' Local 183 and the forming contractors has succeeded 
in bringing greater stability to the industry than that which previously 

Study papers and briefs 209 

(b) At page 18 of the brief, there is a suggestion, without reference to any 
direct evidence, that there was collusion between Labourers' Local 183 
and the forming contractors. To the best of our knowledge and based upon 
our involvement in this industry, there is no basis whatsoever to support 
the conclusion that Local 183 or the contractors engaged in any improper 
conduct during Local 183's organizational campaign. In fact, it has always 
been our understanding that Local 183 and the contractors complied fully 
with the Ontario Labour Relations Act when they entered into collective 
bargaining relationships with each other. To our knowledge and we believe 
this was established in evidence before you during the inquiry into this 
segment of the construction industry, that the collective agreements be- 
tween Local 183 and the contractors were not entered into until such time 
as Local 183 was able to establish that it in fact, represented a majority of 
the employees who were to be covered by such agreements. 

(c) We are very much disturbed with the Conclusions which appear on page 
25 of the brief. As indicated earlier, the industry is far more stable now than 
it ever has been and there is no basis for suggesting that the conduct of the 
Unions and the contractors presently involved in this industry has been 
dishonest and without integrity as the brief suggests. 

(d) We are not aware of any evidence to support the conclusion contained 
in paragraph 58 of the brief. 

(e) In connection with the conclusion in paragraph 59 of the brief, we are 
satisfied that the Labourers' Local 183 has and will continue to cooperate 
with the other Unions in preserving and maintaining peace in the commer- 
cial sector of the construction industry. Our Union certainly has no inten- 
tion whatsoever to be part of any 'battleground' in the commercial sector. 
It is our view, that irresponsible suggestions like those contained in 
paragraph 59 in themselves could very well result in the sort of 'battle- 
ground' which seems to be envisaged. 

(f) The conclusion in paragraph 60 that '...the conduct of both Local 183 
and the forming contractors is worthy only of condemnation ...' is once 
again completely irresponsible and without regard to the realities of the 
situation as it presently exists. In fact, the forming contractors have, in the 
main, lived up to their collective agreements with our Union, which is 
certainly a substantial improvement to the situation which existed in this 
industry during the late 1960's. Furthermore, during the time when the 
non-union forming companies were becoming unionized, our Union ex- 
perienced fewer problems in the industry than it has experienced in similar 
situations in other segments of the construction industry. 

210 Report on the building industry 

We are confident that with the continued cooperation from the forming 
contractors, Labourers' Union Local 183 and our Union the stability 
already achieved in the forming industry will continue to improve, all to the 
benefit of the workers, contractors, unions and the public. 

We thank you for the opportunity of letting us write to you in connection 
with this matter and we trust that our letter will be of some assistance to 

W.W. Lippett, 
Business Manager. 


Ontario General Contractors Association 


The Ontario General Contractors Association is pleased to respond to the 
Commission's invitation to present its views on a number of matters which 
may be of interest to the Commission. Our intent in making this submission 
and in meeting with the Commission is to inform and assist the Commission 
in its endeavours, and in so doing to discharge what the Association sees as 
its responsibility to itself, to our member companies, to the industry 
generally and to the community at large. 

Many of those associated with the Ontario General Contractors Associ- 
ation in one capacity or another have, very naturally, been distressed by 
the press accounts of the Commission's proceedings and while we have no 
intention of commenting upon those proceedings, we are bound to observe 
that the press accounts have created an impression in the public's mind of 
the construction industry which is extremely unfavourable; the Associa- 
tion is naturally sensitive about this and believes that there is some duty 
lying upon the Commission to particularise the results of its inquiry so as to 
establish for the benefit of the public that the large percentage of the 
business carried on within the construction industry is conducted ethically 
and legitimately and that the press accounts may have resulted in a dis- 
torted picture of how the industry substantially operates. 

We believe that in presenting our views we should address ourselves to 
those matters which lie within the Association's scope of activity and 
interest as reflected in our By-Laws, our policies and our day-to-day 

212 Report on the building industry 

operations. Accordingly the plan of this submission is to identify our 
interest in the Commission's activities and then to identify the Association 
itself; we will then speak about contract methods, tendering and contract 
award procedures, and finally labour relations legislation and policies. 

Before proceeding we would like to say again why we sought a private 
session with the Commission rather than one open to the press. Our reason 
lies in our desire to inform and assist the Commission. There is nothing in 
what we will be saying here that we would not under other circumstances 
say publicly. We believe that there are times for privacy and times for 
publicity, and in this particular situation we simply did not wish to take on 
the additional obligation of interviews with the press in addition to our 
discussions here with the Commission. We see nothing unusual or mysteri- 
ous in choosing privacy and excluding publicity in these circumstances. 


We have noted from the Order-in-Council establishing the Commission 
that the scope of the inquiry is directed to the possibility of unlawful 
activities in industry operations; we note also that the Commission, after 
investigating and inquiring into industry operations and reporting upon the 
possibility of any unlawful activities, is also given discretion in making 
recommendations in respect to such matters. 

The Association's submission and this meeting may be of value to the 
Commission in a direct way and should at least provide the industry's 
views on some matters of interest to the Commission. 


The Ontario General Contractors Association is a non-profit corporation 
established in 1939 and chartered under the Ontario Companies' Act. The 
membership of the Association, presently numbering some 135 firms, is 
comprised solely of general contracting companies (the 1973 alphabetical 
index of members is appended hereto). With the exception of honorary life 
members, there is no other class of membership than general contracting 
companies ; qualifications for membership are stipulated in Article VI of the 
Association's By-Laws. Subcontracting companies and materials and 
equipment manufacturers or suppliers are not eligible for membership in 
the Association. 

The member companies carry out a combined annual volume estimated 
at $2 Billion; virtually 100% of this business is done in the commercial. 

Study papers and briefs 213 

institutional, industrial and heavy engineering sectors of the construction 
market which can be collectively described as the non-residential sector. 
Close to 100% of this estimated annual volume is executed under contract 
between the general contracting company and its client, the public or the 
private owner. Construction by member companies for their own account 
on a speculative or investment basis has been negligible. The member 
companies vary widely in size; many of them are small firms with an annual 
volume of up to $1 Million; other companies' volume would be between $3 
and $10 Million and others would range from $10 to $75 Million or more, 
depending upon the strength of the market in any given year. 

Whether a general contracting company is bound or not bound to collec- 
tive agreements has no bearing whatever on that company's eligibility for 
membership. Throughout its 35 years the Association's membership has 
included companies in both categories and moreover has included com- 
panies whose collective agreements are with other than the A.F.L. craft- 
type of union. The Association is not and never has been an employer 
organization within the meaning of the Ontario Labour Relations Act; it has 
never, therefore, participated in collective bargaining or collective agree- 
ment administration on behalf of its members or anyone else. This 'hands 
off policy' with respect to collective bargaining originated because of the 
respect for the local authority and responsibility of the employer groups in 
various municipalities across the province; the Association's stand on this 
matter has not changed even with the relatively recent trend towards 
province-wide bargaining and province-wide agreements, a development 
which the Association has watched with interest and which it recognizes 
has desirable features which may often obscure the disadvantages and 
certain considerations applicable to the process of bargaining and the 
relationship between the terms and conditions of collective agreements and 
the operations of the industry from one locality to another. 

This stand with respect to collective bargaining does not mean a disin- 
terest by the Association in labour management relations ; the opposite is in 
fact the case and there is ample evidence of the Ontario General Contrac- 
tors Association's interest in and involvement with the legislative and 
policy areas applicable to labour management relations. The Association's 
actual formation back in 1939 was precipitated by the industry's need for 
representation on the very first legislative proposal dealing with vacations 
with pay. Evidence of more recent vintage is the Association's involve- 
ment in the preparation and submission of a brief to the Ontario Minister of 
Labour which led to a number of amendments to the Ontario Labour 
Relations Act; one of these was the provision for accreditation of employer 

214 Report on the building industry 

associations; this provision for accreditation stemmed from the 
Goldenberg-Crispo Report. It is worth noting in passing that for reasons 
which many fail to understand the establishment of accredited employer 
associations was not pursued on a broad basis, and in respect to general 
contractors was pursued only in two municipalities. We will return to this 
matter later in the brief. 

We would like the Commission to recognize that our policy with respect 
to responsibility for collective bargaining has enabled the Association to 
approach the legislative and policy areas in labour management relations 
with greater objectivity than might otherwise be possible. It is also worth 
emphasizing that our non-involvement in collective bargaining has allowed 
the Association to be representative of both union and non-union general 
contracting companies. We suggest, therefore, that we have been able to 
bring balanced judgment to labour relations matters and at the same time 
dealing with the roles of the general contractor in the field of collective 

Before completing the identification of the Association, it should be 
made abundantly clear that when we are identifying the Association and its 
policies and activities, we are in fact identifying the attitudes and wishes of 
the members. The Association does not exist in isolation from its member 
companies and the marketplace in which they operate. The policies and 
programs of the Association are arrived at after research and debate and in 
meetings conducted according to the most acceptable standards. 

The Association may be said to have three essentia! roles, three broad 
basic reasons for existence and these are as follows: 

A. The promotion and development of the general contractors' position in 
the marketplace. 

B. The establishment of the acceptable conditions (in terms of economics 
and legislation, et cetera) for carrying on the general contracting business 
in a manner that is equitable to both client and contractor. 

C. The pursuit of those activities designed to enable member companies to 
attain their most effective operating performance. 

The programs to fulfil these roles are varied and flexible. 

The Association believes that it enjoys the respect of and cooperation 
from architects, engineers, private and public owners and persons in the 
fields of government, business and education. We believe this respect and 
cooperation have been earned by responsible behaviour and the advocacy 
of policies which are sound from the view of both client and contractor, for 
both government and industry. The Association's roles are furthered in a 
variety of ways, among these being unilaterally developed and conducted 

Study papers and briefs 215 

programs, as well as the use of joint committees with the design professions 
and with Ministries of the Ontario Government; two such joint committees 
have been operating for over fifteen years; the scope of a typical joint 
committee is illustrated in the terms of reference, a copy of which is 
attached hereto. 

The Commission may wish to raise questions about other aspects of the 
Association's operations and we will be glad to respond to such questions. 


We understand the Commission may be interested in an examination of the 
various types of contracts which are executed between the contractor and 
his client. There has been a marked shift in the type or method of contract- 
ing during the past few years, and naturally this evolution has had both 
favourable and unfavourable consequences. 

Until the very late sixties the general contractor's clients and particu- 
larly those in the public sector had their projects carried out under a 
stipulated or lump sum contract. In some situations, and particularly in the 
private sector, the client entered into a contract based on the cost of the 
work and a fee for the prime contractor's services. The lump sum contract 
would be entered into either as a result of competitive bidding on a public or 
invited basis or as a result of negotiations between the owner client and a 
chosen contractor. 

Although the current instability of prices for some materials are causing 
special, and hopefully temporary, problems in tendering and contracting 
on a lump sum basis, the Association believes that the owner/client and the 
contractor are in the last analysis best served by the lump sum method. The 
arguments in support of this position have been outlined on many occa- 
sions; a press release of fairly recent date on this subject is appended 

The Association recognizes that there are projects where other than the 
lump sum approach is appropriate and therefore the introduction of the 
construction by management contract and the construction by the project 
management approaches are valid where there are certain factors present; 
the principal factors which we have in mind are: 

1 . An extremely large and complex project taking two years or more to 

2. A project which must be carried out on an emergency basis and therefore 
construction must be commenced before working drawings can be com- 
pleted and put out for competitive tendering. 

216 Report on the building industry 

Where either or both of these factors are applicable, then there may be 
justification in a contracting method other than the lump sum type. 

The Association has watched with some anxiety the application of the 
construction management or project management approach by the public 
owner/client and has also viewed with concern the utilization of the de- 
velopment proposal approach; the latter has been used particularly in 
regard to university student housing and public housing under the auspices 
of Ontario Government Housing Corporations. 

The competitively tendered project carried out under a lump sum con- 
tract awarded to the lowest qualified bidder has all the merits ascribed to 
it but it also has indirect advantages which commend themselves to the 
industry and to the public interest; to be specific, the competitively ten- 
dered lump sum project avoids the need for the use of subjective judg- 
ments, the private exercise of discretion, and does not create opportunities 
for a rationalized restraint of competition. 

The Association has always drawn a distinction between what the public 
owner/client may choose in contract methods and what the private sector 
client may consider appropriate. In our view the public owner must use 
contracting methods which provide every reasonable means of assuring the 
proper expenditure of public funds. This is an obligation that does not 
apply to the private owner because his accountability is not to the tax- 
paying public but to the shareholders. The expenditure of public funds is 
judged upon propriety and need, whereas the expenditure of monies by the 
private sector client will be judged by the shareholders on their contribu- 
tion to the client's corporate objectives. It is with these considerations in 
mind that we believe that there are risks to the public interest when the 
public owner utilizes other than the lump sum method. 

In summary the Association sees itself as having a responsibility to 
advocate the use of contract methods which are most appropriate in each 
given situation. In exercising this responsibility the Association strives to 
strike a balance between the adopting innovative methods and the indis- 
criminate and unwise use of any given method. 


As the Association's Statements of Policies will reflect (see Article vn to 
xxvi of Statements of Policy appended hereto), the Association devotes a 
good deal of its time and effort to advocating reasonable and equitable 
tendering and contract award procedures. On many occasions throughout 
the year the Association will make representations to owners, architects, 

Study papers and briefs 217 

and engineers with a view to rectifying complaints received from member 
companies about the methods or procedures which are being used in given 

We have no hesitation in claiming that the improvements sought are 
beneficial, not to the contractor alone, but also to the owner. The general 
contractor in the non-residential construction market encounters a very 
large number of prospective clients whom we sometimes describe as con- 
struction buyers. This group takes in school boards, municipal, regional, 
provincial and federal government agencies, the boards of governors of 
hospitals, community colleges and universities plus a large number of 
private sector owners. The Commission will, therefore, appreciate the 
wide variety of tendering and contract award procedures encountered by 
the general contractor. We have no reluctance in admitting that the re- 
sources of the Association are not sufficient to cope with all the problems 
that arise in this area; what the Association does accomplish is done 
entirely by the use of persuasion through oral and written submissions. 

In addition to dealing with tendering and contract award procedures 
applicable between the general contractor and the owner, the Association 
has had a long involvement in this same field as it applies to general 
contractor and sub-contractor. A particular subject that has occupied a 
good deal of our attention is the existence and operation of bid de- 
positories. We refer the Commission to Article XI in our Statements of 
Policy. We are currently engaged in the third attempt in the past ten to 
twelve years to bring about uniformity in the administration and proce- 
dures of bid depositories and by so doing to eradicate abuses which have 
occurred from time to time. 

We are uncertain as to the actual extent of the Commission's interest in 
this matter but it is worth pointing out that when this submission was being 
prepared we received from the Acting Chairman of the Restrictive Trade 
Practices Commission the report on the research inquiry conducted by the 
Investigation and Research Authorities acting under Section 47 of the 
Combines Investigation Act. The covering letter from Mr. Couture con- 
tains this quotation from the Deputy Director's statement. 

'From the evidence collected at this inquiry it seems reasonable to conclude 
that the bid depositories and related systems which exist in Canada are all 
destructive of competition to a significant extent. Moreover, it is not apparent 
how their anti-competitive elements can be removed while still leaving them 
capable of performing any role in the construction industry. In the first place, 
the inquiry has cast considerable doubt upon the existence of any public 

218 Report on the building industry 

interest in having private agencies designed to deter post-bid negotiations. In 
the second place, bid depositories in seeking to deter post-bid negotiations, 
have been driven to the creation of machinery which is restrictive of competi- 
tion in a number of additional ways.' 

The Commission may have questions about some aspects of tendering 
and contract award procedures. 


We sometimes feel that the public sees the construction industry as having 
more strikes and work stoppages than it does periods of productivity. That, 
of course, is not the case but there is assuredly vast room for improvement 
in the field of labour management relations. 

Until relatively a short time ago, collective bargaining in respect to the 
six trades employed by the general contractor was in the hands of the 
general contractors at the local level; in many municipalities across the 
province, the bargaining was carried on by the general contractors' section 
of the local construction association. This arrangement operated success- 
fully in some situations and not in others. The breakdown of the arrange- 
ment in any given instance could be due to one or more factors. In every 
case, however, the need to maintain unity within the employer group was 
always critical and could create demanding pressures. One of the major 
weaknesses in the arrangement was that membership in the employer 
group was voluntary and non-members could create serious difficulties in 
bargaining or strike times by reaching separate agreements for their own 

The introduction of accreditation provided a way to overcome this 
problem but for reasons which are now impossible to understand the 
Labour Relations Bureau of the province-wide industry association then in 
existence abandoned the development of accredited employer organiza- 
tions, and consequently only two groups with which we are familiar estab- 
lished themselves under the accreditation provisions. 

The general contractor's position in labour relations is a complex one. 
For a variety of reasons his direct employee strength has declined, particu- 
larly in four of the six so-called general trades. Someone might argue, 
therefore, that his voice in the collective bargaining situation should be 
limited accordingly. 

Such a point of view would, however, fail to recognize that the general 
contractor as the leader of the construction team on a project has two very 

Study papers and briefs 219 

distinct interests in labour management relations. One of these interests is, 
of course, as an employer of labourers, brick layers, carpenters, cement 
masons, operating engineers and rodmen. His other interest in labour 
management relations stems from his role and responsibility for the con- 
struction project. Because the general contractor must ultimately satisfy 
his client, the owner of the project, he is extremely interested in discourag- 
ing costly work practices and uneconomic terms and conditions in collec- 
tive agreements. Accordingly we would urge the Commission to recognize 
this duality of interest. It is very important to understand this duality of 
interest if the general contractor's responsibilities to his client are not to be 
compromised by certain bargaining and representation arrangements. 
There is a very definite concern that the exercise of employer power in 
collective bargaining should remain in the hands of persons whose at- 
titudes and motives take into account the interests of the customer, the 
buyer of the industry's goods and services in the form of buildings. 


We trust that this submission will fulfil the two objectives which we set 
down for ourselves when preparing it. We wanted to give the Commission a 
profile of the Association and some of the areas to which it devotes its 
efforts and resources. Secondly we wanted to have it serve as a basis for 
questions by the Commission and some dialogue between the Commission 
and the Association. 


Inter-Provincial Council of Lathers For and 
On Behalf of its Affiliated Local Unions, 
Locals 97, 145, 360, 439, 538, 540, 545, 551 , 
555 and 562 


The Inter-Provincial Council of Lathers, ('the Council') for and on behalf 
of its affiliated local unions, Local 97 (Toronto), Local 145 (Hamilton), 
Local 360 (London), Local 439 (Windsor), Local 538 (Sudbury), Local 540 
(Sarnia), Local 545 (Kingston), Local 551 (Kitchener), Local 555 (Peter- 
borough), and Local 562 (Toronto) welcomes the invitation of the Commis- 
sioner to present this brief to The Royal Commission on Certain Sectors of 
the Building Industry ('The Royal Commission'). This brief is submitted to 
The Royal Commission with a view to setting forth the bargaining history 
of the Council and its affiliated Locals in the Province of Ontario and, more 
importantly, with respect to certain serious problems that have beset the 
Council and its local affiliates in recent years. 


(a) The Wood, Wire & Metal Lathers' International Union ('The 
Lathers' International') was founded in the United States in 1899 and was 
duly recognized by the Building and Construction Trades Department of 
the American Federation of Labour. 

The Lathers' International has granted charters for local unions in the 
Province of Ontario since approximately 1902 when a charter was granted 

222 Report on the building industry 

for Local 97 at Toronto and most recently, on March 4th, 1968, a charter 
was granted for Local 562 also at Toronto. Local Unions of the Lathers' 
International are generally affiliated in each municipality to a local Building 
and Construction Trades Council which comprises locals of the various 
building trade unions chartered by the said Building and Construction 
Trades Department of the American Federation of Labour. 

In approximately 1946, the Lathers' International chartered the said 
Council with jurisdiction in the Provinces of Ontario and Quebec and at 
that time, all existing Lathers' local unions became affiliated with the 
Council. The primary purpose to be served by such Council was the 
negotiation and administration of a uniform inter-provincial collective 
bargaining agreement for the provinces of Ontario and Quebec with com- 
mon conditions of employment for all members of the union except with 
respect to rates of wages which would vary for each local's area jurisdic- 

While it is compulsory under the Lathers' International's constitution 
for local unions to be affiliated with state or provincial councils, as the case 
may be, it is not mandatory for them to be bound by any collective 
agreement entered into by the council. However, with the exception of 
Locals 315 (Montreal) 423 (Ottawa) and more recently 562 (Toronto), the 
council has bargained on behalf of all local unions of the Lathers' in the 
Province of Ontario since approximately 1954. In 197 1, Local 97 (Toronto) 
decided to enter into a separate collective agreement with its employers 
and thereafter, the council no longer bargained with employers on behalf of 
any of the other Lathers' local unions. 

During the period of time from 1954 until 1971, the said council bar- 
gained with the Contracting, Lathing and Plastering Association of On- 
tario. Attached hereto and marked exhibit 'A' is the membership list 
compiled by the said association with respect to its last collective agree- 
ment with the council. 

( b) The Background and History of Local 562 

During the 1950's, there was a great surge in the construction of apartment 
buildings in the Municipality of Metropolitan Toronto which resulted from 
a great increase in the demand for residential housing in the Toronto area. 
These projects, for the most part, were undertaken by owner-builders 
rather than by general contractors who had engaged construction union 
tradesmen in the industrial, commercial and institutional sectors of the 
construction industry. 

Study papers and briefs 223 

The owner-builder generally had no employees of his own but sub- 
contracted out the great majority of his work to sub-contractors which had 
not heretofore been organized by any of the construction trade unions. 

In the 1950's, many of the building trade unions at Toronto including the 
Lathers' International attempted to organize the residential sector of the 
construction industry and, in 1951, Local 97B was chartered by the 
Lathers' International to provide an appropriate vehicle for this organiza- 
tion. The reasons for a chartering of a separate local union by the Lathers' 
International was two-fold: 

(a) It was recognized that it was unrealistic to insist upon the introduction of 
the higher rates of wages and conditions of work which had long been 
established in the said industrial, commercial and institutional sector of the 

(b) Local 97 which had been established for many years in the Toronto area, 
insisted, as was its constitutional prerogative, that a separate local union be 
established lest the organization of residential lathers and the admission of 
these persons into membership, might diminish the existing opportunities for 
employment of members of Local 97 in the commercial segment of the 
construction industry. 

As was the case with the other building trade unions which attempted to 
organize the residential part of the industry, by the early 1960's, Local 97B 
ceased to exist as a viable trade union entity. However, in 1965, the 
Lathers' International granted permission to Local 97 to organize the 
residential lathing industry under Local 97, Residential Division ('the 
residential division'). The residential division successfully organized sev- 
eral lathing contractors and thereafter, applied to the Board for 
certification for their said employees. On September 30th, 1965, the resi- 
dential division entered into its initial collective agreement with the applic- 
able lathing contractors organization, the Metro Lathing Contracting As- 
sociation ('the Metro Association'). In an effort to expand employment 
opportunities beyond the residential sector of the industry, the members of 
the said residential division were granted a charter by the Lathers' Interna- 
tional in March 1968 as Local 562 and on March 18th, 1968, an agreement 
was entered into between Local 562 and the said Metro Association. 
Attached hereto and marked exhibit 'B' is a letter dated March 19th, 1968 
from the said Metro Association containing a list of its members at that 

224 Report on the building industry 

(c) Recent Bargaining Developments at Toronto 

Prior to 1970, the predominant partition assembly consisted of two inch 
solid plaster wall which was comprised of ceiling tracks to which channel 
iron studs were fastened to which metal lath was attached. In other words, 
the metal lath partition, having been plastered on both sides, had a total 
thickness of two inches. However, in approximately 1970, the drywall 
partition assembly system rapidly began to replace the plaster system. In 
view of the experience of Local 562's members with respect to the metal 
furring component system for plaster partitions and their experience in 
applying gypsum board lath, the local's members had sufficient expertise to 
adapt and perform the necessary metal furring for drywall construction. 

On or about that time, several members of the Metro Association 
incorporated a new employer's organization, known as The Drywall Con- 
tractor Association of Ontario ('the Drywall Association'). In particular, 
several members of the Metro Association incorporated new companies 
which were to be exclusively engaged in drywall installation as a separate 
and distinct business from their lathing enterprises, By way of example, the 
owners of Romanelli Lathing Limited established Durable Drywall Li- 
mited, Lido Plastering Limited branched off into Lido Drywall Limited and 
Fanelli Lathing Limited was associated with Yorkland Drywall and Acous- 
tics Limited. 

On November 26th 1970, the Drywall Association voluntarily recog- 
nized Local 562 as bargaining agent for their respective employees engaged 
in the installation of drywall systems. Apparently, the motivation for the 
formation of this new association was to permit and to facilitate separate 
bargaining for the employees of those companies engaged in drywall as 
distinct from lathing construction. In addition, a piece-work system was 
introduced into the Drywall Association's collective agreement with Local 
562 which in the contractor's estimation more closely correlated their 
employees' production to wages. 

The membership of Local 562, for their part, agreed with the introduc- 
tion of the piece-work incentive basis of employment with respect to 
drywall installation for two main reasons: 

(a) Firstly, there was an appreciation of the requirement for a retraining 
program for Local 562 members who had previously been engaged in the 
installation of metal lath but were now required for the first time to install 
drywall for which they had little, if any, practical experience: and 

(b) Secondly, many of the new members of Local 562 who were engaged in 
drywall installation had previously been employed on an unorganized basis in 

Study papers and briefs 225 

the residential housing field at Toronto and had historically worked on a 
piece-work basis and in fact, preferred this system due to certain income tax 
considerations not otherwise available for hourly-rated employees. 

On August 15th, 1972, the Metro Association merged with the Drywall 
Association and formed a new employers' organization known as the 
Interior Systems Contractors Association ofOntario. On May 1st, 1973, an 
amendment of collective agreement was entered into by members of the 
two former associations with Local 562 to facilitate the transformation to a 
new era of collective bargaining involving both lathing and drywall. At the 
present time. Local 562 is about to sign its initial collective agreement with 
the said new association. Attached hereto and marked Exhibit 'C is the 
membership list for the two former Associations. 

(d) Conflicts between Local gj and 562 

On September 27th, 1971, Local 97 entered into a collective agreement 
with The Contracting Plasterers Association of Toronto Oc.p.a.t.') with 
respect to lath and drywall construction. Attached hereto and marked 
exhibit 'D' is a list of the member contractors of c.p.a.t. Shortly there- 
after, a rivalry developed between the members of the Drywall Association 
and the members of c.p.a.t. As a direct result, a 'jurisdictional dispute' 
arose between Locals 97 and 562. After protracted and unfortunately, 
fruitless discussions and negotiations between the two local unions with 
respect to an equitable distribution of drywall installation at Toronto, the 
General President of the Lathers' International awarded jurisdiction over 
all drywall construction systems in the Municipality of Metropolitan To- 
ronto to Local 562. Further, the said General President ordered that the 
two local unions merge. As a result of the President's directives, Local 97 
initiated proceedings in the Supreme Court of Ontario where it claimed 
certain injunctive relief and in addition, commenced proceedings before 
the Board where, inter alia, it sought leave of the Board to prosecute Local 
562. While the proceedings at Court were not followed through with by 
Local 97, the Board dismissed the Application for Consent to Institute 
Prosecution launched by Local 97. Attached hereto and marked Exhibit 
'E' is a copy of the Board's decision dated May 8th 1972. 

In May 1973, many of Local 97's members left the Lathers' Union and 
applied for membership in the Carpenters' Union. Moreover, that union 
successfully was certified by the Board for the employees of several of the 
former employers who were previously members of c.p.a.t. Simply put, 
these former members of Local 97 were disgruntled over the General 

226 Report on the building industry 

President's decision to award commercial jurisdiction to a residential la- 
thing local. Local 562: They sought refuge in the Carpenter's Union, which 
union has always maintained the distinction between residential work on 
the one hand and institutional, commercial and industrial work on the 


In essence, the trade jurisdiction of Lathers' union locals relates to lathing 
installation for the interior construction of walls and ceiling systems. 
Traditionally, the Lathing trade pertains to materials erected on either 
walls or ceilings which receive plaster. However, the Lathers' trade has 
evolved with technological changes in building materials and methods of 
applying these materials to interior walls and ceilings. Generally, there are 
three distinctly different species of contractors who have employed 
members of lathers' local unions: 

(a) lathing contractors will contract for the supply and erection of lathing 

(b) drywall contractors who contract for the supply and erection of metal 
furring component systems and the application of drywall gypsum board 
thereto; and 

(c) acoustical contractors who contract for the supply and erection of 
acoustical ceiling systems. 

However, contractors primarily engaged in any of the above-mentioned 
types of construction frequently take on work which involves one or more 
of the other related types of construction herein. 

As a material to receive plaster, lath has undergone many technological 
changes. Prior to the introduction in the 1930's of gypsum board lath, wood 
lath was predominantly used in connection with wood-framed structures. 
Expanded metal lath and metal furring components to which lath was 
attached have been used since the turn of the century for the construction 
of wall and ceiling systems as a plaster base . On the other hand , drywall, as 
a construction material, was first introduced into the Province of Ontario in 
the construction of wartime housing units which were intended to be for 
temporary use only. Drywall is not unlike gypsum lath but the dimensions 
of drywall are larger: Whereas the standard size of gypsum lath is 16" X48" 
the size of drywall board, being a standard four feet in width, varies in 
length from eight feet to twelve feet. 

Study papers and briefs 227 

Although drywall was initially intended to be a material to be attached 
by nailing to wood-framed structures, a system was developed in the late 
1950's of using light-gauged metal furring components to which drywall 
could be attached by self-taping screws driven by an electric screwgun. 
This system, which is still in wide use today, has all but replaced the 
aforementioned, conventional lath and plaster construction systems in 
Metropolitan Toronto. 

In the late 1960's, a new construction technique was introduced which 
was generally known as a 'veneer plaster system' which incorporates some 
of the materials and methods which were previously used in both lathing 
and drywall systems. In the veneer plaster system, the drywall metal 
furring component system and the large gypsum boards are utilized but the 
plaster finish is applied in a single coat which covers the whole board. In the 
drywall system, only the joints between the boards and the nail or screw 
depressions are covered by a plastic finishing material. 

In the 1940's, acoustical ceiling systems were first introduced into the 
Province of Ontario and since that time, they have also undergone 
considerable changes in their method of construction. While the methods 
of constructing acoustical ceiling systems vary for each particular system, 
there is a common metal furring component to which the acoustical finished 
panels or tiles are attached. Notwithstanding that both materials and 
application methods have greatly evolved over the years, it is the 
submission of the lathers' union, that its members' skills and experience 
with respect to lathing systems lend themselves to the said technological 
innovations inherent in the drywall and acoustical ceiling systems. 

4 lathers' apprenticeship and training 

Prior to the establishment in 1952 of the formal training facility, lathers' 
apprentices were trained on the job site by journeymen Lathers. While this 
method of training sufficed, the union recognized the necessity for a formal 
off-site training program, including the teaching of drafting, mathematics 
and other academic subjects necessary for the trade. 

Lathers' local unions have traditionally worked towards the upgrading 
of their craft and for that reason have actively fostered the establishment of 
a formal apprenticeship training program in cooperation with both the trade 
contractors and the Ontario Provincial Institute of Trades. 

Initially, the council approached the industrial training branch of the 
Ontario Ministry of Labour with a view of acquiring the status of certified 
trade. Thereafter, a Provincial Advisory Committee which was composed 

228 Report on the building industry 

of both employer and union appointees cooperated with the Ministry's 
officials to prepare a requisite Trade Analysis and Regulations pertinent to 
the Lathing trade. In 1967, the lathing trade officially became a certified 


(a)Generally: In the Province of Ontario, Lathers Local Unions have had 
both bitter and continuous jurisdictional disputes with local unions of the 
United Brotherhood of Carpenters and Joiners of America. These 
difficulties have become particularly exacerbated as a result of the intro- 
duction of the dry wall and acoustical ceiling systems above-mentioned. 
When considering the time period over which such difficulties have ranged 
together with the costs and the results of the same, it is simply unbelievable 
to realize that the total trade union membership of the Carpenters in 
Canada is some 75,000 members while the Lathers' International counts 
some 1 ,500 members in this country. This one sided ratio has not appreci- 
ably changed since the two unions first started organizing in Canada. 

(b) The National Joint Board 

Clearly, one of the root causes for the jurisdictional dispute stems from 
the decisions of the National Joint Board which is headquartered at 
Washington, D.C., now known as the Impartial Jurisdictional Disputes 
Board for the Construction Industry ('The n.j.b.') The decisions of the 
n.j.b. rendered in the lathing, dry wall and acoustical ceiling sector of the 
construction industry, not only have not contributed to any measure of 
industrial peace, they have simply caused confusion and dissatisfaction. 

The substance of the n.j.b. decisions in this sector of the industry have 
been to divide the work which thereby requires contractors to employ 
composite work forces. As a practical result thereof, contractors have 
found it expedient to deal exclusively either with the Lathers' local unions 
or the Carpenters' local unions. 

Currently, the n.j.b. and its successor award work involving drywall 
attached to wood furring to carpenters, while drywall and metal furring 
components in walls may be installed by either Lathers or Carpenters 
depending on which union receives the initial work assignment from the 
primary employer. On the other hand , with respect to acoustical ceiling and 
drywall ceiling systems, all work has been awarded to Carpenters except 

Study papers and briefs 229 

with respect to hanging rods and 1 1/2" channel iron, known as carriers, for 
suspended ceiling construction which has been awarded to Lathers. Gyp- 
roc and metal lath as a base for plaster is also awarded to Lathers. 

Needless to say, this division of work is unacceptable to contractors 
engaged in one or more of these various construction systems. Clearly, it is 
in their interests to provide continuity of employment for their employees 
without any disruption, which would obviously be caused by changing of 
work forces in order to comply with the said n.j.b. decisions. 

(c) Unlawful Activities by Carpenters' Local Unions: The Unlawful Strike 

A frequent tactic deployed by the locals of the Carpenters' Union involves 
unlawful strike activity. Simply put, there has been a concerted pattern of 
such activity by locals of the Carpenters' Union since the mid 1960's. It was 
with a view to restraining this activity in the Toronto area, that Local 97 
commenced proceedings in the Supreme Court of Ontario in 1967 which 
proceeding resulted in an undertaking on the part of certain officials of the 
Carpenters' local union not to '... participate in or be responsible for' any 
unlawful strike activity. As will be more fully documented, infra, this 
pattern has been a persistent and serious one for Lathers' local unions in 
Ontario. Attached hereto and marked Exhibits 'F' and 'G' is copies of the 
Order of Mr. Justice Richardson dated April 26, 1967, together with the 
Statement of Claim filed at Court. 

(d) The Carpenters' Sub-contracting Clause 

More recently, one of the principal tactics used by Carpenter Union Locals 
is to negotiate a 'no sub-contract' clause in collective agreements with 
general contractors. It is made an express term of such collective agree- 
ments with locals of the Carpenters' union that all sub-contracts be awarded 
to only those contractors who have collective bargaining with Carpenters' 
local unions. This clause, which is primarily directed against lathers' local 
unions, forms the basis for grievance-arbitration proceedings against gen- 
eral contractors who award dry wall or acoustical ceiling systems contracts 
to sub-contractors having collective agreements with locals of the Lathers' 
Union. The main purpose of these proceedings is to compel the general 
contractor to change its assignment in favour of Carpenter Local Unions. 
In addition to that, these proceedings are often raised as a factor to be 
considered by the Board in exercising its discretion in a Complaint Con- 
cerning Work Assignment made under Section 81 of the Act, as will 
hereinafter be discussed in greater detail. 

230 Report on the building industry 


Clearly, the primary remedy afforded for the resolution of jurisdictional 
disputes between construction trade unions is the relief under Section 81 of 
the Act by means of a Complaint Concerning Work Assignment application 
before the Board. Under this provision of the Act, the Board may hear and 
determine which of two trade unions is entitled to perform the work in 
dispute. However, in the Lathers' experience, this remedy has been largely 
unavailable: The Board has declined in several cases to hear these inter- 
union disputes on their merits on technical grounds advanced by the 
Carpenters' Union. For example, the Carpenters' Union has relied on the 
fact that it has not 'requested' the work in dispute from the primary 
employer. Accordingly, the Board has held that it is without jurisdiction to 
entertain a Complaint in these circumstances. 

A watershed case in this area is the Board's decision in Northdown 
Drywall and Construction Limited (o.l.r.b. File No. 1411-71-JD) dated 
June 28th, 1972. In that case, the Board held: 

'. . . Section 81(1) presupposes a conflict between two competing trade unions 
for work to be assigned by an employer and further that there is an assignment 
or contemplated assignment to one trade union which may result in some 
conflict because another trade union is requiring that assignment. In this 
case, there is no actual assignment or contemplated assignment to the Car- 
penters because they have indicated that they are not prepared to accept such 
an assignment nor have they received such an assignment. The parties are 
posing a fictional assignment to Carpenters which has no basis in fact nor in 
law. How can the Lathers require an assignment to it 'rather than' to Carpen- 
ters where no such assignment to the Carpenters exists and there is no 
indication that the complainant is or will be breaching its collective agree- 
ment by assigning the work to Lathers?' 

An application was made to the Divisional Court of Ontario to review 
and to quash this decision but, in view of the fact that the work in dispute 
had been completed before the case came on for hearing at Court, the 
application for judicial review was dismissed without any enquiry into the 
merits of the Board's decision. 

Moreover, as noted, supra, in jurisdictional dispute proceedings before 
the Board, the Carpenters' Union has frequently relied upon the fact that it 
has lodged a grievance against the general contractor and that the Board 

Study papers and briefs 231 

ought not to issue an Order under Section 81 in view of the effects of 
Section 81 (17) which could \.. reach out and affect the collective agree- 
ment between the Carpenters and [the general contractor] pursuant to 
Section 81 (17) of the Act. That section indicated that an interim order 
made by this Board prevails and persons complying "shall be deemed not 
to have violated any provision of . . . any collective agreement" ' . (Abe Dick 
Masonry Limited, o.l.r.b. File No. 1404-71-JD, dated January 20th, 

Another serious problem that necessarily arises with respect to the 
Board's jurisdiction to issue an interim order with respect to an assignment 
of work is that an applicant must allege that \ . . a strike is imminent or is 
taking place by reason of the requirement as to the assignment of work ...' 
In other words, a trade union must threaten an unlawful strike in order to 
clothe the Board with the necessary jurisdiction to issue a Cease and Desist 
Order against a trade union or to make an interim assignment of the work in 
dispute. However, it is made an offence under the Act (Sections 63 (3) and 
65) to threaten an unlawful strike. Such offence, if proven, may form the 
basis for a consent to institute prosecution against the offender and if the 
Board grants consent, constitutes a summary conviction offence which is 
heard in Provincial Court (Criminal Division). 

By way of example, by decision of the Board dated December 13th, 
1 97 1, in an application under Section 81 by Northdown Dry wall and Con- 
struction Limited (o.l.r.b. File No. 1305-71-JD) the Board made an 
interim assignment of certain work in dispute to Local 562 since it was 
satisfied that a strike was imminent by reason of the assignment of work 
which was the subject matter of the dispute. Thereafter, the Carpenters' 
District Council of Toronto and Vicinity successfully obtained the Board's 
consent to prosecute Local 562 for threatening an unlawful strike 
(o.l.r.b. File No. 1386-71-U, decision of the Board dated April 14th, 
1972) and this offence was thereafter prosecuted at Provincial Court result- 
ing in the conviction of Local 562 for threatening an unlawful strike. 

Ironically, it has been the Board's jurisdiction under Section 123 of the 
Act to issue Cease and Desist directions in the construction industry in 
instances of unlawful strikes or lock-outs or threats thereof, that has 
provided relief to Lathers' local unions as against the Carpenters' local 
unions. This remedy was introduced into the Act by the amendments 
thereto of February 15th, 1971 and has been utilized by Lathers' local 
unions to enjoin unlawful strike activity on the part of Carpenter local 
unions the object of which is always to prevent members of the Lathers' 
union from performing work on the job site. Attached hereto and marked as 

232 Report on the building industry 

exhibits 'H' T 'J' are three decisions of the Board wherein Cease and 
Desist directions were issued against the Carpenters' union on grounds of 
unlawful strike or lock-out activity. 


As a direct result of the unlawful activities by Carpenter local unions in 
order to obtain the exclusive control over drywall and acoustical ceiling 
systems in Ontario, the local unions of the Lathers' International have 
simply ceased to exist as viable local union entities. 

By way of example, Locals 145 (Hamilton) chartered in 1945 and 551 
(Kitchener), chartered in 1956 were compelled to merge with Local 562 in 
or about September 1972. Similarly, Local 360 (London), chartered in 1949 
fell to the same pressures and intimidation on the part of the Carpenters' 
local unions and it now must merge with Local 562. During the autumn of 
1973, the Carpenters chartered a new local union at London (Local 13 16) 
which was formed for the specific purpose of bargaining with the employers 
who were formerly bound to the collective agreement with Local 360. This 
activity on the part of the Carpenters was supported by the London and 
District Construction Association and when the former members of Local 
360 were without opportunity for employment, they thereafter were com- 
pelled to apply for membership in the new Carpenters' Local 13 16. Local 
360 is simply no longer a viable local union entity. Attached hereto and 
marked exhibit 'K' is a series of documents with respect to the formation of 
Local 1 3 16 and the extinction of Local 360. 

Similarly, Local 540 (Sarnia), chartered in 1955, has met the same fate as 
its sister locals: Its members have joined the local Carpenters' union and 
because of lack of union membership, the Lathers' International removed 
its charter in late 1973. For that matter, the Lathers' local unions located at 
Peterborough, Windsor, Sudbury and Kingston have experienced similar 
serious problems in their efforts to retain a separate craft union identity in 
the Lathers' International and if relief is not quickly forthcoming to them, 
they will obviously be forced to accede to the pressures being exerted by 
the Carpenters' local unions. A blatant example of the tactics deployed by 
the Carpenters herein and the results to a local Lathers' union is recorded 
in a brief submitted by the Lathers' International to the Canadian Labour 
Congress in 1971 with respect to Local 423 which has jurisdiction at 
Ottawa. Attached hereto and marked as exhibit ' L' is the said brief together 

Study papers and briefs 233 

with the decision of the Impartial Umpire under the constitution of the 
Canadian Labour Congress, Senator H. Carl Goldenberg dated September 
17th 1 97 1 wherein he found that the United Brotherhood of Carpenters and 
Joiners of America was in violation of Article iv Section 3 of the said 


During the course of the Royal Commission's hearings herein, the Car- 
penter local unions in Ontario and in particular at Toronto, have not 
diminished their continuing attacks upon Lathers ' local unions . Hereinafter 
is a brief resume of such recent activities: 

/ 2 Bloor Street East, Toronto, Ontario, Project 

In the autumn of 1973, Local 562 members in the employ of Northdown 
Drywall and Construction Limited were engaged with respect to the instal- 
lation of drywall and acoustics systems on Phases 2 and 3 at 2 Bloor 
Street East, at Toronto, Ontario. On November 30th, 1973, Local 562 was 
informed by the said Northdown that it had been requested to complete the 
balance of work on Phase 1 of the said project at the instance of the general 
contractor because of the bankruptcy of another acoustical sub-contractor, 
known as Productive Systems. Accordingly, Local 562 members employed 
by Northdown were directed to proceed with this work on December 3rd, 
1973, but upon their arrival at the said project, they were confronted with a 
picket line of some 100 Carpenter members who surrounded the project in 
question. As a direct result thereof, the said Lathers were informed by their 
foremen not to proceed with the said work at Phase 1 . Local 562 was then 
informed by Northdown that the Lathers contract with the general contrac- 
tor for the completion of Phase 1 had been cancelled and thereafter, Local 
562 was informed that another sub-contractor in contractural relations with 
the Carpenters' Union, Trident Drywall Limited, had been assigned the 
contract for the completion of the said drywall and acoustical work. 

While Local 562 's members suffered no immediate loss of wages herein, 
clearly, its future relationship with Northdown has been jeopardized if its 
members are simply unable to perform work assigned to them. 

2 Travel Lodge Project 

Northdown Drywall and Construction Company Limited also had a 

drywall and acoustical ceilings contract from the Austin Company Limited 

234 Report on the building industry 

with respect to its Travel Lodge Project . By letter dated January 4th , 1 974, 
the Carpenters' District Council of Toronto and Vicinity advised the Aus- 
tin Company Limited that the said Northdown did not employ members of 
the Carpenters' Union and requested the company ' ... to abide by the terms 
of the International Agreement signed between the Austin Company Ltd 
and the United Brotherhood of Carpenters and Joiners of America'. At- 
tached hereto and marked exhibit 'M' is a series of correspondence and 
documentation with respect to that project. As before, the Lathers' short- 
run concern herein is that such activities on the part of Carpenters' will 
simply weaken if not destroy Local 562's contractual relationship with 
Northdown if that Company's current employees are unable to perform 
work assigned to them. On the other hand, the long-run concern herein is 
that such conduct, if unabated, will destroy Local 562 as a viable local 
union entity. 

j Harbour Square Hotel Project 

On or about February 18, 1974, the Carpenters' District Council of Toronto 
and Vicinity placed a picket line at this project for approximately five days. 
While that union gave other reasons for this picket line, it was determined 
that the prime reason for the line was that Lido Dry wall Limited, a sub- 
contractor which employed members of Local 562, had been awarded 
certain work for the project. 

4 Lansing Square Project, Willowdale, Ontario 

From May 6th until May 9th, 1974 inclusive, the Carpenters' District 
Council of Toronto and Vicinity on behalf of Locals 27, 666, 1133, 1963, 
3227, and 3333 together with Carpenters' Union Local 1747, engaged in 
unlawful strike activity at the Lansing Square Project, an office building 
currently under construction for Manufacturers Life Insurance Company. 
Accordingly, on May 8th, 1974, an application was made to the Board 
under Section 123 of the Act for a Cease and Desist with respect to this 
unlawful activity. A hearing was held by the Board on May 14th, 1974, and 
after the commencement of the presentation of evidence on behalf of Local 
562, counsel on behalf of these Carpenter Local unions admitted all of the 
facts in the application and consented to an Order going against the Car- 
penter local unions to Cease and Desist from the said unlawful strike 

Study papers and briefs 235 


In summary, as is amply illustrated from the foregoing, the Lathers' Inter- 
national local unions in the Province of Ontario have been subject to 
unrelenting pressure brought to bear by the Carpenters' local unions with 
the clear view to eliminating the lathers' organization as a viable union in 
the Province and to permit the Carpenters accordingly to exercise 
monopolistic control with respect to the interior systems sector of the 
construction industry. 

The council and its affiliated local unions have received no relief or 
remedy whatsoever from the n.j.b. and its successor, The Impartial 
Jurisdictional Disputes Board for the Construction Industry. Accordingly, 
it is submitted that the solution to this problem involves the strengthening 
and if necessary, certain amendments to the Labour Relations Act of 
Ontario. More particularly, the council recommends the following 
amendments to the Act which it believes will permit a full and proper 
resolution of such disputes by the administrative board entrusted in this 
province with the adjudication of labour disputes, namely, The Ontario 
Labour Relations Board. 

(a) Section 8 1 of the Act must be amended to include a clear definition of 
'jurisdictional dispute'. Implicit in this recommendation is that there ought 
not to be any restriction with respect to any affected party's right and status 
to apply to the Board for this relief and it ought not to be necessary that both 
of the disputing trade unions 'require' the work in dispute to be assigned to 
their members by the primary employer. 

(b) The Act ought to be amended so as to expressly provide thereunder 
that jurisdictional disputes, as so defined by the Act, may only be resolved 
by the Ontario Labour Relations Board under Section 81 of the Act and not 
by an arbitration board which necessarily involves but one of the two trade 
unions involved in the dispute. 

(c) Further, it is submitted that the offence of threatening an unlawful 
strike, which was introduced into the Act by the 1971 amendments thereto, 
ought to be repealed: Ironically, it is a necessary prerequisite to the 
Board's jurisdiction to grant interim relief in a jurisdictional dispute that 
either trade union involved threatens an unlawful strike. However, in 
characterizing such activity as an offence under the Act, punishable by 
summary conviction, the availability of such interim relief is, to that extent, 
diminished with the result that the purpose and function of this remedial 
legislation is abrogated. 

236 Report on the building industry 

(d) Finally , the Act ought to be amended so as to nullify provisions in any 
collective agreement in the construction industry which restricts the 
employer's right to sub-contract out work to contractors of his own choice. 
As mentioned earlier, such 'no sub-contracting out* clauses are prevalent 
in the Carpenters' collective agreements and are too easily used as a device 
to restrict the opportunities for employment of Lathers' members. In 
essence, the enforcement of such clauses eliminates competition amongst 
trade unions and vis-a-vis the Carpenters' and Lathers' trade unions, has 
become part of a conspiracy to injure. 

The council and its affiliated local unions sincerely trust that this Brief 
may be of some assistance in setting forth their bargaining history in this 
province and more importantly, in illustrating the serious problems now 
being confronted by them. 

All of which is respectfully submitted 

May 17th, 1974. 


Building and Construction 
Trades Department afl-cio 

The Advisory Board for the Building Trades in Canada consists of Senior 
Officers of the International Building & Construction Trades Unions as 
appointed by their respective General Presidents. There are fifteen unions 
with over 300,000 members in Canada. 

The Advisory Board is very concerned that sound factual information is 
given or made available to you so that your report and recommendations 
might reflect a true picture of the preponderance of the industry. We are of 
the opinion that the Commission came into existence because of a few 
reported isolated instances of wrong doing and we are fearful that the 
medicine to cure a few isolated illnesses could have a severe adverse effect 
on the vast majority of the industry where problems did not exist. We do 
not condone any illegal acts and do not sympathize with any unethical 
practice, but we suggest that if the Commission, in its wisdom, determines 
that there were improper acts, they should recommend their isolation for 
cure and not recommend blanket remedies. 

Professor H.D. Woods circulated a questionnaire to all Building Trades 
Councils, Senior Building Trades Representatives, employers and em- 
ployer associations. I am sure that at the meeting our committee had with 
you and Professor Woods, you are aware that some of our Representatives 
have concern about the purpose of the document and concern about the 
right of anonymity. Most of the material requested on pages one through 
eighteen is statistics which are available from the various Councils and 
employer organizations, so we will try to give you our thoughts on other 
issues referred to such as jurisdictional disputes, hiring halls, building 

238 Report on the building industry 

trades structure, etc ... This should probably be followed up by another 
meeting in person with our committee to give detailed explanation. 

A jurisdictional dispute is a difference of opinion in between two or more 
trades as to who should perform specific work. Tradesmen on the job are 
very often wrongfully blamed for creating jurisdictional work stoppages. 
Jurisdictional disputes are most often created before the trades arrive on 
the job by improper assignment of work, engineers or architects packaging 
work for one trade with work of sub-contractors who normally use another 
trade, new equipment coming on the market, lack of pre-job mark-ups and 
using economics as the prime criterion instead of jurisprudence from trade 
agreements and decisions of record. 

Under the auspices of the Building & Construction Trades Department 
there is a procedure for the settlement of jurisdictional disputes, the title of 
which was recently changed from the National Joint Board for Jurisdic- 
tional Disputes to the Impartial Jurisdictional Disputes Board. That Board 
guarantees that a decision will be rendered within seven days of the 
information and dispute being submitted to them. 

There can only be one effective jurisdictional disputes procedure. The 
Government of the Province of Ontario has seen fit to empower the Board 
of Industrial Relations to adjudicate on jurisdictional disputes. When there 
are two procedures, any party will go where they think they can get the best 
deal and the result is conflicting jurisprudence which creates chaos. Other 
provincial governments which gave the Board of Industrial Relations the 
authority to rule on jurisdictional disputes have since seen the error of their 
ways and have rescinded that authority in favour of the internal disputes 
procedure in the construction industry, namely the Impartial Jurisdictional 
Disputes Board. We feel, therefore, that the authority to deal with jurisdic- 
tional disputes by the Ontario Labour Relations Board should also be 

Multi-trade bargaining within the construction industry does not meet 
with popular approval. Building & Construction Trades Councils are not 
structured for or intended to be responsible for collective bargaining. 
There is however, a definite trend towards provincial bargaining by trades. 
This does not necessarily mean that one agreement one rate would apply to 
the entire province but rather that a single agreement could be concluded 
for the entire province for one trade or a sector of a trade. This can only be 
brought about by constitutional machinery established by each union. 

Most craft organizations have qualifications for membership that re- 
quire apprenticeship training and , therefore, require qualifying exams prior 
to being admitted. We feel the apprenticeship training system is second to 

Study papers and briefs 239 

none in producing qualified journeymen. There are other means of partially 
learning a trade such as technical schools and such persons are fitted into 
the apprenticeship program after examination recognizing the degree of 
their previous training. 

Trades are periodically subjected to criticism that they have among their 
numbers some who are not first class tradesmen. That criticism can only be 
avoided or minimized by examination of applicants and implementation of 
apprenticeship training and up-grading programs to ensure the employer 
and the industry of competent, qualified and productive tradesmen. 

Some criticism has been levelled at the hiring hall procedure but let us 
assure you that justified criticism is an isolated situation, and in fact, it is a 
tried and proven process that is effective, fair and efficient as well as an 
economic solution to supplying manpower in the spasmodic nature of the 
construction industry. 

Before hiring halls came into existence, there was considerable evi- 
dence of individual workers bribing foremen with liquor or money to obtain 
or maintain employment. Persons doing dispatching for a union hiring hall 
have a very demanding job and are under very close scrutiny, not so much 
by the management of the local but by the members themselves. Members 
know their position on the out-of-work list and many make it their business 
to know what jobs have been filled, or if someone obtained employment out 
of turn, the dispatcher would have to have a very good reason. Further- 
more, a dispatcher could not accept one bribe and expect it to be kept a 
secret. A dispatcher who was known to accept a bribe would be subject to 
the most severe internal disciplinary action as well as the obvious available 
legal action. 

It is virtually the policy of all hiring halls to give all employers who hiring 
through the union hall equal treatment. The only exception in some cases, 
by employer union agreement, is a priority for the employer to rehire 
persons who had previously worked for him. There is also unique and 
considerable degree of personalized service with a union hiring hall. For 
example, some people cannot climb or work in high places, older trades- 
men need to have the opportunity for employment but may not be able to 
undertake a job outside in extremely cold weather and the dispatcher also 
soon gets to know of workmen who are less than satisfactory as they are the 
first laid-off or dismissed and he may be ineligible for rehire with some 
employers to the point that the member is wise to seek work in some other 
field of endeavour. 

In summation, union hiring halls are fair because the union membership 
insists on it, are efficient because of the service demanded by the members 

240 Report on the building industry 

and the employers, are economical to the industry and the employers in 
that they make available a ready-pool of specialized skilled tradesmen to 
employers for short or long-term employment eliminating the costly alter- 
native of employers retaining tradesmen in slack periods. 

The questionnaire circulated by Dr. Woods made reference to the 
Building & Construction Trades Department and Councils chartered under 
the Department. Questions related to such things as structure, who is 
affiliated, who can affiliate, if they are responsible for collective bargaining 
among others. First, you will note that I have enclosed a copy of the 
constitution of the Building & Construction Trades Department which in 
the latter portion describes the basic structure to govern Local and Provin- 
cial Building Trades Councils. I am sure you will find the constitution quite 

International unions or locals of international unions look after their 
own business in its entirety. The Building & Construction Trades Depart- 
ment was organized February 10, 1908 by the American Federation of 
Labour and now is under the afl-cio. It is formed by the building trades 
unions to deal with matters of common interest as defined in the constitu- 
tion. Local and Provincial Building Trades Councils chartered by the 
Department are established to provide a vehicle for local unions of the 
same international to get together on matters of common interest. It is 
mandatory that any local of an international union affiliated to the Depart- 
ment who request affiliation to a local Council be accepted on that applica- 
tion. It is not reasonable to assume, however, that any other local union 
could affiliate to a local Council as their parent body would have to be 
affiliated to the Building & Construction Trades Department, afl-cio to 
ensure that they would live up to the constitutional rules and regulations of 
the Department. 

The whole question of whether an outside union can affiliate to a 
Building Trades Council is of little consequence as the Councils are frater- 
nal. Councils do not direct local unions nor does the Department direct the 
internationals. Quite the contrary, the authority and direction is from the 

Another matter that has been brought to your attention is health, welfare 
and/or pension plans. Most of these plans have been started by individual 
local unions through their collective bargaining procedure which was the 
only possible way. Many trades have negotiated provincial, national or 
even international reciprocity agreements to provide portability of 
benefits, reserves, premiums or freezing benefits, whichever is appro- 
priate. The others are developing such an arrangement as more plans come 

Study papers and briefs 241 

into effect. If your investigation finds that some persons are not receiving 
benefits for their contributions, your recommendations should deal with 
that particular situation taking into account the actuarial feasibility of the 
situation. We would strongly suggest that your recommendations are not 
blanket in nature that might impede the ability of the vast majority of plans 
to provide proper, desperately needed coverage to workmen in the con- 
struction industry. Most plans are presently governed by trustees from 
unions and employers who are devoting a great deal of time, effort and 
personal ability to provide the best possible plans available to them. 

I trust that this material will be of assistance to you in formulating your 
report. Again let me say that we would be pleased to have the Ontario 
Representatives on the Advisory Board meet with you to verbally supple- 
ment this presentation at a mutually convenient time, approximately the 
first week in June. 

Sincerely yours, 

James A. McCambly 
Executive Secretary, 
Advisory Board for the Building Trades in Canada. 



Union Hiring Halls arose as a result of the unionization of trades workers 
who normally work in relatively short term full time employment with a 
number of employers and/or at a variety of work locations during the year. 
Trades workers initially organized to obtain negotiating strength for their 
members. This negotiation is carried out with groups of employers or 
employer associations in order to establish rates of pay , fringe benefits and 
working conditions. 

A natural evolution of this collective bargaining process was, therefore, 
that employers who recognized the agreement made their labour demands 
through the trade union. This allowed them to use a common pool of 
qualified labour and avoided the necessity of carrying labour on their 
payrolls awaiting contract work to materialize. The trade union, in re- 
sponse, established union hiring halls in order to meet the labour demands 
of the employers recognizing the trade union. 

242 Report on the building industry 

However, not all potential employers are party to the collective agree- 
ment, nor are all occupationally capable tradesmen members of the trade 
union. Approximately 280,000 trades workers obtain their employment 
through registration with hiring halls. This represents approximately 80% 
of the labour in this industry. 

From the uic's point of view it is essential that eligibility for benefits be 
determined in accord with the requirement that claimants be available for 
work and unable to obtain suitable employment. This eligibility require- 
ment is generally satisfied when claimants can demonstrate that they are 
carrying out a personal search for suitable employment. This raises 
difficulties for those claimants who normally obtain their employment 
through a union hiring hall because this facility is generally their single 
source of employment. 

From the trade unions' point of view it is essential that the agreements 
reached through the bargaining process are honoured and that their mem- 
bers' eligibility for ui benefits not be affected by virtue of their union 

From the employers' point of view, whether they recognize the trade 
union or not, it is reasonable for them to expect that vacancies in a trade do 
not exist at the same time as uic is paying benefits to unemployed workers 
with trade capabilities that would meet their needs. 

Clearly, it is in everyone's interest to establish practical lines of com- 
munication and information exchange to ensure that registered tradesmen 
are immediately exposed to suitable job vacancies and that unemployment 
insurance is extended to only those who fulfill all the requirements of 


To identify and obtain agreement from Trade Unions and Employer As- 
sociations on special control reporting procedures to establish eligibility 
for UI benefits for trade union employees. 


The Insurance Policy Guideline titled 'Conduct of the Active Job Search 
Program' contains a paragraph relating to hiring halls as follows: 
(Excepted from the Active Job Search Program are those:) 

'Who normally obtain their employment through either employer oper- 
ated or union sponsored hiring halls for a limited period from interruption 
of earnings. The length of this limited time is to be calculated in accordance 

Study papers and briefs 243 

with existing jurisprudence; that is, a basic 3 weeks plus 1 week for every 
year of experience in the skill or occupation to a maximum of 13 weeks. 
Exceptions outside this limited period are those claimants who are regis- 
tered with union halls with which the Commission has made special control 
reporting arrangements. In these cases a reasonable and customary job 
search will be deemed to be satisfactory when it has been confirmed that 
the claimant is in fact registered with the hiring hall. This may be done 
either through individual statements or general listings obtained from the 
hiring hall itself.' 


Any special control reporting procedures will be limited to those Hiring 
Halls which are 'recognized' by the Commission. In order to meet the 
requirements of recognition the following minimum criteria must be met: 

1. The hiring hall (or the obvious need for a hiring hall) must be clearly 
identified in a formal agreement between a trade union(s) and employers or 
an employer association. 

2. An orderly procedure for registration and dispatch must exist within the 
Hiring Hall. 

3. Access to Hiring Hall records must be guaranteed to uic Officers. 

4. All employer demands not filled by the Hiring Hall must be reported to 
the Commission. 


i . The Active Job Search program will not be applied to tradesmen regis- 
tered for employment in the Hiring Hall. 

2. Registered tradesmen will be deemed to be 'available for work' and 
fulfilling the requirements of the Active Job Search program without time 
limit, provided they are not unreasonably refusing suitable employment 
offered to them. 

3. No action will be taken to disqualify an individual claimant for refusal of 
work of duration less than one full working week. (Provided all short term 
trades labour demands are met by the Hiring Hall. This assumes that short 
term work refusal was in anticipation of full time work.) 


I . All employer demands whether short term or full time regular not filled 
must be reported to the Commission. 

244 Report on the building industry 

2 . Hiring halls must accept and fill labour demands from Canada Manpower 
Centres provided: 

(a) the employment offered is suitable and 

(b) all labour demands from employers who normally use the hiring hall 
have been filled. 

3. Certification of trades registration must be given on demand from the 

4. Business Agents must be available for discussion with benefit control 
investigators prior to interviews with claimants. 

5. Records of registered tradesmen, employer labour demands and de- 
mands unfilled must be acceptable to Commission. 


1. Detailed discussions with National and Regional executives of Building 
Trade Unions (afl-cio). 

2. Detailed discussions with Canadian Construction Association, Canadian 
Manufacturers' Association and Chambers of Commerce. 

3. Analysis of existing Commission/Union Hiring Hall control reporting 

4. Development of Draft control reporting procedure. 

5. Approval of procedure by national employer and employee organiza- 
tions following Commission approval of policy guideline. 

6. Preparation of information pamphlet. 

note: Completion of 5 above is intended prior to the National Building 
Trades Conference in Vancouver in early May. 


The United Brotherhood of Carpenters and 
Joiners of America Local 1747 


i. This brief is submitted to the Commission in response to a brief 
presented by the Inter- Provincial Council of Lathers. While, in the view of 
the United Brotherhood of Carpenters and Joiners of America Local 1747 
(hereinafter referred to as the 'Carpenters Union'), there are problem areas 
of serious concern in Union-Management relations under Ontario labour 
laws pertaining to the construction industry, which could and should be 
changed for the overall improvement of these relations as well as the 
position of employees and the public, it was thought that most of these 
matters were really beyond the purview of this Commission's limited 
inquiry. Accordingly, it was not the original intention of the Carpenters 
Union to present a brief to the Commission. The Carpenters Union felt that 
the Briefs submitted by the Council of Concrete Forming Trade Unions, 
and the Toronto Building and Construction Trades Council, sufficiently 
expressed its views and sentiments on the subject matter for purposes of 
this Commission. 

The fact, therefore, that the Carpenters Union did not submit an ex- 
tended Brief prior to this time was certainly not because of any lack of 
appreciation or concern on its part that there were problems and difficulties 
in Labour-Management relations and laws in the construction industry 
which require examination with a view to improvement. It is the purpose of 
the Carpenters Union in this Brief to indicate to the Commission some of 
the more obvious matters which may be of interest and assistance to the 

246 Report on the building industry 

Commission. Hopefully, this may assist the Commissioner to pursue the 
problems further, if, in his discretion, the subject-matter is sufficiently 
relevant to his inquiry. The Carpenters Union, therefore, has purposely 
made this Brief a form of short reply to the Lathers submissions with the 
understanding that if the Commissioner wishes to pursue any question 
further representatives of the Carpenters Union will welcome the oppor- 
tunity to discuss the matter with him. 


2. It is manifest that much of what is contained in the Brief of the Lathers 
concerning the causes and effects of the organizational rivalry between that 
Union and the Carpenters Union, including the alleged improprieties 
committed by members of the Carpenters Union against the Lathers, are in 
the nature of subjective allegations, more visceral than factual and for the 
most part tell only part of the story. Further, much is left undisclosed which 
would otherwise give the matter an explanation and a different complex- 

3. It is a matter of interest that the Lathers have not seen fit to mention 
that before it 'voluntarily recognized Local 562' as bargaining agent for 
certain 'employees engaged in the installation of drywall systems' (as 
mentioned on page 7 of the Lathers Brief), the Drywall Contractors As- 
sociation of Ontario, had signed a collective agreement with the Carpenters 
District Council of Toronto and Vicinity. This agreement, a copy of which 
is attached as Exhibit 1 hereto, was made on the 27th of May, 1963. This is 
relevant to the question of who was 'raiding' who when the Lathers were 
'voluntarily' recognized in 1970 by the same employer association. Con- 
trary to the impression sought to be created by Local 562 of the Lathers, 
officials of this Local, were very active at this time in seeking to undercut 
the carpenters' rates to obtain through voluntary recognition and voluntary 
agreements all of the drywall and related work which had and was being 
done by members of the Carpenters Union. 

4. Again, contrary to the allegations made by the Lathers, the motivation 
for the voluntary agreement between the Lathers Local 562 and the 
Drywall Association of Ontario, was simply the desire on the part of the 
Lathers to get the work and increase their memberships and dues at the 
expense of the Carpenters, and on the part of the employers to pay less than 
they would otherwise have had to pay in rates for Carpenters. It is open to 
question, whether at the time the Lathers signed the voluntary agreement 
with the Drywall Association, they had any, or sufficient, members among 

Study papers and briefs 247 

the employer members of this Association to be entitled to represent the 
employees under the Labour Relations Act (see Section i(e) of the Labour 
Relations Act). 

5. Mention is made in the Lathers' Brief of a preference for a piece-work 
basis of payment by many new members of Local 562 who had been 
previously employed on an unorganized basis in the residential sector (see 
page 8, Lathers' Brief). Note is also made in the Brief that the membership 
of Local 562 agreed to the introduction of the piece-work incentive basis of 
employment. When a person is employed on piece-work he gets paid for 
the job, and, it appears, is really more of an independent contractor than an 
employee under the Labour Relations Act. Independent contractors are 
not employees and cannot be represented under a collective agreement 
within the meaning of the Labour Relations Act. An independent contrac- 
tor would not receive any welfare benefits, vacation pay, unemployment 
insurance, Canada Pension Plans, or, in many instances, workmen's com- 
pensation. It is of interest that Gus Simone in his testimony to the Commis- 
sion made reference to the fact that he had struggled to bring Croation 
"piece-workers' from the residential sector into the Union. It is also of 
interest that Simone claimed that membership in Local 562 had increased 
from about 350 to about 1,400 since the formation of the Local, when the 
residential section of Local 97 Lathers broke away to form Local 562. How 
many of those claimed 'members' are really independent contractors? It is 
notable in his testimony to the Commission, that Simone admitted that the 
Local only registered about one-third of its members for the purpose of 
paying per capita tax to the International Lathers Union. The Carpenters 
Union believes that a significant portion of the so-called members of Local 
562 are indeed made up of persons who in fact work as independent 
contractors and not as employees under the Labour Relations Act. 

6. Northdown Drywall and Construction Limited, a Company frequently 
referred to in the Brief of the Lathers, was instrumental in the formation of 
a new Drywall Association, Interior Systems Contractors Association. 
This Company, of course, was formed by the principals Cesaroni Brothers, 
Gambin Brothers Limited and Donaldson-Barron Limited. Local 562 be- 
came a 'welcome union' to Northdown because it was prepared to enter 
into a voluntary (or 'sweetheart') recognition agreement providing for 
lower wage rates and less favourable terms of employment than Local 97 
and permitted a piece-work basis of payment. 

7. In 1965, the Ontario (Orliffe) Jurisdictional Disputes Commission or- 
dered Donaldson-Barron Limited which had an agreement with Local 1747 
of the Carpenters, to re-assign the erecting of drywall work which it had 

248 Report on the building industry 

assigned to the Lathers to members of Local 1747 Carpenters. Copies 
of decisions of the Jurisdictional Disputes Commission involving 
Donaldson-Barron Company Limited on two projects and requiring the 
re-assignment of this work from the Lathers to the Carpenters are attached 
and marked Exhibit 2 hereto. While this work was found clearly to be 
within the craft jurisdiction of the Carpenters Union, the Lathers neverthe- 
less set out to take it from the Carpenters, and subsequently were able to 
obtain such work from Northdown Drywall and members of the Interior 
Systems Contractors Association of Ontario at wage rates lower, and 
employment terms less favourable, than Carpenters. Further, employees 
of Northdown at projects at Hyatt House and Four Seasons Hotel, re- 
ported to the Carpenters that Northdown was paying them even less than 
the rate stipulated in its collective agreement with the Lathers. When they 
complained of this to Simone, he is reported to have told them that if they 
did not like it they could quit. 

8. The memberships of Ottawa Local 423 and Toronto Local 97 elected 
themselves to defect to the Carpenters Union because of the bad deal 
which they were getting as Lathers from the Lathers Union. Former 
officers of these Locals who now hold office with the Carpenters are bitter 
in their denunciation of the treatment which they received at the hands of 
the Lathers. 

9. The rivalry which is spoken of in the Lathers Brief between Locals 97 
and 562 resulted from the fact that members of Local 97 were increasingly 
losing work because members of Local 562 were prepared to work for 
lower wages and less favourable working conditions and, as a matter of 
economic considerations, employers were prepared to favour the cheaper 
labour offered by Local 562. Also, pressure was applied by the President of 
the Lathers Union, at the behest of Ken Weller, to compel a merger of 
Local 97 into Local 562 so that they would all be required to work under 
agreements of Local 562. The rivalry did not result from a jurisdictional 
dispute , as the Lathers in their Brief would have the Commissioner believe. 
It resulted in a large measure from the fact that Simone and Weller were 
intent on destroying Local 97 and obtaining its membership and dues and a 
complete monopoly of the work for Local 562. The Carpenters Union also 
believes that there were added incentives in the form of favours and 
kick-backs from employers. 

10. Employers, in the like of Northdown, saw a substantial advantage to 
themselves over their competitors arising from this rivalry and were, 
therefore, anxious to assist in and accommodate the speedy take-over by 
Local 562 because it meant cheap rates for Lathers and they preferred the 

Study papers and briefs 249 

easier and more co-operative relationships with Simone and Weller. 

11. As part of the scheme to destroy Local 97, the General President 
ordered Local 97 to merge with Local 562 and ordered all the work to be 
done by 562. Local 97 then initiated court proceedings for an injunctive 

12. This action for an injunction was initiated after Weller and Local 562 
had taken a position that the merger had been effected by General President 
Georgine's orders and had sent notices to this effect to the Dry wall contrac- 
tors and had removed the books and records from the office of Local 97 and 
transferred them to Local 562. 

13. Following the initiation of this litigation, the Lathers International 
and Local 562 agreed to and did return all of the books and records of Local 
97 and abandoned their attempt to compel the merger. It was in conse- 
quence of, and part of this settlement that the action did not proceed 
further. At the same time proceedings for consent to initiate a prosecution 
were brought under the Labour Relations Act by Local 97 to prosecute the 
Lathers on the grounds, among other things, of the intimidation of its 
members. This application was not dealt with on the merits but was 
dismissed on a technicality. 

14. During this same period, Local 97 was taking a position that North- 
down was bound to bargain with it as the bargaining agent for its em- 
ployees , because of the successor rights provisions of the Labour Relations 
Act, and the expired collective agreements which Local 97 had with its 
predecessors, Cesaroni, Gambin and Donaldson-Barron. Northdown 
claimed that it was an independent Company which just happened to have 
the same principals. In proceedings on the basis of these expired agree- 
ments, Local 97 claimed a right to bargain with Northdown and asked for 
the appointment of a conciliation officer. At first Northdown resisted this 
on the grounds that Local 97 had no bargaining rights but eventually 
consented to the appointment. A conciliation officer was later appointed 
but Northdown continued to refuse to bargain in any meaningful fashion. A 
'no-board' report was later made following which Local 97 called a 'legal' 
strike and picketed the job sites of Northdown. However, sister Local 562, 
which had entered into a 'sweetheart' arrangement with Northdown under 
which it provided all of Northdown' s employees, at rates and working 
conditions that undercut those which would have been required by Local 
97, ignored Local 97 pickets and continued to provide Northdown with 
Lathers. Finally, in desperation Local 97 brought an application to the 
Ontario Labour Relations Board for a declaration that Local 97 was the 
sole bargaining agent for the employees of Northdown. This application 

2S0 Report on the building industry 

was, of course, vigorously opposed by Local 562 and Northdown. The 
basis of their attack, which was successful, was that the old agreement 
which had been negotiated by the Provincial Council of Lathers and pre- 
pared or approved by its lawyers, and which in similar form had been the 
basis of an agreement between contractors and unions for years, was 
defective in its compliance with the Ontario Labour Relations Act. This 
represented a major victory for Local 562 in its objective to destroy Local 
97. It was because of this, and the growing disenchantment of the members 
of Local 97 with the Lathers Union and with the sleazy tactics and un- 
favourable notoriety which the Lathers Union had received through rep- 
resentatives Weller and Simone, that the membership of Local 97 finally 
decided by an overwhelming majority to defect en masse to the Carpenters 
Union. The account of this defection in the Lathers Brief is less than 
accurate or complete. 

15. It was also reported to officials of the Carpenters Union that persons 
who were being supplied by Local 562 as 'Lathers' to Northdown were 
really unqualified as journeymen lathers. Apparently, this was also a 
reason for Local 562 wishing to merge with Local 97 because it would have 
given Local 562 a nucleus of highly skilled members. 


16. Under the jurisdictional provisions of the Constitution of the Interna- 
tional Brotherhood of Carpenters and Joiners of America, which are based 
on its craft and trade jurisdiction as established over many years, acoustic 
and drywall application work is noted as being included within the craft of 
the Carpenters. One of the separate craft job classifications given to this 
type of work by the Carpenters is that of the drywall and acoustic 
mechanic. Attached and marked Exhibit 3 is a copy of the Constitution of 
the Carpenters Union, together with a copy of the collective agreement 
made between the Acoustical Association of Ontario and The Ontario 
Provincial Council, United Brotherhood of Carpenters and Joiners of 
America, expiring on 30th of April, 1974, marked Exhibit 4. 

17. The Acoustical Association of Ontario and The Ontario Provincial 
Council are and have been for years parties to successive collective agree- 
ments covering members performing the work which is claimed by the 
Lathers (see Article 4 of the attached agreement) Local 1747 of the Carpen- 
ters is the Local which is primarily engaged in this type of work. A course of 
training has been established for drywall and acoustic mechanics which is 

Study papers and briefs 251 

approved and recognized by the Department of Labour. Attached and 
marked Exhibit 5 is a copy of the programme of training for this job 
classification. Also, of course, the Regulations of the Department of 
Labour under the Apprenticeship and Tradesmen Qualifications Act have 
long contained training requirements for acoustic ceilings and lathing 
work. This is noted in the Regulations pertaining to the general carpenter 
attached and marked Exhibit 6 to this Brief. 

18. The Carpenters do not agree as put in the Brief of the Lathers that 
'one of the root causes of the jurisdictional disputes between the Carpen- 
ters and the Lathers stems from the decisions of the National Joint Board 
now known as the "Impartial Jurisdictional Disputes Board." The Joint 
Board procedures and the procedures of its successor, the Impartial Juris- 
dictional Disputes Board, created for the solution of jurisdictional disputes 
were, of course, set up as a result of agreements made between the 
International Unions in the Construction Industry including the Carpenters 
and Lathers. Moreover, these authorities for the determination of jurisdic- 
tion disputes have been accepted as well by various employer associations 
in the construction industry including the major employers in Ontario. 

19. Whereas the National Joint Board and its successor the Impartial 
Jurisdictional Disputes Board have , it appears , sought to award in favour of 
established and traditional craft claims, the Ontario Labour Relations 
Board has looked at other criteria, including matters of pure economy. It 
appears that the Ontario Labour Relations Board has given considerable, 
and it is arguable, undue weight to the factor of economy while not giving 
sufficient consideration to established craft claims. The known emphasis 
which the Ontario Labour Relations Board has seen fit to place on the test 
of economy simpliciter has encouraged employers, including Northdown 
Dry wall, to make agreements with the Lathers to do dry wall work, at less 
than Carpenters rates, with the expectation that all original work assign- 
ments to the Lathers under such agreements will be upheld by the Board on 
the grounds of economy. This criteria which has been applied by the 
Ontario Labour Relations Board has actively encouraged jurisdictional 
disputes. Moreover, it has resulted in feelings of dire frustration on the part 
of craft unions, including the Carpenters Union, which has, in consequ- 
ence, on occasion, felt compelled to resort to self-help through the only 
means available, i.e. a work stoppage, in an effort to preserve the liveli- 
hood of its members. It is understandable, therefore, that the Lathers 
Local 562 is not sympathetic to the National Joint Board and favours the 
Ontario Labour Relations Board. 

252 Report on the building industry 

20. Attached is a copy of a national decision from the National Joint 
Board on the matter of 'ceiling systems' which may be of interest to the 
Hoard and is marked Exhibit 7 hereto. 

2 1 . The Lathers Union has, it seems, been prepared to accept decisions 
of the National Joint Board so long as it awards in its favour but when the 
award is adverse to this Union, based upon traditional craft claims, the 
Lathers have complained and resorted to the courts. Attached is a copy of 
the analysis and comments of the National decision of the National Joint 
Board which refers to litigation brought by the Lathers Union in the Dunlop 
case. This document is marked Exhibit 8 hereto. 

22. A recent example of the use of the Impartial Joint Board by the 
Lathers is exemplified in the correspondence referred to on page 22 of the 
Lathers Brief. As a matter of interest, the work referred to at the Travel 
Lodge project mentioned in this correspondence has continued to be 
performed by Carpenters. Additional correspondence received in connec- 
tion with this matter subsequent to the Lathers' Brief is attached as Exhibit 
8A and shows a different reason for the removal of Northdown. 

23. Attached is a photostatic copy of a letter dated the 7th of May, 1973, 
sent by Mr. Weller to Aykroyd Construction Limited, and marked Exhibit 
9 to this Brief. The Commission will find the letter self-explanatory and 
indicative of the tactics employed by Local 562 in its competition to take 
work from the Carpenters. 

24. The litigation referred to on page 15 of the Lathers Brief did not 
proceed to a trial on the merits because Local 97 of the Lathers Union and 
the Carpenters reached an understanding, without admission of liability, 
that for the future both would refrain from committing any of the acts 
complained of in the pleadings. It is of interest that an action was also 
brought by representatives of the Carpenters Union against the representa- 
tives of Local 97, including Weller. The Carpenters in this action also 
moved for injunctive relief to restrain the Lathers and Weller from illegal 
strikes and threatening the same. Attached as Exhibit 10 is a photostatic 
copy of the Writ of Summons issued by the Carpenters Union against 
Weller and the other representatives of Local 97, together with a copy of an 
Affidavit sworn by Alfred Joseph Leger deposing to illegal strike activities 
and threats undertaken by representatives of Local 97 and Weller. 


25. The Lathers in their Brief seek to make something uniquely sinister or 

Study papers and briefs 253 

monopolistic out of the 'no-subcontract' clause contained in Carpenters 
agreements. Attached is a copy of a standard agreement of the Inter- 
Provincial Council of Lathers and Affiliates, and marked Exhibit 1 1 to this 
Brief. It is of interest to compare Article 7 of this agreement, which requires 
employers to employ only members of Unions for which the employer has 
an agreement, with the Carpenters sub-contract clause. A recent 
Province- wide agreement signed between Local 562 and the Interior Sys- 
tems Contractors Association, marked Exhibit 12 to this Brief, is more 
obvious. This incorporates a detailed Union and jurisdictional security and 
recognition clause setting forth in wide and specific terms the claimed craft 
jurisdiction of the Lathers. It hardly lies in the mouth of the Lathers to 
accuse the Carpenters of monopolistic agreements (see Articles 4 and 15). 
It is also of interest that this agreement in Article 8 contains a provision 
which entitles the employer to apply 'a system of remuneration for the 
erection of dry wall Gypsum board for the duration of this agreement.' 
Obviously this entitles the employer at its option to utilize a different basis 
of payment than hourly rates as provided for in the agreement and would 
accommodate a form of piece-work payments. 

26. It is also a matter of interest that Article 16.02 of the foregoing 
agreement makes the Union responsible for all legal fees incurred by the 
employer in cases where the employer is involved in a jurisdictional dispute 
with the approval of the Union. This means that where a jurisdictional 
dispute is initiated or prosecuted by the employer with the approval of the 
Union against another Union, Local 562 is responsible for the employer's 
legal costs. A clause similar in form appears in the earlier agreement 
between Local 562 and this association. This provision obviously serves to 
promote the type of situation which developed in the Northdown Drywall 
Construction Limited case referred to in the Lathers Brief. In that case, the 
Carpenters had a collective agreement with Camston Limited under which 
the latter Company agreed not to sublet work except to subcontractors who 
employed members of the Carpenters Union. When, contrary to this ag- 
reement, the work was assigned to members of Local 562 by Northdown, 
the Carpenters submitted a grievance to the general contractor Camston 
Limited. The Carpenters had no collective agreement with Northdown and 
accordingly made no demands for an assignment of the work from that 
Company. Following the submission of the grievance, however, to Cams- 
ton Limited, the latter Company advised Northdown that the work had to 
be either assigned to Carpenters or the Company had to agree to save 
Camston Limited harmless from any liability incurred by that Company as 
a result of the Carpenters' grievance. 

254 Report on the building industry 

27. Northdown then immediately advised Wellerand Simone, represent- 
ing Local 562, of what had happened and of the grievance submitted by the 
Carpenters to Camston Limited and what Camston was requiring it to do. 
Weller and Simone them conveniently threatened Northdown with an 
illegal strike if the work was re-assigned to the Carpenters. Armed with this 
threat, Northdown then went to the Ontario Labour Relations Board and 
obtained an interim cease and desist order under Section 81 (8). This 
section provides that where a complaint is made that one trade union is 
requiring work to be assigned to it rather than to another trade union, and it 
is alleged that a strike is imminent, 'the Board may, after consulting any 
employer, - trade union - make an interim order with respect to assignment 
of the work as in its discretion it considers proper.' The Board, thereupon, 
as is its usual practice, issued an interim cease and desist order in favour of 
maintaining the status quo original work assignment until a decision could 
be made later on the merits of the dispute. Following the interim order, an 
application was made by the Carpenters Union for consent to prosecute 
Local 562, Simone and Weller, for threatening an illegal strike. The Car- 
penters also replied in the jurisdictional dispute proceedings taking the 
position, among other things, that the proceeding did not constitute a 
proper jurisdictional dispute and alleging subterfuge and conspiracy on the 
part of the Lathers and Northdown to work together to abuse the processes 
of and hoodwink the Board. Later, before the matter could be heard by the 
Board, and after the work was substantially completed, Northdown, not 
unexpectedly to avoid a showdown on the merits and its role in the matter, 
withdrew the complaint. The interim cease and desist order provided by 
the Board was. therefore, used by the Lathers and Northdown as a conve- 
nient strategem to preserve the original assignment until the work was 
substantially completed. While this constituted a flagrant abuse of the 
Board's procedures, because of the obvious subterfuge, it was neverthe- 
less extremely successful in serving the purposes of the Lathers. Such 
permitted tactics by the Ontario Labour Relations Board contribute to a 
disrespect for the law, and a lack of confidence in the Labour Relations 
Board as a competent tribunal to administer it. It borders on the incredible 
to read in the Lathers' Brief that they advocate the repeal and removal of 
the prohibition in the Act against threatening illegal strike. As they did 
point out. Local 562 was later convicted by a Provincial Court Judge and 
fined for threatening the illegal strike. It was this strike which induced the 
Ontario Labour Relations Board to become an unwitting pawn in the 
conspiracy of Northdown and 562 to preserve the original assignment of 
the work to Lathers until the work was substantially complete. Unfortu- 

Study papers and briefs 255 

nately , also to their advantage, the Ontario Labour Relations Board did not 
move with much expedition in the processing of this dispute to a hearing on 
the merits. 

28. Reference is made in the Lathers' Brief to a Carpenters' picket line 
which had been set up on a project at 2 Bloor Street East, Toronto (see page 
21 of the Brief). The work in question had been done by Carpenters who 
had been working for a contractor known as Productive Systems Limited. 
This Company had suddenly gone out of business owing substantial 
amounts of wages and vacation pay to each of the carpenters. The Carpen- 
ters, who. understandably, were bitter and frustrated for not being paid 
their wages , picketed the job site protesting the non-payment of their wages 
and vacation pay. 

29. Contrary to the impression sought to be created in the Lathers' Brief 
at page 23, the pickets placed on the Harbour Square Hotel Project were 
there in consequence of a legal strike following a no-board report, with the 
General Contractor Campeau Corporation Limited. It is of interest that the 
Lathers employed by Lido Drywall Limited who worked on the project 
before the strike and pickets, continued to work on the project after the 
Carpenters Union signed a collective agreement with the General Contrac- 
tor and completed the job. 


Norman LeBlanc 

President, Local 1747, The United 
Brotherhood of Carpenters and 
Joiners of America 

W. Johnston 

Business Representative, Local 1747, 
The United Brotherhood of Carpenters and 
Joiners of America, 


Certification, Accreditation, Jurisdictional 
Disputes, and Section 123 
Cases Disposed of by O.L.R.B. in Fiscal 
Year 1973-4 

This memorandum consists of two parts. Part I examines the distribution of 
certification, accreditation, jurisdictional disputes, and section 123 cases 
disposed of by the olrb in the fiscal year 1973-4 among the construction 
and non-construction panels of the Board. Part 11 gives an account of all the 
accreditation applications received since the accreditation provisions were 
included in the Ontario Labour Relations Act in February 1971. Data on 
Part 1 are provided in Tables 1 and 2, and those on Part 11 in Tables 3, 4, and 


In Tables i and 2, the designation 'c Member' refers to the construction 
employer and employee representatives on the olrb; 'nc Chairman' refers 
to a non-construction vice-chairman of the Board; and 'nc Member' refers 
to a non-construction representative. The construction members of the 
Board consist of vice-chairmen Franks and Furness and representatives 
Ade and Boyer. All the other vice-chairmen and representatives are non- 
construction members. 

The two construction vice-chairmen, Franks and Furness, are named at 
all times in Tables 1 and 2, when accounting for the cases they handled. 
Where the two construction representatives, Ade and Boyer, both partici- 
pated in a case with either Franks or Furness, they are also named. 
However, where both Ade and Boyer, or either of them, dealt with a case 
with any of the non-construction members, including the non-construction 
vice-chairmen, they are referred to merely as 'c Members.' 

258 Report on the building industry 


Certification applications 

Data on the distribution of certification applications among the construc- 
tion and non-construction members of the olrb are presented in Table I in 
two parts. Part a relates to construction applications and Part b to non- 
construction applications. 

Construction applications 

As Table ia shows, 463 construction certification applications were dis- 
posed of by the olrb in the fiscal year 1973-4. The overwhelming majority 
of them, 97.7 per cent (452), were handled by the two construction vice- 
chairmen, Franks and Furness. In 71.5 per cent (331) of the cases, a full 
construction panel composed of either Franks or Furness and Ade and 
Boyer participated. In 8 per cent (37) of the cases, a mixed panel, com- 
prised of Franks or Furness, one other construction member, and a non- 
construction member, dealt with the application. There were 54 cases ( 1 1 .7 
per cent) handled by either Franks or Furness alone. These cases were 
withdrawn within two to four days after they were filed, and therefore 
required only an administrative decision by a chairman. 

Non-construction chairmen dealt with 11, only 2.3 per cent, of the 
construction applications disposed of. A fuil panel processed 4 of these 
cases, and in 2 of them a construction member participated. The participa- 
tion of all non-construction members in construction cases amounted to 78 
applications, 16.8 per cent of the total disposed of. 

Reed and Brown were the chairmen in the 1 1 cases that were not handled 
by the two construction chairmen. While they were included among the 
non-construction members, they were not unfamiliar with the problems of 
construction applications. Reed was the chairman of the construction 
industry division when it was first established by the 1961 amendments to 
the act: and Brown headed it when Reed became chairman of the Board in 
1966. Accordingly, all of the construction cases disposed of in 1973-4 were 
handled by chairmen who were experienced in dealing with such applica- 

Table ia further shows that all but 2 of the 112 hearings held in the 
construction cases were conducted by the two construction chairmen. 
Franks and Furness. A full construction panel accounted for 59.1 per 
cent of the total time taken in these hearings. On the other hand, 98.3 per 
cent of the total hearing time involved the construction members. 

Study papers and briefs 259 

Non-construction members' participation in construction case hearings 
amounted to 40.9 per cent of the total time recorded. 

Non-construction applications 

The Board disposed of 833 non-construction certification applications in 
the fiscal year 1973-4 (Table ib). The two construction chairmen, Franks 
and Furness, handled 10.2 per cent (85) of them, and used up 16.4 per cent 
of the total time spent in the hearings in these cases. These are larger 
proportions than the 2.3 and 1.7 per cent accounted for, respectively, by 
non-construction chairmen who dealt with construction cases. All the 
construction members participated in 26.9 per cent of the non-construction 
cases, compared to the 16.8 per cent participation rate for all non- 
construction members in construction cases. However, the construction 
members spent less time in the hearings involved in the non-construction 
cases they dealt with than the non-construction members took in the 
hearings in the construction cases they handled, 34.9 per cent as against 
40.9 per cent. 

The heaviest concentration in the handling of non-construction cases 
occurred among the non-construction chairmen. They dealt with 89.8 per 
cent of the cases, and spent 73.6 per cent of the time taken in the hearings in 
them. When all the non-construction members are considered, the propor- 
tions increased to 96. 1 and 81.3 per cent, respectively. 

Accreditation, jurisdictional disputes, and section 12s cases 
Because few of these cases were disposed of in the fiscal year 1973-4, and 
because of their limited distribution among the members of the Board, data 
on them are presented in one table (Table 2) . All of these cases apply to the 
construction industry. 

Accreditation cases 

A full construction panel composed of Franks, Ade, and Boyer handled 18 
of the 21 accreditation cases disposed of in 1973-4, and accounted for 61.3 
per cent of the time taken in the hearings held in them. Of the remaining 
three cases, one was handled by a mixed panel headed by Franks, and two 
by a mixed panel headed by a non-construction chairman. Thus, the 
construction members participated in all the accreditation applications 
disposed of. 

Jurisdictional disputes cases 

Only three jurisdictional disputes cases in the construction industry were 

260 Report on the building industry 

disposed of in 1973-4. None of them was handled by a full construction 
panel, but construction members participated in all three. 

Section 123 cases 

Unlike the other categories of construction cases, construction members 
took little part in the processing of section 1 23 cases. They were involved in 
only 4 of the 22 cases disposed of in 1973-4. None of the 4 was handled by a 
full construction panel, and only in one case was the panel headed by a 
construction chairman. The bulk of the section 123 cases (15) were dealt 
with by a non-construction chairman. All 15 cases were, however, with- 
drawn before formal action was taken. As a rule the majority of section 123 
cases are withdrawn before the formal stages of processing and, therefore, 
only an administrative decision by a chairman is necessary to dispose of 


Of the 1296 certification cases disposed of in the fiscal year 1973-4, tne 
construction members of the Board handled the large majority of the cases 
relating to the construction industry. Similarly, the non-construction 
members dealt with the large bulk of the cases in industries other than 
construction. Construction members were involved in all the accreditation 
and jurisdictional disputes cases, but they took little part in section 123 
cases. The use of mixed panels of construction and non-construction 
members, and assignment of non-construction cases to the construction 
panel and of construction cases to the non-construction panels are ex- 
plained by the Board's efforts to cope with its increasing caseload and to 
fulfil scheduling timetables. 


The provisions of the Ontario Labour Relations Act permitting employer 
groups in the construction industry to seek accreditation to represent 
contractors have been in effect for more than three and a half years. As of 
15 September 1974, only 54 applications were made to the olrb for this 
right. Accreditation was granted in 38 cases: 8 cases were dismissed, 2 
withdrawn, and 8 were pending. 

Tables 3 and 4 show that the 38 accreditations that have been granted 
were issued to 22 construction associations representing 2152 contractors 
employing 19,005 workers in 14 trades, of which plumbers are the largest 
group. Seven of the accreditations apply on a province-wide basis and 31 

Study papers and briefs 261 

are limited to an area. The geographical coverage of the 38 accreditations 
corresponds to that of the collective agreements involved. 

Ten of the 19 unions that negotiate agreements in the construction 
industry are affected by the accreditations that were issued by the Board. 
Table 5 lists the ten unions, and relates the accreditations to the agreements 
they have. As shown, the 38 accreditations apply to 16.4 per cent of the 232 
construction pattern-setting agreements that the ten unions now hold and 
affect 25.1 per cent of the 75,613 employees under the terms of these 

By individual union, all construction workers covered by the Boiler- 
makers' Union's province-wide agreement are under accreditation. The 
Structural Iron Workers' Union was half of its agreements involved in 
accreditation, covering 70.4 per cent of the employees they represent. 
Accreditation affects 46.3 percent of the construction agreements held by 
the Plumbers' Union and 44 per cent of the workers under these contracts. 
More than a fifth (22.6 per cent) of the Sheet Metal Workers' Union's 
agreements, covering more than half (53.3 per cent) of the employees 
affected, are under accreditation. Fewer than 10 per cent of the construc- 
tion agreements negotiated by the Carpenters', International Operating 
Engineers', Labourers', Plasterers', and Teamsters' Unions come under 
accreditation; and between 7.3 and 20.8 per cent of the workers for whom 
they bargain are involved. The Electrical Workers' (ibew) Union has the 
smallest ratio of construction members under accreditation, 3.8 per cent; 
but more than 14 per cent of its agreements are affected. 

Over-all, the 38 accreditations apply to 13.5 per cent of the total 281 
construction pattern-setting agreements held by all unions in the industry; 
and 20 per cent of the 95,183 workers covered by these contracts are 


23 September, 1974 

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APPENDIX 1 (exhibit 1038) 
Advertisements of Commission hearings 

Exhibits 271 











Niagara Falls 








Sault Ste Marie 

St Catharines 


Thunder Bay 

Thunder Bay 













The Expositor 

Daily Reporter 

Daily Mercury 

The Spectator 



Free Press 


Daily Journal Record 




Le Droit 



Sault Daily Star 



The Chronicle-Journal 

The Times-News 

The Daily Press 

Corner Canadese 


Daily Commercial News 

The Financial Post 

The Globe and Mail 

The Ontario Gazette 

O Jornal Portugues 



Torontoer Zeitung 


May 8, 24, Aug. 27, Feb. 9, 1973 

May 7, 24, Aug. 27, Feb. 8, 1973 

May 7, 23, Sept. 6, Feb. 9, 1973 

May 7, 23, Aug. 27, Feb. 8, 1973 

May 7, 24, Aug. 27, 1973 

May 24, Aug. 27, Feb. 8, 1973 

May 7, 24, Aug. 27, 1973 

May 8, 24, Aug. 27, Feb. 1 1 , 1973 

May 8, 24, Aug. 27, 1973 

May 8, 25, Aug. 27, 1973 

May 7, 25, Aug. 27, Feb. 6, 1973 

May 7, 25, Aug. 27, Feb. 5, 1973 

May 26, June 6, Sept. 1 , 

Feb. 11, 1973 

May 8, 24, Aug. 27, 1973 

May 7, 24, Aug. 28, 1973 

May 7, 24, Aug. 27, 1973 

May 7, 25, Aug. 27, Feb. 8, 1973 

May 8, 25, Aug. 27, 1973 

May 7, 25, Aug. 27, 1973 

May 8, 26, 1973 

May 8, 24, Aug. 27, 1973 

Aug. 30, 1973 

May 24, Sept. 6, 1973 

May 9, Aug. 27, 1973 

May 12, 26, Sept. 1, 1973 

May 7, 24, Aug. 27, 1973 

Sept. 1, 1973 

Sept. 14, 1973 

May 7, 23, Aug. 28, 1973 

May 7, 24, Aug. 27, 1973 

May 25, Sept. 7, 1973 

May 7, 25, Aug. 27, 1973 

272 Report on the building industry 

APPENDIX 2 (exhibit 1037) 
Letter and list of counsel 

The Royal Commission 



TE 309. i«S OuEEN STREI 

Dear Sir: 

The Commissioner has fixed 5th March next as the 
date on which he will hear any additional evidence or 
oral submission on behalf of any person affected by the 
evidence heard to date by this Royal Commission. If more 
than one day is required then the hearings will continue 
from day to day until completed. He has directed that 
this letter be sent to all counsel appearing at the hearings. 

If your client wishes to lead such evidence or to 
have an oral submission made, you should notify the Com- 
mission by 26th February next of the name and address of 
any witness intended to be called and a brief summary of 
the matters in respect of which he is intended to testify. 
This requirement is to enable Commission Counsel to ensure 
that the evidence is within the terms of reference, that 
any person likely to be affected thereby can be notified 
to be present and to arrange an appropriate timetable for 
witnesses. Unless you intend to call evidence or to be 
heard further, you need not reply to this letter. 

Yours truly, 


A. E. Shepherd, 
Commission Counsel 

Exhibits 273 

S. Adlam 

Martin I. Applebaum 

M. Armel 

Robert P. Armstrong 

E.S. Beatty 

J.B. Berkow 

Igor Bobrow 

Garry K.C. Braund , Q.C. 

B.D. Brown 

P.J. Brunner 

Milton A. Cadsby, Q.C. 

J. Ronald Charlebois 

H.H. Elliott, Q.C. 

Ivan Fleischmann 

Marvin Givertz 

S.I. Glober 

R.I. Goldin 

B. Hornsby 

David Humphrey, Q.C. 

A. Kaplan 

Raymond Koskie 

Alan J. Lenczner 

S.B. Linden 

Michael D. Lipton 

D.H. Lissaman, Q.C. 

J. Markson 

Jonathan H. Marler 

Frank Marrocco 

T.C. Marshall 

P.T. Matlow 

W.R. Maxwell 

A.M. Minsky 

John McDougall 

R. Roy McMurtry, Q.C. 

Ian R. McTavish 

S. Moscoe, Q.C. 

J. Murphy 

S. Naftolin 

J.C. Osborne 

I. Outerbridge, Q.C. 

Richard Parker 

John B. Piazza 

A.I. Posluns 

Bruce M. Ralph 

Moishe Reiter 

John M. Rosen 

Michael E. Royce 

R.C. Rutherford, Q.C. 

Ian Scott, Q.C. 

M.L. Sidenberg 

R.G. Slaght 

S.H. Starkman 

C.A.E. Thulean 

T.C. Warne 

Lawrence J. West 

David A. Wetmore 


I availed myself of the following bibliography: 

Report of the Royal Commission on Labour-Management Relations in the 

Construction Industry, H. Carl Goldenberg, obe, qc. Commissioner. 

March 1962 

Report of an Industrial Inquiry Commission concerning Matters Relating 

to the Disruption of Shipping on the Great Lakes, the St. Lawrence River 

274 Report on the building industry 

System and Connecting Waters, the Honourable T.G. Norris, Commis- 
sioner. July 1963 

Construction Labour Relations, edited by H. Carl Goldenberg sm, obe, 
qc, llb, and John H.G. Crispo, commissioned by the Canadian Construc- 
tion Association. 1968 

Report of the Royal Commission Inquiry into Labour Disputes, the Hon- 
ourable Ivan C. Rand, cc. Commissioner. August 1968 
Canadian Industrial Relations, the Report of Task Force on Labour 
Relations, H.D. Woods, chairman. December 1968 

Inquiry re Alleged Improper Relationships between Personnel of the On- 
tario Provincial Police Force and Persons of Known Criminal Activity, 
The Honourable Mr Justice Campbell Grant, Commissioner. July 1970 
Proceedings of the Programme on Labour Law, Department of Continuing 
Education, The Law Society of Upper Canada. June 1971, April 1972, 
April 1974 

Labour Organizations in Canada, 1971. Economics and Research Branch, 
Canada Department of Labour 

Report of The Honourable Mr. Justice Wilfred D. Roach re the Extent of 
Crime in Ontario and the Sufficiency of the Law Enforcement Agencies to 
deal with it. 1962 

Report of the Commission of Inquiry into Industrial Relations in the Nova 
Scotia Construction Industry. H.D. Woods, Commissioner. September 

Justice Delayed - The Arbitration Process in Ontario for the Labour 
Council of Metropolitan Toronto, Howard Goldblatt. 1974 
Study on Trusteeship for the Research Branch of the Ministry of Labour, 
David Katz. October 1973 

APPENDIX 4 (exhibit 600) 
Charge of price-fixing 









Exhibits 275 



Before the Honourable Mr. Justice s.h.s. hughes, at Toronto, 
Ontario, on the 20th day of November, 1969. 


W. Z. ESTEY, Q.C., 



Counsel for Crown, 

Counsel for Norman Lathing, 
A. V. Hallam Lathing, 
Gambin Brothers, 
C. Strauss, 

Counsel for Nelson and Son, 

Counsel for Cesaroni Bros. 

Counsel forO.M. Baird & Co, 

Counsel for Hill & Son. 

charges: Conspiracy under Section 32 (1) (c) and 

Section 32 (i)(d) of the 
Combines Investigation Act. 

Conspiracy under Section 32 (1) (c) and 
Section 32 (1) (d) of the 
Combines Investigation Act. 

Conspiracy under Section 32 (1) (c) and 
Section 32 (i)(d) of the 
Combines Investigation Act. 

276 Report on the building industry 

his lordship: The accused in this prosecution are companies engaged in 
the lathing and plastering business and have been divided, for the purpose 
of prefering indictments, into three groups. The first group consists of 
Norman Lathing Limited. A. V. Hallam Lathing & Plastering Limited, 
Gambin Brothers Limited. C. Strauss Limited, O. M. Baird&Co. Limited. 
Hill & Son Plastering Limited and Donaldson-Barron Limited. 

The second group, which is connected, consists of three companies. 
When I say connected, it has been agreed that the three companies have 
common shareholders. Cesaroni Brothers Limited, W. J. Crowe Limited 
and Dixon Construction Enterprises Limited. 

The third indictment is preferred against John Nelson and Son Limited. 

There are two counts in each indictment. Both counts allege breach of 
Section 32 of the Combines Investigation Act. The first count refers speci- 
fically to a breach of paragraph (c) of sub-section (1); and the second of 
paragraph (d) of sub-section (1) 

The accused have all, today, pleaded guilty of the first count for having 
been guilty of a conspiracy to prevent or lessen unduly competition under 
paragraph (c); and have pleaded not guilty to the count which charges the 
conspiracy to restrain or injure trade or commerce in relation to any article. 

The Crown, through Mr. Estey, Q.C., has given me an outline of the 
device which was employed to pervert, in the interest of the accused, the 
bid depository system which is in effect in the building trades in Toronto, 
and I have heard submissions, by counsel for the accused, as to sentence. 
Mr. Estey suggested, in addition to the Order of Prohibition which has been 
submitted to me in draft form, and upon which counsel for the accused have 
really no strictures, a scale of fines. The maximum is a fine of $10,000.00 
and the minimum a fine of $5, 000. 00, with, perhaps, an additional minimum 
in the case of two companies; W. J. Crowe Limited and Dixon Construc- 
tion Enterprises Limited, which are part and parcel of the Cesaroni 
Brothers Limited, in which it is suggested that some $5,000.00 may be split 
between them. 

$10,000.00, of course, was the maximum fine permitted to be imposed 
before the amendment to the Combines Investigation Act. Under the 
circumstances and in an area where the spirit of the law is well known and 
its letter clearly written, I do not think that such a figure is excessive. 

It has been suggested to me that the conspiracy was not as successful as 
its participants might have wished and that it did not, in fact, affect all forms 
of construction in which lathing and plastering is involved, being confined 
to a certain type of institutional building. Although the damage inflicted on 
the public is a highly relevant consideration, it does not seem, in this case. 

Exhibits 277 

that the offence is substantially lessened because it was not as comprehen- 
sive as it might have been, or because the conspiracy was not as com- 
prehensive as it might have been. 

In consequence of views I have already expressed, the Court will impose 
sentence as follows: 

Norman Lathing Limited will be fined $10,000.00 

A. V. Hallam Lathing & Plastering Limited $10,000.00 

Gambin Brothers Limited $10,000.00 

C. Strauss Limited $5,000.00 

O. M. Baird & Co Limited $5,000.00 

Hill & Son Plastering Limited $5,000.00 

Donaldson-Barron Limited $10,000.00 

Cesaroni Brothers Limited, $10,000.00 

W. J. Crowe Limited $2500.00 

Dixon Construction Enterprises Limited $2500.00 

and John Nelson and Son Limited $5,000.00. 

There will be, also, three Orders of Prohibition issued, directed to the 
companies as named in the three indictments, respectively, in the form 
submitted and upon which counsel have commented. 

On the Orders, I asume that a simple endorsement on the back of each 
will be sufficient? 

mr. estey: Yes, my lord. Perhaps I should have suggested to your 
lordship, on the endorsement the second count should be dismissed. 
Otherwise it is left hanging. 

his lordship: Yes. I won't take your time then, Mr. Estey, to read what 
has been endorsed on the back of the indictments or the back of the Orders. 
I can assure you I have checked it in terms of what I have already said. 

mr. estey: Thank you, my lord. 

his lordship: Thank you, gentlemen. 

Certified correct, 


Official Court Reporter, S.C.O. 

APPENDIX 5 see Volume 1 

278 Report on the building industry 

APPENDIX 6 (exhibit 496) 

Agreement between Toronto and District Marble and Local 31 


year or our lord, dusrax kwmd awd sixty six a.o. 


hereinafter referred to •• the 'Contractor' 

local mo. ji mmibW mKmym, ttlb setters and terrazzo 


hereinafter referred to •• the 'Union' 

ataKRtAM, the general purpose of this Agreement la to eatabltah 

mutually satisfactory arrangements between the Companies and lta 

aaajiluj ill and to provide machinery for the pronpt and equitable 

disposition of grievances, and to establish and maintain satlafactory 

working conditions, hours of work and wages for all the employees 

who are subject to the provisions of this Agree m ent! 

THEREFORE it Is expressly agreed and declared by and betwee n 

the Parties as followsi 

Article I. TERMS or . -" 



This AgrwtAer.t v shell become effective from 

May 1st, 1966 and ohjll r_.-»tn In force until the 
30th day of April, 1970. 

All the signatories to this Agreement will be advised 
before the adding of any r.^-w signatories to this 




The Contractor agrees not to employ anyonu in the trade 
of Marble, Tile or Turrazzo work within the area as 
outlined In Article 11 (c) hereof who Is not a mtnber of 
this Union. 

Mo member of tho Union shall be permitted to work at 
Marble, Tile or Terrazzo for any person, corporation or 
partnership who Is not a Party to this Agreement. 

/ The Union shall not sign this agreement with anyone other 
I than a party whose business 1- i as Marbl- 

\ or Terrazzo work as laid out in Artlcl< 

The Contractor agrees that it will not Bell any mat 
supply any men, or rent any rmchlnos to any Contractor 
who does not have an agreonant with thv Union. 

The Cor • 

Setters or Tmn 

demand any giv 


and wit 

there shall bo 

man may be roq<i 

nploy any Marble Masons, Tile 
i on a square foot basis, or 
work for a lump sum: 

Exhibits 279 



Ch) I It is agreed that the Joint trade committee ahali be 

three representativaa from each party, and thia conwittee 
shall have the power to set up apprenticeahip arrangamenta, 
a l«o to screen new contractors, and to near violationa 
of agreu»enfc and dial wIlT Same. The cowattte* to moat 
at least once every throe months, and to be called any 
time In case of emergency. Proper rules and procedure 
are to be established at the first regular meeting. 
"Minutes" to be kept of all meetings. 

The Contractor agrees to 'phone the Union office for all 
Mechanics required. The Employer shall have the right 
to determine the competency and qualifications of men 
referred by the Union and the right to hire or not to 
hire accordingly, and there shall be no loaning of wen 
from one shop to another without prior notice to the 


Marble Mosaic, Venetian Enamel and Terrazzo, cutting and 
assembling of iHosaic, the casting of all Terrazzo on Jobsj 

All bedding above concrete floors, or walls for the preparation, 
cutting, laying or setting of metal, composition of wooden strips 
and grounds and the laying and cutting of metal strips, laths, or 
other reinforcements, where used in Mosaic and Terrazzo work, shall 
be the work of the mosaic and Terrazzo workers. 

<U.l Cement, Terrazzo, rtagnesite Terrazzo, De-O-Tex, Rustic or 
rough washed for exterior or interior of buildings and any other 
kind of Plastic mixture composed of chips of marble, granite, blue 
-tone, aaaml, mother of pearl, »nd «il other fcSnda- -of -«Msf>» wtMtt -'■'-*' 
mixed wit n CtMOt, r. ^m, chloride, or other binding 

materials when used on floors, ceilings, stairs, saddles or any 
^v 1 ^ ^ i nt " rlor or -xterior of building, and also other 

work not considered a part of the building, such as fountains, 
swimming pools, etc., also all other substitutes that may be applied 
under the same method as Mosaic or Terrazzo. «h>**« 

Cutting and assembling of art ceramic and glass mosaic comes 
under the jurisdiction of the Mosaic .fcrker and the setting of the 
same shall be done by the Tile layers. 

The laying, cutting and setting of all tile where used for 
floors, walls, ceilings, walks, promenades, roofs, stairs, treads, 
stair risers, facing hearths, fireplaces and decorative inserts, 
together with any marble plinths, thresholds or window stools used 
in connection with any tile work; also prepare and Set ail concrete. 

.t brickwork, or other foundation or materials that may be 
£Cm^ *° ff°^f Iy S ^ and con, P 1( - tt such work, the setting or 
ottfr 5L? r? » * Ung ' St v n °' ""**• ««Po»itlon. glass mosaic or 
fr^he^tc? ; £"S . ^?* ° r "»■*•» of a mantel, 

brickwork or - S " ttln 9 of »" cement, 

ZLtZ. .1 ' ?l otner materials in connection with the above 

wor K also the slaooxng and fabrication of tile mantels, counters 
ofMm *1E s v*^** f^cription and the erection and installation 
of 5Ti±JZ% buildl " g < '"aping, forming, construction or repairing 
of all fireplaces, whether in connection with a mantel, hearth 
ee^n? °^7£ and thu s, --" in 9 and Preparing of all materials such a. 
cement, plaster, mortar, brickwork, ironwork, or other materials 

wort exc" oTt^r ^^'f ?" d T f ° COn3tructlon and completion of such 
^Iii 2^3* H 3 "? nt « 1 "»<**■• exclusively of brick, marble or atone, 
£?A r » °^ C ^f t0 ^ ^«W«y«« < marble setters, or stone masons 
TlSrlt^"^- *"! tXX " iS *** with « dh " iv ^ a ™* the walls? 
floors and Ceilings are floated with cement mortar, both floatina 
and tile setting shall be done by tile setters coating 

280 Report on the building industry 

APPENDIX 7 (exhibit 531) 

Members of the Metro Toronto Marble, Tile and Terrazzo Association 


i J v n t 



■ c 

Exhibits 281 

APPENDIX 8 (exhibit 312) 
Offences in Toronto by year 

APPENDIX 9 see Volume 1 

APPENDIX 10 see Volume 1 

APPENDIX 1 1 see Volume 1 

ig6S 1969 1970 1 97 1 1972 













Wilful damage 


















Break and enter 






Sudden death (ace 













Bomb threat 






APPENDIX 12 see Volume 1 

282 Report on the building industry 

APPENDIX 13 (exhibit 1085) 
Criminal record of Ian Rosenburg 

Metropolitan Toronto Police 


DOB Oct 24/40 



1957, May 30 

1959, July 30 
1959, Aug 31 

1962, Fab 5 

1964, Mar 26 

1965, Mar 24 

1965, Apr 6 

1965, Apr 12 

1966, Oct 17 

1967, June 12 
1969, F«b 7 
196V, Mar 5 
1V69, Apr 10 

Toronto, Ont. 

Toronto, Ont. 
Toronto, Ont. 

Toronto, Ont. 

1962, Feb 26 Toronto, Ont. 

Toronto, Ont. 
Toronto, Ont. 

Cshawa, Ont. 

Toronto, Ont. 

0ROSENBBRG, Ian Lester 

Assault Bodily Harm - 

Suspended Sentence, Probation 1 year and Bound Over in the 

sum of $1000.00 by Magistrate Gullen. 

Receiving - 

Suspended Sentence, Probation 12 months by Magistrate Gianelli, 

1. False Pretences - (3 charges) 

2. Attempt False Pretences - 

3. Fraud - 

Suspended Sentence, Probation 1 year by Magistrate Rogers. 

1. Shopbreaking and Theft - 

2. Possession of Stolen Auto - 

3. False Pretences - 

4. Conspiracy - 

2 years less 1 day definite and 2 years indefinite on each 
charge, concurrent sentences by Magistrate Rogers. 

Fraud - (5 charges) 

3 years on each charge, concurrent sentences and concurrent 
with terra now serving by Magistrate Hayes. 

Released on or about this date on expiration of sentence. 

Possession of Stolen Auto - 
3 years by Judge Forsyth. 

Fraud - 

3 years and 6 months concurrent with sentence now serving 

by Magistrate Gianelli. 

Fraud - 

12 months consecutive to sentence dated April 6, 1965. 

Released on Parole this date - sentence due to expire 
August 13, 1969. 

Parole cancelled try- National Parole Board. 

Released on Parole - Remission date August 13, 1969. 

Parole cancelled. 

Fraud - 

3 years plus the unexpired portion of sentence dated April 12, 

1965- i.e. 392 days by Jud*e tf-iirh 

Exhibits 283 

Page 2. 

Metropolitan Toronto Police 



MTP 36V56 

1971, June 22 

1972, Mar 7 
1972, June 5 

1972, Aug k 

Toronto, Ont. 

Released on Parole - Remission date May of 1973. 
Parole Suspended by the National Parole Board. 

1. Conspiracy - 

2. False Pretences - 

20 months on 1st charge consecutive to term serving, 
1 month on 2nd charge concurrent by Judge Foster. 

Parole Cancelled. 

2X4 Report on the building industry 
APPENDIX 14 see Volume 1 

APPENDIX 15 see Volume 1 

APPENDIX 16 see Volume 1 

APPENDIX 17 (exhibit 1 102) 
Laboratory report on weapons 




July 26, 19? 1 * " 5E ,MS 

Lab. File No ^Upl+.yL,. 

Your File No. 


loyal Commission on Certain sectors of the "Juildinp 
nduscry, Cuite 309, l^ r ; -iueen .i. .;., iorontc*, 
unt. I-.5H 2.J9 

. tICTfiD l/BA] 

Copies, ° :./,^.. ':. Thompson 

tinmen t - Flrearrr. Lxan^'ier 

wtinuiiy ?he f n owlne items were received from 3/Spt. G. Thon] 
on July 13 197 1 * 

Fih Ni Descriptiti Findings 

.rized Fl One oten submaonlne pun This gun was test fired as a 

i.odel: !-.KII L< g 3ranch semi-and full-automatic weapon. 

.erial lc. CL 6192 
Calibre: 9mw 

F2 Cne .ten submachine gun This pun was test fired as a 

..odel: HKII i-ong 3ranch semi-and f ull-autoraatlc wosoon. 
? ^-^ 19^2 

serial .lo. 6- 5l • 
CaMbre: 9L - .n 

Exhibits 285 

. eized 


from W9 

These damaged receivers could not 
be readily restored to their 
original condition. 

*"3 one cardboard box 

containing ten badly 
damaged 3ten gun 
receivers and three 
pieces of L,ter gun 

Fh One cardboard box 
contaiiiiUfc : 

1 - Thompson gun magazine 
pouch containing five 
20 round Thompson gun 

1-30 round Thompson gun 

1 - Thompson gun frame 

group 3er. .'Jo. 33^1815 

h - 3ten fun barrels. 

h - 3ten gun magazine housings. 

1 - Paper bag containing : 

1 3ten gun sling 

2 hi carbine bolts 

2 W2 carbine operating slides 

i 1-1 carbine disconnector assembly. 

1 hi carbine trigger housing. 

1 HI carbine operating spring and 
spring guide. 

1 :.l carbine recoil plate. 

1 - hetal ammunition box containing : 

36 unfired .22 calibre cartridges. 

9 stripper clips each holding ten unfired 
30 carbine cartridges. 

h unfired 7.62 mm calibre cartridges. 

2 unfired 38 3pl. cartridges. 

1 unfired 16 gauge shotgun shell. 

1 metal collar for the 32 round drum 

magazine used in the World Uar I 
German MTl8 Submachine gun. 

1 unknown magazine loader. 

1 Sten gun front sight. 

1 Change lever for the Canadian Army issue 
CIAI semi-automatic rifle. 

1 small cardboard Lox. 

1 small metal jewel case. 

3 Watchman tear gas cartridges, 

gun cleaning equipment brushes, 
patches etc. 

286 Report on the building industry 

F5 One cardboard box containing : 

5 - ^ten gun barrels 

8-32 round Jten gun magazines 
6 - Jten gun butt stocks 
5 - 3ten gun rr.agazine housings 
5 - oten gun barrel jackets. 
1 - Sten gun retracting handle. 
3 - Sten gun magazine loaders. 
^ - *en gun spring housings. 

'ii gun spr 
h - ■■'.-. operating springs. 

- - ten b un trigger nechanisi.i cover. 

Three of the seven bullets resubmitted in connectii' 
■ -. Lschief Invclvinr a 

. Ltd. , it If led as 
having been fired from the item Vy Jten barrel 

four remaj -Uac. tulletc could nt be 
• • • '/■.-.. be^n ^ 

submitted in connection wit ; . 

varl , a 

; ton. su) bio . 

Lteni: -3'' ) "Fh" and ' t I 

Exhibits 287 











»- CM 

»- h» 


J3 t- 

E >. 


CO ^ 

CM _^ 

* Z 3 

- < 



-O \- 

ca in 

*"" CM 




» c 2 

_ a 


~ ~ CD 
co to •— 


Q. CL 
X X 

C O 

CD (O 

© CD 

CO <? 

CO ^ 

CD . 

E Q 

■2 q 

co a.' 


o CJ 

"5.Z .E 

O) D) CO 

B g-S 


(U v 























^ co 

1 o 


enueAv ssoy uijjb^ 

288 Report on the building industry 

APPENDIX 19 (exhibit 336) 
Unit 7, 73 Alness Street 

APPENDIX 20 see Volume 1 

Exhibits 289 

'£ « 
w c 

s i 


— ° 

— 5 

< cu 

290 Report on the building industry 

APPENDIX 22 (exhibit 343) 
Unit 6a, 73 Alness Street 

APPENDIX 23 see Volume 1 

Exhibits 291 

APPENDIX 24 (exhibit 368) 

Acme premises, Unit 7, and position of crouched figure 

APPENDIX 25 see Volume 1 

292 Report on the building industry 

APPENDIX 26 (exhibit 366) 

Henderson's recommendations for control of sale and disposal of unused 

d\ namite 

1 {a) That every stick of dynamite carry a separate serial number for 
identification purposes, (b) The serial numbers shall be recorded by the 
manufacturers when the dynamite is shipped to any private or commercial 
magazine, (c) The recorded numbers and customer shall be retained as 
records by the manufacturer. 

2 Commercial magazines, sale, (a) A Commercial magazine shall sell 
explosives only to a person who has produced documentary evidence to 
satisfy the vendor as to the purchaser's name and place of abode, (b) Shall 
record the name and address and means of identification (i.e. driver's 
licence - Social Ins. number, etc.) on the bill of sale along with the serial 
numbers of each stick of dynamite purchased, (c) Require the purchaser to 
sign the bill of sale as having received the listed explosives, (d) Give a 
duplicate copy of the bill of sale to the purchaser, {e) File original bill of sale 
in a holding file. 

3 Purchaser, (a) A person wishing to purchase dynamite must produce 
documentary evidence which will satisfy the vendor as to the name and 
place of abode of the purchaser, (b) Must sign the bill of sale as having 
received the explosives, (c) Return the duplicate copy of the bill of sale to 
magazine where it was obtained within 30 days, stating that 1.) All explo- 
sives were used 11.) Part of explosives were used and the remainder 
returned to a commercial magazine for disposal or 1 1 1 .) Return bill of sale 
with remainder of unused explosives to the original magazine, mi.) Sign 
the form stating information contained is true. (Where the duplicate copy is 
mailed to the originating magazine, it shall be by registered mail.) 

4 Returning unused dynamite . (a) Any Commercial magazine shall accept 
unused dynamite provided that the person returning it has a bill of sale 
listing the serial numbers, the date and place of purchase and that it was 
purchased within 30 days, (b) Sign the bill of sale as having received the 
explosives, (c) Immediately notify the iocal explosives authority that he 
has explosives for disposal, (d) When he delivers the explosives to the 
authority, obtain a receipt listing serial numbers of explosives, name, 
number and unit of disposal personnel, (e) File receipt for record purposes. 
(/") Comply with a request for confirmation of destruction from any other 
commercial magazine and supply name, number and unit of disposal au- 
thority and serial numbers of explosives, (g) A Magazine will not be 
required to accept explosives where there is no bill of sale or where 

Exhibits 293 

possession by returnee is in excess of 30 days, the magazine shall notify 
authorities immediately. 

5 Explosives disposal personnel, (a) When an explosives authority re- 
ceives information that a magazine has explosives returned, he shall make 
immediate arrangements for pick up and disposal of the explosives and 
shall issue a receipt to the magazine stating serial numbers, name, number 
and unit, (b) When explosives authority receives information on outdated 
or where there is no bill of sale, he shall seize explosives and commence 
investigation as to history of explosives and prepare for prosecution of 

6 Returned bill of sale, {a) When the originating magazine receives a 
returned duplicate copy of bill of sale, he shall ensure it has been signed by 
the purchaser stating the disposition of the explosives, (b) When the bill of 
sale is signed by the purchaser and by a representative of another Commer- 
cial magazine as having received unused explosives, the originating 
magazine shall contact the magazine which received the explosives and 
request confirmation that explosives were disposed of and note on the bill 
of sale - name, number and unit of disposal authority. If all is in order, file 
with original bill of sale and retain for a period of 7 years, (c) Where the bill 
of sale is not returned within 30 days or where the bill of sale is not signed or 
where it is purported to be signed by another commercial magazine and 
cannot be confirmed, the originating magazine shall notify the local explo- 
sives authority (who shall commence an investigation of the purchaser and 
location of the explosives.) 

7 All Commercial Magazines shall display prominently, a large sign, stat- 
ing the responsibility of the purchaser as to storage and conveyance of 
explosives in relation to the Explosives Act and Regulations and Penalties. 

8 Authority to examine magazine records. Every manufacturer and every 
magazine, private or commercial, shall be required to produce all records 
and files for examination upon request by any authorized police officer. 

APPENDIX 27 see Volume 1 

APPENDIX 27a see Volume 1 

294 Report on the building industry 

APPENDIX 28 (exhibit 1088) 
Criminal record of Ross Morell 

Metropolitan Toronto Police 


July 9, 1940 MORELL, Ross Daniel MTP# 1485/58 

1958 May 27 

1957 Jun 1 

1971 Mar 11 

1972 Aug 3 

Toronto, Out. 

USHfS Buffalo 
N.Y., USA 

Oakrville, Ont. 
Toronto, Ont. 

Theft of euto:- 

Suspended sentence probation 1 year by 

Judge Bigelow. 


Voluntary Departure granted June 1, 1957. 

Theft over $50.00 reduced to Theft under $50.00j- 
$100.00 fine or 20 days. 

Praud (2 charges) j— 

Suspended sentence probation 2 years by 

Judge Gardhouse. 

Exhibits 295 

APPENDIX 29 see Volume 1 

APPENDIX 30 (exhibit 1086) 
Criminal record of Thomas Kiroff 

Metropolitan Toronto Police 


June 15, 1941 

KIROPF, Thomas 

MTP# 2965/57 

1957 Not 1 

1973 Mar 13 

1973 Nov 5 

1974 Apr 26 

Toronto, Ont. 

Toronto, Ont. 

Toronto, Ont. 
County Court 

Supreme Court 
of Ontario 

Theft :- 

Suspended sentence probation 1 year by 

Judge Wolfe. 

Wounding guilty to Assault Bodily Harm:- 
Pined $200.00 or 90 days by Judge McHae. 

1. Trafficking in a controlled drug:- 

2. Illegal possession of narcoticsj- 

4 years less 23 days on 1st charge and 3 months 
concurrent with #1 on 2nd charge by 
Judge McRae. 

Application for leave to appeal and appeal 
against convictions and sentences dated 
November 4, 1973 is dismissed. 

296 Report on the building industry 


Metropolitan Toronto Police 

oil Harold Adamson, Chui or Pohct 

590 Jarvis Street 
Toronto. Ontario 
Canada M4Y 2J5 

(416) 967-2222 
H!»sf ntfir »it«tio« w 




KIROFF, Thomas 

no address 

DATE June 7 f 1974 



24 Norember 1970 

Pound In Betting House $15 or 5 days 



Recorded hv 

for A. C. Dyce, Inspector 

Director, Records and Inquiry Bureau 

APPENDIX 3 1 see Volume I 

APPENDIX 32 (exhibit 363) 
Fuses identified by Morell 

Exhibits 297 












298 Report on the building industry 

APPENDIX 33 (exhibit 1059) 
Criminal record of Randolph Wheatley 

Metropolitan Toronto Police 


WHEATLEY Randolph Wellington 

MTP# 3055/58 



Bernard George 




Wasaga Beach, Ont. 

T heft of Auto - 

* months definite and3 months indefinite. 




Parry Sound, Ont. 

Theft of Auto (2ch»rges)- 

3 months definite and 6 months indefinite on each charge 
concurrent sentences and concurrent with sentence dated 
Aug 27/57 




Released on Parole this date or as soon after as possible. 
Sentence due to expire April 1/58 




Toronto, Ontario 

Theft - 

Suspended Sentence, Probation 1 year by Magistrate Graham. 




Toronto, Ontario 

1- Shopbreaking with Intent - 
9 months. 

2- Theft - 

Pined $25.00 or 5 days concurrent by Magistrate Thoburn. 




Transferred to the Ontario Reformatory - Guelph. 




Toronto, Ontario 

Assault Bodily Harm - 

6 months by Magistrate Graham. 




Toronto, Ontario 

Assault Bodily Harm - 

Pined $100.00 or 2 months by Magistrate Rogers. 

1963, Apr 1 
1963, July 5 

1963, Sept 24 

1965, Au ; 20 
1967, July 25 

Buffalo, NY USA 
Toronto, Ont .rio 

Torjnto, Ontario 
Winnipeg, Man. 

Petty Larceny - 

$500.00 Pined, 1 year Suspended Sentence. 

Assault Bodily Harm - 

12 months by Maris t rate Graham. 

1- Possession of Burglar's Tools - 

2- Break, £ nter an i Theft - 

2 years on 1st charge and 1 year concurrent on 2nd charge 
but consecutive with term now servin^ by Judge Forsyth. 

Released on or ab ut this date froci Collins Bay Fen. 

Illegal Posses ion of Narcotics (Marijuana)- 
2 weeks. 

Exhibits 299 

Metropolitan Toronto Police 


WHEATLEY Randolph Wellington 

MTP# 3055/58 

Page # 2 Cont'd . . . 

1967, NovlO 

1970, Apr 29 

1971, May 27 

Toronto, Ontario 

Toronto, Ontario 
County Court 

Toronto, Ontario 
Comty Court 

Illegal Possession of Narcotics - 

1 year definite and 1 month indefinite by Jud.'e Deyman. 

Illegal Possession of Narcotics - 

3 months + Probation 2 years by Jud/re Kelly. 

Illegal Possession of Narcotics - 

1 month + Probation 3 years by Judge Honsberger. 

300 Report on the building industry 
APPENDIX 34 see Volume I 

APPENDIX 35 (exhibit 1035) 
Morell's paper with lawyer's name 



[) frff C 1 

Ul Moo 

APPENDIX 36 (exhibit 945) 
Zanini's hospital record re shooting 

Exhibits 301 



ZANINI, Mr. Bruno 

NAME ??™\\' . ™ : . DL Ul,u ROOM . 

CHART No. . . 9 . 081 
DOCTOR . . W .\ Mo . ffat 

Chief Complaint. Past History. Family History; History of Present Illness; 
Functional Inquiry; Physical Examination, Provisional Diagnosis 

Date of Admission 

HISTORY : This man was shot and I was asked to see him in 


PAST HISTORY: Non-contr ibuatory in this case. 

PHYSICAL EXAMINATION:. He apparently was shot at fairly close range. 
On examination, his general condition is excellent. Examination of heed 
an* neck reveal* ne abnormalities. Chest; clear to percussion and auscultation. 
The heart sounds normal. Abdomen; sofL and non-tender. Exanfria t ion of the 
left leg; there is an obvious wound of entry about 3-4 inches below the inguinal 
ligament and the bullet is palpable more distally, posterior in the thigh. The 
bullet probably entered at about a 45 degree angle. There is no evidence of injury 
to the artery and the nerves of the leg are intact. Peripheral pulses are 
excellent , 

There is no evidence of a pulsating hematoma. 

Under local anesthesia, in Emerg. the wound 
of entry was excised and the bullet was removed from the subcutaneous area 
posteriorly, under local anesthesia. 

This man was admitted to hospital for a short 
period of observation, to both control the pain and to be sure that a pulsating 
hematoma and/or fistula does not develop. 

«ugust 26, 1972, dictated 
August 28, 1972, typed 

302 Report on the building industry 

APPENDIX 37 (exhibit 948) 
Zanini's laboratory record re shooting 

'4I6> 965 2561 



September 29, 1972 


Lab. File No. 3870-72 ZJA 

Your File No. 


For Crown Attorney Concerned 


bounding of Lruno ZANINI 

Copiesto: Det. J. Zemsta, M.T.P.D. #12 Div., 2696 Egllnton Ave.W., Tor. 337 

Submitted by 

(E, J. nnderson, Firearms Examiner 

Continuity: Items "A", "B" and "E" were received on August 25, 1972 from 

Det. Zemsta. Items "B" and " C" were received from Det. Zemsta 
on September 12, 1972. 

Eih. No. Description 

Zanini" n. One glass vial containing 
one fired .22 calibre Long 
Rifle bullet. 


This item was fired from a 
firearm rifled six grooves 
right hand twist (6/R). It 
is of some identification 
value in relation to a 
specific firearm and any 
firearm in this calibre and 
rifled to these specifica- 
tions which becomes suspect 
should be submitted for 

'Casing" B. One envelope containing 
one fired .22 calibre 
Long or Long hifle car- 
tridge case. 

This item was compared with 
items "C" and "J". 

Exhibits 303 


".satan 1 s 


C. One envelope containing 
one fired .22 calibre 
Long or Long Rifle car- 
tridge case. 

J. One envelope containing 
one fired .22 calibre 
Long or .uong Rifle car- 
tridge case. 

E. One green plastic bag 
containing one pair of 

This item was very probably 
fired in the same firearm 
as item "B". 

This item was eliminated as 
having been fired in the 
same firearm as items "3" 
and "C". 

The examination of the front 
of this garment revealed a 
small hole in the upper left 
thigh area, .taining which 
appears to be dry blood was 
found in the area surrounding 

Mo close range firearms 
discharge residues were 
detected in the area 
surrounding this hole. 

APPENDIX 38 (exhibit 914) 
Zappia's card 


0rmanio Colafranceschi 



205 Church Street 

Toronto 205 

Local 1891 
Residential Painters 
and Drywall Tapers 

304 Report on the building industry 

APPENDIX 39 (exhibit 1052) 
Letter re Daly tape 




Ministry Of the Telephone 

Solicitor 965-6871 

General Ext. 47 

125 Lake Shore Blvd E. 
Toronto, Ontario 
M5E 1A5 

March 7, 1974. 

Inspector N. Perduk, 

Royal Commission on Certain 

Sectors of the Building Industry, 

Suite 309, 

145 Queen Street West, 

TORONTO, Ontario. 

M5H 2N9 

RE; Magnetic Tape #42. 

With reference to the marginally-noted tape, 
please be advised of the following: 

The quality of the recording of this tape makes 
it impossible to prepare a transcript relative 
to the conversations recorded. 



Exhibits 305 


Section 1 10 of the Criminal Code of Canada 

FRAUDS UPON THE GOVERNMENT — Contractor subscribing to election fund 
— Punishment. 

110. (1) Every one commits an offence who 

(a) directly or indirectly 

(i) give9, offers, or agrees to give or offer to an official or to 
any member of his family, or to any one for the benefit of 
an official, or 
(ii) being an official, demands, accepts or offers or agrees 
to accept from any person for himself or another person, 
a loan, reward, advantage or benefit of any kind as considera- 
tion for cooperation, assistance, exercise of influence or an act 
or omission in connection with 
(iii) the transaction of business with or any matter of 
business relating to the government, or 

(iv) a claim against Her Majesty or any benefit that Her 
Majesty is authorized or is entitled to bestow, 
whether or not, in fact, the official is able to cooperate, render 
assistance, exercise influence or do or omit to do what is 
proposed, as the case may be; 

(b) having dealings of any kind with the government, pays a 
commission or reward to or confers an advantage or benefit of 
any kind upon an employee or official of the government with 
which he deals, or to any member of his family, or to any one 
for the benefit of the employee or official, with respect to those 
dealings, unless he has the consent in writing of the head of 
the branch of government with which he deals, the proof of 
which lies upon him; 

(c) being an official or employee of the government, demands, 
accepts or offers or agrees to accept from a person who has 
dealings with the government a commission, reward, advantage 
or benefit of any kind directly or indirectly, by himself or 
through a member of his family or through any one for his 
benefit, unless he has the consent in writing of the head of the 
branch of government that employs him or of which he is an 
official, the proof of which lies upon him; 

(d) having or pretending to have influence with the govern- 
ment or with a minister of the government or an official, 
demands, accepts or offers or agrees to accept for himself or 
another person a reward, advantage or benefit of any kind as 

306 Report on the building industry 

consideration for cooperation, assistance, exercise of influ- 
ence or an act or omission in connection with 

(i) anything mentioned in subparagraph (a)(iu) or (iv), 

(ii) the appointment of any person, including himself, to 

an office; 

(e) offers, gives or agrees to offer or give to a minister of the 
government or an official a reward, advantage or benefit of any 
kind as consideration for cooperation, assistance, exercise of 
influence or an act or omission in connection with 

(i) anything mentioned in subparagraph (a) (Hi) or (iv), 

(ii) the appointment of any person, including himself, to 

an office; or 

(f) having made a tender to obtain a contract with the govern- 

(i) gives, offers or agrees to give to another person who has 
made a tender, or to a member of his family, or to another 
person for the benefit of that person, a reward* advantage 
or benefit of any kind as consideration for the withdrawal of 
the tender of that person, or 

(ii) demands, accepts or agrees to accept from another per- 
son who has made a tender a reward, advantage or benefit 
of any kind as consideration for the vrithdrawal of his 

(2) Every one commits an offence who, in order to obtain or 
retain a contract with the government, or as a term of any such 
contract, whether express or implied, directly or indirectly sub- 
scribes, gives, or agrees to subscribe or give, to any person any 
valuable consideration 

(a) for the purpose of promoting the election of a candidate 
or a class or party of candidates to the Parliament of Canada 
or a legislature, or 

(b) with intent to influence or affect in any way the result of 
an election conducted for the purpose of electing persons to 
serve in the Parliament of Canada or a legislature. 

(3) Every one who commits an offence under this section is guilty 
of an indictable offence and is liable to imprisonment for five years. 
1953-54, c. 51,s. 102. 

Exhibits 307 


Section 383 of the Criminal Code of Canada 

Secret Commissions 
SECRET COMMISSIONS — Privity to offence — Punishment — Definitions. 
383. (1) Every one commits an offence who 

(a) corruptly 

(i) gives, offers or agrees to give or offer to an agent, or 
(ii) being an agent, demands, accepts or offers or agrees to 
accept from any person, 
a reward, advantage or benefit of any kind as consideration 
for doing or forbearing to do, or for having done or forborne 
to do, any act relating to the affairs or business of his principal 
or for showing or forbearing to show favour or disfavour to 
any person with relation to the affairs or business of his 
principal; or 

(b) with intent to deceive a principal gives to an agent of that 
principal, or, being an agent, uses with intent to deceive his 
principal, a receipt, account, or other writing 

(i) in which the principal has an interest, 
(ii) that contains any statement that is false or erroneous or 
defective in any material particular, and 
(iii) that is intended to mislead the principal. 

(2) Every one commits an offence who is knowingly privy to the 
commission of an offence under subsection (1). 

(3) A person who commits an offence under this section is guilty 
°f an indictable offence and is liable to imprisonment for two years. 

(4) In this section "agent" includes an employee, and "principal" 
includes an employer. 1953-54, c. 51, s. 368. 

308 Report on the building industry 

APPENDIX 42 (exhibit 295) 
Freezer invoice 

p "Sale. £*ma„ 


■— ■ 1 — * —• »— '• — • •*■ 

•-•» •» * •»♦-. 

7% i«nttST CUltfO 0* ,vt*«. KC9OTS 

Exhibits 309 
APPENDIX 43 see Volume 1 

APPENDIX 44 (exhibit 394) 
Cheque from Acme to Romanelli 




TC J U 1- g t h IS 71 

S . K A " ' SI, 

m > 1 c . 





•:oi?o2-oio«: io-o*.g,ii* 1/ •'oocjdtooooo/ 




310 Report on the building industry 

APPENDIX 45 (exhibit 463) 
Deposit slip. Durable Drywall 

Exhibits 311 

312 Report on the building industry 

APPENDIX 46 (exhibit 398) 
Cheque fromNorthdown to Simone 



«Mf Pf APi AfH> S*ACMt*>Um 
ItM tMf PTAHP •** ' 




:ot?i2-oko<: fo-oai^- .'g^a* 

■ ■•■^ ■»» »^ -■» ■ ■ "■ 

■ " — - "■■■ ■ 




<• /(UcjdiJ 


LhAjl.' . (<4<>, <'/ •■ ' - ; 



:/,' ' x • v ■ ' ■ - 

-» » ■■■ ■■ ? 'm * ■ «? ■»■- ^i- ■■■- ■»■ 

Exhibits 313 

APPENDIX 47 (exhibit 508) 
Purchase contract, DeMonte car 


•ML 8HC 


IjWm^ AtLT-i 

L 'if» 


*$*a j?1**7k.,>%s Sin 


«.. >«>» 1 

WTW I SU.U '«< 

uc oa mw ric 

1 dy i oL 

un f¥\*r*.r,£. 

»*«. . f^ S'/- is" 


. MMM 




P*»?7' ,'fi* + _;, /. ,'/tf ■> 

3 14 Report on the building industry 

APPENDIX 48 (exhibit 509) 
Cheque from Da Re for DeMonte car 


%••«• I.\«tl41 IIHtMC 
tofcHI<>\ INtTlimi 



40*1^ \ - f 'C7S 

Au«. 17 
S 4 

mi id 1 m 11 i:i.\y/o iiMin i> 

rm ntu wra 

•• "» 11TI1M1 


•:iiso?-oo?i: ocma-k^** 


APPENDIX 49 (exhibit 757) 
Letter re DeMonte's car 

Exhibits 315 

JJ^», .362-37H 


November 16, 197 3 

Royal Commission Enquiring 
Into Certain Sectors of 
the Construction Industry 
145 Queen Street West 
Toronto, Ontario 

Attention: N. D. McRae , Esq., Q.C. 

Dear Sir: 

Re: Danny DeMonte 

Enclosed please find a copy of a letter which 
is being delivered today to Mercury Terrazzo Limited. You will 
note that Mr. DeMonte has now made actual payment respecting the 
purchase of the car by Mercury Terrazzo Limited on his behalf, 
as well as for the moneys they paid out on his behalf with 
respect to the airline ticket to New York. 

You will recall that Mr. DeMonte testified that 
he intended to repay Mercury Terrazzo Limited for the car and 
this has now been done. 

I am also enclosing herein a copy of the two 
cheques that I have referred to in the letter and would ask you 
to kindly bring these matters to the attention of the Commissioner, 

Yours very truly, 

ends , 

3 16 Report on the building industry 

APPENDIX 50 (exhibit 95 1 ) 

Addendum to concrete forming agreement 

This Addendum made and entered into this 

day of 



as "A.R.C." 



referred to 
as the 

Whereas the parties hereto have entered into an agreement 
made the 1st day of November; 1968, a copy of which is attached hereto. 

And whereas the parties have agreed to enter into this 
Addendum to the said agreement. 

1. It is agreed by the Parties hereto that in connection with 
Article 16. - -Payment of Wages and Wage Races (Appendix 16.06) be 
amended as follows :- 

A. The signing of this Agreement will in no way be contrued 
to cause a reduction in wages or working conditions to employees 
who are receiving more than stated herein. 

B. That a Welfare Benefit Plar. will be put into effect as of 
May 1, 1970 based on fifteen cents (15C) per hour earned, with a 
Trust Document type of plan and trustees included. 

C. Hourly Wage Scale 




Jan. 1/70 


May 1/7 


Nov. 1/7 


May 1/71 


•Oct. 1/71 



Jan. 1/70 


May 1/7 


Nov. 1/70 


May 1/71 


*0^ 1/73 


Cement Fvni 


Jan. 1/70 


May 1/7 


Nov. 1/70 


May 1/71 


•Oct. 1/71 















































Exhibits 317 


L abourers 

Jan. 1/70 5.50 

May 1/70 3.55 15 

Nov. 1/70 3.85 15 

May 1/71 4.20 15 
•Oct. 1/71 4.50 15 

♦As the Agreement expires on October 31 > 1971i the last increase in 

wages will be on October 1, 1971. 

Hoisting Engineers 

1st Class 2nd Class 

These rates are to be governed by section A below. 

1st Class - climbing mobile crane and similar equipment. 

2nd Class - travellers. 

(A) Future increases to cover Hoisting Engineers shall be 
determined by the contract between Hoisting Engineers Local Union 
793 and the Toronto Construction Association (copy of this agreement 
to be supplied by the Union). 

(B) By mutual agreement of the Hoisting Engineers Local Union 
793 and Companies, there may be a training period for all new 
operators not to exceed three months, during which time such 
operators will be paid the 1st Class rates for work in 2nd Class. 
2k It is understood and agreed that "commercial rates" only 
will be paid on all future jobs as outlined in Article 10, Clause 
10.01 of this current Agreement. 

3, In witness whereof the Parties have caused this Addendum 
to Agreement to be executed by their duly authorized representatives. 

The Association of Residential The Council of Concrete Forming 

Contractors referred to as "A.R.C." Trade Unions 

on its own behalf and on behalf of 

its members who are signatories 


Carpenters Local Union 1190 
Ironworkers Local Union 7^1 

Cement Masons Local Union 172 
Labourers Local Union ltt3 

Hoisting Engineers Local Union 

3 18 Report on the building industry 

APPENDIX 51 (exhibit 782) 

Report on Charles Irvine's financial transactions 

Money Deposited in Personal Bank Account 
from Union and Unknown Sources 

International Union Schedule 1 

Local 117 (Net) Account 00612 Schedules 2 & 6 

Local 117 In Trust (Net) Account 728169 Schedule 6 

From unknown sources Schedule 5 




Money Received from Union but not Deposited 
in Any Bank Account 

Cheques from Local 117 in Trust 

(Account 728169) cashed by C. W. Irvine 

(January 1972 - June 1973) for which no 

vouchers are available Schedules 3 & C 

Amounts received from 'C. W. Irvine In 

Trust' (Account 631521) per ledger 

sheets prepared by C. W. Irvine. No 

supporting voucher or cheques are 

available Schedules h & F 



Total Deposits from Union and Unknown Sources 


Deduct Union Payments from Personal Account 
Salary payments A. Burgana 
Transfers to 'C. W. Irvine In Trust 1 

(Account 31521) from Personal 

Account (Net) 

Net Deposits from Union and Unknown Sources 


Schedule 6 3,586.Ul 8,60g.Ul 


Exhibits 319 



Date Amount 

Kay 29, 1970 $ 5,000.00 

October 21, 1971 5,525-00 


;:<> Report on the building industry 
APPENDIX 51 (continued) 


Exhibits 321 


Date Amount 

February l6, 1971 $ 5,396.25 

June 16, 1971 1,620.56 

June 22, 1971 2,02U.5U 

July 12, 1971 5,718.00 

July 19, 1971 1,123.53 

August 17, 1971 2,207.25 

August 20, 1971 1,000.00 

September 3, 1971 1,000.00 

September 21, 1971 2,HM+.75 

October 1, 1971 1,000.00 

October Ik, 1971 2,19^.50 



322 Report on the building industry 
APPENDIX 51 (continued) 



March 2, 1972 
February k, 1972 
April 25, 1972 
July 28, 1972 
August 5, 1972 
August 29, 1972 
September 12, 1972 
October 3, 1972 
October 6, 1972 
November 6, 1972 
November 16, 1972 

January 11, 1975 
January 22, 1973 
January 25, 1973 
March 22, 1973 

7, 1973 
April 18, 1973 

Total cheques cashed 




Endorsed by 


$ 600.00 







C.W. Irvine 




C.W. Irvine 

639 -^l 



C.W. Irvine 




C.W. Irvine 

562. Jh 



C.W. Irvine 








C.W. Irvine 












C.W. Irvine 








C.W. Irvine 




C.W. Irvine 




C.W. Irvine 









Exhibits 323 


(ACCOUNT 631521) and Expenses 

Bruno Zanini $225 x 31 weeks (salary) $6,975-00 

Bruno Zanini $ 50 x 31 weeks (expenses) 1,550.00 $ 8,525.00 

Quinto Ceolin $200 x 31 weeks (salary) 6,200.00 

Frank Falbo $150 x 28 weeks (salary) U, 200. 00 


Other Unusual Expenses 

Cheques cashed by C. W. Irvine 3>735.9 1 + 

Cheque to 'Anthony Fontana for services' 1,000.00 

Total questionable disbursements $?3>660.9^ 

324 Report on the building industry 
APPENDIX 51 (continued) 





From Local 

117 (00612 


. . 1 rvine 



March 15, 1971 
March 22, 1971 



April 15, 1971 
April lU, 1971 
April Ik, 1971 
April 16, 1971 
April 23, 1971 
April 28, 1971 
April 30, 1971 

$ 1,000.00 

$ 200.00 


May 3, 1971 
May 21, 1971 
May 21, 1971 



June k, 1971 
June 18, 1971 


July 7, 1971 
July 26, 1971 


August 6, 1971 
August 8, 1971 



September 3, 1971 
September 15, 1971 
September 16, 1971 
September 29, 1971 



October U, 1971 
October k, 1971 
October 21, 1971 



November l6, 1971 
November 23, 1971 



December 13, 1971 
December ik, 1971 
December lk, 1971 









ind Total 


Exhibits 325 







5, 1971 

Cash - 


$ 20.00 


6, 1971 

Cash - 




10, 1971 

Cash - 




13, 1971 

Cash - 




13, 1971 

Cash - 




15, 1971 


187. U2 


15, 1971 




15, 1971 

Cash - 




26, 1971 

Cash - 




31, 1971 




31, 1971 

Cash - 




2, 1971 

Cash - 




2, 1971 

Cash - 




12, 1971 

Cash - 




lh, 1971 

Cash - 




16, 1971 

Cash - 




16, 1971 

Cash - 




19, 1971 

Cash - 




20, 1971 

Cash - 




20, 1971 

Cash - 




25, 1971 

Cash - 




23, 1971 

Cash - 



May 13, 1971 



May 3 

, 1971 



May 21, 1971 

Cash - 



May 28, 1971 

Cash - 



May 51, 1971 

Cash - 



June 1 

+, 1971 

Cash - 



June 8, 1971 

Cash - 


3k. kO 

June 12, 1971 

Cash - 



June ; 

>5, 1971 

Cash - 



July : 

L2, 1971 

Cash - 



July 15, 1971 

Cash - 



July : 

l6, 1971 

Cash - 



July 23, 1971 

Cash - 



July ; 

?i, 1971 

Cash - 



August 6, 1971 

Cash - 




t 30, 1971 

Cash - 



August 30, 1971 

Cash - 



326 Report on the building industry 
APPENDIX 51 (continued) 

Amounts Payable to Cash or C. W. Irvine 

Fr~- ' r \J. T"-vir.e in Truct' (Accoup^ 631521) 




September 3, 1971 
September 3, 1971 
September 13, 1971 
September 2k, 1971 
September 28, 1971 

Cash - CWI 
Cash - CWI 
Cash - CWI 
Cash - CWI 
Cash - CWI 

$ 170.00 



18. ko 


October 1, 1971 

Cash - CWI 


n. o 



Unusual Deposits 




Unaccounted for 

$ k, 000. 00 


k, 633. 89 



Exhibits 327 

Deposits in to Per s onal Ac cou nt Without Sources SCHEDULE 5 

? - ■- 

Date Amount 

March 17 $ 500.00 

May 5 1,000.00 

May 28 2,500.00 

Total - 1969 

$ k, 000. 00 


January K 

$ 1,565.84 

January 20 


May 7 


Total - 1971 

$ 2,765.84 


June 28 $ 3,500.00 

July 24 I+IO.89 







Total - 


$ 4,633.89 


June 13 


$ 500.00 

Total - 

$ 500.00 

328 Report on the building industry 
APPENDIX 51 (concluded) 



Union Account 00612 (CLBC) 

Amounts received 
Amounts transferred 

Questionable amounts 



Union Account 728169 

Amounts received 
Amounts transferred 

Questionable amounts 



Union Account 631521 

Amounts received 
Amounts transferred 

Excess of payments over receipts 

$ UA0.00 


($3, 586.ia) 


;le 6 


July 15, 1969 
July 18, 1969 
February 2, 1970 
April 28, 1971 
April 30, 1971 
May 21, 1971 

Trannfers in Transfers out Account 
Amount No- 

$ 668.82 00612 CIBC 

800.00 006l2 CLBC 

500.00 00612 CIBC 

$ 200.00 631521 

100.00 631521 

350.00 631521 

Exhibits 329 

Chronological List of Transfers 

F- 3 


msfers in Trant 

;fers out 





August 6, 1971 



September 15, 1971 



September 29, 1971 



November l6, 1971 



November 23, 1971 



December 13, 1971 



December ik, 1971 



December ik, 1971 



February 2k, 1972 



August 28, 1972 



September 5, 1972 



September 25, 1972 



October 16, 1972 



October 26, 1972 



January 2, 1973 

$ 2,000.00 


January 12, 1973 



January 23, 1973 



February 5, 1973 



May 18, 1973 




May 23, 1973 



June 1, 1973 



June 13, 1973 



June Ik, 1973 



June 18, 1973 



June 21, 1973 



June 27, 1973 



$10,02U.93 $l+,U87Al 

330 Report on the building industry 

APPENDIX 52 (exhibit 408) 

Cheque to Donaldson dated 2 1 December 1 970 for $8000. 

<Ofc?J*-OMH: ?0-O0**9* 

Exhibits 331 

APPENDIX 53 (exhibit 409) 

Cheque to Donaldson dated 19 April 1972 for $6000. 



••'..J *H£) blNlMUOtlNT 

.-Ami. »vl I 

AGINCOUHf, ONT. AM 1 1. ) 

0« Pi«Of * ill 

TheSvkGOQC $®2i 

: imtAAll *wb roJtvjf'rr''. 


332 Report on the building industry 

APPENDIX 54 (exhibit 747) 

Cheque to Thomson from Northdown for $17,000. 



MY TO TM€ * 

o«**of /' 

- Twf 


Mcrrjiaown Oiwm and CowarTwutnow Lmmtm 

t:a»> i ?-o io»: ?o-oo ? iv -^VJ ctogmgyfa^ 



APPENDIX 55 (exhibit 883) 
Invoice, Alkon Homes 

Exhibits 333 

Tel: 924-1331 


Northdown How Ltd., 
P.O. Box 360 
A«lne©urt. t Ontario. 



"•nfc* ' ■•'• 




Mt 30 

Fart Haattngs re land taaently, 
■flndara" fea and coiaalaaiona ate., 

tn ralatlon to your Latrraoca * 

f*th£at« propartlaa. 

Aa agraad*.....^. 



$17,000.0 1 

334 Report on the building industry 
APPENDIX 55 (concluded 

' > 

,/' s 




'• vi r-mixusv on "^ 

0€c 1 3 1973 

&> & 3 


Exhibits 335 

APPENDIX 56 (exhibit 880) 

Cheque to Thomson from Accurate Engraving for $2887.50 




%JT'JA 1* 


June 25th/73 _ 
-Two-thousand-eight-hundred-and-eigAty-seven — — — xx doixm 


•: i ;r i e-QO ?<: oou ??»• i&if 

/00D0 288 7 50/ 


336 Report on the building industry 

APPENDIX 57 (exhibit 881) 

Cheque to Thomson from Cameo Interiors for $4000. 


N? 0712 

rs 1 




•:oso??-o«>: ^i-nosi?** 


Exhibits 337 

APPENDIX 58 (exhibit 890) 

Cheque to Thomson from Cameo Interiors for $500. 





N? 0231 


i:o50J2»oioi: bi-'Oosi?"" /ooooosoodo/ 



338 Report on the building industry 

APPENDIX 59 (exhibits 645 and 646) 
Cheques to M. Kurtz from Giuliani 




//- £«*T?z* 

5 gyj>£ &t 

• It/ltANI eO««T»W«T<0» COM***/ WI*iT«» 


»«►» AiUllAMI «OK«TI»ueTiMI tOmPJMf MMiTft» ^*~\ 

'•>»»•> "I ««*«•-« >«.« •' TORONTO 



,'yi-/**// - ■brnk Consumers RoadBranch, C-fi^/uJ 

»ot • or 

*- (fill****/- C*ritf£ ilk % i **&** 



'<• u i-s+A. r> 

</?/ f^** 

•:o30.2-oo2«: o&iss-a?* 

Exhibits 339 

340 Report on the building industry 

APPENDIX 60 (exhibit 975) 
Letter of intent 


'i: 4333 



February 6, 1970. 

Structural Formwork Ltd. , 
12A Finch Ave. , W. , 
Suite 20, 
Willowdale 444, Ont. 


Dear Sir: 


We are writing to you on behalf of the Manufacturers Life 
Insurance Company to confirm that it is their intention to accept your 
proposal of November 5, 1969 (with the exception of the items noted 
below) and to enter into a contract with you for the forming and concrete 
placing for the subject job. 

The form of contract which will be used will be basically a cost 
plus with a fixed fee of TWO HUNDRED AND TWENTY THOUSAND 
DOLLARS ($220,000.00) to a guaranteed upset maximum. You will 
receive 50% of the savings which might be made to a maximum receipt 
by you of FIFTY THOUSAND DOLLARS ($50,000.00). While your 
actual contract amount will be subject to some revision due to drawing 
changes between now and the time when a contract is signed your maximum 
upset price at the present time is the sum of TWO MILLION, FOUR 
DOLLARS ($2,438,501.00) including your fee. 

The exceptions to your proposal of November 5th referred to in 
the first paragraph of this letter are as follows. On page 3 of your 
letter in Items 1 and 2 you refer to the question of wages for key personnel 
and the matter of equipment rentals during any work stoppage beyond your 
control. The decision as to the personnel to be retained and the equipment 
to be kept on rental would be made by the Construction Manager. 

Again on page 3 of your letter of November 5th in Items 5, 6 and 
7 reference is made to terms of payment and the matter of holdback. As 

Exhibits 341 

Structural Formwork Ltd. 

February 6, 1970 

previously explained this question is presently under review by the 
Owner's solicitor. It is, however, understood that the contract will 
provide for a monthly payment and some form of accelerated holdback 
release. You are to endeavour to obtain a labour contract which will 
provide for wages as set out in your proposal. 

You have agreed that all items constituting "costs" under the 
terms of your contract will be subject to scrutiny by our staff and that 
you will co-operate in this regard. When submitting your monthly draw 
you will be required to provide us with your estimate of your subsequent 
month's draw in order to assist us in the establishment of a cash flow. 
It is also agreed that all major purchases of materials or equipment will 
be made on the Owner's purchase order and in this regard we have 
provided you with a supply of purchase order requisition forms. 

We look forward to working with you on the Project, and remain, 

Yours very truly, 


* / 


John P . Goldie . 


342 Report on the building industry 

APPENDIX 61 (exhibit 433) 

Romanelli's cheque dated 26 June 1972 for $2000. 



?M« OUff CHN ST 



»A«H D» »WAIA L 

i:ooii*-oiO": i2-oo&i?«» 

.- . - ■ 

.._.^.:. 4 ,-. .^/'' .;. 

APPENDIX 62 (exhibit 448) 

Deposit slip dated 29 June 1 972 for $ 1 000. 


,i ' 



APPENDIX 63 (exhibit 1087) 
Criminal record of Natale Luppino 

Exhibits 343 

Tm£ Commissions 


: - ^ - 




26 JUL* 73 


^tOrKv /^Uuyw 

1959 _ Sept. 2 
Hamilton, Ont . 

Theft under $50. 


1962 - Feb. 19 Frauo, Sec. 323 (1) C.C. Susp. sent. 1 yr. - 
Hamilton, Ont. probation. 

1962 - June 11 (1) Assault with intent. (1-2) Nolle pios. 

Hamilton, Ont. (2) Cause disturbance. 

1962 - June 19 Assault O.A.B.H., Sec. 231 (2) 12 nos. - APPtALEu. 

Hamilton, Ont. C.C. 

=0.#W1 -59^ I 



Omt. Ref. Guelpm 

196? - iv 
1963 - Jan. 26 
19C3 - Jan. 2b 

•19&4 - -EC. V 

PA. 'jjA 

ll^O - J.N. - 

Tods. (Irrmsut '£<»o» 

Tp.'MSFEI r n to ! -'0. 1 *"' 

Released on Parole. Sentence 
due to expire Hay 13/63« 

Appeal Oi smisseo as 

•196U - Jtc. 1 (1) Air. to omtr, money jnocr (1-2) 6 vcs . 


or Corr. wV.wi NGk(2) Conspiracy 
ton, Del ..ISA 

No Dijoosino^ 

. - ' riA.s 


PU #36223<_ 


m ft.=oi-'» 

snntilon ,ub>f>lli«<l b r °- •*!<»»< 

APPENDIX 64 s*><? Volume i 

344 Report on the building industry 

APPENDIX 65 (exhibit 660) 
Statement of net worth of Paul Volpe 

30th Side Line, 
White vale, Ontario. 

June 19, 1973. 

Department of National Revenue, 
District Taxation Office, 
36 Adelaide Street East, 
Toronto 120, Ontario. 

Attention: E. C. Drakich 


The following is a Statement of my Assets and Liabilities as of December 
31, 1971: 

Personal effects 

-Clothing, Jewellery, etc. Estimated Value $2,000.00 

-Gun Collection Estimated Value 2,500.00 

- Cameras, Radio Equipment, Etc. Estimated Value 1,000.00 

Cash - Approximately 55,500.00 


Legal Expenses - Ludwig, Fisher & Holness 3,000.00 
Loan Payable - Pat Volpe 7,500.00 



NET EQUITY $ 50,500.00 

To the best of my knowledge , the above items represent all of my Assets 
and Liabilities as of December 31, 1 97 1 . 

Yours very truly, 

Paul Volpe 

APPENDIX 66 (exhibit 391) 
Criminal record of Paul Volpe 

Exhibits 345 

Metropolitan Toronto Police 


Paul VOLPE, Mtp: 765/65 

1968, June 2 
1970, Oct 


Toronto, Ont 
Toronto, Ont 

Conspiracy - 2 years 

Fraud ;- Fined $200 or ?. months, 

APPENDIX 67 see Volume 1 

346 Report on the building industry 

APPENDIX 68 (exhibit 392) 
Criminal record of Charles Yanover 

Metropolitan Toronto Police 


Charles Stephen YANOVER MTF: 90/69 

1971, Jan. 22 Toronto, Ont. 

Conspiracy - 

Possession of restricted 

False Pretences - 

2 years on 1st charge 6 months concurrent with #1 on 2nd 

charge and 3 months consecutive with #1 on 3rd charge. 

APPENDIX 69 see Volume i 

Exhibits 347 

APPENDIX 70 (exhibit 390) 
Criminal record of Nathan Klegerman 

Metropolitan Toronto Police 


Nathan Isreal KLEGERMAN, Mtp: 1728/63 


1964, Nov. 5 

1965, Nov. 1 

Toronto, Ont 
Toronto, Ont 

Possession (3 charges) :- 

6 years each charge concurrent. 

Breach of Bankruptcy Act:- 

1 year c nsecutive with sentence dated "^ov 5/64 

k fined $1,000 or 1 year additional 

348 Report on the building industry 

APPENDIX 71 (exhibit 1070) 
Traffic summons to Paul Volpe 

OH I A«0 



<•• - - 

I 1S7? 



Criminal record of Daniel Gasbarrini 

Exhibits 349 







.p.s. no WOQ.I.7. 





— ■ .= 


I939 - FEB. 15 

Breach of Narcotic act. 



Hamilton, Out. 

PD #622/38. 

I9IM - Sept. l6 

(1) Theft 

( 1- 3) 3 M ° s ' DEF - * 9 M ° s - 


Hamilton, Ont. 

(2) False pretences (2 chgs. ) 


Ont. Refty.Guelp 

(3) Attempt Theft (2 chcs. ) 


19H2 - Feb. 12 

Paroled by the Ont. Board of 
Parole. Sentence due to 
expire July 20/^2. 

19U6 - March 11 




Toronto, Ont. 

PD #1113/l»5. 

I9H9 - Oct. 27 

Conspiracy to distribute 

7 yrs. APPEALED. 


Vancouver, B.C. 


B.C. Pen'y #6798 

1950 - Feb. 3 

Appeal 01 smi ssed. 

1952 - Nov. 5 

Transferred to Collin's Bay 


1955 " J*«- 15 

Released on expiration of 

1970 - Mar. 25 

Violation of Immigration 

No disposition 

Daniel Gatriel 




USI 4 NS, 

#A11 468 299 

Buffalo, N.Y., 



TM« It a lummflfv of loformollon tuhmltt»d by low tnfofCMWlf rtnmnctmt. All antrUf erp %uO0t>r4*A l^» * Inn-.or lnf| *»«•#(** »r>o«« lm*l-«»»-4 t»* 

350 Report on the building industry 

APPENDIX 73 (exhibit 840) 
Analysis of work for Royal York Hotel 


F . General Contract Analysis 

1. Bid by R. J. Kirby January 4th, 1966 $ 525,000 

2. Bid by P.. J. Kirby January 12th, 1966 443,900 

Consisting of 

a) Demolition of plaster 99,150 

b) Guestroom plaster 161,700 

c) Public area plaster 52,Q00 
c) Duct cleaning 8,730 

e) Sub-Total 322,380 

f) Misc. cutting, clean-up 

& dust protection 121 , 520 


3. Bid by R. J. Kirby January 18/66 

approximately 358,000 

4. Bid by E. Mayer of Winnipeg 

January 12th, 1966 255,595 

5. Bid by E. Mayer of Winnipeg 

January 19th, 1966 248,595 

6. Saving quoted by E. Mould for use 

of E. Mayer on January 18th, 1966 116,930 

Electrical Contract Analysis 

1. Bid by Industrial Electric 

January 4th, 1966 290,000 

2. Bid by Industrial Electric 

January 12th, 1966 269,500 

3. Bid by Industrial Electric 

January 13th, 1966 247,000 
Consisting of wiring 108,000 

risers 139,000 






i n!f«a?f a ,rue C0 PV °' a document 
Ce.ivered by an investigator, lo 





Exhibits 351 

APPENDIX 74 (exhibit 841) 

Agreement between Mayer's Cabinets & Interiors Ltd. and Cloutier & 

Elliott Ltd. and Brandson Bros. Ltd. 

this agreement made this day of February, 1966. 


mayer's cabinets & interiors ltd., 

Hereinafter called the "Contractor" 


Hereinafter called the "Sub-Contractor" 

whereas the Contractor has agreed with English & Mould Ltd. 
(hereinafter referred to as the "Prime Contractor") to provide all the 
materials and perform all the work shown on the drawings and described in 
the specifications entitled Royal York Hotel, Toronto, Ontario, prepared 
by Mechanical Consultants Western Ltd., (hereinafter referred to as the 
"Architect") and to do everything required by the specifications and the 

and whereas the Sub-Contractor has agreed with the Con- 
tractor to do the portion of the said work and to supply the materials 
necessary therefor as is hereinafter set forth; 

now this agreement witnesseth as follows: 

1 . The Sub-Contractor agrees to furnish all material and perform 
all work as described in Article 2 hereof for the Royal York Hotel for the 
Contractor at the City of Toronto, in the Province of Ontario, Canada, in 
accordance with the general conditions of the contract between the Prime 
Contractor and the owner and in accordance with the drawings and 
specifications prepared by Mechanical Consultants Western Ltd., 
(hereinafter called the "Architect") all of which general conditions, draw- 
ings and specifications form a part of a contract between the Contractor and 
the Prime Contractor and the Prime Contractor and the owner, and are 
hereby made a part of this contract. 

2 . The Sub-Contractor and the Contractor agree that the materials 
to be furnished and the work to be done by the Sub-Contractor are: 

352 Report on the building industry 

All lathing and plastering incidental to air conditioning installa- 
tion, according to the plans and specifications as prepared by the 
Architects including but not limited to the following areas: 
Approximately One Thousand, One Hundred and Ten (l,II0) 
Bathrooms as noted, 
Corridors as noted, 
Convention Areas, 
Rental Areas, 
Public Areas. 

3. The Sub-Contractor agrees to complete the work described in 
the foregoing Article according to the time schedule prepared by the 
Architect with the completion date to be on or about the 15th day of July, 
1966. The Sub-Contractor agrees to begin, carry on and complete the work 
hereinbefore described in a prompt and diligent manner and so as not to 
interfere with or delay the work of the Contractor or the work of other 
Sub-Contractors. If the Sub-Contractor fails to observe this agreement and 
by reason thereof the Contractor becomes liable to the owner for penalties 
or damages, the Sub-Contractor shall pay to the Contractor the proportion 
of such penalties or damages for which he has been responsible which in the 
event of a dispute shall be determined in the first instance by the Architect 
but subject to an appeal to arbitration as provided in the general conditions 
of the contract between the owner and the Contractor. 

4. The Contractor agrees to pay the Sub-Contractor for the per- 
formance of his work the sum of One Hundred and Twelve Thousand, Six 
Hundred and Forty ($112,640.00) Dollars, in current funds, subject to 
additions and deductions for changes as may be agreed upon, and to make 
payments on account thereof in accordance with Article 6 hereof. 

5. The drawings and specifications forming part of the contract 
documents between the Contractor and the Prime-Contractor and the 
Prime-Contractor and the owner shall, so far as they relate to the work 
mentioned in this sub-contract, be binding upon the Sub-Contractor, and 
the general conditions of the contract between the Contractor and the 
owner, so far as they are applicable to this sub-contract, shall be binding 
upon the Contractor and the Sub-Contractor. Without limiting in any way 
the generality of the foregoing it is hereby agreed between the Parties to this 
sub-contract that the Architect shall have the supervision of all work and 
material furnished under this sub-contract and that any dispute as to such 
work and material shall be decided in the first instance by the Architect, 
subject to an appeal to arbitration as provided in the said general condi- 

Exhibits 353 

tions . And it is further agreed that all rights and remedies given to the owner 
by the terms of such general conditions shall enure to the benefit of and be 
exercisable by the Contractor as to any matters arising under this sub- 

6. The Contractor agrees to pay the Sub-Contractor in current 

funds for the performance of the sub-contract as follows: 

Payments will be made by the Contractor to the Sub-Contractor 
on or about the day of every month covering ninety (90) 

percent of the value of the work completed by the Sub-Contractor 
to the end of the previous month ... 

354 Report on the building industry 

APPENDIX 75 (exhibit 621) 

List of dry wall bidders for Commerce Court project 

^COMMERCE COURT. PROJECT' • ;,' ■ " \. : - '■ .• ; ' '" ;. ••'. ■ ... 

. PROPOSED LIST Or 3 IDDERS FOR\.^?A f '. L . . .... ' .... 






^Norman Lathing Ltd. ' ' 
J Ccsaroni' Brothers Led. 

Coil Wall Ltd. 
N Gambin Brothers Ltd. 


•Industrial Drywall Co. 
Ltd. ■ • 

i Polycoustics Ltd. 

Architectural Adoustics 
& Drywall Co. ' '.', 

Austin Drywall 
^Donaldson Barron Ltd. 

Metropolitan Dry Wall 
(Industrial) Ltd. 

Exhibits 355 

APPENDIX 76 (exhibit 622) 

List of bids received for Commerce Court project 





DATE 23 ]oi/^ r> 




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MtirtA,/tn .Jcit*Ji-M/rt»iUe G} un> -•**>< Law***** fat • fJn-fQu>c»x ^j 

remarks A(3c^ Ckeoje* -Te. ne. Zcfu/'nets Tc Hippos** Ujhch 





356 Report on the building industry 
APPENDIX 77 see Volume i 

APPENDIX 78 (exhibit 497) 
Agreement between Paolini and Local 3 1 

- ru. Met,. s^? , ^ i r T isnrx.^rn^ tM,f 

U. scopes. -«b?o tilr.^ r ,* Un '° n hav '"~ " 
«nu void? CoU.ctive Agreewnts shall b« null 






Exhibits 357 

APPENDIX 79 (exhibit 848) 

Statement of Amis' financial transactions with Local 598 



A. F. Amis (September 1, 1972 - November 1973) 
Car allowance 

Business Agent's allowance 

Welfare and Pension 
Vacation Pay 
Certified cheques 


$ 3,979-00 

$ 9,506.1+0 














- n 


136. 1+0 










50,601+. 83 


Sharon Acorn (September 1, 1972 - November 1973) 

Salary 9,150.00 

Overtime 6,092.39 

Vacation Pay 627. 06 


2,700.00 6,1+50.00 

917.1+5 5,17l+. 9l+ 

162.00 U65.O6 

3,779.1+5 12,090.00 


i,l+7l+.28 $20,795-68 $1+5,678.60 

358 Report on the building industry 

APPENDIX 80 (exhibit 997) 

Report by Leonard Lawrence on Local 18 





TEL : 3B3B5IB 

January 15, 1971 

Kr. J. Tarbutt, President, 
Local 18, United Brotherhood of 
Carpenters and Joiners of America, 
82 Ferguson Avenue North, 
Hamilton, Ontario. 

Dear Sir: 

On August 13th I was engaged to proceed immediately with a complete 
investigation of the affairs of Local 18. My authority to do so was detailed in 
a telegram dated August 13, 1970 which read as follows: 

"You are advised to proceed immediately in the engaging of a chartered 
accountant to perform an audit of all books and records of Local 18. The trustees 
and all persons handling monies and records of Local 18 are to assist the chartered 
accountant to such extent as the said accountant may require or deem necessary. Once 
the audit has been completed a copy of same is to be forwarded to the writer. Upon 
receipt of 3aid copy it shall then be determined by the writer if consultations with 
the general office as to what further action and investigations will be required. If 
clarification is required concerning the contents herein or matters pertaining to the 
audit you are to contact the writer. Copies of this wire are being forwarded to Local 
18 Trustees." 

Signed: William Stefanovitch, 

General Executive Board 


With this telegram as my authority to proceed I then met with you to discuss 
the details of my engagement. As I made clear to all persons throughout my investigation 
I am responsible to you and Mr. Stefanovitch, this I did because it avoided any conflicts 
within the union as to who I was answerable to. 

As we discussed I was to carry out a complete investigation into all facits 
of the Local 18 business affairs. As I made clear at the time, my investigation was 
not a standard audit but was an investigation into all facits of the union's affairs 
As we agreed I was to have complete discretionary powers to choose what I was to 
investigate. I now will detail the steps that I took and the conclusions I reached. 

The first step taken was to familiarize myself with the day to day transactions 
carried out by the office staff, the financial secretary and the treasurer. Once I 
discovered the routine of the day to day work I decided to do a complete check on a two 
week period in July 1970. 

Exhibits 359 

Ky investigation of this two week period uncovered the following types of 
irregularities : 

Conplete sets of numbers of duplicate receipts missing. 

Duplicate receipts marked as paid by cheque but actually 
upon investigation paid by cash. 

Cheques on hand up to one month stale dated. 

Receipts cancelled but new receipts never re-issued. 

Irregular depositing of funds. 

Irregular patterns of people paying in advance that 
never before paid in advance. 

Cheques being deposited three to four week* after 
date receipt issued. 

Irregularities uncovered related to out of town members. 

At this point I felt that the most urgent need was to have the existing 
system completely updated and to build in proper controls and guides. The old system 
was in principal sound but it lacked greatly in the area of balancing and control over 
the flow of monies. 

At this time I would like to make a few comments on the existing system as 
compared to the old day book system as was previously in existence. The principal of 
prenumbered receipts is far superior to the day book approach and from reviewing records 
back prior to the institution of the prenumbered receipts I can see that the day book 
idea lacked in many basic controls over monies received. 

I attempted to audit a month of the old day book system and found that no 
cross references existed so that the only course of action was to accept the figures as 
recorded and only check the mathematical accuracy of the additions. The existing 
system even though lacking in controls did provide me with the ground work on which 
to build proper controls. 

I have attached a schedule detailing the daily routines that have been 

At this point a meeting was held with Mr. Stefanovitch in which he asked my 
initial findings. I detailed to him the list of irregularities I had uncovered and 
asked for his recommendations. He stated that all office staff was bonded and if monies 
were missing that I should work backwards year by year and try to accumulate both 
evidence and dollar value so to be able to make a claim to the bonding company. 

I then told him that I would need complete details of the bonding coverage to 
enable me to arrive at an opinion as to the possibility of recovery from the bonding 
company. At this time I voiced the view that with the condition of the accounting 
records it would be very unlikely that proper evidence could be accumulated that would 
substantiate the payment of any claim. Mr. Stefanovitch said he would attempt to get 
me proper guidelines from the head office but in the meantime this investigation should 
continue in detail so to prove one way or the other if bonding recovery was possible. 

At this point to follow up a letter sent by you to Washington I corresponded 
with head office to try to clarify the bonding situation. After extensive correspond- 

360 Report on the building industry 


ence and discussions the end result was that no definite commitment was forthcoming 
and we would have to take our chances on possible recovery. 

At this point I sought independent advise from an insurance executive who 
advised me that the amount of detailed information necessitated by an insurance 
company to live up to a bonding commitment was extensive and had to be based on 
complete documented facts with no assumptions included. Bearing this in mind I decided 
to do a detailed investigation for the first seven months of 1970 and then decide at 
that time if it warranted the time and ccst to go back further. 

Ky detailed checks for the months of July to January 1970 was to do with 
cash received. I carried ou the following audit procedures. 

(1) Checked all duplicate deposit slips to bank statements. 

(2) Checked all receipts within each deposit to make sure 
total of face value of receipts equalled the total deposit. 

(3) Attempted to reconcile what payments within each deposit 
were made by cheque or cash. 

(4) Checked for the continuous use of duplicate receipt numbers. 

(5) Checked cancelled receipts to see if new receipts 
subsequently re-issued. 

(6) Spot checked posting to the individual ledger sheets with 
direct attempts to check for errors and duplications. 

(7) Summarized extra deposits that were recorded on the bank 
statements but never substantiated by duplicate deposit 

(8) Checked dating stamped on individual duplicate receipts. 

These audit procedures took approximately eight working days and produced 
the following results: 

(1) All duplicate deposit slips agreed with the bank statement except 
that additional deposits were unaccounted for. The explanation 
received was that small periodic deposits were for N.S.F. cheques 
that were subsequently deposited when duplicate cheques were 
received. This explanation seemed to tie in with the daily 
transactions of the Union. 

(2) All the individual deposits balanced with the totals of the 
receipts attached. 

(3) It was impossible to fcelate precisely what amounts were paid 
by cheque and cash because of the practice at that time of 
using excess funds on hand to cash members pay cheques. 

(O In the attenpt to reconcile what payments were made by cheque 
and cash it was discovered that some receipts marked paid by 
cheque were actually paid by cash. 

Exhibits 361 


(5) It was discovered that complete sets of numbers of duplicate 
receipts were missing. Individual receipts on specific pages 
were missing and two or three sets of numbers were in use at 
any one time. 

(6) Found frequently that cancelled receipts did not have new ones 
reissued and corrections had been made in the ledger books when 
duplicate entries had been made. 

(7) Discovered that in some cases members had been credited with 
payment of dues 3 to 4 months in advance, that this was 
subsequently cancelled or didn't fit the pattern of his 
previous payments in that he had always been late or never 
paid more than one or two months at a time. 

(8) Discovered that the retired members duplicate receipts were 
missing this was attributed to the robberies, and certain 
whole sets of receipts were also missing. 

(9) Discovered that certain members cheques had been deposited 
three to four weeks after date receipt issued and posted to 
ledger book. 

(10) Discovered some cheques on hand up to one month stale dated. 

(11) The majority of irregularities related to out of town 
members who regularly paid by cheque. 

At this point I was asked to attend an executive meeting to explain the 
details, with reasons, for the changing of the accounting procedures. At the 
meeting I detailed the procedures and with very minor changes it was unanimously 
agreed that effective immediately these changes could be made. 

I then had a meeting with the three trustees to answer any and all questions 
that they had. They asked what steps I had taken and what conclusions I had reached. 
I detailed the steps taken to date and told them that I suspected some fraudulent 
manipulation of the records but was to carry out more detailed investigation by direct 
correspondence with individual members. They asked me for a direct report to which I 
answered I would report to the President and the International Representative in a 
written report which if they wished could be released to the trustees and the membership. 

I then proceeded to write three hundred members of the local union 
requesting that they supply me with the following information: 

(1) The date you last paid your dues prior to August 1, 1970. 

(2) For what months did you pay? 

(3) What is your work permit receipt number for the last dues 
paid before August 1, 1970? 

(4) Did you pay by cheque or cash? 

(5) Amount paid? 

(6) Any irregularities noted in the last year regarding 
receipts or cancelled cheques. 

362 Report on the building industry 


The results of this direct correspondence was disappointing, leas than a 
50£ return, with approximately only 25£ of the members who had answered having kept 
their previous work permit numbers. Thi3 step proved to me the difficulty of providing 
sufficient evidence to substantiate any claim to the bonding company. 

At thi.3 point I had a meeting with you to review my thoughts on my audit 
procedures to date. I disclosed that I had reconstructed the method by which I thought 
funds were misappropriated but I further made clear my thoughts that any further 
detailed investigation to substantiate the possible recovery of funds from the bonding 
company was against my advice. 

The reasons I believe recovery by bond is impossible is that certain records 
are missing and the bookkeeping systems in effect at the time were inadequate to 
substantiate certification of the funds missing, ffy reconstruction of the probable metho 
of misappropriation was a combination of the documents available, the procedures and 
records that were changed and the availability of records to the staff at that time in 
conjunction with the daily procedures carried out by them. 

By all the evidence provided the method I believe that was used was that 
members whose payments were received by cheque were issued receipts from a separate 
receipt book other than the book currently being used, in particular out of town members 
paying by cheque. Then when an identical receipt appeared in the regular book that 
was paid by cash, the receipt was changed by adding "CH" in the upper right hand corner 
to record payment by cheque. The money was removed and the cheque from the other 
receipt book was substituted. This meant the daily receipts were deposited and 
balanced to the total of the receipts issued. At this point nobody could tell the switch 
had taken place unless a complete comparison was carried out, receipt by receipt to the 
cheque* on hand. This had never been done, only the number of cheques was compared to 
the number of receipts marked "CH" and, this of course, verified because the receipt had 
been changed to read "CH". 

This conclusion fits all the irregularities detailed previously and provides 
the logic as to why pages of receipts were missing, cheques were held for weeks until 
deposited, why out of town members accounts were used and why the irregularity of 
receipts marked "CH" when actually paid by cash. 

As we agreed at the time, because of missing documents and the fact that most 
carpenters destroy or lose their old work permit cards it was impossible to reconstruct 
the exact money in total that was misappropriated. I had uncovered in my opinion, the 
method by which the funds were taken and had stopped all future possible misappropriation 
by tightening the control over receipts and the flow of monies. 

With the apparent need for bonding evidence eliminated I requested from the 
trustees any areas that they specifically wanted investigated, without disclosing any of 
ray conclusions to that date. They asked that I check into three areas, these being the 
handling of initiation fees, work permits and the strike fund for the 1969 strike. The 
trustees also express considerable concern regarding the bond report. To this I answered 
that they could do the steps I suggest and that is check the records that were available 
and not worry about the possibility of missing records. This would be covered in my 
report and I could clarify with Jack Tarbutt President that I would assist them in 
completing the report. 

As you know subsequently when the trustees failed to complete the report you 
asked me to prepare the report, which I did, and also provided a certification which you 
then forwarded to head office along with the completed bond report. I would like to not* 
at this time that the six month bond report states that if irregularities are not noted 
within 3 months after the date of the bond report no recovery is available under the bond 

Exhibits 363 


Before I completely abandoned the possibility of not calculating the total 
monies misappropriated I decided to check into two alternate methods of calculating 
the total monies received and corpare this to the total monies deposited. I decided 
the effort in these two areas would possibly give the membership at least a rough 
approximation of the amount, even if bonding recovery was not possible. 

The first method would be to add all the individual ledger sheets for every 
member because all dues and penalty assessments are recorded in their book. This 
proved after initial investigation to be fruitless because the individual ledger sheets 
do not record initiation fees paid, whole or part, or work permit monies received. This 
was further complicated by the fact that different amounts of initiation fees were in 
existence over the period under investigation because of special groups initiated and 
some special circumstances for certain new members. 

The second method I investigated was the per capita sheets supplied by head 
office. This again proved fruitless because all members are kept active even those 
not paid. Examples would be retired, sick or members who are eventually expelled. It 
also only lists new members after initiation, therefore all monies received as part 
payable instalments are not recorded until the month after initiated. A further 
complication is that the books are kept open for a minimum of three working days after 
each month end so monies in transit can be recorded in the proper month. 

Another complication is that the local keeps three separate bank accounts, 
each for a specific purpose, but because of shortages in certain funds monies were 
deposited into accounts other than the proper one. Because of inadequate records being 
kept this added to the difficulty of reconciling total funds received. 

If you refer to the suggested changes detailed in the attached schedule 
you will note all these difficulties have been eliminated because of complete cross 
references being provided by the duplicate work permit receipt number being recorded 
on the individual ledger sheets and on the daily summary sheets. 

At this point I decided to continue my investigation of all the aspects of 
the union where monies were being handled and specifically the ones recommended by the 

The first thing I investigated was the system used to record and accumulate 
initiation fees . This comprises the following documents: When each person applies 
I'or membershijPa initiation sheet is made up in duplicate. If the prospective member 
pays any amount of his initial fees he is given a duplicate receipt, therefore recording 
the actual money received. The payment is then recorded on his initiation sheet. This 
means at all times the union knows who has applied for membership, when he applied and 
the instalments he had paid. The prospective oBmber should keep his copy up to date in 
addition to the duplicate receipts he receives. 

This system further informs the proper official when a prospective member 
is fully paid and therefore eligible for membership or more important if anybody has 
fallen behind on their commitments therefore the proper letters can be sent out. 

Let me emphasize that this system is good but in the past because of the 
loose controls over receipts, monies could have been properly recorded but never 
deposited. This is now eliminated because all receipts are kept under lock and key 
and all used receipts must be accounted for. 


1/ Permits in the past were under loose accounting control because of the use 
of a separate receipt book and there never was an accounting for the numerical sequence 
of all the receipts issued. As in the case of the initiation fees this is now under 
proper control because of the revised controls. 

364 Report on the building industry 


The area of retired members dues was one that was very loosely controlled. In 
the past to keep retired members recorded with head office work receipts were issued for 
them and the per capita amounts were paid on their behalf. The work receipts were never 
mailed out because of the cost involved and the fact that the retired members had no 
practical need for them. In addition these receipts were issued out of a separate book. 
To further complicate my investigation of thi3 area most of these receipts were missing 
after the robberies in July 1970. In the attached schedule I have recommended that no 
receipts be issued to retired members as it is a simple procedure to include them on the 
per capita sheets to keep their names active. 

I then started an investigation of the strike fund set up for the six months 
in 1969. In a detailed conversation with you we reviewed the formula by which 
individual members were assessed throughout the strike. The task of reconciling what 
should have been paid by each member seemed to be impossible because of the fact that no 
records are kept for all members, therefore I could not trace each individual's 
employment during the strike. In addition to this, certain members were paid unemploymen 1 
insurance benefits and certain members were receiving benefits from the workmen's 
compensation board. Also some members were working outside the industry and therefore 
paid a flat weekly assessment. 

It was finally agreed that I would work initially with the assumption that alT 
members were properly assessed and to concentrate on the actual flow of monies collected. 
I then discovered that all the documents concerning the members strike fund assessments 
were piled up in a corner of the office cabinet and had never formally been turned over 
to the President or the Financial Secretary. 

I then attempted to sort the existing records and found that all duplicate 
bank deposit slips were missing, that the duplicate receipt books were no in any order 
or controlled in any way and the only permanent record seemed to be the cards made up 
for each member. I attempted to sort the receipts into some sort of chronological order 
by date or by book but after a few hours discovered that this was going to accomplish 

Since a card was supposed to be in existence for all members I decided to use 
this as the starting point of my investigation. I then carried ou/the following checks: 

(1) Checked the additions and mathematical accuracy of each card. 

(2) Checked and listed all missing cards and eventually accounted 
for all cards. 

(3) Checked all cards to ledger books for confirmation that the 
name tied in with the union number and if any discrepancy 
occurred this checked with the per capita sheet. 

(U) Checked all union number changes during the period of the 


(5) Added the bank account deposits for the months of the 
strike and up to the time the strike committee was 

These checks covered approximately six working days. 

I discussed with you at that time the feasibility of communicating directly 
by mail with a random sampling of members to ask that they inform me of the total amount 
of strike assessment paid by them. As we agreed, using the previous letter circulation 
as a guide, this would probably prove fruitless because very few carpenters, a year after 
the fact, would remember the total assessments paid or exactly what they did throughout 
the strike period. 

Exhibits 365 


After confirming all the cards were accounted for and all the cards added 
correctly the end result was a difference of $^,275.19 between the money actually 
deposited and the accumulated total on the cards. 

I next started an investigation of the carpenters trust fund setup for the 
collection and distribution of vacation pay. I read the extensive legal documents 
detailing the formation of the fund and the duties and responsibilities involved. I 
discovered much initial confusion, that was created by the contractors because they mixed 
the contributions of the vacation pay and welfare funds. I discovered that the funds 
received were handled and deposited correctly but the one major area of difficulty was 
that no records were available to cross check to. I would strongly suggest that it be 
emphasized to all carpenters the necessity of keeping an accurate independent record of 
wages in the book provided by the union. This will enable the union and the trustees 
to substantiate any claims, that may arise at the pay-out dates, lor contributions that 
were never advanced to the union. Since only the carpenter knows precisely week by week 
where he is employed and for how many hours each week, this adds to the need for the 
accuracy of the wage book. 

Because my initial investigation discovered no weakness in the control of the 
flow of monies I ended my investigation except to assist the trustees to straighten out 
the funds that crossed between the vacation pay and welfare funds. An annual audit 
will provide the complete financial picture of the fund at the funds year end. 

I next reviewed all the documents surrounding the welfare fund. I read the 
agreements with Tomlinson Consulting Services Limited and the original agreement signed 
between the General Contractors and Local 18. In this case all monies are handled by 
Tomlinson 1 s. As in the vacation pay some confusion arose because contractors mixed 
up the payments between funds but this has now been straightened out. An annual audit 
of the welfare fund will report on the results of Tomlinson' s services plus provide the 
financial statements showing the resulting figures of the fund for the year. 

At this time I would like to repeat the importance of the carpenters 
maintaining their individual wage records since this provides a direct cross reference 
on welfare contributions made on their behalf. 

At this time I personally, with your sanction, contacted individually the 
| officials of the union and the trustees of the union. These being yourself, J ack Tarbut t 
President, Tom Fenwick Recording Secretary, Charles Guagliano Financial Secretary, 
Romeo Charbonneau , D anny McGp wen and H enry Buck Trustees. In all cases, when told of 
the areas, not the results of my investigation, they said they thought I had covered all 
areas necessary. 

In the case of trustee Romeo Charbonneau in our first meeting he stated he 
had sent a telegram to Washington which started the movement to getting my investigation 
carried out into the union's affairs. I asked Mr. Charbonneau to meet with me to discuss 
the contents of the telegram he sent which read as follows: 

"Request international representative to come to Local 18 Hamilton, to 
investigate accusation against myself and accomplice by Charles 
Guagliano Bus. Rep. 

Robbery of office occurred July 22, 1970. I and accomplice have been 
accused of plotting and conducting same to cover the alleged embezzlement 
of $3,000.00 from strike fund. 

Feel robbery was smoke screen to hide guilty parties maneuvers. Pressed 
for audit of strike fund at time of handing over funds to office. Was 
denied this request. The certain executive did not feel this warranted. 

366 Report on the building industry 


Suggest also research and audit of initiation fees, received and 
not recorded. Have proof they did not tally with what should be." 

Signed: Romeo R. Charbonneau 

290 Charlton Ave. West 
Hamilton, Ontario. 

I discussed the contents of this telegram with Mr. Charbonneau in detail. 

I asked him who the accomplice was and to this he refused to answer and said 
it was unfrportant. I asked him when he had been accused of this alleged embezzlement 
and he stated he was not directly accused but was told by a third party. I asked who 
the third party was, to which he answered the office secretary Mrs. Hazel Nash. I 
asked if this supposed accusation was made in front of witnesses and he stated he 
believed the other office staff were present at the time. 

I asked him who he thought were the guilty parties to which he refers in the 
telegram, he did not answer this. I asked to whom and how he pressed for an audit of 
the strike fund. He answered that he mentioned it as at February 28, 1970 to Mr. 
Guagliano who did not think an audit was necessary. I asked if he ever pressed in 
writting or verbally to anyone else for an audit and he said he couldn't remember. 

I asked Mr. Charbonneau to produce the proof he states that he has that 
initiation fees were not recorded, to this he refused. He said he would provide the 
evidence after my report was finalized, I reminded him of the instructions from the 
international representative that all trustees were to fully cooperate with me in the 
course of my investigation. He still refused to produce the proof. 

I then telegraphed on November 20th, 1°70 Mr. Stefanovitch that Mr. 
Charbonneau would not provide the information that he states he has. I asked him to 
advise me, but to date I have received no response to my telegram. 

I followed up my conversation with Mr. Charbonneau by asking all the office 
staff if they heard Mrs. Nash being told by Mr. Guagliano of any accusations against 
Mr. Charbonneau. They all answered that they had not heard any accusations. 

I then asked Mr. Guagliano if he did make these accusations concerning the 
alleged embezzlement of $3,000.00 and he said no. I then further questioned Mr. 
Guagliano concerning the strike fund. He answered that he had never received the strike 
fund records or any formal requests for an audit, but one day found the strike funds 
records piled up in the bottom drawer of his office cabinet. Mr. Tom Fenwick said that 
the only thing he had ever heard about an audit was a verbal comment that an audit was 
to be carried out by the trustees of the strike fund themselves on their own work. 

At this point since no evidence was forthcoming to substantiate anything In 
Mr. Charbonneau ' 3 telegram I decided to complete my investigation and ask that he 
produce whatever proof he has after I file my report. 

As I am finished with my detailed investigation I will now detail ray general 
thoughts on the information I was able to compile. In the constitution and by-laws of 
the United Brotherhood, little advise is given as to how to keep proper records other 
than the referal to a day book. As I have previously mentioned the system in existence 
at the start of my investigation lacked in basic accounting controls but in principal is 
far superior to the day book recommended. I would advise the local 18 to suggest to 
head office that they produce a booklet or brochure advising unions on the basic 
principals of why and more importantly how to set up daily accounting procedures with 
proper controls. 

Exhibits 367 


The e,cisting system of duplicate prenumbered receipts has been ratified by 
head office through correspondence by Mr. Guagliano when he first took office. This 
revised system was further confirmed directly by me by telephone with Mr. Livingston 
of head office in Washington. 

In the past, the trustees job has been to check the accuracy of the entries 
made in the records, checking to see if members were charged for penalty assessment, 
etc. I would strongly recommend that all trustees in the future completely understand 
the principals and controls employed in the now installed systems and spend sufficient 
of their time making sure that these principals and controls are adhered to. If the 
controls are strictly enforced then little accounting errors will quickly ratify 

Ky conclusion regarding the possible misappropriation of funds in the office 
is that it is impossible to tell how long and how much specificially is missing. The 
misappropriation was carried out by a member of the office staff but because of the 
missing documents and the difficulties with too many people handling records it is not 
possible for me to definitely state who the guilty party was. 

In the area of the strike fund, even though a major difference was recorded, 
the condition the records are in it would be impossible to state if this difference is 
accurate. All I can state is that from the records I was able to compile and check, 
the mathematical difference I arrived at was $4,275.19- This situation is a perfect 
example as to why all special funds must be governed by the same rules and controls I 
have installed in the office. 

At this time I would like to state that this investigation covered approximately 
four months in total. The length of time was unfortunately unavoidable because of the 
need to wait for the answers to correspondence plus the need to absorb the answers 
and solutions arrived at to reach the proper conclusions. This investigation was 
carried out to supply the membership with information concerning all the areas of the 
union which concern the handling of money. This was not a traditional year end financial 
audit but a special investigation, therefore the need for special checks and audit 

In conclusion I would say that if the current systems I have installed are 
adhered to and the trustees follow my recommendations, no future problems should be 

If any questions should arise concerning any areas of my investigation and 
subsequent conclusions, please do not hesitate to call on me at any time. 

I thank you for the opportunity of carrying out this extensive investigation 
and I am sure it will prove to be beneficial to all parties concerned. 

Yours very truly, 

Chartered Accountant 

368 Report on the building industry 

APPENDIX 81 (exhibit 1022) 

Report by William Stefanovitch on Local 18 


1Hnit*£> "f&XBtiitvliaob of QJarjmtbr» anb ^oineta o& ^Vmorica 


Wa»mih«toh. O. O. IODOI 

Wm. Stefanovitch 


Ninth Disthiot 




, ^ 

August 10, 1971 

Mr. To:n Fcnwick, Rec. 
Looal Union »'18, 
02 Ferguson Ave. II. 
riajniltoa, Ontario. 

Dear C-ir and brother : 



AUG 1 6 1971 


Thia letter i« to be considered as the letter of 
Ins truce J on 3 that the writer made reference to during the 
course ol en? meeting reewnciy held with officers of Local 

To bcrin with tne officers and members of Local *'l6 
must frc.: 1 Lore on \*. . he r.'orr v.'."';vt in e ;ee?"" to it that 
the constitution of tre brotherhood be carried out. 1 ?'" 
making s.1 tf.ic t_ve particular r ? f et*-n c- to the Vtict that 
Loc?l (?1'" for a number of yaara :iid not have their boo^s 
and records audited by a certified Public Accountant a* 
called fcr by Erection 'i f J (c). 

It was only last year after a break-in ol tne oificeys 
of Local /■ io occurred, v.cre oteis finally t£.;.en to h£Ve the 
boohs and reccrd3 of Local #10 audited b; 1 a certified public 
accountant, and a3 we all know the Certified Public Account- 
ant was unable to perform a thorough and r roper «iuc ; it due to 
certain receipts, papers ana bock pages vere found to be 

This p.uuii/Or that the Local has engaged hns establisned 
a new bookkeeping system which from all recounts seems to be 
operating efficiently. The Local is advised that to maintain 
this efficiency, this boo;tkeepi."g system is not to be changed 
unless re contended by the Certified Public Accountant and 
approved by the membership. 

As to the Trustees they are advised that they chall per- 
form their duties as 3pellcd out in the constitution. They 
are particularly advised to aee to it when performing an audit 
that all books, records, receipts, papers, etc are pieced at 
their disposal so that a thorough and proper audit ia performed, 

Exhibits 369 

llittii*£» 4&vatiitxlioob td (ty&x$cnicv& mxb poineva of ^merits 
orr "" Wm. Stefan a vitch . "° M " ADO "" 



Ninth Dibtriot n iNiD . 

Paee 2 * August 10, 1971 

The Trustees are to audit the book3 of all accounts held 
by the Local and to also audit all books of persons collecting 
f undo . 

The Trustees shall inform the Local in writing the resultB 
of their audit; they shall also make a comparison of their 
audit and that of the Certified Public Accountant and shall in 
writing advise the Local the results of the comparison so made. 

'.'lie financial secretary of the Local is advised to see to 
it that the numerical and financial standing report of the Local 
is made each month to the membership as called for in Seotlon 
36 (D) of the Constitution. 

I draw to the attention of the Treasurer of the Local, Sec- 
tion 37 (B); wherein it rtates that at the first meeting of 
each quarter a report is lo be made to the membership for the 
preceding quarter of all monies received and paid out. 

All officers are advised to read the constitution as to 
their duties and are to carry out these; duties to the best of 
their ability. If difficulty is experienced in the carrying out 
of these duties due to lack of co-operation, or refusal to co- 
operate by other officers, then the General President is to be 
immediately informed. 

The officers rnd members of Local #18 are further advised 
that failure to comply with the constitution, particularly whore 
It relates to financial matters, could at some future date cause 
difficulties in attempting to collect from the Bonding Company. 

If at some future date, clarification or intent as to the 
matters herein are required, please contact the undersigned. 

Fraternally yours, 

WS : ria 

c.c. H. A. Hutcheson, Gen.Pres.l/ STKPANOVITCH 

J. Tarbutt, Pres .L.U. /;18 

H. Buck, Trustee L.U. #18 

D, McGownn, " " " 
R. Charbonneau, " " " 

370 Report on the building industry 

APPENDIX 82 (exhibit 798) 

Text of letter from Joseph Power to Charles Irvine re trusteeship of Local 




.. \TIVIG IFT , \ST.KP,F,R,S' 

M ,-.'• fho U«iVf-n STATES. and CANADA 

O~to ft r«.n.rol freitdonl 
Scvc-Ptccnlli Street, N.W, V/.ifliiii£lon, D.C, ?<W5 

December 22, 1971 

crNLi/M. rrreurivs ooaro 


Mr. Charles W. Irvine, Vice President 

0. P. & C. M. I. A., and International Trustoo 

over the Affairs of Local No. 
$21 Sutherland Privs 
Toronto 3$0, Ontario, Canada 

Eenr Sir and Brother: 



AFfiDAvrr of Jose HarfcL iMtg.- 


June 2jj5 1972 


a Cama ttdmt , m. 

In accordance with the provisions of Section l3(d} of the International 
Constitution, adopted by the Ijlct Convention of the OP&CMIA held 
August lUth to August iSth, 1967, San Francisco, California, I have 
given careful consideration and study to the Report- and Recommenda- 
tions of Hearing Officers William KcMynn and Anthony Mariano in the 
hearing of charges preferred by you against Local Union No. 117 of 
Toronto, Ontario, Canada while you were acting in the capacity of 
International Trustee ever tho affairs of Local 117 by my appointment 
of you under the provisions of Section 13(a) of tho International Con- 
stitution prior to the hearing, due to emergency Situation existing in 
Lccal 117 which caused me to place Local 117 under Trusteeship ponding 
the result of a hearing of your charger;. 

The Hearing was held on November 22nd and November 23rd, 1971 with a 
court reporter transcribing the proceedings. It was my review of the 
transcript of tho Hearing moro than the recommendations of tho Hearing 
Officers which lod mo to roach tho decisions I havo mado and which you'' 
nro instructed to put into offoct. 

Every voluntary organization has the right to exorcise a measure of 
control over its members and subordinate bodies and to discipline 
them for infractions of rules adopted by Conventions of the parent 
organization or by the subordinate body with the anproval of the parent 
body. The rights of a parent organization may bn enforced by threat 
of expulsion of members or revocation of Charters of subordinate 
bodies. Expulsion is a serious affair and so in the revocation of 
Charters fcr it can radically limit a person's opportunity to earn a 
living in his chosen field. That bein r ; the case, hearings should be 
handled "ith great attention to everything that raifht influenco action 
or decision, Howovor, any tonc'oncy to ignoro or Boft-podal that which 
produces injury to othors or intorforos with thoir nights by attempts 

Exhibits 371 

Kr. Charier- W. Irvirv - 2 - December 22, 1971 

to impose the will cf a few upon the many may be worso. As an Inter- 
national Union, we have a responsibility to all of our Subordinate 
Local Unions and to their members to sec that the rules are respected 
and observed, and to discipline those who chow disrespect, lack of 
decorum and a tendency to disrupt orderly procedures. 

As the General President of the OP&CMIA, I have an enduring faith in 
the ability of our Local Unions and their members to govern them- 
selves under the guidance and nrotection of thn International Asnocia- 
tion when the International Association shown n Willi ngnonri to 
promptly and effectively rloal with thono who would ItibfiriTirn, lnl.!mld/rto 
or otherwise) provont tho free oxorciso of tho will oJ' tho majority by 
actions that discourage tho attendance at meetings by a majority of 
the members and the orderly transaction of business willed by the 
majority.' It is because of this abiding faith and conviction that I 
have framed my decisions in a manner that I feel confident will enable 
Local Union No. 117 to weather a period of necessary transition from 
the current situation to that of once again becoming a Local Union 
able to govern itself and to discipline those who would attempt to 
initiate or introduce actions that would adversely affect the rights 
and wishes of the majority. 

Ky decisions are as follows: 

1. I find Local No. 117 guilty of the charges you preferred 
because of their inability to prevent disturbances at their meotings 
or to impose discipline upon those who caused the disturbances, and 
because of their inability or unwillingness to prevent tho meeting of 
groups of members and non-members jointly to discuss and transact 
business including the election of so-called officers that should only 
have been transacted at official meetings of Local No. 117. 

I do not dnny [,]\o r.l ithfc of mnmlKim fee onncun no n group or to dincuoo 
|M'nli|c>iiin ill. nu"li imii'Min, hul.><y l> !i v« li" »'.l|;ht I>«* J'lnwll-tiu or pub 
into tjiYdoL any of their aotions which should first be taken up by a 

meeting of the duly chartered Local Union, conducted by Officers 
recognized as such by the International Association. 

2. To impose a Probationary Trusteeship with you as the Trustee 
for a period expiring May 31, 1972 if no .incidents occur that would 
cause mo to consider holding a Hearing for tho imposition of a 
Trusteeship for a period of at least an additional nix months but not 
moro than eighteen months. Tho Probationary period of Trusteeship 
should bo utilised by tho membership of Local No. 117 in doing thoso 
things which aro necessary to attain normalcy. by May 31, 1P72# 

372 Report on the building industry 

Kr. Charles V.\ Irvine - 3 - December 22, 1971 

3. If no disturbing incidents or violations of tho 
International Constitution, or of the rules I establish to govern tho 
membership of local 117 during International Trusteeship, occur or 
appear be be imminent during the period of the Probationary Trustee- 
ship, you aro instructed bo bake the necessary steps to restore Local 
Autonomy to Local No, !1? on or promptly after May 31, 1972 and to 
also set ir. action all things necessary to conduct the nomination and 
election of Officers fcr the Local Uaion from among the membership 
eligible to be cand\d~i. , s for Office, with.oli-fiiblo and qualified 
membership ra.rticipat3.n3 in tho nomination and o.lection. 

)i. IT tvlr«i»!ii!it.. , inc« , !. , i vf n •runt holding nn nlnobion promptly aftur 
May 'J\, 1'. 1 '/'!, ym\ w.l..'!.'.!. ,-.i giil.riod by LUci rnlnn 1 hm-oliy nsUihltiih for 

the purpose of de termini rig U10 eligibility of candidates for office 
and the eligibility of members to nominate a candidato and to vote 
fcr the Candida to of Lheir choice . 

(a) Ko merrier xay be nominated who has not attained at 
least six months msmbarship in Local 117. 

(b) Ko member may be nominated who was not in good stand- 
ing (ovring not more than two months dues) on January 1, 1972. 

(c) Ko member may bs nominated who failed to continue in 
good standing (owing not more than two months dues) from 
January 1, 1972 through tha month in which nominations are made. 

(d) Ko -jmber may be nominated who has, after a fair and 
impartial trial been found guilty of violating Sections 12(m) 
(1) (2) (3) (U) (5) (6), Section 60 pertaining to Outside 
Meetings, interfering with tho legal duties of the Officers 

of the Union or interfering with the legal or Contractual 
obligations of oho Union, Sootion 69 porta to making, 
lil.Uii'in.g <>r |iiih"l i.-iliiuii J'-'i'lnn maf.nrlal of. "my hind lili'ib 
Vlliri'-n in' lmpii|i|in I.Ik 1 liul|iwil. l v !ii' 1'' m|' M|i,y llf'f'lrim 1 

<,i' .1 Loiittl 1'iii.on or n.|.' tho Intnrii/ibloitiil AiitiooinLion, or of 
Soction UiO as it. pertains to tho Oath of Obligation for 
Canadian members of the OP&CKEA, which Sections are part of 
tho International Constitution adopted by tho Mat Convention 
of the OP&CMIA hold in 1p67. This curtailment of tho right 
to be nominated shall pvovail ovon though tho violation of tho 
section or sections cntlimd onenrod prior to, during, or 
sv.bsoiiu^riu to the imposition of tho Probationary Pox-iod of 

(e) Ko member m -, y nominate n candidate) unions ho has 
been a member of Local 117 Co;' fib lenoh niii monMiti it b tlio 
|,.i,i,.-j nf wiu im.jI. i li; j U iHlli)liUli.|.;»ll ( 

Exhibits 373 
Mr. Casrlas '■'- Irving - U - December 22, 1971 

(f) No member may nominate 0. candidate unless ho was in 
good standiris (owing not mox'o than two months dues) ten days 
prior to and at i>o fciinj of making tho nomination. 

(2) No member nay vote for a candidate unless he was in 
good standing (owing not more than two months dues) ten days 
prior to and at the timo of casting a vote. 

5>. If circumstances warrant holding an election promptly after 
May 31, 1972, I shall appoint an Election Committee of Interna tional 
Association Officers or Representatives to conduct the nominations 
and election and to decide any question raised as to the eligibility 
and qualifications of manners to nominate, to bo nominated or to voto. 
You will be instructed to prepare and. have available at both the 
nomination meeting and the election a list of tho members of Local 117 
who are eligible at that x.ime to nominate, be nominated or to vote, 
and to also have at the same time, the membership lodgers from which 
you prepared the list. The nominations and election will bo conducted 
in accordance with the minimum requirements of tho International Con- 
stitution, except as I hare indicated in the rules 1 established 
above. If thoro is any conflict botwoon tho two, nbovo established 
rules shall provailj 

6. You arc instructed to submit a lint of nligibln and qualified 

members of Local 117 for my consideration as appointments to office in 
Local 117 to assist you in your duties as Trustee during the Proba- 
tionary Period. Sou will abide by tho provisions of tho International 
Constitution governing the duties of a Trustee appointed to supervise 
Local Unions by tho General President, and you will consult with me 
on any matter rco specifically provided for by these decisions or by 
tho International Constitution. 

7. You are instructed to notify all members of Local 117 who 
currently owe more than six months dues that they must, by Febru- 
ary l£, 1972, pay up their dues to within six months or be subject to 
being dropped from tho roll".. 

II, Villi iifii I nril.rii'il.itil l.n l|iliil"il1.(il,ii'ly liil'iirm l.lin milp'l.ctym'fl nj' 

l.ho iiioiiiltoi'.'ili.l l > f)!' Local I)'/ Dial, you aro ilonlrcmn of ninntlng with 
them, accompanied by a Commit tee t for the purpose of informing them 
of my determination to have Local 117 succeed in returning to nor- 
malcy and to discipline all who would prevent such return, and you 
aro also to request the opening of negotiations for an appropriate 
collect! vo bargaining agroeaiont with tho employers that would, tond to 
stabilii'iO i'.\) wages and conditions of employment of our momborn who 
work at that part of our industry that has boon rooognisod by this 
International Association an boing tho work juriodiction of tho 
ji;nml;pi 4 a rf Looa*] I 1 7. 

374 Report on the building industry 

Kr. Charles ** r . Irvine - $ - December 22, 1971 

9. Yen arc instructed to take the necessary steps to have Local 
117 become affiliated with the Toronto Building and Construction 
Trades .Council and to have that body recognize and respect the sole 
right of the CF&CKIA to represent Plasterers in the Toronto area. In 
the event of your encountering any difficulty in carrying out this 
part of my instructions you will immediately inform mo in detail as 
to the difficulty. 

10. In the event you find your duties as Trustee over Local 117 
cause you to curtail to a large extent your other duties as a Vice 
President of the OF&CKLA. feel free to so inform mo and I shall take 
steps to have you receive assistance in the performance of your duties 
either as a Trustee cr in your regular duties. 

Needless to say, I am relying upon your demonstrated ability and 
knowledge of the troubles that have infested Local 117 to eventually 
bring about a situation whereby Local i 1 7 will be able to take its 
rightful place among our family of Local Unions that function as a 
Local Union should, and gain the respect and admiration of all or- 
ganized labor by overcoming all things that have caused us to exorcise 
TrustooshiT over Leon?. 117. 

Fraternally youro, 

ri ciGi!ri»pi.i..t.jr yuuLu t 

^Joseph T. Power 

Genoral Prosic'ont 

cc: General Secretary-Treasurer John J. Hauck 

Intornr.tional Representative William E. KcMynn 
International Representative Anthony Mariano . 
Duoircss Munngor .\ngclo Burigana, Local 117 •' 

Exhibits 375 

APPENDIX 83 (exhibit 818) 

Text of letter from W.E. McMynn and Anthony Mariano to Joseph Power 

re trusteeship of Local 1 17 








Noveabar 24, 1971 

Mr. Joseph T. Power 
General ?vm*idmnt 
O.P. & CM. I. A. 
1125 17th 3c, B.W. 
Washington, 3.C. 20036 

Dear Sir and Srether: 

la respect to your lattar of H o t — b a r 3, 1971 
appoint lag eryeelf and International aepreeeutatlve 
Anthony Mariano to act aa Hearing Offlcara on chargaa 
filed agalnet Local So, 117 of Toronto, Ontario, 
Canada, by Vice Praatdaat Charles V. Irvine, please ha 
advlaad that we have, to tha bast of our ability, 
coapllad with your recueet, 

Cncloaad plaaaa find a copy of a brlaf plua 
algnaturaa, plua a seapla anvalopa allagadly containing 
duaa paya n ta whlah vara not aceaptad by Local 117. A 
tranaerlpt of tha Hearing which was bald over a period 
of two daya • Hoveaber 22 and Hoveaber 23, 1971, will 

We triad to be aa fair and lapertlal aa wa 
poeslbly could la conducting thla Baarlag. Tha first 
probloa that wa ware faced with on tha aoralng of the 
Hearing waa a request froa Vice Preeldent Irvine to have 
hla Legal Counsel, Mr. ftobla Cualna, attend tha actual 
Hearing. It waa ay decision, baaed oa paat practices 
aa I knew than, that I could not coaply with this request. 
After consultation with International Representative 
A. Mariano, ha co ncu rred with ary ruling and wa so iafonaed 
tha lawyer and Pica President Irvine. It eheuld be 
noted bare that the lawyer agreed with thla decision, 
stating that, 'If this la your paat practice, than by 
all aeeas - I agree with your decision. " 

376 Report on the building industry 

Mr. Josepn T. . ower - 2 - November 24, 1971 

The next problem that developed, prior to tie 
opening of thiB Hearing, was the arrival at the Hearing 
room of what International Representative Mariano and 
myself conservatively estimated to be 250 persons 
representing themselves mm members of Local 117, requesting 
permission to be heard and allowed to present a brief 
which they believed was relative to the matters being 
presented to the Hearing Of fleers. It was obviously 
impossible to have all these persons attend the Hearing, 
for lack of space if for no other reason. I advised 
them that if they were in fact members of local 117, then 
they could select from amongst themselves six persons who 
could attend the Hearing and present their brief on be- 
half of the whole --.roup. It should be noted here that 
this large group was well controlled and able to be con- 
trolled by the six individuals who were selected to 
represent them. At this time I asked Brother Angelo 
Burlgana, Business 'tanager of Local 117, If these per- 
sons were in fact members of Local 117. He left me with 
the impression that they, as well as the men with them, 
were in fact members of Local 117. This group of men 
did select six of their members and we Invited them to 
sit in on this Hearing and present their brief. Vice 
President Irvine did not express any objection to 
having the brief heard. He asked that the brief be 
heard before he started. 

-'e were now faced with the problem of a second 
court reporter showing up. Vice President Irvine in- 
formed Brother Mariano and myself that he had arranged 
for this person to be here. This was an unfortunate 
thing to happen but I advised Vice /resident C. V*. Irvine 
that, acting under the Instructions of your letter of 
November 5, 1971, I tad arranged (through International 
hepresentative Mariano) to have the Hearing properly 
attended by a court reporter and transcribed and that the 
court reporter was now here and she was prepared to go to 
work and therefore «^c would stay with that person. I asked 
that an apology he made to the second court reporter and 
advised her that »er services would not be rerulred. 

Immediately ;>rior to the opening of the Hearing, 
upon advising Brotier n^alo Buri;-ana that I was about 
to proceed, I wan surprised to have 9urit;ana indicate to 
me lie would not he at Che Hearfnr.. 

Exhibits 377 

Mr. Joseph T. tower - Z - November 24, 1971 

We opened the Hearing with 3ix Local 117 members, 
International Representative Mariano, Vice President C. W. 
Irvine and myself present, and, of course, the court 
reporter. The transcript takes over from there. I had 
a small tape recorder with me and taped most of the first 
day's proceedings with the exception of the reading of 
the charges and the brief presented by Local 117 members. 
This tape has enabled International Representative 
Mariano and I to review the events of the first day's 
proceedings as they developed at the actual Hearing. 

At approximately 11:00 a.m., I called a recess 
in order to do some photostat work and also to discuss 
with Vice President Irvine, off the record, whether or 
not he wished to proceed. 

While International Representative Mariano was 
photocopying the signatures on the back of the last 
page of copies of Local 117 members' brief, I spoke to 
Vice "'resident Irvine and he Informed me that he was 
too sick to carry on with the Hearing. I advised 
Brother Mariano of this development and then we both 
went back to one of the offices where the Vice President 
was in conversation with Burigana and someone else. I 
asked Vice President Irvine when he felt he would be 
able to continue with the Hearing. He Indicated to me 
that he did not know. I advised him, therefore, that 
I would re-open the Hearing at 10:00 a.m. the next 
morning and his answer was, "Don't hold your breath 
waiting for me. 

I then re-opened the meeting and advised the 
six Local 117 people that tiie Hearing was being post- 
poned until tomorrow morning at 10:00 a.m. due to Vice 
President Irvine not being well. 

International Representative Mariano and I 
arrived at the Hearin; r<>om at 0:45 a.m., Tuesday, in 
order to continue the "'.earing at 10:00 a.m. The court 
reporter and the same six I/3cal 117 members were there 
ready to proceed. By 1 ):00 a.m. there was still no 
evidence of Vice President Irvine or Brother Burigana 
being in attendance. I went out to the outer offices 
and found Burigana and asked him if he was coming Into 
the Hearing and asked where Vice President Irvine was. 
He told me he was not coming into the Hearing and if I 
wanted to, I could call 'Charlie ' at home. I went back 
to the Hearing room, got the copv of the letter that 
you sent to Burigana on November 5, 1971, and renuested 

378 Report on the building industry 

Mr. Joseph T. i ower - 4 - November 24, 1971 

Brother Mariano co accompany me back to Burl-jana's office. 
In the company of ^ntlwny Mariano, I a6kod Buri^ana If 
he had received your letter dated November 5, 1971. He 
admitted that he had. I asked him If he read Che last 
sentence In chat letter - he said that he !»ad - I then 
advised him that I was your representative at this 
Hearing and told him I wanted him at Chat Hearing at 
10:00 a.m. He Indicated that he would not sit In the 
rooa with Che other six Local 117 members and he would 
not come In. He then cold me that vou had apparently 
called the office this morning, at about 9:00 a.m. and 
asked for me and also indicated that you had spoken to 
Vice President Irvine. I then called Vice President 
Irvine at home. I asked him if he was coming in and he 
said "no.' I aaked Him when he could come in and he aald 
he did not know. 

I then adviaeu the six Local 117 members and 
the court reporter that I would hold off opening the 
Hearing for 20 minutes In case I was able Co contact 

At about lu:i0 a.m., alter consultation with 
Anthony Mariano, I re- opened the Hearing and advised the 
six Local 117 members that I was not £oln to to continue 
the Hearing - the ceasou beln& t.iat Vice .'resident Irvine 
was not in attendance. 

The contents of this report are as Anthony 
Mariano and I actually saw it. «e endeavoured Co be as 
fair as we possibly could to all parties concerned and 
conscientiously attempted to comply with your directive 
as outlined in your letter to me dated Now«e)i>er 5, 1971. 
When we were unable to net through to you for further 
Instructions, we simply continued to act Co Che best of 
our abilities as per your instruction* stated in the 
letter of November 5, 19 71. 

aec ow ma i yiations 

We have reviewed the c!>arges by Vice President 
Irvine and the brier presentod by t;;e members of Local 

Exhibits 379 

f'r. Joseph T. rower - 5 - November 2A , 1 J 71 

*c no turn? prior to t-ie :!aarin , d irla£ the 
Hearing, or after the tfear'.n;;, was ti:erc any evidence 
refutlnp the fact ch*t the npproxtma tely 250 Local 117 
■embers ac the location oC the '!earin v were an/ minority 
group, nor did we at *ny time see an/ evidence ol any 
majority group prepared to challenge tae ectiiuated 250 
oemoers of Local 117 present (purported to he the 
minority ^roup) at the Heartn„ end re<,;iB£t.'..\. to oe 
heard. There is no dojbt In our minus jut that the six 
mamoers of Local 117 who were permitted int; the tearing 
room did in actual Tact represent t ic estimated 250 
persons physically orient In the halJ /a/ 0." the milding, 

It had oeen our intention, upon continuation 
of the Hearing, to ..ucstion th« presenters o~ the 
brief on certain aspects o? the hrief ; such as, who 
was the person or persons with authority to call the 
notnlnatlonal meet'.-, wh Lch was called October 3, 1971, 

In our endeavours to oe fair and Impartial in 
respect to this Hearing, we felt that it would be un- 
*alr and unwise to uestlon the alx presenters of the 
brle r In the absence of Vice Resident Irvine and 
Brother *ngelo 3uri;ana, Business Manager o" Local 117. 

At no time did we see or Wear any evidence 
that would indicate chat any of the 250 persons present 
wanted to be anything other than members of the 0.?* & 
CM. I. A. In actual fact, there are about 145 signatures 
on the back of the arie" which Anthony Mariano and I 
interpret as pled in- loyalty to the 0. '. f< C.M.I.A., 
and due to the tine limits Involved, chis w«a no mean 
feat in itself. 

Nor did -a tea any factual evidence tiiat would 
cause us to recommend any permanent trusteesaip over 
this Local Union. Although we requested the Vice 
/resident if the Local **as under temporary trusteeship, 
we were not presented, any factual evidence that 
wojld Indicate thrt it v/as. However, If the Local la 
under temporary trustees ip now, or if it is not under 
temporary trusteeihl,., then wc recommend t.iat it be 
placed under temporary trusteeship for a period of time 
In order to proceed with the following 

380 Report on the building industry 

Mr. Joseph T. 'over - 6 - November 24 , 1971 

(1) e ro:.*a&>2nd t'at * temporary impartial 
tr iSC'i* be appointed La order tc « proper 
nomination and election of offi a.. 1 ? for '.oral 117, and 
that ne supervise c .If »l«j<:tlon and ens ire that tc la 
conJjcted in accordance with Intarnatio vil "oa* 
stiL-iCiou wita tne '.wder standing t!iat l.e oe authorised 
to determine ;tauli. fc ui : tnc i.idivll^ii r Mother 9, to 
jc etthar eligible to stand for nomination and election 
and/or to vote. 

(2) To facilitate above, tiis tr :>tne 
should have tua right to determine a aeetber's 
eligibility to elt 1 er vote or stand for office. e 
maV« t!\ia consent oo:ause \/a have witnessed evidence 
tliat would indicate that some aeaabers of ,ocal 117 

Imd endeavoured to pay c v air dies to '/>cal 11? bit said 
dues had been re/ is-=*d. 

(3) e recommend further that any tanporary 
tra9 teas hip be terminated as rabidly as possible and 
fiat the administration of Local 117'r, o*"airs be 
left in tne ..~nds of t ? n?wly electeJ a£ fleers. 

(4) '4m believe tnat they arc capable c* con- 

djctinu taair affairs In a proper and acceptable manner 
within the confines a: our International 'oantitution. 
iiotn Hearing officers were iapressed with the manner In 
which Local 117's jriar. was presented; we were iapressed 
with the manner in -cnicl. the six .' ocal 117 soakers conducted 
themselves and also the aanner in whici they were able to 
control the 25 J suae odd . laaterers out la the hall of tha 
building and ilruiiiy, we arc prepared to accept their 
pledge of loyalty to uo ot.ier organization t:van the 0*?. 
j. ~«!'..I.A. and t.uc ^iwiii coo opportunity the* "alt that 
cney could jrln^j, c..e iasterers Lnat -*ad lairt -seal 117 
baci- into the organisation. 

(5) hi M >veaibcr j, 1J71, yju sent a registered 
letter to 3rotaer n^elo ftari.<ana, l^slnesr Manager of 

; ocal 117. Tue iasc aentenca ol that letter directed to 
hia directed,;. iia co present hiioself. before the Hearing 
.';"C leers and re^uest-i.? >ifli to brin t all eviJaace and wit- 
nesses in answer tc tha wttac ieJ charges. 

Exhibits 381 

Mr. Josepu T. owor - 7 - MovcoJer T4, 1971 

This request on your part wa3 not coaiplied with. 
This lack of co-operaticm on Buri&ana';} part uade it even 
■ore difficult for International representative iterinno 
and I to conduct a .{earing as per your uireeciveo to us. 
'•e therefore recossjond chat yo.j consider disciplinary 
action against tnis Brotior. 

Copy of tho courc reporter's transcript will 
be forwarded to yo>. iionedlately upon our receiving sane 
frco Angus tonehouse Coaipany Llaited Lhortlmnd Reporters* 

ith respect to the charges laid by Vice President 
Irvine, we note chat in soae instances the charges and the 
brief presented were, in pare, in agreeaient with one another. 
However, ve feel tcvac as Vice '. resident Irvine was apparently 
unable to attend the continuation of the i'earing and there- 
fore was not able to elaborate upon the cimv^os, we are not 
in a position to pass judysent on Chen. 

Yours fraternally. 

'*• E. McMynn 

Hear in v, Of fleer - Chei 

Anthony Mariano 
Hearing Offflcer 


c.c; brother John J. Hauck 

382 Report on the building industry 

APPENDIX 84 (exhibit 813) 

Letter from Attilio Capodilupo to Joseph Power 

May 3rd, 1972. 

Mr. Joseph T. Power, 

General President, 

Operative Plasterers' and Cement Masons', 

International Association of the 

United States and Canada, 

1125 17th St. N. W. , 

Washington D.C., 20018, 


Dear Mr. President: 

I am writing to you as the member of Local 117 wno was 
elected President at tne neetinc, on Moveiaber 7, 1271, on behalf of 
myself and the members of Local 117 urgently requesting you to come 
to Toronto just as soon as it is possible, to meet with the members 
of Local 117 to discuss our internal problems. 

Please come to i.-cet witn j~, as other *'i/>e our only 
alternative will be to bring an action in the ~apreuie Court of Ontario 
in an effort to resolve our prooleins. If necessary we art. iotennined 
to do that, but we would appreciate an opportunity to meet vith you 
personally to iee if our affairs can be straightened out without 
going to Court. 

Wa urge you to co-ne. ric.ise let u<3 hear fro ; /3u not 
later than May 15th r.c.-.t. 


Exhibits 383 

APPENDIX 85 (exhibit 814) 

Letter from Joseph Power to Attilio Capodilupo 




OAu of G»r«rol fr.ild.nt 


1125 Screntcenth Street, N.W., Wuhington, D.C. 20036 

202 3»3 eaee 


cmu w inviNt 

May 22, 1972 

Mr. \ I ■■ ; I. i o Caoodi lupo 

26 !j K-».iinton Avenue, WKst 

Toronto, Ontario, Canada 

tear Sir: 

This wi.n ac : cnowlf>d.^e receipt of your letter of May .'j, 1972, wi,i': v : 
was received in this office on May 3, 1 ~>72. I regret that C have 
boon .'. n a position to answer your letter sooner; however, I 
icon away fro.n the office on other matters affectiu* this 
1 nterna b.i »na L Assi iciat i on. 

Your Totter also f-ontained a list of na^nes of members of Local l)'f, 
[ have reviewed iTie records in this ofj'ice regarding the list of 

suiKiiitted and less than 20 out of 200 are .nemhers in r ooc 
standiri;'. Se/era] of the na ;es submitted are not, even members J' 
; ' r, international Association. The records also indicate '.ha.. \ n 
r of biic Lioca] in good standing; therefore, not ea- 
i t<"> i voice or vote in the affairs of trie Local Jnion. 

.-•j :.v. ; av 

;o assist our Local Jnions; however, v 
vast come from a member in jjood st ;id ■ (ji- r . 

'osopli ;'. Power 
ienera i President 

.V-:' r -Treasurer John J. Wane- 

384 Report on the building industry 

APPENDIX 86 (exhibit 800) 
Report of the election of Avoledo 




fpji ^JljLtJ~f t 



Exhibits 385 

APPENDIX 87 (exhibit 784) 

Memorandum of accounts by Angelo Burigana 

[Loatu^i^a^ *=£ _^«*jl J<?7Z d fft 61^.^2- 

5 OQtt-^z - 

/£5£/ °-— / r/ ^ ftf-JJZ 

386 Report on the building industry 

APPENDIX 88 (exhibit 917) 
Criminal record of Bruno Zanini 



ao> eaas 



1_ AUC. H RCCOrfD 






1933 - Nov. 2k 


Supervision R.C. Big Brothers 

Bruno ZANNi . 

Toronto, Cnt. 

(juv. Court). 

193A - Junc 23 

8.E. & Theft 

Supervision R.C. Be Brothers 

Toronto, Ont. 

(Juv. Court). 

1934 - Auc. J 

B.E. & Theft 

Supervision R.C. Big Brothers 

Toronto, Ont. 

(Juv. Court). 

1935 - Juni 8 

Damage to property 

Aojourned Sine Die 

Toronto, Ont. 
(Juv. Court). 

19J6 - Jan. 9 


Supervision of Court 

Toronto, Ont. 
(Juv. Court). 

1936 - Fib. 15 
London, Ont. 


Sent to Observation Home 

Bruno ZANINE, 
PO #1991. 

(Juv. Court). 

1936 - March r j 


To custody of Brother & report 

Lonoon, Ont. 

to Juv. Officer 

(Juv. Court). 

1936 - Aug. 18 


Adjourneo Sine Die - 

Bruno ZANNI . 

Toronto, Ont. 

Continued supervision court. 

(Ju Court). 

1936 - Occ. 8 


Adjourneo Sine Die - 

Toronto, Ont. 

(Juv. Court). 

1938 - Nov. 21 
Toronto, Ont. 

(1) B.E. & Theft (2 chgs.) 

(2) Theft 

(1-2) 9 MOS. OEF. & 3 MOS. 


Bruno ZANINI , 
PD #1361/38. 
Bruno ZANANI , 
O.R. GuelPh 
#50731 . 

19^0 - Fee. 27 

B.E. & Theft 


Bruno ZANINI , 

Toronto, Ont. 

O.R. Guelph 
#52 33**. 

19U2 - March 20 

Break & Enter 


Jail #6721. 

Toronto, Ont. 

19*«3 - Dec. 1 

Break Si Enter 


Jail #^986. 

Toronto, Ont. 

Cont'd Paoc 2. 

(111! It • mmmtr, .ll.-l.r_.,,,. K UmW W '>• ^li't^Ki ,|>,i»i. Al 1 i^ i,, h >i^ k r iLp^rhn ixhi *<■. l.JImW k, »■ iiH,nl I') 

Exhibits 387 




BOX 86 8 5 


' IC !-• 


l kV 



^/t<)THA; M-*si^<up%~j 



I94h - March 16 

I9h6 - July 23 

I947 - Oct. 3 


I9h9 - May 25 

I96h - Nov. 19 
oronto, ont. 

1965 - Feb. 12 

'ORONTO, Ont. 
1965 - Nov. 19 

1967 - May 16 
196P-> April 25 

(1) Brfak & Entcr 

(2) Escape custody 

Recei v i no 

B.E. & Theft 


(1) I YRS. 

(2) 1 YR. CONC. 


date on expiration of scnt. 
2 yrs. from Sept. 29/'*7 

Relfaseo on or about this 
date on expiration of sent. 

Not gui lty 

2 yrs. - Appealed 

Appeal dismissed - Appealed 
to Suprcme Court of Canaoa 
and Relcaseo on Bail Dec. 2V 

Appeal oismisseo - Returned 
to custody Oct. 2/67. 

Released on or about this 
oate on expiration of sent. 

Bruno ZANINI , 
Ki ngston Pen, 

Ki ngston P-i<. 

Metro. #1361/38. 
Kinoston Pen. #2169. 

f k« .• • tamm—i at Mmm)m Mhrima 1 hr tan mIkmmm « ( ancisi. AM MlrUi an su»»«rt a 4 \>r (in t .r,.lot. uosl iki •• inalcotaa 1 w *• asta|M (*) . 

388 Report on the building industry 
APPENDIX 89 see Volume I 

APPENDIX 90 (exhibit 835) 
Financial statement of Local 1 17 


Exhibits 389 



Insurance Premiums $ 8,282.37 

Trustee Expenses $ 36O0OO 

Trustee Educational Expenses $ 2,972.00 

Consulting & Administration Expenses $ 7,8U2.13 

SUB Benefits $ I468.OO 

Other (Audit, Union Check-off, fete.) $ 3>7lU.93 

$ 23,639-U3 

390 Report on the building industry 

APPENDIX 91 (exhibit 1075) 
Letter re public trustee 


u Ai 


ujiiiiAm m. m€KC€K Limizeb 


TELEPHONE 868-2000 








March 11, 1974 

Mr. J. W. Lldstone, 
Secretary to the Commission, 
The Royal Commission of Certain 
Sectors of the Building Industry, 
145 Queen Street West, Suite 309, 
Toronto, Ontario. 

Dear Mr. Lidstone: 

Thank you for your February 5th letter. 

I am instructed to advise you that the Board is fully aware of the 
unusual circumstances which exist in this Trust Fund. The Board has already 
expressed its concern over the purpose and future of the Trust Fund to the 
Parties signatory to the Declaration of Agreement and Truet, and have advised 
the Parties that it is the intention of the Board to see 1 ., legal counsel and 
possibly direction from the Court if the Parties have not resolved their 
difficulties by September 1974 in a manner which will see the number of 
beneficiaries rise to approximately its former level. 

In the circumstances, the Board declines the proposal to appoint the 
Public Trustee. 

MAR 12 1974 

Yours very truly, 


"^ i 





Board of Trustees Plasterers 

Local 117 Benefit Trust Fund 


Exhibits 391 

APPENDIX 92 (exhibit 993) 

Report on union welfare funds by P. Wayne Musselman of Touche Ross & 



Welfare funds are large and growing in Canada. Annual contributions 

on behalf of over three million men. A sizeable portion of these contributions 
are made on behalf of union men. 

I have examined the methods of operations and records of some of 
the Union Welfare Funds in the construction industry in Ontario and have engaged 
in discussions with administrators and auditors of funds. Major problems which 
came to my attention during this review together with possible solutions have 
been summarized in the following paragraphs. 

Control of Receipts 

Welfare plan administrators state that amongst their most serious 
problems are a lack of knowledge of whi ch companie s should be contributing 
to plans and tardiness by employers in contributing. The former problem is 
mainly due to the fact that there is no control over the employers. A clause 
in the May 1, I968 Agreement between the Metro Lathing Association, Local 562 
and the original Trustees (A. Simone, P. D. Tullio and L. W. Ballantyne) states 
"Each employer shall make his required contributions to the Trust Fund. Neither 
the Trustees nor the Associati on shall be responsible for the collection of any 
employer's required contributions". 

\ ' Tardy payers in the unions which I investigated are listed in 

Schedule 2. For these employers it is normal for copies of contribution reports 
to be received by the union office well in advance of the reports which go to the 
welfare administrator with the cheque. Also, contractors will often not remit 
the full amount due. This makes it necessary for the welfare administrator to 
set up a receivable and collect the proper amounts at a later date. 

Control of receipts could be maximized by: 

* Civing auditors of welfare fcii"? access to the payroll 

books of employers and requiring auditors to state an 

opinion on the contribution revenue. 
■v ■ 

* Requiring trustees, unions and employers to accept re- 
sponsibility for controlling the amount and tardiness 
of receipts. 

392 Report on the building industry 

Control of Receipts (continued) 


* Requiring reports, to be issued by employers to individual 

union men at each pay period illustrating the amounts and 
'i.^vt.5 pcLld tc the -.rolfare »3n»ir»±5-»-w>+.»Ti>s . 

* Requiring deliquent employers to post bonds . 

* Quarterly report by the welfare administrators to the 
individual union men illustrating the transactions made 
on behalf of that individual union man during the quarter. 

Vesting of Benefits 

The plans which I investigated did not provide for complete 
vesting in the employee of monies contributed by the employer. Instead, 
eligibility for benefits is determined by examining both the beneficiary's 
hour bank and union membership status. The hours in the hour bank are built 
up over time by referring to the hour bank rules. For example, the rules for 
Local 562 Welfare Fund are as follows: 

Maximum hours which an employee can build up in a 

year - 1,320 hours 

Deduction for benefit payment - 110 hours 

Hours required to establish a new member - 330 hours 

Hours required to reinstate a previously eligible 

member - 220 hours 

Hours when a man becomes ineligible - under 110 hours 

This system results in the following inequities: 

* Beneficiaries go in and out of eligibility contin u a ll y. 
An obvious solution is to alter the maximum hour buildup 
clause from an annual to a more long term basis. 

* Members lose rights to welfare and supplementary unem- 
ployment benefits as soon as they leave the union. 
Hours to the beneficiaries' credit in the hour bank for 
the welfare fund are forfeited. Furthermore, hours to 
a beneficiary's credit in a supplementary unemployment 
plan are not avnilable as hour bank hours have not been 

* Vesting in pension plans often does not occur until the 
beneficiary has five or ten years service. 

Exhibits 393 

Vesting of Benefits (continued) 

* Pension benefits are often not portable to funds 
of other unions. 

Complete vesting in individuals as monies are cuiitribuleu 
together with portability of benefits would alleviate many of the inequities 
discussed above. 

It is important to emphasize that, if vesting is adopted, the 
method of treatment of plans initiated prior to vesting would have to be 
considered. The following solutions are possibilities: 

* Establish a cut off date and "vest" hours in specific 
beneficiaries at that date from records available. 

* Create vesting from commencement of plan by analyzing 
and changing present hour bank accounting. 

Qualifications of Trustees 

Generally, responsibility for Union Welfare Funds is vested with 
Trustees. Some agreements establishing the plans require equal representation 
fron unions and Employers' Associations while others require simply union repre- 
sentation. Typically, unions will be represented by the business agent, other 
members of the executive and working union men while staff from the Employers ' 
Associations and representatives from employer firms normally act for the 
Employers' Association. A list of the Trustees of some of the plans which I 
examined is included in Schedule I. 

I concluded that Trustees such as those listed in Schedule I 


* Hot_ sp ecialis ts in financial, administration or other 

aspects of welfare benefit plans. 

* Not independent in decision making. For example, under 
the present system, trust:-3~ who are business agents 
may not approve of benefits being given to eligible plan 
members simply because they are not union members in 

g ood s t anding . 

Minimum requirements for Trustees to alleviate the factors out- 
lined above should be established. 

394 Report on the building industry 

Accounting Records - Trust Funds 

g gneficiaries do not have direct access to welfare fund records. 
For example, the May 1, 1968 Agreement between the Lathing Association, Local 
562 and the Trustees states "The Trustees shall keep appropriate accounts and 
records of the accounts relating to the Trust Fund which shall be open to 
inspection and audit at all reasonable times by a person or persons designated 
by the Association and the Union. No persons other than those persons designated 
in writing by the Association and the Union shall have the right to demand or 
be entitled to any accounting from the Trustees". This clause is representative 
of most agreements. 

Expenditures for Benefit Conventions 

Conventions are generally held at exotic locations and are well 
attended by the Trustees who are permitted to travel first class. In fact, 
most of the Trustees travel economy class and use the proceeds from the rate 
differential to take their wives on the trip. Schedules 3 and h illustrate 
the expenses incurred in 1971 and 1972 for Local 562 Trustees. 


I observed the following with regard to agreements: 

* Agreements between employers who are not members of the 
Contractors Association, the Association and the Trustee 
are often not signed. These contracts outline the duties 
of employers who are not members of the Contractors 
Association but who are paying into the Welfare Fund on 
behalf of employees. 

* Occasionally agreements between the Trustees, Unions and 
Employers Association do not get signed. 

* Minutes of Trustees' Meetings are often not signed. 

* Union men rarely receive details of the plans upon 
joining a union. 

Exhibits 395 

This report has emphasized the problems which exist as opposed 
to outliiiiiiK definite solutions. It is rot considered within the terms of 
reference of the Commission to perform the latter task as this would involve 
a detailed study of numerous unions throughout the province by a committee 
comprised of specialists from a variety of fields. However, suggestions to 
such a future committee include: 

* Requirement that there be equal representation between 
union and employers in dealing with welfare fund matters. 

* Requirement that funds be audited by independent professional 
auditors and that the statements be filed publicly. 

* Full disclosure by persons who have a relationship with 
trust funds of such items as commissions, gratuities and 
other remunerations earned. 

* Requirement that trustees and administrators be bonded. 


Boilermakers National Health & Welfare tuna 

S. Petronski 
Business Manager 

J. D. Carroll 

International Vice-President 

D. G. Whan 

International Vice-President 

Mario Dube 

Business Agent Lodge #73 

L. LeClair 
Business #lU6 

W. J. Gibson 

Labour Relations Manager 

Canadian Bechtel Limited 

J. R. Ashton 

Babcock & Wilcox Canada Ltd. 

R. J. Dryden 

Industrial Relations Manager 

Dominion Bridge Co. 

L. M. Guest 
Personnel Manager 
Horton Steel Works Ltd. 

A. Dibblee 
Procor Limited 

G. Henry 

Business Manager Lodge #555 

A. Christie 
Combustion Engineering 

G. Fewer 

Business Manager Lodge #203 

S. Kerby 

Toronto Iron Works Ltd. 

396 Report on the building industry 

Local 183 Members Benefit Fund 

J. Stefanini 
Business Manager 

M. A. 0*Brien_ 
Secretary Treasurer 

T. Spada 

L. H. ELson 

Bramall & Co. Construction Ltd. 

L. McNally 

Cristan Construction Co. Ltd. 

V. P. Raponi 
Repac Construction 

Lathers Union Local 562 Employee Benefit Trust 

L. W. Ballantyne 

Secretary Treasurer & Business Agent 

A. (Gus) Simone 
Business Manager 

Mario Palna 
Empire Lathing 

Cement Masons Local 598 Welfare Trust Fund 

Z, Jedrasik 

E. Zanetti 

F. Moxon 

Diiron Flooi* Co. Ltd. 

G. Becigneul 

The Toronto Construction Association 

A. Prociello 

Marble Tile & Terrazzo Helpers Local 56 Welfare Trust Fund 

F. Zgavec 

Chester DeToni 
Business Manager 

Olvino DeCarli 

Connolly Marble, Mosaic & Tile Co. Ltd. 

John Grossi 

Terrazzo, Tile & Marble Guild of Ontario 

Robert Bortolotti 

York Marble & Tile Co. Ltd. 

Marble, Tile & Terrazzo Local 31 Welfare Trust Fund 

0. DeCarli 

Connolly Marble Mosaic & Tile Co. Ltd. 

J. Grossi 

Executive Director 

Terrazzo Tile & Marble Guild of Ontario 

R. Bortolotti 

York Marble & Tile Co. Ltd. 

D. DeMonte 

Exhibits 397 


Marble, Tile & Terrazzo Helpers Local 56 
Employee Benefit Fund 

Leader Terrazzo Tile Mosaic Ltd. 
Mercury Terrazzo Co. Ltd. 
Desco of Ontario Ltd. 

Lathers' Union Local 562 Employee Benefit 
Trust . 

Acme Lathing Co. Ltd. 

Ballantyne Lathing Ltd. 

DMD Triangle Lathing & Acoustics Co. Ltd. 

P J Daly Plastering 

Downsviev Lathing Co. Ltd. 

Fanelli Lathing Ltd. 

Kawantha Lathing 

Northdown Drywall & Construction Limited 

Official Drywall 

Royal Lathing & Drywall 

Suburban Lathing & Acoustics 

Herbert S. Thompson & Son Ltd. 

Upton Lathing Ltd. 

Weston Lathing Co. 

York Lathing 

Ontario Plasterers' Welfare Trust Fund 
Local 1*8 

Asbestos Covering Company Limited 
Findley- Jones Insulation Co. Ltd. 
Finestone Contracting 
A. V. Hallam Ltd. 
Inservac (1965) Ltd. 
Lath-Plast Ltd. 
C. Strauss Ltd. 

Boilermakers National Health and Welfare 
Fund (Canada) 

Algama Maintenance 

Ascot Mil Iwrighting 

Baird Oil Equipment 

John N. Brochlesly 

Brown & Root 

Durall Construction 

Drummond Welding 

Fischbach & Bedard 

Francis Hankin & Co. Ltd. 

Foresteel Industries Ltd. 

Minto Machine & Welding 

Ralph M. Moore Ind. 

PFP Installations 

Research-Cottrell (Canada) Ltd. 

Toronto Marble Tile & Terrazzo Local 31 
Welfare Trust Fund 

Belmont Plastering Co. 
Capital Mosaic 

"i --->■>- "~ l- 4 TM"tiC" "Ltd 

Duron Ontario Ltd. 
Glenbow Construction 
Goldstar Plastering 
Mercury Terrazzo Co. Ltd. 
Reliable Plastering 
Sandrin Precast Ltd. 

398 Report on the building industry 



Location of Conferences 

Rational Conference 
Canadian Conference 

- Miami 

- Vancouver 

Total L 

. Ballantyne 


Approved Expenditures 

D. Valsi 

T. Ballantyne 

A. Simone 

Registration and 

$ 130.00 








Registration and 






$3, CAl. 00 








Canadian Conference Expenses Jasper Park Lodge 

San Diego 

June 29, 1972 
August Ik, 1972 
August U*, 1972 
October 16, 1972 

Jasper Park Lodge 
June 29, 1972 
August 18, 1972 


M. Palma A. S.unone L. Ballantyi 

$ 1+80.00 $ 120.00 $ 120.00 $ 120.00 

1*80.00 120.00 120.00 120.00 

21*0.00 60.00 60.00 60.00 

k, 21*0.00 1,060.00 1,060.00 1,060.00 

5,1*1*0.00 1,360.00 1,360.00 1,360.00 

$ 120.00 











661*. 00 

861*. 00 













Exhibits 399 

APPENDIX 93 (exhibit 253) 
Financial statement of Local 562 

. *+>, * s .' 

'^\''7&*(sSstf7o~s,£ /A;'(/V 

Z. o c -? t- S6 ir~~- 

^/o~\ o~ "To £?~ '**'<? 

y ' ' ? ' — — — 

.'" '^ :■"-,. .'.t~ ■>*";■ c 

— ~^ T 1 

■ *sf z /fs< 

■cj - a—A *y 


<£-^v S&C^ 


- O* •-■••■ X •• ■ y V /0"'/x? £?7/ 

<,• /*}■ 

/Ma <^ 

■ ■ ■ 

//c /v S'osv f / /s)-v -fo esTsi-4{j*s> ^0 

ifLo ate / c? C/? 2- /<a£~- f/#*f,£. -/oV 

t^O t£o f-O G^/L £32 - jZ,7)*&/*y 

SP ?) SH'tlT^Ss* £ - AZizi./ &/**■/£■> 


%"<_ <!44«g£'S' 






/2 3Z«-uS 
Joo 00 




7/ 3/Z6L 



3 do Of> 

400 Report on the building industry 

/pe*s*tfe*SS rtsa*/**' **> j Sec n***<yS £<£*£»& £ys-j<> 

A' ^ if s^ss Sfsr\ A/sSCtT e* 00 

/Z^/; Vl/V» ^Jt^*^'7 | Wo*}- 

//O'SOK"' /c " -' Ssi", 'T'o /t,i.'5'.yv' <?£,oo 

/-/,?£<>* 6 /?* Ata/scs /3/i.U- 

£>/■/"/€/-' g/s-si*/ '*£ **S?*7 

**^ ' Ct: £?* /cs/Sc'Z S6>> »- 

/osT^HZ* 39* f>. 

/*Oq ~/) /ISCWo £bOo 

/I/': A, 7 /foooo 

■V*2tr6</"-/ s *~7 '7^-C^/Oa/CS 6s->-*3 . 

dz/Sf-sSlo y ^t'* /^'^*/St/'\ *> *c*t <£^7s>f-,/"s J}f3 >"i '■ 

/^?V«"*'i'^^i'*' /^o^ /alic/^6 Jo/£J- fit", 7* 

/?})' /^Or**C J?K /*»/£/? S JfSSt'^tr t ' V 

/^o* tfol^f^ efaAVo^oSfJc/tS ^°°*° i~**'t,33 

' r /l<# <w //si*,') S.»<a /// A'****' ^fCc>~f6^c;//j-)/ 

1 <jSo^33 


Exhibits 401 

_ 00 

On .£ 

o c 

X C 

OS 3 

X *3 

5 £ 

z .a 

0. > 

< O 




<U O 4> 


CO CJ to 

3 a ai 

6 V r-j 


3 &S 

v v n 
M h 13 


o <fl 

0)<m «m £ ' 

co +> -p o 

£ C 

a> 0) a» a) 

■h o d 

o *> 

_ a) a u 

u: Vi o 

_ jg 

+> a) •** 

p. a 


•H >0 


a> C 

Ul <H 0) 0) v 

f-, -H -H rH «H 

O.D OP.4I 


,♦> CO 

5 9 

•H O 

H t> 

V co 

■h d 



aJ u 

c o 

c ^ o -p -3 5 3 

: - c u « 
h -P 

-I o 

O .c O J= o o 

c c >- a 

402 Report on the building industry 



o o o o o 


o o o o 

*> c 



J H fl 


5) J p 

O rH 43 3 

<H C C O 

•p u 3 v ** 

C X 0) O O 

•I C £ O « 8 

h pb 5 < 6 

s° ° 

e sp 


fi o 

o o o o o 

° & 


o CO 

■oh e 
x 3 m 2. ■ 

Exhibits 403 




(with comparative figures for the year ended December 31, 1972) 


Membership dues $0,000 $0,000 

Checkoff 0,000 0,000 

Fines 0,000 0,000 

Special levies 0,000 0,000 

Initiation 0,000 0,000 

Reinstatement 0,000 0,000 

Interest and dividend income 0,000 0,000 


Salaries and benefits 

- Executives 

- Representatives 

- Office 

Dues to affiliations 


Organization and promotion 

Building maintenance 






Legal and audit 

Office supplies 


Printing and stationery 

Telephone and telegraph 


Gain for the year 

Members' Equity - January 1, 1973 

Members' Equity - December 31, 1973 















































404 Report on the building industry 




(with comparative figures for the year ended December 31, 1972) 

Source of funds 
Gain for the year 
Add items not requiring an outlay 
of funds 

Increase in mortgage 

Use of funds 

Purchase of automobiles 

Increase in working capital 

Represented by: 
Current assets 
Current liabilities 

















Working capital 

$0,000 $0,000 $0,000 

Exhibits 405 




(with comparative figures for the year ended December 31, 1972) 

Bank balance in current account at January 1 


Membership dues 



Special levies 



Interest and dividend income 


Salaries and benefits 
Dues to affiliations 

Organization and promotion 
Building maintenance 

Legal and audit 
Office supplies 

Printing and stationery 
Telephone and telegraph 

Bank balance in current account at December 31 

$0,000 $0,000 





















































406 Report on the building industry 



SETS - 001 - 099 

Bank accounts - Current 


- Payroll 


Interest receivable 


Dividends receivable 














Prepaid insurance 


Prepaid taxes 




Deferred charges 



Bank loan 100 

Other loans 101 

Accounts payable 102 

Accrued liabilities 103 

Sales tax payable 10l* 

Legal and audit fees payable 105 

Income taxes payable 106 

UIC payable 107 

CPP payable 108 

Accrued vacation pay 109 

Due to International Union 110 

Mortgage payable 111 

Members' Equity 190 

Operation account 195 

REVENUE - 200 - 299 

Membership dues 






Special levies 








Dividend income 


EXPENSES - 300 - 399 











Building maintenance 










Legal and audit 


Office supplies 








Telephone and telegraph 






Dues to affiliations 



Exhibits 407 






Folio Dr 



Jan. 1 
Jan. 31 

$ 1,000.00 
CR k $U38,300.21 
CD 9 $321,000.09 118,300.12 

408 Report on the building industry 



o CO 


"3 * 

m G 

— > 

\0 \0 \0 

§ 9 5 



o o 
















3 f* 

60 li, 

Exhibits 409 

§ § 

4io Report on the building industry 




P.O. O.K 

















Exhibits 411 


412 Report on the building industry 

O 4> 

c (5 




Exhibits 413 



Telephone No. 


Social Insurance No. 

History with Union 

Jan. 16 


fc U.00 



Initiation Reinstatement 


Dec. 31 

414 Report on the building industry 

APPENDIX 95 (exhibit 1045) 
Report of J.B. Pearce on Local 18 

March 8, 197 1 * 




MADE ON YEARS 1968 - 1970 


Exhibits 415 




MADE ON YEARS 1968 - 1970 

I was directed to perform an examination of the records of Local 18 for 
the specific purpose of: 

(1) determining the amount of an alleged defalcation 

(2) learning the identity of the responsible party. 

After reviewing the reports on Local 18 which had been filed earlier and 
familiarizing myself with the transcripts of the evidence given at the hearings held 
in Hamilton, I determined that the following procedures should be performed: 

(1) review the union local's method of reporting and accounting 
for cash and review the various office procedures in effect 

(2) determine the sequence of receipts that the union should 
have had on hand during the above years and determine which 
individual numbers and series were missing by a numerical 
check of these receipts 

(3) compare in detail all the totals of the receipts with the 
duplicate deposits and the bank statements 

(k) review the material submitted by Mrs. Hazel Nash to the Royal 
Commission concerning initiation fees paid by members covering 
the period January 1969 to July 1970 

(5) review the strike fund records. 

4ih Report on the building industry 

Local 18 


unable to reach any conclusions on the specific purpose of this 
investigation due to the unsatisfactory record keeping procedures which the union 
employs. However, conclusions which are relevant to the Commission are as follows: 

(1) Books of account were not prepared on a double entry 
system. Also, internal controls incorporated in the office 
procedures were inadequate. 

(2) Money was neither deposited to the bank on a regular basis 
nor deposited intact. 

(3) Some of the adding maching tapes which were attached to a 
groups of receipts were manipulated. Although I could trace 
all the individual receipt totals to the tape, the tape totals 
(which equalled the amount deposited) were low. 

(U) Control over the issuance, use and retention of the receipts 
was inconsistent. I identified 772 receipts missing from 
January 1968 to December 1970. 

(5) Membership ledgers are not balanced and agreed to the local's 
reported membership income. 

(6) Deposits were made to the local's bank accounts which could 
not be identified. 

(7) Several errors and omissions were discovered in the register 
of initiation fees submitted by Mrs. Hazel Nash 

(8) The local did not maintain any separate records to record 
those strike assessments received by them after assuming 
responsibility from the trustees. 

Details of our examination on each of the above areas and the explanations 
of our conclusions follow. 

Exhibits 417 

Local 18 3. 

Books of Account and Internal Controls 

After discussing the various office procedures and controls with the 
present office staff and the local's former employee, Mrs. H. Nash, I concluded 
that the office procedures and controls were not satisfactory. 

The system is sti ll not entirely satisfactory. The only additional 
control procedure employed since the investigation period was the addition of a 
daily sheet which summarizes the monies received by the local and describes the 
nature of the payment, i.e., dues, strike assessment, checkoff, etc. The addition 
of this form allows the union to be able to reconstruct the monies received in the 
event of any of the receipts being lost or destroyed. 

Bank Deposits 

Deposits were made during January 1968 - September 1970 on an irregular 
basis and were supported by receipts attached to the duplicate deposit. No accounting 
procedures appeared to be in effect governing the method of banking of deposits or 
control over used and unused receipt books as evidenced by instances of deposits of 
funds made as much as four to six months after the monies were received and receipt 
books being used out of sequence. (See Receipts.) 

The local's practice of detaching the pages from the receipt books and 
attaching them to deposit slips without any form of numerical sequence check enhanced 
the possibility of misappropriating funds without fear of being discovered since the 
amounts recorded as the local's income for the years were only those monies deposited 
to the bank accounts. 

No attempt appeared to have been made to balance the membership ledgers on 
either a weekly, monthly or yearly basis for comparison to the income recorded by the 

Thus, the internal controls over cash and receipts were suspect during 
the period under review. Although these controls have been strengthened by the 

418 Report on the building industry 

Local 18 l 

auditor, I maintain that they could be more effective if the local instituted a 
double entry bookkeeping system, transcribed the information from these daily control 
sheets to a cash receipts book and deposited the funds on a regular basis. 

Detailed Examination of Bank Deposits 

I performed the following procedures: 

(1) compared the total of the receipts attached to the duplicate 
deposit slips to the tape total prepared by 'the union 

(2) traced the duplicate deposits to the bank statements 

(3) reviewed the bank statements for deposits made not 
substantiated by receipts. 

The objective was to determine that all the monie s received by the union 
were in fact deposited into the local's bank accounts and that the backup receipts 
totalled to the revelant deposit. 

I noted several instances where the backup receipts did not agree to the 
deposit. Several of these required more detailed examination as noted: 





September 1968 

$3,291+. 00 


$ 80 deposit less 

September 1968 



65 deposit less 

December 1969 




103.20 $8 reflected 
as 80^ 

October 1970 




36O.OO deposit less 




Exhibits 419 

Local 18 5- 

In the first three instances I could not reconcile the total of the receipts 
by the local with my independent total even though I agreed all the individual 
receipts to the local's tapes. The local's tapes had been deliberately manipulated. 

In the last instance it appeared that there were several receipts attached 
which had not been included in the local's total. The receipts totalled $81+5 as 
against the deposit of $U85. 


In order to determine the sequence of receipts that were printed for the 
union during the years 1968 - 1970 I interviewed the printers used by the local. I 
wanted to establish the numbers' series that the local should have had before 
performing a numerical sequence check to determine which series the local actually 
issued. I was unable to establish precisely which numbers' series had been issued, 
as the union's printer ceased operations in 1970. 

I documented the receipts issued by the union for the period January 1968 
to December 1970 and accounted for the numerical continuity, thereby revealing the 
missing single numbers and series. 

This test also revealed that control over the issuance and use of these 
receipts was not very effective as I found that they were used out of sequence and 
for purposes other than for recording members' dues and fees. (For example, Series 
002 - 900 was used in 1971 by the administrators of the local's C.A.P. plan.) 

In summary, my numerical sequence test revealed the following number of 
receipts missing: 

420 Report on the building industry 

Local 18 



by Year 



Total missing 

January 1968 - December 1970 772 


1 book of 295 receipts missing 

mostly attributable to individual 
pages of 10 receipts not accounted 

mostly single receipts which had 
been carefully clipped from the 
receipt pages. 60 of the individual 
receipts related to the month of 
March 1970 

Investigation of the Membership Ledgers 

As I highlighted 60 missing receipts in the month of March 1970, I decided 
to extend the scope on my receipts check to encompass a detailed examination of the 
membership ledgers and attempt to attribute these missing receipts to membership dues 

This test was performed assuming that if the office procedures for recording 
dues were effective, the membership ledgers should reflect accurately all membership 
dues. The office procedure was to record the payment on the membership ledger, the 
dues book and the receipt respectively as the cash was received. 

The results showed that there were several clerical errors where monies 
paid in March were actually recorded in either February or April 1970 and that, of 
the monies reflected as membership dues on the receipts, I was unable to locate 
sixteen membership cards. Seven members were revealed whose dues had not been 
reflected on their membership cards totalling $128. 

As the results of this test proved inconclusive through lack of reliance 
on the membership ledgers, I discarded the further step of systematically documenting 
the dues from the membership ledgers for the year 1970 for the following reasons: 

Exhibits 421 

Local .: 7. 

(1) uncertainty that all the membership ledgers were on hand 

(2) absence of a control figure with which to compare the overall 
total as the ledgers themselves were not self balancing nor 
agreed to the local's books of account. 

Unidentified Deposits 

In tracing deposit slips to the bank statements, I identified the following 
deposits that had been made for which the local had no duplicate deposits or backup 

Schedule 1 1968 $ 1,1*57-95 

Schedule 2 1969 7,698.21 

Schedule 3 1970 lU, 372.31* 


Deposits were made on an irregular basis during the period January I968 
to September 1970. (I noted several deposits where the attached receipts were for 
monies received four to six months previously. ) However, deposits became more 
regular after the appointment of the auditor. 

The local should have exercised greate r control in the addition of the 
receipts and should have retained copies of all of the deposits together with the 
relevant backup information. The treasurer should b e resp nn«i"h"lp for maintaining 
adequate records of the deposits made to the bank accounts. 

Initiation Fees Register 

This register, submitted to the Royal Commission by Mrs. Hazel Nash, 
purported to represent all the members initiated from January 1, 1969 to July 31, 

I have checked this register in detail and have been able to substantiate 

422 Report on the building industry 

Local 18 8 

most of the entries made. by Mrs. Nash. However, many errors were uncovered in my 
investigation and, in several instances, I disproved Mrs. Nash's claim that the fees 
were not recorded on the receipts and deposited in the local's bank account. Other 
instances remain unclear as neither Mrs. Nash nor I could determine when or where 
the initiation fees were recorded. (Schedule h.) 

I cannot conclude that these monies were not recorded in the books of 
account as these funds could have been included in those deposits made to the bank 
accounts for which I could find no backup documentation. (See Bank Deposits above 
and Schedules 1, 2 and 3«) 

Strike Fund Accounting 

This register represents an accounting of the 1969 strike fund by the 
appointed trustees. Mr. Romeo Charbonneau submitted this register and he was one of 
the trustees. 

My examination of this register was limited to tracing all the deposits as 
recorded in the register to the bank statements. I found no discrepancies in the 
items recorded. I could not determine on an overall basis that- all the assessments 
that should have been received were in fact paid and recorded in the local as the 
amount of the assessment levied on the members appeared to be determined by the 
individual members' salaries. 

It was the duty of the trustees to ensure that all the members paid their 
assessments and several assessment books and duplicate receipts have been submitted 
as evidence of their performance of this function. 

These records were not maintained by the local when the trustees' duties 
were terminated by the executive in the month of Januar y 1970- As of that date, all 
assessment:, received were recorded via the receipts and the clippings from the pages 
of the receipt registers were purported to substantiate deposits made by the local 
to the strike &\nfi bank account, CU III. However no duplicate deposits with attached 

Exhibits 423 

Local 18 

receipts were found by me on the premises of the local as evidence of this practice. 
What I did discover were unidentified deposits made to the strike fund during 1970 
as detailed on Schedule 3. 

As the local did not maintain this register or retain the duplicate 
deposits with backup receipts, I was unable to determine that those missing receipts 
in 1970 were in fact used for the purpose of recording strike assessments. 





February 28 


321. U7 

April 11 


July 16 


November 18 

506. U8 

Total for year 







424 Report on the building industry 






January 20 

$ 25.00 


March 28 



April 21 



May 15 

520. Ho 



June 3 



207 . 60 




July 2 







August 6 

8. 1+5 


91 60 




October 31 



Total for year 



Exhibits 425 








January 7 

$ 50.00 















March 3 







April 2 







May 8 






July 3 



$ 377.90 





August 11 



September 1 







October 28 





November 3 



December 1+ 




Total for year $ll+,372.3l+ 

June 11 

156.00 CU I 

(1) Strike Fund 

(2) ,v-n 

(3) Interest 

426 Report on the building industry 


JANUARY 1969 - JULY 1970 

Details of initiation fees documented as untraceable on the register for 
which we also could find no receipts: 




J. Finlay 


H. Wardell 


James Lewis 


Eric Ludin 


Paul Head 


Din Marchand 


M. Iacoviello 


Charles Bald 


Din Snively 


G. Arnold 


Hans Skinder 


A. J. Turingia 


M. Gancalues 


James R. Bydges 


Mike Clancy 


M. Nadolyehry 


D. Blythe 


Ralph Mete 


Walter Haifel 








Mrs. Nash 

$ 50.00 


$ 50.00 

February 11, 1969 



February 1969 





October 8, 1969 



October 31, I969 



September 5, 1969 



November k, 1969 



October 28, 1969 











February 7, 1970 
















Details of initiation fees traced to the local's receipt books documented 
as untraceable on the register: 





•aced to 




s . Nash 


Date Received 


J. Dinisho 







L. Markovich 



January 1970 


G. Muhot 



January 1970 


Harris Sabman 



January 1970 


John Sattler 



February 1970 


Don Snively 



November 1969 


Alex Joseph 



September 1970 


Earl Ryan 



February 1970 


James D. Kemp 



March 1970 


John Turingia 



March 1970 


F. D. Grave 



February 1970 


Tony Garman 



January 1970 

John Bat 



July 1970