As major development projects take shape across Northern Ontario, there's a growing recognition among proponents of the importance of respecting Indigenous rights and territories. More than ever, there's an understanding that true economic reconciliation isn’t possible without meaningful partnership with Indigenous communities.
Driven by Indigenous leadership and guided by international standards, such as the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), a new approach is transforming the development of major projects. Central to this change is the principle of free, prior, and informed consent (FPIC), which requires meaningful engagement with Indigenous communities prior to any work commencing. Today, progressive industry leaders are embracing this approach from the outset, ensuring Indigenous voices are not only heard but actively shape the path forward.
Indigenous engagement and the imperative of early planning
Respect for Indigenous rights and self-determination, as outlined in the UN Declaration on the Rights of Indigenous Peoples, forms the foundation for equitable project development. Meaningful participation starts well before the first shovel hits the ground. Indigenous communities expect their territories, cultures, and traditional ways of life to be respected and acknowledged. They also seek active roles in the development of their lands, informing decisions and securing opportunities for investment, employment, and procurement. Early engagement helps ensure that local Indigenous priorities, such as job creation and participation in the supply chain, are integrated into the broader project framework.
The disconnect in current project planning
While significant time and resources are often invested in environmental assessments, equity models, and local participation, including local workforce hiring and contracting, the development of a labour relations strategy is frequently overlooked. Without advanced planning for labour relations on a major project, all parties risk falling short of the aspirational commitments made at the project's inception. When labour strategies are treated as an afterthought, the promised benefits for Indigenous communities and local workers can quickly become unattainable. Here’s why.
In Ontario, conventional construction collective agreements often present several barriers to inclusive and community-focused development:
- Sub-contracting obligations: These agreements often enforce rigid subcontracting rules that hinder efforts to engage local construction firms in the work. While a local company might elect to voluntarily unionize as an easy workaround, that decision is irrevocable. Once a contractor chooses to unionize, that company and its key personnel (including owners and high-ranking managers) become permanently bound to union rules. Simply put, that firm will be forever bound to that union, which can significantly alter their competitiveness and flexibility on future, non-union projects in their region. Outside of these mega-projects, most local work does not require a company to be signatory to a union, and the cost and inflexibility that might be manageable on a major project will make the firm uncompetitive and possibly non-viable on future regular-sized local projects.
- Hiring hall and staffing requirements: These requirements can restrict local access to construction job opportunities on a project. Workers who are either ineligible or unwilling to join a union may find themselves locked out of crucial job opportunities — an outcome that undermines the promise of inclusive local contractor and local worker participation.
A striking example comes from the case of a hospital project in British Columbia. Initially designed with community benefits in mind, the BC Community Benefits Model inadvertently prohibited local Indigenous contractors and their employees from participating in the local hospital build. This outcome was particularly disheartening given that the hospital was built on land generously provided by a First Nation. The lesson here is clear: without an early, well-designed labour strategy, even well-intentioned projects can fall short of supporting local Indigenous economic participation.
The legal and practical challenges of delaying labour strategy
Another significant challenge arises from Ontario law, which either limits or prohibits alterations or amendments to the construction collective agreements applicable to these projects. The challenge becomes even more pronounced when a collective agreement with restrictive provisions binds the prime contractor. When labour relations strategies are delayed until late in the process, stakeholders may discover too late that their ability to shape more inclusive and flexible labour outcomes has been greatly limited.
The need for a proactive and inclusive labour strategy
In light of these challenges, prioritizing an inclusive labour strategy from the outset is essential. To have an informed labour strategy, one must first have an understanding of the labour landscape and the nuances that differentiate the various options. As has been demonstrated in other arenas, governments, project proponents, and local communities can impact the labour relations strategy on major projects in a way that mitigates cost, provides for greater inclusivity and participation from local contractors and workers, and that honours a worker’s individual and collective democratic right to freely associate (or not) with a union of their choosing.
Taking a proactive approach to developing a labour strategy brings several key advantages:
- Inclusivity and Participation: By evaluating different labour strategies from the outset, all stakeholders — whether project proponents, contractors, or Indigenous communities — can work together to ensure that local firms and workers are given fair opportunities to participate. This requires exploring labour model options outside of conventional and exclusive construction craft union collective agreements, which, by design, protect the interests of those unions’ workers — a group that represents less than 30 per cent of the available provincial construction workforce in Ontario.
- Flexibility in Labour Models: Not all unions impose the same restrictive hiring and subcontracting obligations. An early labour strategy enables a critical evaluation of various labour models, potentially encouraging the adoption of those that promote inclusivity rather than exclusivity. In some industries, proponents opt for a managed open-shop labour strategy. When appropriately designed and managed, open shop models allow for the full participation of non-union, alternative union, and conventional union members. Such arrangements pave the way for more inclusive involvement of local companies and workers.
- Evaluating Ownership Structures: Early clarification of the project's actual ownership can resolve many complexities. Entities with legacy obligations — such as Ontario Power Generation or Hydro One — can influence labour models and can limit eligibility of non-union and alternative union participation. As Indigenous communities take on larger equity roles in major projects, ownership structures and their alignment with labour relations strategies are becoming increasingly important. When designed right, these frameworks can open the door to greater local employment and contracting opportunities.
- Supporting Workforce Training: An upfront labour strategy creates the opportunity to assess and then proactively develop training programs to equip local workers with the necessary skills. This becomes especially critical in the face of a national skilled labour shortage, where tapping into local and underrepresented workforces is more critical than ever. By expanding access to training, projects can help responsible stakeholders depend less on a narrowly defined pool of unionized workers and more on a diverse, skilled local workforce.
Looking forward: maximizing opportunities for all
Conventional labour practices in Ontario’s construction industry risk not only slowing progress toward Indigenous and local participation, but they can actively exclude more than 70 per cent of workers in northern and First Nations communities who either cannot, or choose not to, join select unions.
Prioritizing labour relations early in the process lays the foundation for a project grounded in true collaboration. It signals a shift from reactive problem-solving to proactive, community-centred planning — one that respects the principles of UNDRIP and the lived experiences of the communities most affected.
Ultimately, developing a robust, inclusive labour strategy is not just a box to check or another regulation to navigate — it is a vital stepping stone toward a more equitable and prosperous future for both project proponents and the communities they serve. Embedding these strategies from the outset empowers local firms and workers, contributes to the long-term success of projects, and ensures alignment with the core principles of Indigenous rights and community-led development.
Ian DeWaard has more than 25 years' experience in labour relations and serves as a provincial director for CLAC, an independent union representing more than 60,000 workers in a variety of industries, including Canada's construction sector.
