Carpenters’ union fighting the good fight against construction industry fraud
Widespread tax fraud within the construction sector goes hand in hand with exploitation of vulnerable and undocumented workers, unsafe working conditions
The extreme end of the spectrum is human trafficking, including labour brokers that shop unqualified workers around like playing cards to job sites.
Tax fraud and illegal worksites are costing the construction industry and taxpayers billions of dollars annually. That’s why the Carpenters’ Union and industry partners across North America have been lobbying their members and the government to take aggressive steps to combat the rising tax fraud tide.
“For the past three years we’ve been issuing a union call to combat tax fraud in our industry,” said Mike Yorke, president, Carpenters’ District Council of Ontario (CDCO). “These illegal activities not only defraud workers out of their rightful pay and benefits, they also result in higher likelihoods of injuries on worksites and even human trafficking in extreme cases. It is time for our members, law enforcement, legislators, and taxpayers to say enough is enough.”
The CDCO is working with the Millwright’s Council of Ontario and many others across Canada and the US on the initiative.
Tax fraud not only cheats hardworking craftspeople out of their rightful pay and benefits, it forces citizens to make up for lost tax revenue, which can total anywhere from $1.8 billion to $3.1 billion every year in Ontario alone, according to the Ontario Construction Secretariat.
The implications of widespread tax fraud within the construction sector go far beyond the monetary losses however. It lies at the heart of the growing exploitation of vulnerable and undocumented workers, and unsafe working conditions, Yorke said.
“Unscrupulous operators are often hiring undocumented workers and primarily misclassifying workers as subcontractors among other practices, as a means to dodge taxes. The extreme end of the spectrum is human trafficking, including labour brokers that shop unqualified workers around like playing cards to job sites. Our job as a union is to stand up against these practices to ensure the safety of our members and prevent the erosion of safety standards within working environments.”
Lost tax revenues also have a lasting impact on infrastructure investments in vital sectors such as healthcare, he added. “Many communities in Ontario are crying out for investments in their healthcare infrastructure. If we could eliminate tax fraud, just imagine what we could build.”
Yet another concern is that tax fraud takes resources away from legitimate apprenticeship programs that are starving for funds to invest in new technology and health and safety programs, Yorke noted.
“Tax fraud not only hurts the industry and legitimate employers. At the end of the day this is about the fair and equitable treatment of workers, both those who suffer directly from the labor abuse and those who lose out on the decent, middle-class jobs that law-abiding contractors provide”, said Douglas J. Mccarron, president, United Brotherhood of Carpenters and Joiners of America.
One positive example has been set by the Commonwealth of Virginia, which enacted the first Worker Protection Unit authorized to educate workers on their rights, and to investigate, stop and prosecute companies that unlawfully engage in worker exploitation. “That’s a model we have presented to the provincial and federal governments as an important step in eliminating tax fraud within our industry in Canada,” Yorke said.
“The UBC is working hard with governments, honest contractors and community stakeholders to level the playing field by shining a bright spotlight on the underground economy and those who engage in this illegal activity,” said Jason Rowe, vice president Canada, United Brotherhood of Carpenters and Joiners of America, which has joined the CDCO’S call for action. “It is time for Canadians to stand up against tax fraud and fight corruption in the underground economy so we can have the programs and services required in our communities.”
To find out more about the campaign to fight tax fraud and submit an online letter to your local MP and federal MPP for action against these illegal activities, visit notaxfraud.com.