NORTHWESTERN
UNIVERSITY
LIBRARY
The Gift of
CANADA
Order in Council
Relating to the
Fair Wages Policy
of the Government of
Canada
Approved by His Excellency the Governor General,
June 7, 1922.
Issued as a Supplement to The Laboub Gazette, June^ 1922.
pbintkd bt V. a. aoland, printer to the nino's most
encellent majesty
ottawa
p. C. 1206
Certified copy of a Report of the Committee of the Privy Council,
approved hy His Excellency the Governor General
on the 7th June, 1922.
The Committee of the Privy Council have had before them a
report, dated 30th May, 1922, from the Minister of Labour, stating
that he has had under consideration the desirability of adopting
more effective measures to secure the observance of what is known
as the Fair Wages Policy of the Government of Canada, and sub¬
mitting as follows in connection therewith ;
The policy in question is based on a resolution which was adopt¬
ed by the House of Commons in March, 1900, in the terms follow¬
ing:
That it be resolved, that all Governiuent contracts should contain Fair Wages
such conditions as will prevent abuses, which may arise from the sub- Resolution,
letting of such contracts, and that every effort should be made to 1900,
secure the payment of such wages fs are generally accepted as current
in each trade for competent workmen in the district where the work is
carried out, and that this House cordially concurs in such policy, and
deems it the duty of the Government to take immediate steps to give
effect thereto.
It is hereby declared that the work to which the foregoing policy
shall apply includes not only work undertaken by the Government it¬
self, but also all works aided by grant of Dominion public funds.
Under the authority of an Order in Council of August 30th, Fair Wages
1907, contractors are required to post in a conspicuous place on Order-in-Coun-
any public works under construction the schedule of wages inserted
in their contracts for the protection of the workmen employed, and
also to keep a record of payments made to workmen in their em¬
ploy, the books or documents containing such record to be open
for inspection by Fair Wages Officers of the Government at any
time it may be expedient to the Minister of Labour to have the
same inspected.
In conformity with the foregoing, conditions have been in¬
serted in Government forms of contract requiring the observance
of current wage rates and providing that in the event of any dispute
arising as to what constituted the current rates of wages the same
should be determined by the Minister of Labour, whose decision
should be final.
An examination of the Fair Wage Clauses of the forms of
contract in use in the several Government Departments shows that
these differ in various respects. It is desirable that the labour
provisions in question should be made as nearly uniform in terms
and administration as possible.
The Minister therefore, with a view to securing the purposes
desired submits the following recommendations for approval :
Contracts to
which "A"
conditions
apply.
That the conditions following, marked "A" shall be observed
by the Department or Departments concerned in connection with
all contracts made on behalf of the Government of Canada for the
construction or remodelling of public buildings of aU kinds, rail¬
ways, canals, roads, bridges, locks, dry docks, elevators, harbours,
piers, wharves, lighthouses, and other works for the improvement
and safety of transportation and navigation, rifle ranges, fortifica¬
tions, and other works of defence, dams, hydraulic works, slides,
piers, booms, and other works for facilitating the transmission of
timber, and all other works and properties constructed or re¬
modelled for the Government of Canada; also that the like condi¬
tions shall, as far as practicable, be observed by the Department or
Departments of Canada, in connection with all agreements made
by the Government involving the grant of Dominion public funds
in the form of subsidy, advance, loan, or guarantee for any of the
purposes mentioned; and that returns shall be furnished by the
Departments concerned to the Department of Labour showing the
nature of all contracts which have been entered into'during the
month preceding to which these conditions apply, the names and
addresses of the contractors, the dates and amounts of the con¬
tracts, and the text of the Fair Wages Schedules, if any, inserted
in such contracts.
Contracts to That the conditions following, marked "B", shall be observed
which "B" by the Department or Departments concerned in connection with
conditions a,ll contracts for the manufacture and supply to the Government
apply* Qf Canada of fittings for public buildings, harness, saddlery,
clothing, and other outfit for the military and naval forces. Royal
Canadian Mounted Polioc, letter carriers, and other Government
officers and employees, mail bags, letter boxes, and other postal
stores, and any other articles and things hereafter designated by the
Governor in Council; and that returns shall be furnished by the
Department« concerned to the Department of Labour showing the
nature of all contracts which have been entered into during the
month preceding to which these conditions apply, the names and
addresses of the contractors, and the dates and amounts of the
contracts.
(1) In the case of all contracts to which these conditions
apply, the Department of the Government concerned shall com¬
municate to the Department of Labour the nature of the pro¬
posed contract and the classes of labour likely to be required in
its execution. The Department of Labour shall thereupon pre¬
pare and furnish to the Department concerned schedules setting
forth the rates of wages generally accepted as current for com¬
petent workmen of the various classes required in the district in
which the work is to be performed or if there be no current
rates in the district, then fair and reasonable rates, the same to
be recognized as the minimum rates of wages payable to the
various classes of workmen employed ; and also setting forth the
hours of labour fixed by the custom of the trade in the district,
or if there be no such custom then fair and reasonable hours, the
same to be recognized as the maximum hours during which the
several classes of workmen employed shall be required to work,
except for the protection of life or property or on due cause
shown to the satisfaction of the Minister of Labour. By the
term "current wages" and the term "hours of labour fixed by
the custom of the trade" in the foregoing are meant respectively
the standard rates of wages and hours of labour either recognized
by signed agreements between employers and workmen in the
district from which the labour required is necessarily drawn or
actually prevailing, although not necessarily recognized by
signed agreements.
Department of
Labour to
prepare
Fair Wages
Schedules.
(2) The following provision shall be inserted in all Govern¬
ment contracts containing Fair Wages Schedules :
In the event of any dispute ariûng as to the wages or hours
to be observed under the Fair Wages Schedule or as to the
wages and hours of any class of labour not covered by the
Fair Wage Schedule, the same shall be determined by the
Minister of Labour, whose decision shall be final; payment
may also be withheld of any moneys which would otherwise
be payable to the Contractor until the Minister of Labour's
decision has been complied with.
Minister of
Labour to
determine
disputes.
(3) In any case where the Department of Labour is unable General Pair
to furnish schedules of wages and hours for the purpose afore- Wages Clause,
said, the Department of Labour may recommend the insertion
of a general clause in the terms following
AU mechanics, labourers, or other persons who perform
labour in the construction of the work hereby contracted for,
shall be paid such wages as are generally accepted as current
from time to time during the continuance of the contract for
competent workmen in the district in which the work is being
performed, and if there be no current rate in such district,
then a fair and reasonable rate, and shaU work such hours as
those fixed by the custom of tlie trade in district where the
work is carried on, or if there be no custom of the trade as
respects hours in the district, then fair and reasonable hours,
except for the protection of life and property, or on due
cause shown to the satisfaction of the Minister of Labour.
In the event of a dispute arising as to what is the current or
a fair and reasonable rate of wages or what are the current
hours fixed by the custom of the trade or fair and reasonable
hours, it shall be determined by the Minister of Labour, whose
decision shall be final. Payment may also be withheld of
any moneys which would otherwise be payable to the con¬
tractor until the Minister of Labour's decision has been com¬
plied with. By the term "current wages" and the term
"hours of labour fixed by the custom of the trade" in the fore¬
going aré meant respectively the standard rates of wages and
hours of labour either recognized by signed agreements be¬
tween employers and workmen in the district from which the
labour required is necessarily drawn or rates actually prevail¬
ing, although not necessarily recognized by signed agree¬
ments.
Clerks of works
or other in-
pecting
officers to
ensure due
observance of
contract.
(4) In all cases where clerks of works or other inspecting
officers are appointed by the Government to ensure the due ob¬
servance of the contract, they shall be specially instructed by
the Department concerned to do all in their power to see that
the labour conditions are fully complied with and to report any
apparent violations to the Department with which the contract
was made.
(5) The following provisions shall also be inserted in all
contracts to which these conditions apply:
Fair Wages
Clause or
Schedule
to be posted.
Books, ¿be.,
contractor
open for
inspection.
of
(a) The Contractor shall post and keep posted in a conspi¬
cuous place on the premises where the contract is being executed,
occupied or frequented by the workmen, the Fair Wages Clause
or Schedule inserted in his contract for the protection of the
workmen employed.
(b) The Contractor shall keep proper books and records
showing the names, trades, and addresses of aU workmen in his
employ and the wages paid to and time worked by such work¬
men, and the books or documents containing such record shall
be open for inspection by the Fair Wage Officers of the Govern¬
ment at any time it may be expedient to the Minister of Labour
to have the same inspected.
(c) The Contractor shall not be entitled to payment of any Paymen^t by
money which would otherwise be payable under the terms of the j^tour^
contract in respect of work and labour performed in the execu- '
tion of the contract unless and until he shall have filed with the
Minister in support of his claim for payment a statement at¬
tested by statutory declaration, showing (1) the rates of wages
and hours of labour of the various classes of workmen em¬
ployed in the execution of the contract; (2) whether any wages
in respect of the said work and labour remain in arrears; (3)
that all the labour conditions of the contract have been duly
complied with ; nor, in the event of notice from the Minister of
Labour of claims for wages, until the same are adjusted. The
Contractor shall also from time to time furnish the Minister
such further detailed information and evidence as the Minister
may deem necessary in order to satisfy him that the conditions
herein contained to secure the payment of fair wages have been
complied with, and that the workmen so employed as aforesaid
upon the portion of the work in respect of which payment is
demanded have been paid in full.
(d) In the event of default being made in payment of any
money owing in respect of wages of any workmen employed on
the said work and if a claim therefor is filed in the office of the
Minister and proof thereof satisfactory to the Minister is fur¬
nished, the said Minister may pay such claim out of the moneys
at any time payable by His Majesty under said contract and the
amounts so paid shaU be deemed payments to the Contractor.
Power to pay
wages in
default of
payment by
contractor.
(e) These conditions shall extend and apply to moneys
payable for the use or hire of horses or teams, and the persons
entitled to payments for the use or hire of horses or teams shaU
have the like rights in respect of moneys so owing them as if
such moneys were payable to them in respect of wages.
(f) With a view to the avoidance of any abuses which Sub-letting, &c.
might arise from the sub-letting of contracts it shall be under¬
stood that sub-letting, other than such as may be customary in
the trades concerned, is prohibited unless the approval of the
Minister is obtained ; sub-contractors shall be bound in all cases
to conform to the conditions of the main contract, and the main
contractor shall be held responsible for strict adherence to aU
contract conditions on the part of sub-contractor; the contract
shall not, nor shall any portion thereof be transferred without
the written permission of the Minister; no portion of the work
to be performed shall be done at the homes of the workmen.
(g) All workmen employed upon the work comprehçnded workmen to be
in and to be executed pursuant to the said contract shall be residents of
residents of Canada, unless the Minister is of opinion that Canada.
Canadian labour is not available or that other special circum¬
stances exist which render it contrary to the public interest to
enforce this provision.
B.
The following provisions shall be inserted in all contracts
to which these conditions apply:
Fair "W^ages (1) All workmen, labourers, or other persons who perform
labour in the construction of the work hereby contracted for,
shall be paid such wages as are generally accepted as current
from time to time during the continuance of the contract for
competent workmen in the district in which the work is being
performed, and if there be no current rate in such district, then a
fair and reasonable rate, and shall work such hours as those fixed
by the custom of the trade as respects hours in the district where
the work is carried on, or if there be no custom of the trade as
respects hours in the district then fair and reasonable hours,
except for the protection of life and property, or on due cause
shown to the satisfaction of the Minister of Labour. In the event
of a dispute arising as to what is the current or a fair and rea¬
sonable rate of wages or what are the current hours fixed by the
custom of the trade or fair and reasonable hours it shall be de¬
termined by the Minister of Labour, whose decision shall be final ;
payment niay also be withheld of any moneys which would other¬
wise be payable to the contractor until the Minister of Labour's
decision has been complied with.
By the term "entrent wages" and the term "hours of labour
fixed by the custom of the trade ' ' in the foregoing are meant res¬
pectively the standard rates of wages and hours of labour either
recognized by signed agreements between employers and work¬
men in the district from which the labour required is necessarily
drawn or actually prevailing, although not necessarily recogniz¬
ed by signed agreements.
Fair Wages (2) The Contractor shall post and^keep posted in a conspi-
Clause to be cuous place on the premises where the contract is being executed,
posted. occupied or frequented by the workpeople, the foregoing fair
wages clause for the protection of, the workpeople employed.
Books &c of Contractor shall keep proper books and records
contractor open showing the names, trades, and addresses of all workmen in his
for inspection. employ and the wages paid to and time worked by each workman
and the books and documents containing such record shall be
open for inspection by the Fair Wages Officer of the Govern¬
ment at any time it may be expedient to the Minister of Labour
to have the same inspected.
Pr mises and (4) The Contractor's premises and the work being perform-
worK^open for ed under this contract shall be open for inspection at all reason-
inspection. able times by any officer authorized by the Minister of Labour
for this purpose; all such premises shall be kept by the Con¬
tractor in sanitary condition.
(5) With a view to avoidance of any abuses which might Sub-letting, Ae.
arise from the stib-letting of contracts it shall be understood that
sub-letting, other than such as may be customary in the trades
concerned, is prohibited unless the approval of the Minister is
obtained; contractors shall be bound in all cases to conform to
the conditions of the main contract, and the main contractor
shall be held responsible for strict adherence to all contract con¬
ditions on the part of contractors; the contract shall not, nor
shall any portion thereof be transferred without the written
permission of the Minister; no portion of the work to be per¬
formed shall be done at the homes of the workpeople, or, except
as specially provided for under legislative authority, by in¬
mates of penal institutions.
(6) All workmen employed upon the work comprehended Workmen to be
in and to be executed pursuant to this contract shall be residents residents of
of Canada, unless the Minister is of opinion that Canadian la- Canada,
hour is not available or that special circumstances exist which
would render it contrary to the public interest to enforce this
provision.
(7) The Contractor shall not be entitled to payment of any Payment by
money which would otherwise be payable under the terms of the contractor for
contract in respect of work and labour performed in the éxecu-
tion of the contract unless and until he shall h«ve filed in the
office of the Minister in support of his claim for payment a
statement attested by statutory declaration showing: (1) the
rates of wages and hours of labour of the various classes of work¬
men employed in the execution of the contract; (2) whether any
wages in respect of the said work and labour remain in arrears ;
(3) that all the labour conditions of the contract have been duly
complied with; nor, in the event of notice from the Minister of
Labour of claims for wages, until the same are adjusted. The
Contractor shall also from time to time furnish to the Minister
such further detailed information and evidence as the Minister
may deem necessary in order to satisfy him that the conditions
herein contained to secure the payment of fair wages have been
complied with, and that the workmen so employed as~ aforesaid
upon the portion of the work in respect of which payment is
demanded have been paid in full.
(8) In the event of default being made in payment of any
money owing in respect of wages of any workman employed on
the said work, and if a claim therefor is filed in the office of the
Minister and proof thereof^ satisfactory to the Minister is fur¬
nished, the said Minister may pay such claim out of the moneys
at any time payable by His Majesty under said contract and the
amount so paid shall be deemed payments to the Contractor.
Power to pay
wages in
default of
payment by
contractors.
The Committee concur in the foregoing recommendation«
and advise that the same be approved accordingly.
Rodolphe Boudeeau,
Clerk of the Privy Council.
NOTE:—^The side notes printed above do not form part of the Order-in-
Couneil and are inserted for convenience of reference only.
It is to be understood that where the term "Minister" occurs in the
order-in-council, except in the fourth paragraph on page 2, the reference is
to the Minister of the Department with which the contract is made.