BILL NO. 240

(as introduced)

1st Session, 64th General Assembly
Nova Scotia
1 Charles III, 2022

 

Private Member's Bill

 

Public Procurement Act
(amended)

 

Gary Burrill
Halifax Chebucto

First Reading: November 1, 2022

(Explanatory Notes)

Second Reading:

Third Reading:

Explanatory Notes

Clause 1 amends the Public Procurement Act to require public sector entities to consider environmental and social factors when evaluating bids.

Clause 2 requires successful bidders on contracts with a value of $1,000,000 or greater to enter into a community benefits agreement.

Clause 3

(a) requires suppliers, contractors and subcontractors to pay fair wages;

(b) requires the keeping of records respecting wages and benefits paid; and

(c) incorporates provisions from the Labour Standards Code for the enforcement of the above.

Clause 4 allows the Governor in Council to make regulations respecting fair wages and community benefit agreements.

An Act to Amend Chapter 12
of the Acts of 2011,
the Public Procurement Act,
Respecting Fair Wages and Community Benefits

Be it enacted by the Governor and Assembly as follows:

1 Section 12 of Chapter 12 of the Acts of 2011, the Public Procurement Act, is amended by adding immediately after subsection (3) the following subsections:

(4) When a public sector entity publicly tenders for goods, services, construction or facilities, the public sector entity shall make known all environmental and social factors to be considered when evaluating bids in the same manner in which the tender is advertised.

(5) When evaluating a bid, the public sector entity shall assign each environmental and social factor a price-reduction credit in accordance with the regulations.

(6) In addition to any factors specified in the regulations, the environmental and social factors referred to in subsections (3) to (5) must include whether the bidder

(a) is based in the Province;

(b) is taking or has taken steps to advance the objectives of the Environmental Goals and Climate Change Reduction Act, and the extent to which those steps have been effective;

(c) is a co-operative;

(d) pays employees a living wage;

(e) maintains a wage-gap between the highest and lowest paid employees of a ratio of no more than 20:1; and

(f) is predominantly owned or managed by women, Aboriginal persons, African Nova Scotians or other historically marginalized or economically disadvantaged persons.

2 Chapter 12 is further amended by adding immediately after Section 12 the following Section:

12A A successful bidder on a public tender that requires the expenditure by a public sector entity of $1,000,000 or greater shall enter into a community benefits agreement in accordance with the regulations.

3 Chapter 12 is further amended by adding immediately after Section 15 the following Sections:

15A In Sections 15B to 15G, "fair wages" means wages and benefits determined in accordance with the regulations.

15B All employees of a supplier, contractor, subcontractor or any other person doing or contracting to do the whole or any part of construction to which this Act applies must be paid fair wages in accordance with the regulations.

15C Every public tender for construction must include a provision that in contracting or subcontracting any part of the construction contemplated by the tender, the supplier, contractor or subcontractor must

(a) place conditions in any contract or subcontract for the construction that will ensure compliance by the contractor or subcontractor with this Act; and

(b) be responsible for including conditions referred to in clause (a) in any further contract or subcontract for the construction.

15D Fair wages are deemed to be wages for the purpose of the Labour Standard Code, and the collection, complaint and appeal procedures of the Labour Standards Code apply for the purpose of those wages.

15E (1) Suppliers, contractors and subcontractors performing construction to which this Act applies shall keep for each of their employees for a period of one year after the completion of the construction

(a) a record of the employee's trade or occupation;

(b) a copy of the employee's credentials or industry training or apprenticeship agreement, if applicable, and, for an apprentice, a record of the apprenticeship level;

(c) a record of the wages and benefits paid to the employee;

(d) a record of the benefits earned by the employee for each benefit allowed by the regulations;

(e) a record of the wages and benefits being received by the employee; and

(f) any other information required by the regulations.

(2) Suppliers, contractors and subcontractors performing construction to which this Act applies shall, on every pay day, give to each of their employees a written statement of wages and benefits paid to the employee for the pay period including

(a) in the case of an hourly paid employee, the hours worked by the employee;

(b) the employee's wage rate and, where the rate varies, the hours worked at each rate;

(c) the hours worked by the employee for which payment of wages is made at the overtime wage rate, and the overtime wage rate;

(d) any bonus, living allowance or other payment to which the employee is entitled;

(e) the amount of each deduction from the earnings of the employee and the purpose for each deduction; and

(f) where an employee is paid other than by salary or by the hour, how the wages were calculated for the work for which payment is made.

15F Suppliers, contractors and subcontractors performing construction to which this Act applies shall ensure that a copy of the fair wage rates established under the regulations is posted at every site where construction takes place.

15G (1) A person may make a complaint to the Director of Labour Standards, designated under the Labour Standards Code, if the person has cause to believe that a person has contravened any of Sections 15B to 15F.

(2) Sections 21 to 27 of the Labour Standards Code apply to a complaint made under subsection (1), mutatis mutandis.

(3) Sections 90 to 94 of the Labour Standards Code apply to an order made pursuant to subsection (2) or a contravention of Sections 15B to 15F, mutatis mutandis.

4 Section 19 of Chapter 12 is amended by

(a) adding immediately after clause (f) the following clauses:

(fa) respecting price-reduction credits, including the factors to be considered in the evaluation of bids and the value of credits;

(fb) respecting community benefit agreements, including requirements for

(i) the hiring of Nova Scotian workers,

(ii) the training of Nova Scotians,

(iii) contribution to the economic well-being of the Province, and

(iv) the improvement of the quality of life in the community;

and

(b) adding immediately after clause (g) the following clauses:

(ga) establishing fair wage rates and the method of calculating those rates for the purpose of the definition of fair wage;

(gb) respecting information required to be kept by suppliers under clause 15E(1)(f);

 

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