EDITION COMPLIANCE IN THE INDUSTRY LET S ACT TO GET THE WORST OFFENDERS OUT OF THE GAME

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1 Published for the employers in the construction industry COMPLIANCE IN THE INDUSTRY LET S ACT TO GET THE WORST OFFENDERS OUT OF THE GAME One of the mandates of the Commission de la construction du Québec (CCQ) is to ensure compliance in the industry which, as we know, includes almost 200,000 employees and employers at work on thousands of sites all over Québec. Therefore, the CCQ is continually reviewing what it does so that it can be even more effective in catching offenders who aren t following the rules. It particularly targets those who have put together a business strategy that gives them an unfair advantage over their competitors. The CCQ advocates an approach in which the choice and intensity of the intervention strategy take into account the type of offender. Read more on page EDITION VOL. 46, N O 1 3 / COMPLIANCE IN THE INDUSTRY 4 / WERE YOU WORKING IN THE INDUSTRY BEFORE 2005? / TRAVELLING POINTS OF SERVICE 5 / CARNET RÉFÉRENCE CONSTRUCTION 6 / REGULATION RESPECTING LETTERS DESCRIBING THE SITUATION 7 / REGULATION RESPECTING THE COMPENSATION FUND FOR EMPLOYEES / 2016 PERSPECTIVES FOR THE INDUSTRY 8 / PARTICIPATION BY COMPANY OFFICERS IN THE INSURANCE PLAN 9 / THE OUTAOUAIS REGION TAKES ACTION TO INCREASE THE NUMBER OF WOMEN ON CONSTRUCTION SITES 10 / IT S TAX TIME! 11 / OTHER NEWS IN THE CONSTRUCTION SECTOR 12 / THE ON-THE-JOB TRAINING SERVICE: A SUCCESS! Envoi poste publication enr. n o

2 LAYING RESILIENT FLOORING A MOBILE UNIT TO TRAIN YOUR EMPLOYEES! The mobile unit for training resilient flooring layers is now ready to roll! Would you like your employees to be up to date on the new working methods? The mobile unit can come to you, at your convenience, anywhere in Québec. NEW THIS YEAR: Only four eligible workers are needed for the course to begin! Upgrading that is accessible and adapted to your needs The training is given directly at your workplace or nearby, if your company does not have the necessary space. A trainer is available for giving upgrading activities. Customized training to meet your needs A CCQ training consultant can design a customized course that meets your company s specific needs and takes account of your schedule and constraints. Currently, the mobile unit is equipped to offer the following courses: Preparation of the subfloor (15 h) Laying commercial carpeting (16 h) Laying residential carpeting (8 h) Laying commercial resilient flooring (24 h) Laying residential resilient flooring (15 h) Financial support available If your company and your employees meet the eligibility criteria for the Training Fund for Employees in the Construction Industry, you may have the right to training at no charge. To find out more, visit fiersetcompetents.com. Are you interested in training? To organize upgrading activities or get more information, contact the Info-perfectionnement line, at You may also contact the training promotion agent at your association. 2

3 (Cover page continued.) COMPLIANCE IN THE INDUSTRY AN APPROACH TARGETING CHRONIC OFFENDERS It s impossible for the CCQ to be everywhere at once, notes Diane Lemieux, president and CEO of the CCQ. Therefore, it is our duty to make sure we use our resources optimally to obtain the greatest impact until we get the worst offenders out of the market. An approach targeting chronic offenders In spite of everything that has happened in the construction industry in recent years, there are still offenders who deliberately violate the laws and regulations. Sometimes, they are at the centre of more complex stratagems. At this point, they are qualified as chronic : they cause the greatest harm to the industry. Diane Lemieux, president and CEO of the CCQ. It s a fact that we have to get the chronic offenders out of the game, Lemieux insists. In addition to interfering with healthy competition on construction sites, they are also in large part responsible for conveying the negative image of the construction industry. The CCQ is therefore using all the means at its disposal to catch them. Using the media for deterrence Since 2015, the CCQ has regularly informed the public about actions by people who persist in wanting to violate the laws and regulations. This is another way of gaining compliance. The strategy has proved effective: it is clear that the CCQ will use it more and more systematically. It seems that fines and orders of suspension of work are not enough to encourage some people to follow the rules, Lemieux observes. In this case, we are finding other means, including publishing the details of cases that are in the public domain. In addition to encouraging the contractors concerned to regularize their situation, this strategy reminds anyone who might be tempted of the consequences of not following the law. An approach adapted to the type of offender With its new approach, the CCQ is establishing four types of offenders, ranging from generally compliant to chronic. For some, awareness raising and pointing out the value of compliance are effective ways to get them to regularize their situation, whereas for others, more robust measures are taken. It should be noted that in addition to its approach based on types of offender, the CCQ will continue to apply the following principle: a violation observed is a violation caught. In other words, it will continue to take measures against all companies that commit a violation. 3

4 WERE YOU WORKING IN THE INDUSTRY BEFORE 2005? YOU MAY RECEIVE PENSION BENEFITS EARLIER THAN YOU EXPECTED... As a participant in the construction industry pension plan, you may, under certain conditions, be eligible to receive a retirement pension without reduction when you turn 55 years of age. In addition, since July 1, 2014, workers in the construction industry have had a new retirement choice: partial retirement. This allows workers, once they turn 50 and under certain conditions, to receive a first pension (from the general account) while having the option of continuing to contribute to the pension plan s complementary account. These new contributions, added to those that had already accumulated in the complementary account, will be considered in the calculation of a second pension. Would you like to talk to a specialist? If you have specific questions concerning your situation and would like to speak to a specialist, the CCQ offers a personalized retirement guidance service to help you make informed decisions. The specialists will be able to explain, among other things, your participation in the pension plan, the different options available to you, and their impacts. In some cases, they may even be able to calculate pension projections. How to reach us Online: visit the Contact us section of ccq.org. You simply have to fill out the form to ask your questions to Customer Services. By telephone: call The Customer Services agents will be able to answer general questions concerning retirement; if necessary, they will refer you to a specialist. De plus en plus de femmes travaillent dans l industrie de la construction. La présence de femmes dans les entreprises spécialisées en construction est enrichissante à plusieurs égards. DÉCOUVREZ NOTRE PROGRAMME POUR LA FORMATION DES FEMMES EN ENTREPRISE À FIERSETCOMPETENTS.COM UNE INITIATIVE DE L INDUSTRIE DE LA CONSTRUCTION PRODUITE PAR LA COMMISSION DE LA CONSTRUCTION DU QUÉBEC.

5 CUSTOMIZED REFERRALS CARNET IN FORCE RÉFÉRENCE ON JANUARY CONSTRUCTION 1, 2016 A SERVICE ADAPTED TO YOUR NEEDS! Have you made a declaration of workforce needs, but haven t found what you re looking for among the candidates referred to you? The Service de référence personnalisé (customized referral service) may be the answer. WHAT IS THE SERVICE? The customized referral enables you to receive assistance from an agent specializing in workforce referrals. The agent will directly contact the workers available who meet your needs, and then refer candidates to you through the Carnet référence construction, if applicable. IF OUR OFFICES ARE CLOSED, YOU HAVE ANOTHER OPTION! As an employer, you may also use the Nouvelle liste (New List) option, which lets you obtain a new list of candidates depending on the state of the region s labour pools. This service is available at all times. HOW TO TAKE ADVANTAGE OF THE CUSTOMIZED REFERRAL AND NEW LIST SERVICES You must wait until you have received all the lists of workers from permit holders or 48 hours after making your declaration of workforce needs. Then you simply have to specify why the workers proposed on the CCQ list that you have received do not meet your needs. TRAVELLING POINTS OF SERVICE 2016 SCHEDULE AVAILABLE The CCQ continues to travel through the regions of Quebec in 2016 to meet with the industry s workers and employers. To find out where they will be, consult the section 2016 schedule for travelling points of service under the Contact Us tab at ccq.org. But you ll have to hurry; you have seven days following your declaration of workforce needs to use these options. 5

6 SITUATION LETTER AND COMPENSATION FUND NEW REGULATIONS IN EFFECT AS OF JANUARY 2016 Two new regulations, concerning the Compensation Fund for Employees in the Construction Industry (CFECI) and the situation letters service, have been in effect since January 6 and January 7, 2016, respectively. Here s a summary of the most important changes. REGULATION RESPECTING LETTERS DESCRIBING THE SITUATION Main changes since January 7, 2016 An employer must now make the request for a situation letter via the CCQ s online services. The periods covered for some of the information included in the letter have changed. What hasn t changed The situation letter is a service offered to the industry s employers who wish to obtain a snapshot of their file at the Commission de la construction du Québec (CCQ). This document is not a quittance; it in no way constitutes any form of abandonment of the right to take any future legal action, notably with regard to the principle of joint responsibility. The situation letter is composed in part of information supplied by the employer and held by the CCQ. It may be requested for work executed on a particular site or for the purpose of bidding. To request a situation letter, an employer must be registered as such with the CCQ and pay the $30 fee required for issuance of the document. Details on the Resoumettre (Resubmit) option You may now use the Resoumettre (Resubmit) option in order to use a form from a previous request to issue a new request. This option is accessible from the tab for previous requests for a situation letter that have already been processed through the online services. The Resoumettre (Resubmit) function means that you won t have to re-enter all the information required, such as the list of your subcontractors, when you make subsequent request for a situation letter for the same site. It is, however, important to make sure that the information appearing on your request is still valid for the bid or the site concerned. 6

7 REGULATION RESPECTING THE COMPENSATION FUND FOR EMPLOYEES IN THE CONSTRUCTION INDUSTRY Main changes since January 6, 2016 An employee can no longer receive more than two indemnities for the same employer. The names of companies and their administrators will be made public in certain cases, notably when compensation is not paid to an employee who knows that his or her employer has not declared him or her in the monthly report or who is knowingly participating in a system of undeclared remuneration. What hasn t changed The CFECI provides for compensation for workers who suffer losses of wages caused, among other things, by the insolvency of their employer. The new regulation related to the CFECI does not change your contribution as provided in the industry s collective agreements, currently set at $0.02 for each hour worked by each of your employees. For more details on these new regulations, consult ccq.org PERSPECTIVES FOR THE CONSTRUCTION INDUSTRY In 2015, activity in construction covered under the Act Respecting Labour Relations, Vocational Training, and Workforce Management in the Construction Industry (Act R-20) recorded a third consecutive annual drop, by 5.6% compared to In 2016, there will be a moderate decline of about 0.9%. The slowdown will be felt in 8 of the 10 regions and in 3 of the 4 sectors. The only sector to see growth will be civil engineering and roadwork, with a rise of 16%. This growth, sustained essentially by the major sites of the Turcot Exchange and the Champlain Bridge, will cover up the more difficult situation in the rest of the construction industry. Visit ccq.org to consult Perspectives Sector 2014 ALL SECTORS Hours worked (million) ** Estimate Forecast Total Variation* -3.7% -5.6% -0.9% Civil engineering and roadwork Variation* -9.8% -7.5% 16.0% Industrial Variation* -2.4% -28.9% -7.8% Institutional and commercial Variation* -1.3% -0,6% -5.1% Residential Variation* -4.0% -5.% -3.2% Working days Variation* 0% 0% 2.2% * The variation rate takes account of the fact that in 2016 the construction industry s calendar will have 237 working days, whereas it usually has 232. ** Reconciliation of growth rates in 2016 Growth linked to economic activity % Growth linked to 5 extra working days...2.2% Growth observed in number of hours reported to the CCQ...1.2% 7

8 PARTICIPATION BY COMPANY OFFICERS IN THE INSURANCE PLAN A company officer may be insured by the construction industry s insurance plan, MÉDIC Construction, if he or she has previously participated in the construction industry s social benefits plans. Who is considered a company officer? This person may be: or or or An employer A partner in a partnership that is an employer An administrator of a corporation that is an employer The designated representative of a partnership or corporation that is an employer Independent contractors are not considered company officers. They therefore may not participate in the insurance plan. It should be noted that a company officer who has lost the right to participate voluntarily in the insurance plan is no longer eligible to participate. Certain exclusions may also apply: for example, a person aged 65 years or over may not voluntarily participate in the MÉDIC Construction insurance plan. In early May 2016, the CCQ will send a notice of insurability to company officers eligible for insurance who are registered in its file of recognized companies. This notice will indicate the amount to pay to benefit from insurance coverage from general plan A for the period from July to December It is therefore important that the names of the company s directors are registered with the CCQ. If there have been changes of directors in your company in recent months, don t forget to inform the CCQ of this if you have not already done so. How can a company be recognized as an employer for the purpose of social benefits? To be considered an employer for a given insurance period, the company must: Have paid the $350 for its registration with the CCQ Hold a licence from the Régie du bâtiment du Québec Have transmitted a minimum of five monthly reports meeting the following criteria: Hours have been declared for at least one employee These hours were worked during the period from January to December 2015 However, if the company began operations during this 12-month period, it must have transmitted at least one monthly report out of two presenting hours worked by at least one employee. For example, if your company began its activities in July 2015, it must have transmitted a minimum of three monthly reports out of six presenting hours worked by at least one employee in order to be a recognized employer. For more information, you may consult the leaflet Participation by Employers in the Social Benefits Plans, available at ccq.org. 8

9 THE OUTAOUAIS REGION TAKES ACTION TO INCREASE THE NUMBER OF WOMEN ON CONSTRUCTION SITES In 2016, the organization Option Femmes Emploi (OFE), in partnership with the different industry partners, is formulating a regional plan in the Outaouais region aiming not only to increase the number of women on construction sites, but also to keep them in the industry. On December 1, 2015, a day-long retreat and work session, États généraux Femmes et construction, was held in Gatineau. A variety of stakeholders actively participated in, among other things, identifying actions likely to bear fruit. The event was highly appreciated by all and considered a great success. In fact, more than 75 people from various backgrounds travelled to Gatineau to contribute: companies, female workers, employer and union associations, public agencies, training centres, and employability groups. The concrete actions identified during the day will provide the basis for an action plan adapted to the regional context and the needs of each party. This regional mobilization is an exemplary activity that should get the ball rolling in other regions and will no doubt have beneficial effects throughout Québec. Both studies and practice have shown that companies that equip themselves and their work teams are investing in becoming more innovative, more productive, and longer lasting. The Commission de la construction du Québec is thus proud to participate actively in this project, alongside the partners in the industry. We will also be following closely the implementation of this regional action plan and the issuing of the first results, expected in If you would like to get involved in the action plan in Outaouais or have ideas for actions that will encourage the integration of women into construction sites, please contact the OFE project coordinator at , ext. 233, your employer association, or the CCQ at

10 IT S TAX TIME! With February comes tax season. By February 29, the CCQ will send you a Statement of Contributions to the Training Funds. What is it used for? Which documents will be sent out to your employees? Find out by reading below.. What is the statement used for? The Statement of Contributions to the Training Funds will be used by employers that must contribute to the Workforce Skills Development and Recognition Fund that is, those with a total payroll of over $2 million, which must invest 1% of their payroll in training. This statement shows the total of contributions paid into the Training Fund for Employees in the Construction Industry via the monthly reports transmitted to the CCQ. These contributions are deductible training expenditures under the Act to Promote Workforce Skills Development and Recognition. Which documents will be sent to employees? The industry s employees will also receive their tax slips from the CCQ by February 29. Like employers, they will be able to obtain duplicates through the CCQ s online services in March. Depending on their situation, workers will receive the following tax slips: The T4A (federal) is sent to employees who were insured or who worked during the year. It is the same for the Relevé 22 (provincial), except that in this case, the premium indicated is considered a qualified expenditure under medical expenses, giving the right to a tax credit for costs that exceed 3% of net income. On the federal statement, the value of the premium indicated corresponds to life insurance coverage. The T4 (federal) and the Relevé 1 (provincial) are sent to employees who received taxable earnings following a claim or from the Special Compensation Fund during the taxation year. The T4A (federal) and the Relevé 2 (provincial) are sent to employees and surviving spouses who received a monthly pension during the taxation year. These statements are also sent to those who received a lump-sum retirement payment during the year, in the form of a reimbursement by cheque. Those who transferred their lump sum directly into an RRSP do not receive this tax slip. The T4A (federal) and the Relevé 1 (provincial) are sent to employees if they received salary insurance benefits during the taxation year. The T5 (federal) and the Relevé 3 (provincial) are sent to employees who received more than $50 interest on paid vacations and statutory holidays. The NR4 (federal) is sent to employees and surviving spouses whose residence is outside of Canada (non-residents) when they received a monthly retirement pension or a retirement lumpsum payment during the taxation year. Finally, the Attestation de cotisation à un comité paritaire, a statement that is identical for both 10

11 levels of government, is sent to employees when they have made expenditures on one or more of the following items: qualification exam, competency certificate, security clearance, registration and confirmation of registration for the Cours de connaissance générale de l industrie de la construction (CCGIC). If this amount was not paid by the employer, it may be deducted from income or be eligible for a tax credit under union, professional, or other dues. When to send your tax return Don t forget: midnight on April 30 is the deadline for sending tax returns to the Canada Revenue Agency and to Revenu Québec. No slip received by February 29? If you still haven t received your tax slip by early March, you may obtain a duplicate through the CCQ s online services at ccq.org. Take note Please note that employees do not have to attach their tax slips to their 2015 provincial tax return. Again this year, following the request by Revenu Québec, the CCQ will send employees only one copy of all provincial tax slips, rather than two, as was the case in previous years. However, employees will have to keep these slips so that they can provide them, upon demand, to Revenu Québec. OTHER NEWS IN THE CONSTRUCTION SECTOR Attestation de Revenu Québec required for new contracts concluded starting March 1, 2016 Starting on March 1, 2016, subcontractors that execute construction work for which they must hold a licence issued under Chapter IV of the Building Act will be obliged to hold a valid Attestation de Revenu Québec and to provide it to their contractors to conclude certain construction contracts. Contractors will be required to obtain a copy of this certificate from their subcontractors, ensure that it is valid, and verify its authenticity. These obligations will apply when the total value of contracts concluded between two parties reaches $25,000, excluding taxes, during a civil year, without regard for the level of subcontracting. They will then apply to all other contracts concluded between these two parties during the current year and in subsequent years, without regard to the value. However, as long as the certificate is valid, these two parties will not have to fulfil these obligations again when they conclude a new contract. For more details on the validity period of the Attestation de Revenu Québec, the legal penalties for noncompliance, and how to apply for or verify this document, visit the website attestation.revenuquebec.ca. 11

12 THE SERVICE DE FORMATION AUX ENTREPRISES: A SUCCESS! The Service de formation aux entreprises (SFAE), an on-the-job training service offered by the Commission de la construction du Québec (CCQ), aims to meet specific training needs for construction companies. Therefore, companies and their employees eligible for funding by the Training Fund for Employees in the Construction Industry may take a customized training course free of charge. Between July 1, 2014, and June 30, 2015, SFAE activities expanded considerably. During this period, no fewer than 515 requests for training were sent by companies to the CCQ a 22% increase over the preceding year. A total of 3,767 workers benefited from on-the-job training, a jump of 34% from the preceding year. What can the SFAE offer your employees? Learning a new technology Learning new working methods or procedures Updating knowledge of the Building Code Learning about a new quality standard And much more! A team of professionals at your service! Three CCQ training consultants are placed exclusively at your disposal to design training courses adapted to your needs and objectives, and taking account of your constraints. To find out more, contact the Info-perfectionnement line, at EMPLOYERS LINE: The present document is produced solely for information purposes. Only the Act Respecting Labour Relations, Vocational Training and Workforce Management in the Construction Industry, its regulations, and the collective agreements in force in the construction industry, have legal force. Bâtir is a bimonthly publication intended for the employers of the construction industry. This document is available in adapted media upon request. Original French copy available at ccq.org or on request. Published by: Direction des communications Commission de la construction du Québec Case postale 2030, succursale Youville Montréal (Québec) H2P 0B1 Graphic design: Karine Verville Page layout and format: Danièle Bordeleau Translation: Kathe Roth Legal Deposit: Library and Archives Canada ISSN PD5002A (1602) 12