Change Order Labour Rate

Transcription

1 Change Order Labour Rate MCA Ottawa s guidelines for its suggested minimum Change Order Labour Rate for Mechanical Work Covering Extras in Fabrication Shop - Sheet Metal trade Effective May 1, 2015 through to April 30, 2016 the recommended rate is $ Published by MCA Ottawa as a membership information service and is not intended as a directive

2 Guidelines for Change Order Labour Rate for Mechanical Work Covering Extras Extras in Fabrication shop in the Sheet Metal trade May 1, 2015 through to April 30, 2016 ITEM MCA Ottawa 1- Base Rate as per negotiated Collective Agreement Basic Wage Vacation Pay - 10% Union Benefits Payroll Burden Rest Periods Document Processing Material Handling Contractors Tools & Equipment Safety Indirect Costs Shop Burden $ The following are not included in the above calculations: Overhead & Profit Material Material Delivery Office Overhead Page 2

3 Supporting References for Labour Rate Extras in Fabrication Shop in the Sheet Metal trade Item 1 - Base Rate (Basic Wage) As per OSM & AHG/SMWIA & OSMWC Collective Agreement Item 2 - Vacation Pay (Basic Wage) As per OSM & AHG/SMWIA & OSMWC Collective 10% $36.89 per hour $3.69 per hour Item 3 Union Benefits and Industry Fund $ per hour Welfare $ 3.88 Pension Union Dues and Promotion Provincial Training (employee) Provincial Training (employer) Local Training LAC Industry Fund * CPP Taxable 0.12 * CPP Taxable 0.12 * CPP Taxable Stabilization Fund (paid on hours earned) Total $ Subtotal of items 1, 2 and 3 above $ Item 4 Payroll Burden $ 5.94 per hour Employment Insurance Canada Pension Plan WSIB Employer Health Tax PST on Insurance Premiums $ $ Employment Insurance Current employee rates are set at 1.88% of an employee's base rate + vacation pay. Employers pay 1.4 times that amount. Employee rate $ per hour x 1.88% $ 0.76 Employer rate $ per hour x 2.63% $ 1.07 per hour Page 3

4 Canada Pension Plan Current employee rates are set at 4.95% of an employee's base rate plus vacation pay. Employers pay CPP contributions based on base rate, vacation pay, union field dues and the training funds. Employee rate $ per hour x 4.95% $ 2.01 Employer rate $ per hour x 4.95% $ 2.08 per hour WSIB - Employers pay $4.16 per $ of payroll (base + vacation pay) $40.58 x $4.16 per 100 = $ 1.69 per hour Employer Health Tax % of base rate plus vacation pay $40.58 x 1.95% $ 0.79 per hour Tax on Insurance Premiums - As per Ontario Government legislation, Employers are responsible for 8% Provincial Sales Tax on Health and Welfare premiums. Premiums $ 3.88 x 8.00% $ 0.31 per hour Item 5 Rest Periods $ per hour x 15 / 240 minutes $ 3.49 per hour Item 6 Document Processing $ 2.42 per hour Estimating $ per hour x 3.33% $ 1.86 Drafting $ per hour x 1.00% $ 0.56 $ 2.42 Item 7 Material Handling $ 4.16 per hour Storing $ per hour x 1.89% $ 1.05 Moving $ per hour x 2.78% $ 1.55 Clean-up $ per hour x 2.78% $ 1.55 $ 4.16 Item 8 Contractor's Tools & Equipment $ 0.91 per hour Charge for loss, wear and tear on contractors tools and equipment. $ per hour x 1.63% $ 0.91 per hour Item 9 Health and Safety $7.53 per hour Safety courses - Five hour $ each during a year $ divided by total annual hours $ 0.28 per hour Page 4

5 Safety Talks - 60 minutes per week $ x 1 hour / 36 hrs per week = $ 1.55 per hour WHMIS - 15 minutes per week to access information $ x.25 hour / 36 hrs per week = $ 0.39 per hour Health and Safety Committee - one worker in five appointed to a committee - 3 hours per week. $ x 3 hrs / 5 workers x 36 hrs per week = $ 0.93 per hour Personal Protection - Allow $75.00 per worker per month for protective equipment. $ x 12 months / 36 hours per week x 50 weeks = $ 0.50 per hour Personal Hygiene - Allow half hour per day per worker for personal hygiene. $ x.5 hour per day per worker = $ 3.88 per hour Item 10 - Indirect Costs $12.82 per hour Supervision $ per hour x 16.67% $ 9.30 Quality control $ per hour x 2.78% $ 1.55 Financing $ per hour x 1.67% $ 0.93 Inventory Control $ per hour x 1.85% $ 1.03 $ Item 11 Shop Burden $ per hour Operating costs Heat $ per hour x 1.44% $ 0.80 Hydro $ per hour x 3.39% $ 1.89 Water $ per hour x 0.29% $ 0.16 Building Maintenance $ per hour x 1.81% $ 1.01 Depreciation (Equip) $ per hour x 6.22% $ 3.47 LEED Requirements $ per hour x 4.50% $ 2.51 Taxes & Insurance $ per hour x 5.43% $ 3.03 $ Page 5

6 Supporting references for individual items Item 1 - Base Rate (Basic Wage) Item 2 Vacation Pay Item 3 Union Benefits and Industry Fund Reference Provincial Wage Schedules Sheet Metal Appendix E Collective Agreement Item 4 Payroll Burden As per OSM & AHG/SMWIA & OSMWC Collective Agreement Reference Provincial Wage Schedules Sheet Metal Appendix E Collective Agreement Reference WSIB Ontario website 2015 Premium Rates Table Rate Group 707 Reference Website Canada Revenue Agency T4032 Payroll Deductions Tables Reference Website Ontario Provincial Government Employer Health Tax (Ministry of Revenue) Item 5 Rest Periods In accordance with the current Collective Agreement and is based on a ten minute break per four hour shift. Item 6 Document Processing Based on approximate costs supplied by local contractors who operate fabrication shops Item 7 Material Handling Based on approximate costs supplied by local contractors who operate fabrication shops Item 8 Contractor's Tools & Equipment Standard charges for loss, wear and tear on contractors tools and equipment to perform average fabrication in a Item 9 Health and Safety Reference safety courses from various Safety Training delivery agents. Reference OSM & AHG/SMWIA & OSMWC Collective Agreement - Body of Agreement and the Article 36 Safety 36.1 Article 32 Job Site Facilities Reference WSIB Ontario website Item 10 - Indirect Costs Costs involved in the general operations of a shop environment, such as supervision of workers, Item 11 Shop Burden General costs required to operate a fabrication shop provided by contractors who operate local shops. Page 6