MPP France Gelinas and The MRCO Discuss Ways To Reign In The Underground Economy

Published On: March 29, 2022Categories: News Update

Toronto, ON. – The Millwright Regional Council – Canada met with MPP France Gelinas, Nickel Belt, Sudbury on Monday March 21, 2022 to discuss tax fraud and the underground economy in Ontario’s construction industry, and ways to partner together on this issue.

The underground economy in Ontario’s construction industry undermines the province’s fiscal position and hurts legitimate contractors. A study commissioned by the Ontario Construction Secretariat, estimates that annual revenue losses due to underground activity have increased by 30% over the past decade.

According to Dave McBride, MRCO Business Representative Millwright Local 1425, Sudbury,
“Construction industry tax fraud negatively affects economic growth in Ontario and reduces tax revenues for all levels of government, putting pressure on the government’s ability to provide the services and benefits that Canadians enjoy and expect.”

Tax fraud in construction makes job sites less safe because contractors who operate off the books or misclassify their employees as independent contractors cut corners and compromise the safety of workers, such as not paying appropriate Workers’ Compensation premiums.

As stated by Chris Sutton, MRCO Director of Political Affairs, “Underground practices in the construction industry result in revenue losses to governments and government agencies which affect the WSIB. Everyone needs to pay their fair share and contribute to the WSIB.”

We are encouraged by MPP Gelinas’s support to end construction industry tax fraud and working together towards solutions that reign in the underground economy.

The UBC Tax Fraud Days of Action is taking place across Canada and the United States April 11-16, 2022 to bring awareness to the issues of tax fraud and the underground economy.

Safety is our Highest Priority. Learn more at www.stoptaxfraud.ca

About the Millwright Regional Council – Canada (MRC)

The Millwright Regional Council – Canada (MRC) is composed of eight affiliated Local Unions of the United Brotherhood of Carpenters and Joiners of America (UBC) across the Province of Ontario. We represent thousands of women and men working as progressive cross-trained construction and maintenance professionals with exceptional skills to install, maintain, diagnose, and repair precision machinery, UBC millwrights are vital partners in industries as diverse as energy, automotive, aerospace, food processing, pharmaceuticals and more. For media inquiries, please contact Duncan McIntosh, Director of Communications, dmcintosh@millwrighotnt.com