This election, skilled trades construction workers need mobility support

Imagine a shortage of construction jobs in one province, while the province next door is begging for skilled tradespeople. Or, imagine a scenario in which someone who sells rebar for construction projects can deduct their travel, meal and accommodation expenses under the Income Tax Act, but the skilled tradespeople who travel hundreds of kilometres to the same project to install the rebar cannot. As improbable as these two scenarios may sound, they are very real in Canada and happen all the time. An outdated Income Tax Act is to blame. The Income Tax Act has long been a major policy instrument to foster growth in strategic sectors. Canada’s construction workforce accounts for 1.2 million jobs and over six per cent of Canada’s GDP; it’s this workforce Canada is counting on to build new infrastructure as we look to a post-pandemic recovery and make the shift to a net-zero emissions economy. Skilled trades workers have always had to travel for work—that’s why we’re called journey people. Sometimes, costs associated with mobility create a barrier for workers to travel to where the work is. On average, it costs a construction worker more than $4,000 to temporarily relocate for work, according to a recent study by accounting firm Hendry Warren LLP. Commissioned by Canada’s Building Trades Unions, the study concluded that a skilled trades workforce mobility tax deduction would save a skilled tradesperson $2,532 a year. It also found Ottawa would save $347-million per year by putting more Canadians to work, reducing EI payments and increasing tax revenues. In human terms, the imbalance in the tax treatment of skilled trades workers is unfair, and we need the government to address the long-standing issue of financial barriers to labour mobility to get Canadians working across the country. But don’t take our word for it. Listen to some of the stories from skilled Canadians who are travelling and busting their butts giving this country the infrastructure it must have to keep growing. “Unfortunately, due to work shortages, construction workers like myself often need to travel from their home provinces,” Rolie Furlong of SMART Local 437 told us. “I have had to leave my wife and three children behind, not knowing for sure if there are even jobs available. Out-of-pocket costs add up fast with hotels, flights, and food. Sometimes the flights are paid for as an incentive. But most of the time they are not.” Tim Lucht of LiUNA Local 1611 says he will always be ready to adapt to tough conditions. But a tax deduction for travel work expenses would be very helpful and would enable him to visit home to see his three children and partner. “Each time I go to work up North—spending about 14 days at a time on the work site—I spend between $500 to $800. With the work site being 20 hours from my home, out-of-pocket expenses include mileage, parking, meals, laundry and accommodation. This is just one example of what I am currently dealing with.” Karrol Marchand, of IBEW Local 1852, says some tax write-offs would provide incentive for travelling workers. “Accommodation is $100-$300 where I am right now,’’ he says. “That’s on top of food, which is $50 or more per day when you can’t cook or get to a grocery store. My current job is 250 km from my home so it takes two and a half hours to travel each way.” Joel Graham, of IBEW Local 1852, is a third-year apprentice who lives in Cape Breton. Because of chronic job shortages on the island, he must travel to work frequently. “While working out in Ottawa, I continued to split expenses with my partner as she stayed in Cape Breton to complete her studies,” he says. “I had to pay over $250 for three nights of accommodations until I found a more affordable place, a sublet for $1,250 plus utilities.” We’re counting on these men and women to build a brighter future for Canada. Can they count on us? The election campaign would be a good time to stand up for them. Sean Strickland is the executive director of Canada’s Building Trades Unions, the national voice of over 600,000 skilled trades construction workers.

This election, skilled trades construction workers need mobility support

A skilled trades workforce mobility tax deduction would help skilled tradespeople who have to pay out-of-pocket to follow the available work, writes Sean Strickland.

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This election, skilled trades construction workers need mobility support

A skilled trades workforce mobility tax deduction would help skilled tradespeople who have to pay out-of-pocket to follow the available work, writes Sean Strickland.

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