Privatization conflicts with construction policy

TORONTO – The Ontario government is set to award the management and maintenance of the majority of its buildings across the province to Profac Management Group of Montreal, a subsidiary of Quebec construction giant, SNC-Lavalin Group Inc.

OPSEU wants the contract put on hold until there is full public disclosure of the consultants reports, details of the deal and a satisfactory explanation for the use of false staffing levels in the original estimates.

This will cost taxpayers more, says OPSEU. Ironically the government's buildings will now be managed and maintained by a company whose parent firm is barred from bidding on government construction jobs, the Ontario Public Service Employees Union charged today.

"How can the government prohibit Quebec construction firms from bidding on Ontario government construction contracts and then let one of their subsidiaries manage our government buildings.  There's an obvious conflict here," said OPSEU president Leah Casselman.

The Ontario Realty Corporation, a crown agency that owns and operates the government buildings, had estimated that the government would save $80 million by turning them over to private sector real estate companies.

The savings estimate was obtained through two successive secret consultants' reports, which the government considers to be confidential cabinet documents.   OPSEU contends there are no savings becasue the reports relied on flawed staffing data.

OPSEU obtained a copy of the business case used in the calculations.  It clearly shows inflated staffing levels.  "The business case claims there are 727 people working just in Facility Management.  In reality, there's only 656 people working in the entire organisation. If the consultants can't count, how can you accept their savings estimates?" asked Casselman.

OPSEU calculates the maximum savings over five years would be $22 million rather than $80 million suggested by the consultants.  When the transition costs of $50 million, listed in the business case, are considered the savings disappear entirely.

"This plan to privatize ORC has been flawed from the very beginning," said Casselman.

"The bidders' quotes have far exceeded original government estimates and the figures used to calculate those estimates are false.  To top it off the government wants to award the contract to a company whose parent corporation is in conflict with a new provincial policy," charged Casselman.

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Bill Trbovich (416) 561-5613
Katie FitzRandolph (416) 561-5651
Randy Robinson (416) 315-2982

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