Regulation - LGIC

Notice of Project Threshold Increase - Automobile Manufacturing Plants

Regulation Number(s):
O. Reg. 213/91
Bill or Act:
Occupational Health and Safety Act
Summary of Proposal:
Clause 6(1)(a) of Construction Projects regulation (O. Reg. 213/91) requires constructors to provide a notice of project (NOP) to the ministry where the total cost of labour and materials of a project is expected to exceed $50,000. Subsection 6(1) also articulates other conditions under which a constructor must notify the ministry of a construction project. An NOP is meant to notify the ministry of high risk activities, so that proactive enforcement activities may be informed by this content.

The auto manufacturing industry has indicated that the $50,000 threshold for NOPs, which was set in 1991, is too low and no longer reflective of the increased cost of construction. The auto sector has identified the $50,000 threshold for NOPs as a source of regulatory burden.

The Ontario government is reinforcing its commitment to the auto sector, by working together with the industry to restore Ontario's competitiveness and ensure that the auto sector continues to grow, thrive and invest in Ontario.

To modernize the NOP threshold provisions and to address the regulatory burden on the auto manufacturing sector this proposal recommends the increase of the NOP threshold to $250,000 for construction projects taking place at automobile manufacturing plants.

The ministry is seeking your feedback on these proposed changes and the assessment of the impact of the changes outlined in the Regulatory Impact Analysis. Your feedback will be considered during the development of possible amendments.

Personal information collected during this consultation is under the authority of Section 70 of the Occupational Health and Safety Act and is in compliance with section 38 (2) of the Freedom of Information and Protection of Privacy Act.

If you have any questions regarding freedom of information or privacy matters, you may contact the Ministry's Freedom of Information and Privacy Office at 416-326-7786.

Analysis of Regulatory Impact:
Automotive manufacturing in Canada is highly concentrated in Ontario. These plants must compete with related plants in the United States and Mexico for new investment and production lines.

It is estimated that there are approximately 200 businesses in Ontario involved in automobile manufacturing, of which approximately 20 are medium and large-sized workplaces. It is likely that the medium and large-sized establishments would be the workplaces conducting construction activities in excess of $50,000. The industry has indicated that the $50,000 threshold is too low, and that there are very few activities at a manufacturing site which do not meet this threshold, and as such would result in the administrative burden of submitting an NOP.

It is estimated that it would take one staff-person, in a supervisory role, 1 hour to complete and submit the ministry NOP form, which results in a cost of approximately $32.20 per NOP submission. The ministry does not have data on how many of these transactions the auto sector would be subject to on an annual basis, and cannot provide an aggregate total of the administrative burden that would be imposed on the sector with the current NOP threshold value.

The industry has indicated that this amendment would help to significantly reduce regulatory burden on the automotive sector. This amendment would not affect other employer notification requirements, including the need to notify the ministry of construction projects involving high risk activities as identified under the Construction Projects regulation (O. Reg. 213/91, ss. 6(1)(b-h).
Further Information:
Proposal Number:
Posting Date:
March 26, 2019
Comments Due Date:
April 16, 2019
Contact Address:
NOP Threshold Increase - Automobile Manufacturing Plants
Health and Safety Policy Branch
Ministry of Labour
400 University Avenue, 12th Floor
Toronto ON M7A 1T7