Niagara union raises privatization concerns over province’s proposed water utility changes

The Ford government is proposing changes to how some municipalities handle water and wastewater treatment, sparking concerns from a local union in Niagara that the move could lead to private companies taking over the utility.

The proposed changes are part of the Ontario government’s omnibus Bill 98, which has not yet been passed into law.

If the bill passes in its current form, it would compel a municipality to accept the creation of a public corporation to run water and wastewater systems, provided it meets set criteria. The bill stipulates that all shares of the public utility must be held by the municipal, provincial or federal governments, or an agent of them.

The Ministry of the Environment, Conservation and Parks declined an interview request but said in a statement: “Any claims that our government is privatizing water is factually incorrect. Bill 98 explicitly bans what CUPE is alleging.”

CUPE, however, argues that municipalities already have the power to create public utility corporations. The union alleges the government’s changes represent a “slippery slope” toward privatization.

“Unfortunately, history has taught us privatization sometimes is not clear right in big words,” said Brenda Cervantes, president of CUPE 1287. “They use ‘reorganization,’ ‘consultation,’ ‘governance review.’ We saw it with Hydro. They passed bills, they make motions in the background. But at the end of the day, the results show, hydro is privatized.”

CUPE also expressed concern regarding what the change could mean for its 300 unionized water workers in the region.

The concerns come as some local leaders signal support for a new model.

In a letter sent to the province last month, eight Niagara Region mayors wrote in support of creating one or more public corporations to manage water and wastewater as part of a governance review in the region.

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