A war of words has erupted between the City of Toronto and workers locked out from the CNE, with the former claiming union rules are making Exhibition Place uncompetitive and the latter arguing the city wants to contract out good jobs.

Justin Antheunis, president of Local 58 of the International Alliance of Theatrical Stage Employees (IATSE), said at the crux of the impasse is whether companies and events using Exhibition Place should be given free rein to bring in their own workers — which the union says it is unwilling to countenance.

“The (city) just wants to be able to contract out jobs that are typically done by Local 58 members. They just want to be landlords,” Antheunis said Friday. “The people in Toronto who are working in these good paying jobs are putting money back into the city.”

Picket lines were set up outside the gates as the CNE kicked off Friday amid the labour dispute involving more than 400 stagehands and technical employees who have been locked out since July 20. The CNE has brought in outside workers to set up and supervise some events at the fair.

Councillor Justin Di Ciano (Etobicoke-Lakeshore), vice-chair of the Exhibition Place board of governors, said the organization was “just trying to compete” for business with other venues.

“We have to face the reality of an industry that’s drastically changed,” he told the Star, adding third parties now expect to be able to bring in their own workers.

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“All of a sudden (companies) come to Toronto and we’re like, OK fine, use your people, but we’re going to job shadow. Which means even though IATSE people are not trained to produce your event, they have to stand there and watch you guys. Well, it’s double the cost.”

Antheunis said in job shadowing scenarios, IATSE members will do initial setup work — for example, if a band needs to obtain sound or lighting equipment locally — and ensure any other work is done according to Ministry of Labour guidelines, since most touring operators are from other provinces or countries.

“Some of the terms may be outdated, but the way that they’ve been applied are fully modern,” he said.

Antheunis said Exhibition Place is one of the largest convention centres on the continent and its labour rates were comparable to other major venues. For example, the wage rate for an IATSE stagehand at the Ex in 2014 was $39.86 an hour while it was $39.72 (U.S.) at the Elliot Lewis Convention Center in Philadelphia.

Contracting out is a contentious municipal issue. In 1997, an external consultant study said the City of Toronto could save around $2.5 million from contracting out jobs. In 2012 and 2014, the city contracted out cleaning work at some police stations and housekeeping at daycares in a bid to make savings.

In 2015, Toronto-based urban health think tank the Wellesley Institute interviewed some of the affected workers and released a study raising concerns about “negative impacts” stemming from contracting out, including lack of job security, erratic schedules, and reduced access to health benefits.

Di Ciano said spaces like the Beanfield Centre at Exhibition Place are operating at 29 per cent capacity and that the city hoped to boost its attractiveness as an event venue.

“When you bring more events to the city that’s good for everybody,” he said.

Earlier this year, IATSE proposed using interest arbitration to resolve the labour dispute, which means bringing in an independent third-party to make a binding decision based on evidence presented by both sides.

“Because we’re not willing to discuss contracting out, it was the only way we could find a quick settlement,” said Antheunis.

Asked why the city did not agree to arbitration, Di Ciano said they were “really not interested in some arbitrator coming in and not knowing the intricacies of how Exhibition Place operates.”

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On Friday, Mayor John Tory told reporters he believed the CNE will be a success, in spite of the labour impasse.

“In this case they have issues that need to be sorted out. I accept that fact.”

This article has been updated to clarify that the CNE brought in outside workers to set up and supervise some events.