Construction of the Cowichan District Hospital in Duncan, B.C., has been halted after an Indigenous contracting company said it was denied a permit to continue work due to a provincial rule over union membership.

The dispute is another setback to the project, which was recently revealed to be behind schedule and $559 million over budget.

On Friday, a group of contracted workers blocked access to the site of the new hospital over a rule from the B.C. Infrastructure Benefits (BCIB), the Crown corporation tasked with building public infrastructure in the province.

Under BCIB rules, all skilled trades workers on site “need to be members of a union included in the Allied Infrastructure and Related Construction Council (AIRCC),” with all non-AIRCC members required to apply for membership within a month of starting work.

A sub-contractor from the Khowotzun Development Corporation (KDC) — a group of companies run by the Cowichan Tribes — says it has been refused a permit to carry on its work as a result of the rule.

Workers from Jon-co Contracting, which is part of the KDC, have blocked off access to the site. Owner and operator Jon Coleman says he and his employees should have the right to work on their territory, whether they belong to an AIRCC union or not.

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