LiUNA vs. CLAC: Which Construction Union Has Better Pension? (2026 Guide)

In the Canadian construction industry, there are two main players fighting for your paycheck.

In the blue corner, you have LiUNA (Labourers' International Union of North America). They are the "Traditional" union—loud, aggressive, and famous for their massive Local 183 in Toronto.

In the other corner, you have CLAC (Christian Labour Association of Canada). They are the "Alternative" union—collaborative, employer-friendly, and often criticized by other unions.

If you are a new Pipeline Labourer or a Traffic Control Person, you often don't get to choose. You join whichever union the company is signed with.

But if you do have a choice, the biggest difference isn't the hourly wage (which is often similar). It’s the Pension.

One offers you a Guaranteed Cheque for Life (Golden Handcuffs).

The other offers you a Savings Account (Take the Cash and Run).

This guide breaks down the math of the 2026 pension rates, the "Working Dues" deduction, and why LiUNA members retire with more security while CLAC members have more flexibility.

Need immediate cash? Check out Lumper Jobs for daily pay, or Swamper Jobs to get into the oilfield.

The Pension: Guaranteed vs. Investment (The Big Split)

This is the single most important financial decision of your career.

1. LiUNA (Defined Benefit - DB)

• The Model: LiUNA uses a Multi-Employer Pension Plan (MEPP).
• How it works: Your employer pays a set rate (e.g., $9.00/hour) into a giant fund.
• The Payout: When you retire at 65, you get a Guaranteed Monthly Cheque for the rest of your life. It doesn't matter if the stock market crashes; you get paid.
• The Catch: You can't cash it out easily. If you quit the industry at age 30, that money is locked away until you retire. It is designed for "Lifers."

2. CLAC (Defined Contribution - DC)

• The Model: CLAC uses a Group RSP / Pension Plan.
• How it works: Your employer puts money (e.g., 6% of wages) into an account with your name on it.
• The Payout: When you retire (or sometimes when you quit), you have a pot of cash. You have to manage it yourself.
• The Benefit: If you leave construction to become a realtor, you can often transfer that money to your own personal RRSP. It is Portable.
• The Catch: If the market crashes the year you retire, your pension shrinks. The risk is on you, not the union.

The Dues: Monthly vs. Hourly

How much does it cost to be a member in 2026?

1. LiUNA (The "Working Dues" Model)

• Monthly Dues: Approx $35 - $40/month (Base fee).
• Working Dues: This is the big one. They deduct 3% of your Gross Wages from every paycheck.
• The Math: If you make $2,000/week, LiUNA takes ~$60 in working dues.
• Why pay it? This funds their massive strike fund, legal team, and aggressive organizing.

2. CLAC (The Flat Rate Model)

• The Fee: CLAC often charges a Flat Rate (e.g., roughly $25 - $30 per pay period or a lower % depending on the local).
• The Difference: CLAC is generally Cheaper for the worker on a weekly basis.
• Why? They spend less on strikes and political lobbying.

Deep Dive: "Wall-to-Wall" vs. "Craft" Unions

This affects who you work with.

• LiUNA is a "Craft" Union: They represent Labourers. The Electricians have their own union (IBEW). The Plumbers have theirs (UA).
  • Result: Strict rules. "I can't pick up that hammer, that's a Carpenter's job."
• CLAC is a "Wall-to-Wall" Union: They represent Everyone on the site (Labourers, Electricians, Operators) under one contract.
  • Result: Flexibility. The boss can ask you to help the electrician pull wire.
  • Pro: You learn more skills.
  • Con: You might be doing skilled work for labourer pay.

The "Double Breasting" Trick

Many large Canadian construction companies play both sides.

• What is it? A company owns two separate legal entities.
  • Company A: Unionized with LiUNA (bids on City/Government jobs).
  • Company B: Unionized with CLAC or Non-Union (bids on private residential jobs).
• The Impact: They can move you between companies. If the LiUNA job finishes, they might move you to the CLAC job. Check your pay stub. Your pension contributions will stop going to the LiUNA fund and start going to the CLAC RRSP. This messes up your retirement math.

Practical Questions Answered

The member debates.

"Is CLAC a 'real' union?"

It is complicated.

• LiUNA Members say: "No, it's a 'Company Union' (Rat Union) that signs bad deals to keep real unions out."
• CLAC Members say: "I don't care about politics. I just want steady work without strikes."
• The Reality: CLAC is legally recognized in Canada, but they are excluded from the "Building Trades" council. This means CLAC workers often cannot work on massive government infrastructure projects (like Nuclear Plants) that require Building Trades affiliation.

"Which one pays more?"

Generally LiUNA.

• In major cities (Toronto, Vancouver), LiUNA contracts usually have a 10-15% higher hourly rate than CLAC.
• However: CLAC companies often have less downtime because they don't strike. A slightly lower wage for 12 months beats a high wage for 9 months.

Benefits (The Dental Plan)

• LiUNA Local 183: Famous for its benefits.
  • Coverage: Includes aggressive dental, vision, and even legal coverage for your family.
  • The Clinic: In Toronto, they have their own medical clinics just for members.
• CLAC: Good coverage, but usually standard insurance (SunLife/Manulife). They don't have the massive member-owned infrastructure that LiUNA has.

Deep Dive: Hidden Perks, Fees & "The Vesting Trap"

1. The "Vesting" Trap (Don't Lose Your Money)

• This is the fine print that young workers miss.
• LiUNA (Defined Benefit): You usually have a 24-Month Vesting Period.
  • The Risk: If you work for 18 months and then quit the union to become a real estate agent, you might lose the employer's pension contribution. You only get your own money back (if you contributed). You must be "Vested" (stay for 2 years) to lock in the pension.
• CLAC (Defined Contribution): You are usually Vested Immediately.
  • The Perk: Since it is an RRSP-style account, if you quit after 3 months, that money is yours. You can transfer the "Commuted Value" to your own personal bank RRSP.
• Link: This portability is similar to the Shopify Flex Comp model where you control your own assets.

2. The "Travel Card" (Working in Alberta)

• What if the work dries up in Toronto?
• LiUNA: Has a Travel Card system.
  • How it works: You go to your Local (e.g., 183) and ask for a Travel Card to Local 92 (Alberta). If Alberta is busy, they must let you work there without paying a new initiation fee.
• CLAC: Is employer-based.
  • The Limit: You generally cannot just "transfer" to another CLAC job in a different province unless your specific employer sends you there. You don't have the same "Brotherhood" mobility.

3. The "Vaughan Campus" (Free College)

• LiUNA Local 183 owns massive training campuses (Vaughan, Barrie, Cobourg).
• The Benefit: All training is Free for members.
  • You can take a $5,000 Heavy Equipment Operator course or a BluePrint Reading course for $0.
  • They even give you a daily lunch stipend while in school.
• CLAC: Offers training reimbursements, but they do not have the massive, university-style campuses that LiUNA has.
• Link: Access to free upskilling is a major reason workers choose LiUNA over non-union Traffic Control Agencies.

4. The Scholarship Trust Fund (Free Tuition)

• If you have kids, LiUNA wins here.
• The Perk: The Local 183 Scholarship Trust Fund.
• The Value: They award millions per year (often $1,500 - $5,000 per student) to children and grandchildren of members attending college/university.
• The Criteria: It is based on grades and an essay. If your child is smart, your union dues basically pay for their tuition.

5. "Retro Pay" (The Big Bonus)

• Every 3 years, the union contract expires (e.g., May 2026).
• The Scenario: Negotiations drag on until August. You keep working at the old rate ($40/hr).
• The Deal: In August, they sign a deal for $43/hr.
• The Cheque: LiUNA employers must pay you "Retro Pay" (Retroactive Pay) for every hour you worked between May and August.
• The Result: You get a surprise cheque for $2,000 - $3,000 in the fall.

6. Initiation Fees (The Cost to Join)

• It isn't free to join the club.
• LiUNA: Usually charges an Initiation Fee of $500 - $800.
  • The Hack: You don't pay this upfront. They deduct it from your first few paychecks (e.g., $50/week).
• CLAC: Usually has lower or zero initiation fees, but this varies by local.

7. "Double Time" Sundays

• Check the Collective Agreement (CA).
• LiUNA: Almost always mandates Double Time (2x) for Sunday work. ($80/hr).
• CLAC: Sometimes allows Sundays to be paid at 1.5x or straight time if you haven't hit your 44-hour weekly cap.
• The Math: One Sunday shift at LiUNA pays for your entire month's grocery bill.

8. The "Welfare Fund" (Cash for Hardship)

• LiUNA has a specific Member’s Benefit Fund (Welfare Fund).
• The Usage: If you are injured off the job or have a crisis, they have discretionary funds to help.
• Legal Coverage: Local 183 provides Legal Services (e.g., Real Estate closing costs, Will preparation) for free or at a massive discount.
• Link: This safety net is comparable to the "mental health coverage" wars between RBC and Scotiabank.

9. "Name Hire" vs. "List Hire"

• How do you get the job?
• LiUNA: Uses a mix.
  • Name Hire: The company requests you specifically (50% of hires).
  • List Hire: The company must take the next person on the "Out of Work" list (50% of hires).
• CLAC: Is almost entirely Name Hire. The company hires who they want. There is rarely a "List" protecting unemployed members.
• Link: This "List" system is the same mechanism used for Pipeline Labourers bidding on jobs.

Frequently Asked Questions

Can I belong to both?

Yes.

• Many workers hold cards for both.
• Example: You work a LiUNA job in the summer (Road work) and a CLAC job in the winter (Snow removal).
• Warning: You have to pay monthly dues to both to keep your pension credits active.

What happens to my pension if I quit LiUNA?

• If you are "Vested" (usually requires 2 years of contributions), the money stays there.
• When you turn 65, you apply, and they send you a cheque.
• Do not lose your member number. If you forget about it for 30 years, you lose free money.

Does CLAC go on strike?

Rarely.

• CLAC prides itself on "No Strike" clauses. They prefer arbitration.
• If you want a job where you never have to walk a picket line, choose CLAC.

Summary: Security vs. Freedom

1. Choose LiUNA if you are a "Lifer" in construction. The Defined Benefit Pension is unbeatable for long-term security, and the hourly rates are the highest in the industry.
2. Choose CLAC if you want steady work with less politics, or if you plan to change careers in 5 years (so you can take your RRSP cash with you).
3. Check the Contract: Before you sign, ask: "Is this a Pension Plan or an RRSP?" That answer matters more than the hourly rate.

About the author

Jeff Calixte (MC Yow-Z) is a Canadian career researcher and digital entrepreneur who studies hiring trends, labour market data, and real entry-level opportunities across Canada. He specializes in simplifying the job search for newcomers, students, and workers using practical, up-to-date information.

Sources

• LiUNA Local 183: Pension Fund and Benefits Guide. https://liuna183.ca/
• CLAC: Retirement and Benefit Plan details. https://www.clac.ca/
• Ontario Labour Relations Board: Information on union certification and rights. http://www.olrb.gov.on.ca/

Note

Job availability, wages, and hiring conditions can vary widely by province, employer, season, and experience level. All salary ranges and job examples in this guide are estimates based on current labour market data. Always confirm details directly with the employer before applying.