ALF V1

The recent meeting of government finance ministers at Kananaskis took an important first step toward improving Canada's pension and retirement landscape. But there is tougher slogging ahead.

Facing at least four proposals to shore up Canadians' savings for retirement, the federal government's Jim Flaherty announced it would proceed first with defined-contribution pooled registered pension plans, aimed at providing pensions to small-business employees and the self-employed currently without any company pension.

Another proposal, to expand the Canada Pension Plan, has been moved to the back burner and may simmer there for some time while government deficits continue, according to new federal minister of state for finance, Ted Menzies of Calgary.

Any reform of pensions in the country revolves around a number of issues -- whose retirement income is it targeted to improve, who will manage it, who takes the investment risk, and will participation by employers and employees be mandatory or voluntary?

The proposed PRPP would be aimed at the 67 per cent of the labour force without corporate pensions. It would be administrated by regulated financial institutions, including trust and insurance companies, which naturally drew praise from the Canadian Bankers Association. As for participation, jurisdictions would determine if it's mandatory for employers, and it would likely be voluntary for employees.

For those who do join, the defined-contribution nature is a compromise -- employees would get an automatic 100-per-cent return through employer matching of contributions, but employees would have to take on the investment risk, with no fixed pension benefits.

"Reading between the lines, it would be portable and go across industry lines. Both of these aspects would be an improvement," said Russ Purdy, a retired labour-relations consultant in Edmonton. "The absence of a mandatory employer contribution will get a 'thumbs down' from the union movement and the NDP, of course."

Certainly many unions, including the Alberta Federation of Labour in a meeting with The Edmonton Journal editorial board, want pension reform to be universal and include their members. They also want the government to manage the plan and take the investment risk, with participation by employers to be mandatory. They want the so-called "CPP on steroids," where taxpayers take all the investment risk and employee benefits are guaranteed.

There are two obvious arguments against universality. One is that employees who already have a generous defined-benefit corporate pension shouldn't have an enhanced defined-benefit government plan at taxpayer peril. The second is that corporations, if forced to pay more into CPP than they already are, could reduce contributions to or eliminate their defined-benefit company pensions.

With small businesses, the question is whether they can afford to contribute to a corporate pension plan or a supplemental or beefed-up government plan of any sort, in addition to current CPP contributions. The price might be cutting jobs.

With the PRPPs, employee participation is another issue.

"I think the biggest problem will be the voluntary nature of the scheme," Purdy said. "There's a certain portion of Canadians who don't take advantage of the current voluntary schemes and adding yet another one doesn't seem to be particularly helpful, if these are indeed the people we are supposed to be helping."

In fact, just 55 per cent of Canadians have registered retirement savings plans, and only five per cent of all RRSP contribution room was used up as of 2008, when the average annual contribution was $2,700, according to last available data.

The PRPPs are a good start, aimed at the people who are most in need of savings for retirement. The next step is to increase the portion of their retirement income that is guaranteed, which continues to shrink as defined-benefit pensions disappear and low interest rates scare people with RRSPs from converting to life annuities. That can be done by having corporations or the government or insurance companies take on investment risk and by making saving compulsory.

Bob Baldwin, of the Institute for Research on Public Policy, noted that finance ministers will have to consider trade-offs, "such as those between respecting individual preferences and implementing broad-based instruments, achieving certainty of benefits versus certainty of contributions, and ensuring income adequacy versus plan affordability."

None of those decisions are easy.

One somewhat radical idea that has been floated involves a combination of a super-sized CPP plus corporate defined-contribution plans.

Under this scenario, everyone would belong to a giant CPP, run by the government with investment risk taken by taxpayers, with contributions by employers and employees increased from current levels, and defined benefits enhanced.

At the same time, corporate defined-benefit pensions would be eliminated and companies would instead offer scaled-down, defined-contribution pensions run by financial institutions, again with employer contribution-matching and with employees taking the investment risk. Participation would be mandatory for companies and voluntary for employees.

I, and my teenage sons, could live with that.

Edmonton Journal, Fri Jan 14 2011
Byline: Ray Turchansky

Our affiliate, the International Association of Machinists and Aerospace Workers Local Lodge 99, has won a battle at the Labour Relations Board. The Finning case was about the employer creating a subsidiary (OEM) and inviting the employees to join CLAC. The Labour Board decided that this was unfair and that there needed to be an opportunity for the Machinists to keep the group. Over the next few months a run-off against CLAC will occur. Go Machinists!!! Click here to see the decision.

The imminent departure of HSAA from the AFL has been averted. NUPGE and the CLC have reached an agreement to continue to talk about the issues NUPGE was concerned with. Consequently we and the Labour Councils are able to continue welcome our brothers and sisters in the movement. We can only hope that the CLC convention will resolve once and for all the problems represented by this dispute. For details, click here.

One man remains in hospital with burns following Thursday's coker fire at the Horizon oilsands project which remains shut down.

A stop work order issued by Alberta Occupational Health and Safety remains in effect at the Canadian Natural Resources Ltd. site about 75 kilometres north of Fort McMurray.

Sorcha Thomas, spokeswoman for the safety watchdog, said the provincial agency will be working with a third-party engineering consultant in the investigation to determine the cause of the explosion that sent two men hospital with burns: one suffered first degree burns while the second suffered second and third degree burns.

Three OH&S officers remain on site investigating the incident.

OH&S has two years to complete its investigation. During a press conference Friday afternoon, Alberta Employment and Immigration Minister Thomas Lukaszuk said the investigation will not be rushed, taking as much time within that limit as it needs.

"It will take as long as it takes for us to make sure that we know for certain workers will be safe to re-enter that area," Lukaszuk replied when asked when the stop work order would be lifted.

To calls for transparency in the investigation from the Alberta Federation of Labour which is critical of the safety record at CNRL, Thomas said what details can be related and made public will be.

"It's the same as any other investigation," she added.

In an update issued this morning, CNRL stated the fire at its primary upgrading facility at Horizon was successfully extinguished around 7:15 p.m. Thursday, just less than four hours after it started. An earlier update had noted that the fuel source of the fire had been isolated, containing the fire to the coker in the primary upgrading area.

The cause of the fire is currently under investigation by regulators as well as CNRL. With the stop work order in place, synthetic crude oil production has been suspended. It has not yet been determined when production will resume.

A US $2 billion umbrella insurance package for the Horizon facility will cover repairs of damaged plant and equipment, said the CNRL update, and offers business interruption insurance to effectively cover ongoing operating costs incurred on the site after 90 days.

The company intends to provide further updates, offering additional additional information on the impact of operations, the extent of the damage, and the estimated timing and costs of repairs.

Enhanced air monitoring has been put in place and will continue for several days. No air quality exceedences have been detected in the area of the plant or in the neighbouring community of Fort McKay.

Meanwhile, a statement issued by Fort McKay, said the explosion provide the reserve's emergency response protocol was effective in immediately informing the community of the incident.

"The safety and security of our community members is our first priority. While (Thursday's) explosion at the CNRL site did cause immediate alarm in our community it was another testament that our emergency response protocol is sound and effective."

He said the community's notification system went into action immediately, largely thanks to the "respectful relationships" Fort McKay has with its industrial neighbours.

Bouchier recalled that within minutes of the incident, Fort McKay's band administration and fire chief were contacted by CNRL. The administration in turn contacted residents through a variety of means including phone calls, e-mails and a community posting.

"Should an industrial incident or a disaster of any kind warrant the need for an evacuation, our notification system is in place to provide this direction to our community members," added Mel Grandjamb, Fort McKay's fire chief and director of services.

"Fortunately, this was a contained explosion that was effectively communicated to us by CNRL. We wish their injured employees a speedy recovery."

In a letter to Lukaszuk, AFL president Gil McGowan demanded the CNRL investigation be thorough, timely, and transparent and as public as possible.

He reasoned the timeliness and transparency are important given what has happened with the government's response to the last major accident that occurred on the Horizon site: the tank farm collapse of April 2007 that killed two Chinese temporary workers and injured four others.

"Nearly three years have passed since that incident and we still don't know what happened. We don't know what problems were at the root of the collapse and we don't what steps, if any, have been taken to fix those problems," said McGowan. "To put it bluntly, what has happened with the investigation into the tank farm collapse simply can't be allowed to happen to the investigation into (Thursday's) coker explosion."

A third workplace fatality happened at Horizon on Sept. 3, 2008 when a Clayton Construction employee drowned after the floating excavator he was driving when it flipped onto the operator's side and sank in the tailings pond.

The AFL is also calling on the government to create an expert advisory panel - similar to panels used in other provinces - to investigate the rapid pace of development in the oilsands. It would address whether the pace of development in the oilsands has compromised worker and public safety and, if so, what steps should be taken to mitigate the problems.

"We feel strongly that Alberta must conduct a thorough review of the impact of the rapid pace of development and its impact on health and safety in the workplace before we head into yet another boom in the oil sands," said McGowan. "If we do not, more lives will be lost, more workers will be injured or maimed, and Alberta's reputation as a safe place to work and do business will continue to be tarnished."

However, Lukaszuk would not be drawn into calling the Horizon site was more dangerous than any other site in the oilsands during the press conference.

"The numbers don't seem to reflect that ... This site cannot be isolated as a more dangerous site to work. That simply cannot be substantiated by the numbers of accidents and by objective information."

Lukaszuk was referring to the number of lost time claim rates for injuries, the number of days where a person misses more than one day of work per 100 person years worked. Across all industries in Alberta the workplace injury rate, on average, is 1.69. In the oilsands, the rate is 0.34.

Fort McMurray Today, Sun Jan 9 2010
Byline: Carol Christian

The Alberta Federation of Labour (AFL) is demanding a wide-ranging and public investigation into the explosion and fire that injured five workers at the Canadian Natural Horizon upgrader in Fort MacKay.

"The investigation needs to be thorough. It needs to be timely. And it needs to be transparent and as public as possible," says Gil McGowan, president of the AFL, which represents 140,000 workers, in a letter to Alberta Employment Minister Thomas Lukaszuk (click here for full text of letter).

Timeliness and transparency are important given what has happened with the government's response to the last major accident that occurred on the Horizon site: the tank farm collapse of April 2007 that claimed the lives of two temporary foreign workers and injured four others.

"Nearly three years have passed since that incident and we still don't know what happened. We don't know what problems were at the root of the collapse and we don't what steps, if any, have been taken to fix those problems," says McGowan. "To put it bluntly, what has happened with the investigation into the tank farm collapse simply can't be allowed to happen to the investigation into (yesterday's) coker explosion."

The AFL is also calling on the government to establish an Expert Advisory Panel (similar to panels used in other provinces) to investigate the rapid pace of development in the oil sands. It would be asked to address this question: Has the pace of development in the oil sands compromised worker and/or public safety and, if so, what steps should be taken to mitigate the problems?

"We feel strongly that Alberta must conduct a thorough review of the impact of the rapid pace of development and its impact on health and safety in the workplace before we head into yet another boom in the oil sands. If we do not, more lives will be lost, more workers will be injured or maimed, and Alberta's reputation as a safe place to work and do business will continue to be tarnished," says McGowan.

The letter notes this is not the first time Canadian Natural has been involved in serious workplace incidents. Fully 21 per cent of the province's active charges under the Occupational Health and Safety Act have been filed (but not yet proven in court) involve Canadian Natural. Canadian Natural has been charged in connection with four fatalities and three injuries dating from 2006.

McGowan's letter continues: "Like most other Albertans, we in the labour movement support the oil sands industry and we want to see it thrive: but in order to maintain public confidence, your government needs to reassure Albertans that the industry is safe and that adequate systems for government regulation and oversight are in place. Public confidence will not be maintained if the public is forced to wait two or three years for answers."

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Media Contact:

Gil McGowan, President, Alberta Federation of Labour @ cell 780-218-9888 or office 780-483-3021

 

Employment Minister Thomas Lukaszuk said Tuesday he's "disgusted" by the number of safety infractions uncovered during an inspection blitz of Alberta construction sites, signalling he wants to start ticketing people who break laws designed to protect workers.

For six weeks in October and November, provincial workplace officers visited 73 commercial construction sites involving 146 employers in Calgary, Edmonton and other parts of Alberta.

The industry was warned of the inspection blitz. In all, 214 safety violations were discovered. A quarter of the infractions were so serious that government officers issued orders halting work or the use of equipment because employees faced imminent danger.

Top hazards involved working at heights without adequate fall protection and failing to properly safeguard against threats, such as openings in floors.

"The results are nothing but disappointing; I'm quite disgusted with the numbers," Lukaszuk said.

"What it really tells me is that they're not getting it, and when I say they, I mean everybody involved," the employment minister said.

"I made it clear that the hammer is coming down, but these results lead me to believe that the hammer will have to get bigger and bigger until we curtail these numbers."

Opposition politicians and a labour leader are skeptical of Lukaszuk's tough talk, contending the government needs to hire a lot more inspectors and take more violators to court if it's serious about cracking down and improving job safety.

Alberta workers consistently face one of the highest fatality rates in the country. During the past decade's frenzied economic boom, 1,285 employees lost their lives.

Yet a Herald investigation published in June revealed Alberta was the least likely province to prosecute safety offenders in 2008.

"This is a really big problem. Tough rhetoric isn't going to fix" it, said Gil McGowan, president to the Alberta Federation of Labour.

"The only thing that is going to fix the problem is a dramatically different approach on the province's part to inspection and enforcement, and that means new resources."

The Stelmach government has embarked on a series of changes to its workplace enforcement system this year after numerous problems were exposed in separate probes by the auditor general and the Herald. On Tuesday, Lukaszuk pledged more measures are in the works, noting Alberta is examining workplace safety tools used in other provinces and countries.

In the meantime, increased scrutiny of commercial construction projects will continue, and inspection blitzes will expand next year to include residential construction and sectors that rely heavily on forklifts and young workers.

Lukaszuk said he's also ready to move forward with a ticketing system for workplace safety violations, a model in force in several other provinces.

Government occupational officers would be given the power to issue on-the-spot fines to employers and workers, an idea explored -- and later abandoned -- under the Klein government.

"These (inspection) numbers only reinforce my resolve in bringing it into play," Lukaszuk said.

Alberta Employment is ironing out the details of a workplace ticketing plan with the Justice Department. The measure would need Tory caucus and cabinet approval.

Ticketing systems, generally known as "administrative fines," vary widely across the country, ranging from penalties of a few hundred dollars in Ontario to hundreds of thousands of dollars in B.C., where the scheme is uniquely tied to an employer's size.

Strathmore-area farmer Darryl Roppel is encouraged by the Alberta government's renewed focus on workplace safety. His son Jordan was killed on the job nearly seven years ago at the age of 18, struck dead when a pickup truck's metal ball hitch broke and flew toward him.

Although provincial investigators determined proper safety practices weren't followed, no occupational charges were laid.

Roppel believes employers who break rules should be held accountable. More government inspections and on-the-stop fines should help improve job safety, he added.

"Nobody is checking these companies to see if these young kids are being properly trained," Roppel said.

"They always use the excuse that they don't have enough people to check up on this. Well, I think it's time they start getting some people to do this."

The Liberals and NDP aren't surprised by the troubling results of the government's construction inspection blitz. The opposition parties contend too many employers have been allowed to break safety rules without tough consequences for years.

Grit MLA Hugh MacDonald, the party's labour critic, wants the province to pour more money into enforcement by reducing insurance rebates given to companies with government-endorsed safety certificates. Last year, employers received $70 million in rebates from the Workers' Compensation Board, while $15 million was spent enforcing workplace laws.

MacDonald noted over the past five years that between 65 and 80 per cent of all job site inspections resulted in the issuing of a safety order.

"A lot of these violations save the owners time and money in the short run," the Liberal MLA said. "Voluntary compliance hasn't worked."

Calgary Herald, Wed Jan 5 2011
Byline: Renata D'Aliesio

As the framework for a private-sector pension alternative was approved for Canadians yesterday, some young adults in Calgary said they have been staying out of the debate.

This is despite the fact that those who work, like 21-year-old Andrew Laidlow, routinely pay into the Canada Pension Plan. Over the past year, Laidlow has paid more than $300 into the CPP through his part-time job, but said he's never really questioned what the money was being put towards.

"It's never really a topic in casual conversation," said Laidlow, who also attends school at Mount Royal University.

"It might be the fact that it is just pilfered off the cheque. You don't really see the money come off, it's just a number on a cheque."

Hardave Birk, vice-president external for the University of Calgary Students' Union, said students like Laidlow are already preoccupied with numerous other responsibilities and pension discussions often take a backseat.

"A lot of students have enough troubles making ends meet on a week-to-week basis, they're not thinking long term," he said.

Ministers

• Canadian finance ministers met in Kananaskis yesterday to approve the private-pension framework.
• Six provinces had taken issue with federal Finance Minister Jim Flaherty's push for a private-pension alternative heading into yesterday's meeting.
• The Calgary and District Labour Council reportedly spent part of yesterday morning occupying provincial Finance Minister Ted Morton's Calgary-area office in protest of his refusal to support expansion of the CPP.
• Representatives of the Alberta Federation of Labour confronted the minister over the same issue at the Calgary Airport Delta Hotel on Sunday.

Metro Calgary, Tues Dec 21 2010
Byline: Jeremy Nolais

Our Aging Boomers: A Four-Part Series

Saturday: Early boomers hit 65

Sunday: The coming health crunch

Monday: How boomers will define aging

Today: The pension pinch

As the first wave of baby boomers turn 65, the number of Canadians approaching retirement is growing at a pace never seen in Canadian history.

Problem is, for many of them, their bank accounts aren't.

Freedom 55, some Canadians are finding, is barely attainable at age 65 or even 75.

The crush of the economic downturn - which saw many boomers loose large chunks of their life savings - has forced some of them to work several more years than initially envisioned in their retirement plans.

Others simply haven't socked away enough of a nest egg over the decades to live comfortably in what should be the best years of their lives.

A majority of Canadians working in the private sector don't have pension plans.

The boomers may be coming in waves, but a financial tsunami could be in their wake.

"You'll find in five to 10 years time there's people who will wake up and say, 'Crap, what's happened?' " says Robert Robotham, chairman of the Calgary chapter of CARP, Canada's association for the 50-plus.

Ideally, boomers will have 60 to 70 per cent of their normal employment income once they reach retirement, Robotham notes, but anecdotal evidence suggests many are only receiving 30 per cent, or slightly more, of their previous working wages.

"If they want to maintain the same standard of living, it's going to be difficult," he adds. "It's not an immediate problem, but it's a future problem."

Certainly, governments across Canada believe it's a problem. They're in the midst of crafting some solutions to alleviate the looming retirement income crunch.

Last month, provincial and federal finance ministers met in Kananaskis and came away with an agreement to create a private-sector pension vehicle to boost retirement savings.

The Pooled Registered Pension Plans is targeted at small- and medium-sized businesses, and the self-employed, who don't have a workplace pension option.

"It does address the issue that we're focused on, which is people in their middle years not saving adequately for their retirement," federal Finance Minister Jim Flaherty told reporters at the conference.

"The real benefit of it will be seen down the road when people retire and they have adequate retirement income."

It is estimated six in 10 Canadian workers in the private sector have no private pension plan. Furthermore, only one-third of Canadians make contributions to RRSPs.

Flaherty believes the new savings scheme will provide more retirement security for Canadians - especially for self-employed workers or people who work for small firms that don't offer pension plans.

The federal finance minister has subsequently shelved plans - which had been in the works for most of last year - for a modest enhancement of the government-run Canada Pension Plan.

The enriched CPP approach had initially been favoured by most provinces, but was opposed by Alberta, which has been seeking a form of private-sector pension (similar to the PRPP) with British Columbia for the past three years.

"The Canada Pension Plan, it's pretty well known, is a much better deal for my parents than it is for me, and a much better deal for me than it is for (the younger) generation because of under-contribution by earlier cohorts," reasons Alberta Finance Minister Ted Morton.

Morton explains that an enhanced CPP would limit the ability of boomers and other Canadians to invest their income in other savings strategies.

Currently, the CPP replaces up to 25 per cent of pre-retirement employment earnings, up to a maximum amount. For 2010, the maximum amount was $47,200, meaning maximum earnings for an individual are just more than $1,000 per month.

Options discussed during the Kananaskis meetings included increasing the percentage of income that may be replaced to 35 per cent, hiking the maximum amount, or both. Finance ministers will carefully examine the enriched CPP option while moving forward with the private-sector plan.

Under the PRPP approach, a company could arrange for a regulated financial institution to operate a plan, therein reducing the cost and complexity for small businesses to participate. For self-employed workers, the PRPP would be accessible without having a connection to an employer.

The Alberta Federation of Labour, however, is staunchly opposed to the private-sector plan, insisting the current retirement savings crunch will only grow worse unless the CPP is enriched.

The AFL, which represents nearly 140,000 public and private sector workers in the province, contends only 35 per cent of working Albertans are covered by a workplace pension (with the number falling each year). Furthermore, only 38 per cent of Albertans made RRSP contributions in 2008, with the average contribution being $3,200, adds AFL president Gil McGowan.

Indeed, an increasing number of people approaching retirement age are suddenly finding they don't have enough socked away for their post-working years, says Gary Pool, president of the Alberta Council on Aging.

One of the effects of the prolonged economic slump is that many Albertans aren't retiring at 65 and are now working for several years more than originally planned just to comfortably subsist, Pool explains.

And he fears the same problem will plague a host of boomers, although working longer will provide more stable income for people who don't have a large enough nest egg.

"A whole bunch of them aren't going to retire," Pool says. "Having more seniors and boomers working longer will help mute some of the financial challenges."

He argues the CPP and old age supplement must be improved if boomers and the next generation of workers are to save enough for retirement, believing it's difficult for farmers, the self-employed and small-business owners to save a lot of cash for private pension plans.

But Jack Mintz, a financial expert and head of the school of public policy at the University of Calgary, isn't convinced baby boomers or seniors of today are in dire financial straits.

Approximately 80 per cent of Canadians are doing "perfectly well" on their savings and retirement income, says Mintz, who delivered similar findings a year ago in a report to finance ministers.

The lower income is often able to replace much of the workplaces wages with CPP and old age security, while the affluent have saved enough from their working years to ensure comfortable income in retirement, he says.

It's a section of the middle class, who haven't saved enough and won't be able to live the same lifestyle in retirement with CPP and old-age security, who could be in for a financial jolt, adds Mintz, who supports the PRPP approach from Ottawa.

He notes the economic downturn has certainly hurt many Boomers and delayed some retirements. However, many Canadians, while not having registered pension plans, are stashing away sufficient retirement savings in RRSPs and other vehicles.

Just as important, boomers also have an enormous amount of equity secured in their homes, which have soared in price over the past decade and remain far more valuable than properties in the United States.

"Having equity is an important retirement income," Mintz says. "In Canada, we've been quite fortunate we didn't get the same hit to our wealth as in the U.S."

Yet, Robotham with the Calgary chapter of CARP doubts the PRPP will do much to improve Canadians' retirement scenarios, suggesting most people won't save cash for retirement if it's not mandatory.

And he has a message for those who suggest boomers and current seniors are financially well off in retirement because they own valuable homes.

"You can't eat the front step," Robotham says.

Calgary Herald, Tues Jan 4 2011
Byline: Jason Fekete

Safety officers will target commercial construction sites in Alberta for inspection in the upcoming year after a safety blitz found a number of contractors were in violation of provincial legislation.

"To say I'm disappointed with these results is an understatement," said Thomas Lukaszuk, Minister of Employment and Immigration, who is responsible for Occupational Health and Safety.

"I expect better of industry in Alberta, and I know industry leaders, employers and workers expect better of themselves."

The Alberta Ministry of Employment released a report on Dec. 14 that states provincial safety inspectors issued a total of 214 orders to employers involved in commercial construction between Oct. 8 and Nov. 22.

A total of 298 initial and follow-up inspections were conducted at 73 construction sites of 146 employers across the province.

Lukaszuk was upset by the number of safety infractions uncovered.

However, some argue the report isn't clear in terms of what the numbers mean.

"The report does not identify a lot of specifics because we are not sure of the location of sites or what the particular infractions were," said Brian Freemark, general manager of Lee's Sheet Metal.

The numbers aren't telling the whole story.

"Because this is the first time we have done a focused inspection in this manner, these numbers can be considered as a baseline, not a good one, but one that can be used to measure whether or not things are getting better or worse," said Barrie Harrison, spokesperson for Alberta Occupational Health & Safety (OH&S).

"Even though there are no previous statistics to refer to, in order to do compare and contrast analyses, the key is that what they are getting from the spot checks is unacceptable," said Ron Harry, executive director of the Alberta Building Trades.

Fall hazards accounted for 57 (27 per cent) of the orders issued, while 17 orders (8 per cent) were issued for problems related to the securing of equipment and materials.

There were 49 orders (23 per cent) issued relating to safeguards for building shafts, covering of openings and guardrails. Scaffolds and temporary work platforms accounted for 39 (18 per cent) of the orders issued.

Working at height as well as the securing of materials and equipment continue to be safety problems in the sector.

"The violations uncovered in these audits are obviously just the tip of the iceberg and they demonstrate why Alberta continues to be the most dangerous place in Canada to be a worker," said Gil McGowan, president of the Alberta Federation of Labour.

"Sadly, the results of the audit are no big surprise to those of us who have been calling for a crackdown on safety violations in construction. What is a surprise is that the government isn't pledging to provide any more resources to deal with what is obviously a very big and very pervasive problem."

No new inspectors were hired by Alberta OH&S and ten inspectors out of a total of 94 were dedicated to the campaign.

McGowan said Alberta needs to spend more money to enforce safety because the province has more people working in construction and other dangerous industries than other provinces.

"The recession gave us a short reprieve, but if simple and common-sense changes - like hiring more inspectors - aren't made today, Alberta will, once again, regain its title as the province with the highest number of workplace fatalities in Canada," he said.

The Ministry of Employment and Immigration reported that there were 110 workplace incident fatalities in 2009. The construction sector had the largest share of these fatalities with 34, or 31 per cent of all fatalities.

Inspectors don't have the power to issue fines for infractions, but Lukaszuk is signaling he wants to start ticketing people who break laws designed to protect workers.

Given the results, follow-up inspections will be conducted in the 2011-12 fiscal year.

Daily Commercial News and Construction Record, Thurs Dec 30 2010
Byline: Richard Gilbert

As Canada's oil sands companies work to head off another looming labour crunch, some have begun looking at moving huge numbers of employees out of Fort McMurray, Alta. - and possibly, in the future, to India.

Several oil sands firms have started discussions with management-consulting and outsourcing firm Accenture, which has completed a broad labour analysis that shows that 10,000 to 15,000 jobs could be uprooted from northeastern Alberta.

And thousands of those positions could eventually be sent to overseas centres like Bangalore or Chennai, says Michael Denham, managing director of Accenture's management-consulting services in Canada.

Mr. Denham has proposed radical changes to the way the oil sands are run. Instead of using thousands of workers in Fort McMurray, where the population has now swelled to 100,000, real estate prices are sky-high and workers are difficult to find, companies could simplify recruitment, cut salaries and boost productivity among workers who could be electronically connected with their tasks.

Finance, engineering, maintenance planning, human resources and supply chain work could be moved from Fort McMurray and done in cities like Calgary and Edmonton. In the future, as the model takes hold, substantial numbers of jobs could be sent overseas.

"We estimate that 40 to 60 per cent of all job titles and all work could be moved and be done remotely from Fort McMurray," he said.

"And maybe half of that could be moved offshore now."

Though he would not identify who, Mr. Denham said "there are a couple of clients we're working with on this topic."

With oil prices above $90 (U.S.) a barrel and rising, the world's biggest energy companies are once again turning their attention to northern Alberta, raising worries of a Fort McMurray labour crunch. The desire to keep costs as low as possible during a new boom has increased the willingness to consider all options.

Several oil sands firms have already taken steps to increase offshore work. Imperial Oil Ltd. is using South Korean manufacturers to build hundreds of components for its $8-billion (Canadian) Kearl mine, and engineering firms are increasingly using employees in Texas and overseas to design new oil sands projects.

If the idea begins to take hold, it would radically change the face of Fort McMurray, which has struggled with rapid growth. But, despite its growing pains, Fort McMurray has managed to create a surprisingly community-oriented city. Droves of people spend nights at a newly expanded recreational complex, complete with a large water park, and hotels have teamed up to offer discounted rates to out-of-town kids sports teams that come to use its high-end athletic facilities.

Fort McMurray is, according to the United Way, the most generous city in Canada, and it owes much of its virtue to the fact that companies like Suncor Energy Inc., Syncrude Canada Ltd. and Royal Dutch Shell PLC employ large, well-paid work forces - including substantial numbers of white-collar employees - in the city. Syncrude, for example, has 5,580 employees in the Fort McMurray area, and only 200 in Calgary and Edmonton.

Some companies are wary of uprooting Fort McMurray workers. They want to protect their "social licence" to operate, a key strategy that ensures salary dollars flow into local communities.

Moving parts of that worker base is "definitely not something Syncrude is considering," said spokeswoman Cheryl Robb. "We see ourselves as a member of the Wood Buffalo community ... In fact, our retention program has incentives for employees to live in the local community."

Shell, which employs 2,000 in the area, believes "that it is a benefit to the community of Fort McMurray for our employees and their families to live, work and play in the city - and in doing so, contribute to the social fabric of the city," spokesman Phil Vircoe said.

Shifting vast numbers of jobs away from the oil sands would "mean ripping the heart out of Fort McMurray's middle class," said Gil McGowan, president of the Alberta Federation of Labour. "Those are the kind of jobs that form the backbone of Fort McMurray's economy, and their loss would actually be quite destabilizing."

Mr. Denham argued that for Fort McMurray, losing jobs could actually provide benefits to an area that has seen frenetic growth produce Vancouver-like real estate costs and Toronto-style traffic.

Life as a boomtown "plays havoc on local pricing, local facilities, etc. I truly believe the community there would benefit from a more balanced, more sustainable approach to growing its infrastructure," he said. "Our hope is to get the whole industry thinking along these lines. As a result, everyone will benefit from a more rational deployment of where people work."

CTV News, Sun Dec 26 2010
Byline: Nathan Vanderklippe