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Workers at Petro-Canada and Suncor won't know until late summer or fall how the promised layoffs will affect the merged company, or how many jobs will be cut in the name of operational savings and elimination of "significant overlap."

The creation of Canada's largest energy company will bring together a combined workforce of 12,500 workers, including 3,500 in Suncor and Petro-Can's headquarters in downtown Calgary.

The city's oilpatch has already suffered hundreds of white-collar layoffs amid depressed energy prices, and it's expected to absorb a lot of the staff reductions that come as part of the merger's proposed $300-million cut to yearly operating expenses, analysts predicted.

Rick George, who will remain CEO of the new and larger Suncor, said executives won't determine a"head count"or layoff total until after the proposed merger has been approved in four to six months.

"It's not just that we're going to put some number out and then try to achieve it,"he told financial analysts Monday in a conference call.

George said the company will act quickly to quell staff uncertainty once the merger actually happens.

"I don't want to minimize the concern about jobs, especially in these difficult times."

Outside the city's Petro-Canada Centre, workers said they were instructed not to speak with the media.One employee said she didn't know what would happen.

"I'm still confused myself," she said, declining to give her name.

The last mega-merger in Calgary was when PanCanadian Energy Corp. and Alberta Energy Co. combined to form EnCana in 2002. Weeks after that deal, the new firm cut 310 jobs from a total workforce of 3,800.

Suncor's proposed operational cuts amount to roughly three per cent of the companies'combined 2008 expenses, although spokesman Brad Bellows said not all savings will come through staff reductions.

Analyst Phillip Skolnick said the "overlap"George spoke of would likely be in divisions like engineering and management, rather than on the front lines at oilsands plants spread across northeast Alberta.

"On a labour level, you need the people who put the metal together to be there," said Skolnick, of Genuity Capital. "I

can't see really any cuts being there. It's more head office."

Gil McGowan of the Alberta Federation of Labour said cuts will likely be in the hundreds or low thousands, mostly in non-unionized office staff.

"Whenever you have one of these big mergers, the results aren't pretty for employees," he said.

In predicting the layoffs, George said the pain will be short-lived.

"I do want to underline that, in the mid-to long term, with the plans we have ahead of us, this merger will be a strong contributor to job creation as we pursue growth in ways that would not be achievable on a stand-alone basis," he said.

Petro-Can and Suncor had each cut a small number of contractor positions in recent months, following decisions to delay oilsands expansions.

It's unclear where in Calgary the massive company will be headquartered. Petro-Can employees occupy 40 floors in the twin towers of Petro-Canada Centre, which includes Western Canada's tallest skyscraper.

Last fall, the oil company renewed its lease there with Brookfield Properties through 2028.

Calgarians derisively dubbed the granite building "Red Square" when it was built in the 1980s, a swipe at the federal Liberals who created the company during the oil-price shocks of the mid-1970s.

Suncor occupies part of Sun Life Plaza, a mere block away. The oilsands giant moved there after relocating its head office from Toronto in 1995.

Calgary Herald, Tues Mar 24 2009
Byline: Jason Markusoff

The economic downturn in the energy sector claimed another 170 jobs Monday at two Edmonton-area plants.

PTI Group Inc. laid off workers at its west-Edmonton and Nisku locations, said Ken MacLean, director of marketing and communications.

The plants produce workforce accommodations for use in remote sites and normally employ a total of 500 people, he said. They were employed at two divisions of the company -- PTI Noble Structures and PTI Travco Modular Structures.

The reason for the layoffs is "no mystery," he said, citing a slowdown in the oilpatch and project cancellations in the oilsands.

"As those projects scale back, unfortunately, we have to respond with a balancing of our own staffing complement to meet the needs of the market," MacLean said.

"It is amazing how a few short months ago we -- as well as other companies -- were really hard-pressed to find the labour complement that would meet the demand of the market," he said. "Unfortunately in the last few months, with the downturn in the economy and its effect on the industry, it certainly has had a reverse effect."

MacLean said the company is tapping into government programs to help workers find new jobs.

"The bottom line is, eventually we understand there will be a turn in the market and we will want these people back again," he said.

News of the layoffs comes as the Alberta Federation of Labour prepares to release a new report today on the employment implications of the recent collapse in oilsands investment.

"There's a sense out there that everything will return to business as usual in the oilsands once the recession ends," AFL president Gil McGowan said in a news release.

"But we clearly can't make those kinds of assumptions.

"Our report is a wake-up call for the Alberta government and everyone else who is concerned about the future of our province's economy and labour market."

Edmonton Journal, Tues Mar 24 2009

The Alberta Federation of Labour will release a report tomorrow dealing with the employment implications of the recent collapse in oil-sands investment.

The report includes a number of troubling new findings about the scale of oil-sands-related job loss � and the possibility of even more serious job loss in the future.

What: AFL to release major new report on oil-sands employment

When: 1:30 p.m., Tuesday, March 24, 2009

Where: Lacombe Room, Crowne Plaza Chateau Lacombe Hotel, 10111 Bellamy Hill, Edmonton

"There's a sense out there that everything will return to business as usual in the oil sands once the recession ends," says AFL president Gil McGowan.

"But we clearly can't make those kinds of assumptions. Our report is a wake-up call for the Alberta government and everyone else who is concerned about the future of our province's economy and labour market."

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For more information call:

Gil McGowan, AFL President @ 780-483-3021 or 780-218-9888 (cell)

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It has been called Alberta's ticket to becoming part of Canada's second-largest economic region.

But whatever politicians want to call Bill 18, it officially ushers in Alberta's trade partnership with British Columbia on April 1.

Deputy premier Ron Stevens said the legislation enables the "nuts and bolts" of the Trade, Investment and Labour Mobility Agreement to go to work April 1.

Signed in 2006, the agreement allows lawyers in Edmonton to work in Vancouver, no problem. Or a marriage commissioner from Victoria to preside over a wedding in Red Deer.

A Calgary-based company can consider itself registered in British Columbia. And a charity in Grande Prairie can raise money in both provinces without worrying about creating a separate branch or bank account in Kelowna.

"What we're trying to do is eliminate stupid rules, or unnecessary rules that are nothing but a hindrance, a barrier to what business wants to do," Stevens said. "They're an additional unnecessary cost, so we're eliminating those.

"You should be able to do business, you should be able to move your labour around within Alberta or B.C. with very little legal impediment."

Critics say they never had a chance to argue the agreement's merits, but Stevens waved aside the complaint.

One key piece of Bill 18 is an amendment to the Government Organization Act, which allows ministers to change legislation or regulations to fit the agreement's needs.

It's a dangerous, unnecessary precedent-setter, Edmonton-Riverview Liberal MLA Kevin Taft said.

Edmonton-Centre Liberal MLA Laurie Blakeman compared it to the War Measures Act, which puts ultimate power in the hands of Canada's cabinet if national security is in danger.

NDP Leader Brian Mason spoke of the Third Reich and the slippery slope of giving a government untethered rights.

"The Conservatives have presented TILMA as an economic cure-all, some kind of bullet that will allow the Alberta economy to sail through the roughest seas," Alberta Federation of Labour president Gil McGowan said.

"What it is is a corporate bill of rights. We're afraid that TILMA may be used as a battering ram to open up doors that previously were closed."

Stevens has a list of reasons why the agreement will pay off for Albertans: workers will have seamless access to job opportunities, for example, and companies will have more chances to bid on government contracts in both provinces.

Edmonton Journal, Tues Mar 19 2009
Byline: Trish Audette

The Alberta Federation of Labour today urged Premier Stelmach to learn the lessons of the past and abandon any efforts he might be considering to re-open public-sector contracts to reduce wages or benefits.

"We are talking about more than 100,000 workers who work hard for decent, ordinary wages," says AFL President Gil McGowan. "If the Premier forces wage reductions on them, it will deepen the economic crisis we are in."

McGowan points out that the bulk of public-sector workers earn average salaries which, like most Albertans, go to pay bills, feed families and keep local economies running. "Stripping a portion of their salary away will mean thousands of Albertans will have less money to spend on necessities, which will mean less consumer spending resulting in a worsening recession."

"There is a big difference between retracting some bonuses to a handful of senior managers and cutting into the basic pay of thousands of front-line workers."

McGowan also points to history as an argument against cutting public-sector wages. "In 1993, Ralph Klein forced all public-sector workers to take a 5% wage roll back," remembers McGowan. "The direct consequence of that decision was reduced wages for all workers, including the private sector."

"In 1994/95, Alberta was the only province in Canada to record an actual drop in average wages. By imposing wage roll backs in the public sector, the Klein government gave the green light to employers in the private sector to follow suit. The result was that wages dropped across the board, in all industries and sectors."

"That is the last thing Albertans need right now as we struggle with this recession."

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For more information call:

Gil McGowan, AFL President @ 780.218-9888 (cell)

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The Alberta Federation of Labour says the increased unemployment rate in Alberta last month only confirms that the province is not going to escape the economic downturn unscathed.  President Gil McGowan says no one should be surprised that most of the job losses ocurred in the oilpatch and construction industry, but says he is concerned that manufacturing and retail jobs have also suffered.

Alberta's jobless rate in February came in at 5.4 percent from January's 4.4.

CHQR Newsroom, Fri Mar 13 2009

EDMONTON - An Alberta labour group is calling for the province to come up with a new stimulus plan for the economy after news Friday that 23,700 people were thrown out of work in February alone.

"The government needs to stop covering its eyes from the economic carnage building around them," said Gil McGowan, president of the Alberta Federation of Labour. "We need immediate action to help protect jobs in Alberta."

The February job losses pushed the province's unemployment rate up a full percentage point to 5.4 per cent - the highest rate since June 2003.

Edmonton's rate climbed from 3.8 per cent in January to 4.4 per cent in February.

February's losses are on top of the 5,700 Alberta jobs Statistics Canada reported were lost in January - bringing the total so far in 2009 to 29,400.

Alberta Finance Minister Iris Evans had predicted that 15,000 Albertans would lose their jobs this year as the province entered "a very sharp period of recession."

"We've always said that we were not immune to the global recession," she said on Feb. 19. "Many Albertans in the province will face a difficult year. The best response at this time is to stay true to Alberta spirit."

McGowan called on the government to develop and implement a stimulus package that would focus on building key public infrastructure and keep Albertans working during the downturn.

"The government's dithering leaves us months behind other jurisdictions in responding to the crisis, but better late than never," said McGowan.

"The total job loss is now above 36,000 jobs in the last three months. How many more Albertans must lose their livelihood before this government acts?" asks McGowan.

He was concerned the job losses were no longer confined to construction and energy sectors. "Manufacturing shed 11,000 jobs last month. Retail lost 7,500 jobs. This says to me that the crisis is spreading to all sectors of Alberta's economy. And that is worrying," he said.

One Alberta-based bank economist called the job losses announced Friday surprisingly high.

"This February was the largest drop in employment Alberta has ever seen," said Todd Hirsch, senior economist for ATB Financial. "And it comes after a month in January when we also saw a very large drop in employment. It's a little surprising because often when you see a big drop, the following month it's a little bit of a bounce back."

The industries that lost most jobs were non-instructional educational services at 13,400; manufacturing 10,100; construction at 8,900 and wholesale and retail trade at 7,600.

Still, Alberta posted the third-lowest rate in the country behind Saskatchewan's 4.7 per cent and Manitoba's 4.8 per cent.

The national average was 7.7 per cent, a six-year high.

Edmonton Journal, Fri Mar 13 2009
Byline: Bill Mah

With today's release of the February labour force statistics, it has become clear that Alberta is no longer immune from the recession that is hitting across the world, says the Alberta Federation of Labour. Alberta lost 24,000 jobs in February, causing a full 1% jump in the unemployment rate - the largest jump in the country.

"If anyone doubted it before, they aren't now - Alberta is in recession," says AFL President Gil McGowan. "The rate of job loss is very concerning."

Up until now, the government has been downplaying the potential impact of the economic crisis on Albertans, says McGowan. "Talk of Alberta being �shielded' from the brunt of the crisis is proving to be nothing but wishful thinking."

"The government needs to stop covering its eyes from the economic carnage building around them," says McGowan. "We need immediate action to help protect jobs in Alberta.

McGowan is particularly concerned that job losses are no longer confined to the construction and energy sectors. "Manufacturing shed 11,000 jobs last month. Retail lost 7,500 jobs. This says to me that the crisis is spreading to all sectors of Alberta's economy. And that is worrying."

McGowan is calling on the government to develop and implement a stimulus package that would focus on building key public infrastructure and keep Albertans working during the downturn.

"The government's dithering leaves us months behind other jurisdictions in responding to the crisis, but better late than never," says McGowan.

"The total job loss is now above 36,000 jobs in the last three months. How many more Albertans must lose their livelihood before this government acts?" asks McGowan.

 

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For more information call:

Gil McGowan, AFL President @ 780.483-3021 (office) or 780.218-9888 (cell)

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Rights for Farm Workers!

• The AFL is joining with UFCW Canada in a campaign to include farm workers in Alberta's Occupational Health and Safety Act. The campaign is a result of a recent fatality inquiry into the death of Kevan Chandler on a farm near Black Diamand. The Judge recommended that one of the best ways to prevent future fatalities is to include farm workers in OH&S legislation. Farming has changed. It's time the laws changed with it! Find out what you can do to help farm workers ...

Beyond Bailouts

• The economy has hit the skids, but now is not the time for a return to the days of cutbacks, privatization and royalty rollbacks. There is another way to tackle the economic downturn. Public Interest Alberta's 3rd Annual Advocacy Conference is looking at how we can broaden the scope of public solutions to keep Alberta working, and make us greener at the same time. "Beyond Band-Aids and Bailouts: Public Solutions in Critical Times" runs April 3 - 5 in Edmonton. Speakers include Judy Rebick, Elaine Bernard and Dr. Robert Woollard. Register for the Conference ...

154 Reasons

• In 2007, 154 workers were killed at work. Last year another 166 lost their lives because of their jobs. There is no better reason than that for changing Alberta's safety laws. The AFL's Health and Safety Committee has launched a postcard campaign aimed at making Joint H&S Committees mandatory in all workplaces. Alberta is the only province to have voluntary joint committees. And it is proven that joint committees save lives. Join the campaign! Bundles of the postcards are available at the AFL office. Call (780-483-3021) to request some and get your members and neighbours to sign them. See a sample of the postcard ...

Spirit of Labour

• Sometimes to get our inspiration, we need to look at our past. The miners of the Crowsnest Pass can teach us much about courage, solidarity and organizing for victory. The story of the working families of the Crownest Pass has been captured in a moving booklet recently released by Project 2012, the celebration of the AFL's Centennial being organized by the AFL and the Alberta Labour History Institute (ALHI). This is the first of a series of five booklets popularizing key moments in Alberta's labour history, to be released each year leading up to 2012. Read "Spirit of the Crowsnest" ...

Urgent Action

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Save the Wheat Board!!

• Since their election, the Harper Conservatives have had an aggressive agenda to undermine and break up the Canada Wheat Board. At every available opportunity they have attacked the single-desk monopoly of the Board and promoted the rump group of farmers who want to sell their grain on the open market. The Conservatives have run fraudulent votes and even contravened government law (according to the courts) in their effort to chip away at one of the most effective mechanisms for farmers. The Board has been proven time and time again to return high prices to farmers for their grain - higher than they could get on their own.

• The National Farmers Union and supporters of the Wheat Board are locked in a battle for the very existence of the Wheat Board. And they need your help! Whether you live in a rural community or in a big city, you need to add your voice to those trying to save the Wheat Board. Take action now!

Events

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Economics for Everyone

Join Jim Stanford, Chief Economist for the CAW, to talk about the state of the economy and what it means for workers. Stanford will be discussing his latest book "Economics for Everyone" and looking at the state of the economy from a worker perspective.

Co-sponsored by Parkland Institute

Calgary
Wednesday April 22
7:00
Arusha Centre

Edmonton
Thursday April 23
7:00
Chateau Lacombe Crowne Plaza

For more information ...

Did you know ...

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Temporary Foreign Workers in Alberta

2004 13,236
2005 15,834
2006 22,114
2007 37,293
2008 57,843

Permanent Immigrants Arriving in Alberta

2004 16,475
2005 19,404
2006 20,716
2007 20,861
2008 24,185

Lost Down the Pipeline: In these difficult economic times, is the Alberta government doing enough to keep value-added oil-sands in Canada?

The real question now is: will we learn the lessons of Lougheed and embrace a more aggressive role for government in the oil sands, or will we stand idly by while the "market" decides to send our jobs and opportunities down the pipeline?