The Truth about Labour Shortages in the Oil Patch

Much has been said and written recently about so-called labour shortages in Alberta. In particular, certain politicians and business people have been arguing that there is a critical shortage of skilled trades people in the province - especially when it comes to providing labour for new oil sands projects in the Fort McMurray area.

So far, the "labour shortage" crowd has been successful in its campaign to convince policy makers. As a result, both the provincial and federal governments are now allowing employers to import temporary foreign workers to work in northern Alberta.

The most notable example of this practice is Ledcor Industries - a company that has a long history of working with the Christian Labour Association of Canada (CLAC) to undermine support for traditional building trade unions. In April, Ledcor was given permission to bring 680 foreign workers into the country for terms of up to three years. Flint Construction - another CLAC contractor - is also in the process of applying for permission to import foreign temporary workers.

In an effort to help Albertans understand what's really happening with this issue, the AFL has prepared answers to a number of commonly asked questions.

Is there really a labour shortage in Alberta?

The Alberta economy is strong and many new jobs are being created. But there is a big difference between a "tight" labour market and a crippling "labour shortage."

By the Alberta government's own definitions, problems don't start developing in the labour market until the unemployment rate drops below 3.5 percent. With a rate of unemployment higher than that, employers are usually able to find the workers they need.

According to Statistics Canada, Alberta currently has a 6.1 percent unemployment rate in the construction trades. Over the last year and a half, that rate has sometimes gone as high as 9.4 percent - but it has never dropped below 4 percent.

So, by the government's own definitions, there is no labour shortage. The sky is not falling.

Just as importantly, the rates of unemployment for construction workers are even higher in other provinces. Unemployment among aboriginal Albertans (especially those in the Fort McMurray area) is also higher.

So if employers in the oil sands are having problems finding skilled tradesmen, they would almost certainly have better luck by expanding their searches to aboriginal communities and places like Saskatchewan, Manitoba or the Maritimes.

If there isn't really a labour shortage, why are some companies calling for permission to import temporary workers from abroad?

The first question anyone should ask if they really want to understand this issue is: who is pushing for the increased use of foreign temporary workers and why? The reality is that only a handful of employers are asking for permission to bring in temporary workers from abroad - and they all happen to be company's that have contracts with CLAC.

Why should this matter? It's because many Alberta trades people don't want to work under CLAC contracts (which they consider inferior to contracts negotiated by traditional building trades unions). As a result, CLAC organized companies (like Ledcor and Flint) have a hard time getting the workers they need to do the work they've contracted to do with big oilsands developers.

So, it's not that there is an overall labour shortage. The problem is that these particular companies are having problems attracting workers. So the government policy that paves the way for foreign temporary workers isnt really addressing an overall labour shortage - it's really about helping a handful of well-connected companies get around problems of their own making. We at the AFL think this is an inappropriate use of the government's power.

If these companies can't meet their labour force targets, maybe they should do want employers have always done to attract and retain workers - namely offer better pay and better conditions of work. And if the big project developers want to get their mega-projects built on time, maybe they should hire contractors that can actually live up to their workforce commitments.

Why are building trades workers so hostile to foreign workers? Doesn't that sound like anti-immigrant intolerance?

The Alberta labour movement is a big supporter of immigration. Our country was literally built by immigrants - and so were most of our unions.

But what's happening under the government's foreign temporary worker program is NOT immigration. These workers are being brought into the country under very restrictive terms. They do not have the same rights or protections granted to other Canadian workers. And once the employer is done with them, they are sent back to their countries of origin.

This is not a road to eventual Canadian citizenship. These workers are being brought in to fill a temporary need - and when that need has been filled, they will be discarded like Post-It notes.

If Canadian employers and governments feel that our country needs more real immigrants (and we think there is a strong case to be made in that regard) then we challenge them to increase formal immigration levels.

Everyone working in this country should have the same rights and protections. And no workers - no matter their country of origin - should be used as pawns to undermine the rights and security of other workers. 

 

 

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