56

Open Mind Alberta 2013

Embed Size (px)

DESCRIPTION

Open Mind is the only magazine in Alberta that directly communicates with open shop contractors, managers and senior executives.

Citation preview

Page 1: Open Mind Alberta 2013

Untitled-2 1 2013-04-05 9:37 AM

Page 2: Open Mind Alberta 2013

| B U I L D I N G S | C I V I L I N F R A S T R U C T U R E | H E A V Y I N D U S T R I A L |

Wearemorethanbuilders.Weareconstruc onpartners who are passionate about what we do and about our partners’ success.

Watch us build at PCL.com

000OM-PCL-FP.indd 1 4/2/13 12:11:20 PMOPENMIND_13_p02-05.indd 2 4/2/13 4:26:38 PM

Page 3: Open Mind Alberta 2013

OPENMIND SPRING 2013 3

| B U I L D I N G S | C I V I L I N F R A S T R U C T U R E | H E A V Y I N D U S T R I A L |

Wearemorethanbuilders.Weareconstruc onpartners who are passionate about what we do and about our partners’ success.

Watch us build at PCL.com

000OM-PCL-FP.indd 1 4/2/13 12:11:20 PM

ON THE COVERConstruction Ownership EvolutionLeadership styles and ownership transitions set the stage for a company’s success or failureBy Carissa Halton Illustration by Dushan Milic

42 Quiet RevolutionQuebec’s corrupt construction industry takes the country’s headlines by stormBy Ben Freeland

47 Alberta’s Key PlayersThis year’s Contractor of the Year Awards acknowledge innovative mindsBy Alexandria Eldridge and Michelle Lindstrom

51 The Demographic Cliff The federal government retools its former programs, addressing the country’s shortage of skilled tradespeople By Bill Stewart

54 By the NumbersCanadian construction statistics

42

5 Executive Editor’s ColumnBy Stephen Kushner

6 The State of Labour LawConstruction labour laws vary by jurisdiction and current governmentBy Peter Pilarski

11 A Test for EthicsThe pros and cons of onsite drug and alcohol testing By Kelley Stark

17 Women in TradesWBF helps change the face and statistics of the construction industryBy Michelle Lindstrom

22 Charter ChallengeRights in the construction industry are challenged when mandatory union membership conditions are enforcedBy Nicholas Malone

34 National AgendaBill C-377 makes waves across the country and Merit Canada’s role in levelling the playing fieldBy Terrance Oakey

40 Productivity and PurposeIt’s about more than working harder. Companies are realizing the benefits of investing in efficiencyBy Elizabeth Chorney-Booth

28

6

Volume 21 • Issue 1 • Spring 2013

17

Contents

34

OPENMIND_13_p02-05.indd 3 4/4/13 1:28:52 PM

Page 4: Open Mind Alberta 2013

SOLUTIONFIRST READYNETWORK

PEACEOFMINDTEAM RELIABLESHARE

NEW

SOLUTIONSMART TEAMTOOLSNEXT

NEXTSECURE

SPEED

REA

DY

ACC

ESS

NEW

SM

AR

TA

CC

ESS SPEED

CONNECT

SMARTaccess

FAST

NEW

UTIONNECT SECURE

PEACE OF MIND

TEAM

FAST

TEAMCONNECT

RELIABLEFASTTOOLS

Boost productivity, reduce costs and

keep projects on track.

Improve collaboration with onsite workers and suppliers so you can reduce downtime and stay on schedule

Remote access to your corporate intranet or the Internet while out of the

Rogers One NumberTM lets you talk, text and video call from your computer or tablet using your wireless number*

Rogers TechXpert with extended support for your wireless device. Get the extra help you need, when you need it

lets you speak with a Small

*See store or online for details. ™Rogers & Mobius Design are trademarks of Rogers Communications Inc. ©2012

ROGERS PROVIDES THE TIME-SAVING WIRELESS PRODUCTS AND SERVICES YOU NEED

WEB www.rogers.com/smallbusiness VISIT your local Rogers Small Business Specialist

000OM-Rogers-FP.indd 1 3/20/13 9:53:59 AMOPENMIND_13_p02-05.indd 4 4/3/13 8:24:05 AM

Page 5: Open Mind Alberta 2013

Executive Editor’s Column

Publisher Ruth Kelly

Executive Editor Stephen Kushner

Associate Editor Suzanne Pescod

Editor, Contract Magazines Michelle Lindstrom

Production Manager Betty-Lou Smith

Production Technician Brent Felzien

Production Technician Brandon Hoover

Circulation Manager Sharlene Clarke

Vice-President Sales Anita McGillis

Advertising Representative Shane Kelly

Sales Assistants Karen Crane, Jennifer Rush

Art Director Charles Burke

Associate Art Director Andrea deBoer

Assistant Art Director Colin Spence

Contributing WritersElizabeth Chorney-Booth, Alexandria Eldridge, Ben Freeland, Carissa Halton, Nicholas Malone, Terrance Oakey, Peter Pilarski, Kelley Stark, Bill Stewart

Contributing Illustrators and PhotographersSteve Adams, Michael Byers, Isabelle Cardinal, Dushan Milic, Kelly Redinger, Heff O’Reilly

Open Mind is published two times per year by Venture Publishing Inc. for Merit Contractors Association.

Venture Publishing Inc. 10259-105 Street, Edmonton, Alberta T5J 1E3Tel.: (780) 990-0839 Fax: (780) 425-4921 [email protected] www.venturepublishing.ca

Merit Contractors Association 103-13025 St. Albert Trail, Edmonton, Alberta T5L 4H5 Tel.: (780) 455-5999 or 1-888-816-9991 Fax: (780) 455-2109 [email protected] www.meritalberta.com

Merit Contractors Association is a non-profit organization that offers human resource services to the open shop construction industry.

Printed in Canada by Transcontinental LGM Graphics

The opinions conveyed by contributors to Open Mind magazine may not be indicative of the views of Venture Publishing Inc. or Merit Contractors Association. While every effort is made to ensure accuracy, neither Venture Publishing Inc. nor Merit Contractors Association assume any responsibility or liability for errors or omissions.

Canadian Publications Mail Product Agreement #40020055

Copyright © 2013 by Merit Contractors AssociationNo part of this publication should be reproduced without express permission of Merit Contractors Association.

Volume 21 • Issue 1 • Spring 2013

OPENMIND SPRING 2013 5

SOLUTIONFIRST READYNETWORK

PEACEOFMINDTEAM RELIABLESHARE

NEW

SOLUTIONSMART TEAMTOOLSNEXT

NEXTSECURE

SPEED

REA

DY

ACC

ESS

NEW

SM

AR

TA

CC

ESS SPEED

CONNECT

SMARTaccess

FAST

NEW

UTIONNECT SECURE

PEACE OF MIND

TEAM

FAST

TEAMCONNECT

RELIABLEFASTTOOLS

Boost productivity, reduce costs and

keep projects on track.

Improve collaboration with onsite workers and suppliers so you can reduce downtime and stay on schedule

Remote access to your corporate intranet or the Internet while out of the

Rogers One NumberTM lets you talk, text and video call from your computer or tablet using your wireless number*

Rogers TechXpert with extended support for your wireless device. Get the extra help you need, when you need it

lets you speak with a Small

*See store or online for details. ™Rogers & Mobius Design are trademarks of Rogers Communications Inc. ©2012

ROGERS PROVIDES THE TIME-SAVING WIRELESS PRODUCTS AND SERVICES YOU NEED

WEB www.rogers.com/smallbusiness VISIT your local Rogers Small Business Specialist

000OM-Rogers-FP.indd 1 3/20/13 9:53:59 AM

On behalf of Merit Contractors Association, welcome to Open Mind magazine.

Stephen KushnerPRESIDENT MERIT CONTRACTORS ASSOCIATION

We are pleased to provide you with the 21st

edition of Open Mind. While Merit has been providing human resource solutions, like benefi t, retirement and training plans for some 27 years, we are also very excited about our 21st edition of Open Mind.

Over many years, Open Mind has been a vehicle to discuss issues not dealt with in the mainstream media. This year is no different

as we discuss the shifting political landscapes that affect labour legislation and union fi nancial disclosure requirements under tax legislation and immigration reform.

It’s estimated that tens of thousands of skilled tradespeople will retire in the upcoming decade, as well as thousands of construction executives; Open Mind looks at the changing face of contractor ownership. From large companies to the family-run business, how are the organizations handling a shift in ownership? We explore buyouts, family succession and mergers that change the way a business operates.

As the demographics of the construction industry shift, women are entering the trades at higher numbers than ever before. Open Mind profi les a graduate of Women Building Futures (WBF) and examines the ways WBF helps women gain a foothold in what has previously been a male-dominated arena.

It’s no secret that unions have a close relationship to government leaders; how do these relationships affect the industry and the individual worker? This topic is explored through the “Charter Challenge” article by Nicholas Malone and “The Coming Quiet Revolution” article by Ben Freeland.

Alberta’s weather-affected construction season will always push the need for increased productivity. FMI provides insight into effi ciency and productivity targets. Dr. Janaka Ruwanpura discusses the dynamics of creating more effective construction outcomes, giving tips on how to improve business.

For the third consecutive year, we celebrate the achievements of Alberta’s top contractors with the Contractor of the Year Awards. We are pleased to announce the winners in this edition.

Thank you for your interest in Open Mind, and as always we welcome suggestions for future topics.

We wish you the best in 2013!

OPENMIND_13_p02-05.indd 5 4/3/13 10:58:15 AM

Page 6: Open Mind Alberta 2013

� OPENMIND SPRING2013

ILLU

STR

ATIO

N B

Y: H

EFF

O’R

EILL

Y

OPENMIND_13_p06-10.indd 6 4/3/13 8:33:05 AM

Page 7: Open Mind Alberta 2013

OPENMIND SPRING 2013 �

By Peter Pilarski

Provincial and federal politicians determine the future of the local industries based on the priorities and laws for which they lobby

anada’s labour laws are different provincially and federally, with the construction industry generally falling under provincial jurisdiction. As such, laws are subject to change depending on the shifting political priorities of the government of the day. It is not unusual

to see labour laws change significantly when a new party is elected and forms government.

When the House of Commons debated and eventually passed Bill C-377, the issue of union financial disclosure became a hot topic in Canada. The bill, “An Act to Amend the Income Tax Act (requirements for labour organizations)” was a private member’s bill introduced by Russ Hiebert, Conservative MP for South Sur-rey – White Rock – Cloverdale. Assuming its approval by the Senate, Bill C-377 makes it mandatory for unions and related organizations to file an annual standardized set of financial statements and schedules with the Canada Revenue Agency.

This degree of transparency will allow Canadians access to crucial information in a manner similar to that found in the U.S., U.K., Australia and many other countries where unions are held to higher degrees of accountability. Canadians will finally be able to see, in online statements, how more than $4 billion in tax-free dues are spent.

BRITISH COLUMBIA B.C’s political fluctuations have jeopardized the province’s posi-tive advancements made in its labour code provisions. Although we don’t know which party will form the next B.C. government, Adrian Dix, the leader of the B.C. NDP, said in a November 2012 speech, “I want to make it clear that I am proud of the work I’ve done for years, side by side with labour unions.” He continued, “The labour movement and NDP have done great things, but our best days are still ahead of us.”

In December 2012, Dix supported eliminating the secret bal-lot when workers vote on whether to join a union. Abolishing this practice eliminates a worker’s ability to fairly express his opinion without fear of intimidation.

ALBERTAThe Alberta government has not changed its labour code since 2008 when Bill 26, the Labour Relations Amendment Act was passed. It dealt with unfair union organizing and job targeting bid-subsidy schemes.

Since then, a group of Alberta’s leading industrial contractors formed the Construction Competitiveness Coalition (CCC) to analyze Alberta’s labour environment and provide recommen-

C

OPENMIND_13_p06-10.indd 7 4/3/13 8:34:04 AM

Page 8: Open Mind Alberta 2013

� OPENMIND SPRING2013

000OM-CustomTruck-FP.indd 1 3/20/13 12:10:18 PM

bargaining in construction and health-care sectors.

The “Saskatchewan Employment Act” has yet to be passed.

MANITOBAA group of construction workers support-ed by Merit Manitoba is currently taking Manitoba Hydro to court to challenge the legality of project labour agreements being imposed on all major hydroelectric con-struction projects.

The court challenge argues that the Manitoba Hydro agreements violate the Canadian Charter of Rights and Freedoms by requiring workers who have not selected a union, to join a union and pay union dues as a condition of employment.

The court proceedings are at an early stage, and it will take time before they ren-der a decision.

ONTARIOLibera l leader and Premier Dalton McGuinty announced his resignation shortly after winning a minority gov-ernment, and prorogued the provincial legislature. His government is supported by Working Families, a coalition of unions. It brought in legislation that revoked the secret ballot vote on unionization elec-tions for the construction industry. The Ontario Liberal Party selected Kathleen Wynne as its new leader. At this time, it’s too early to know her planned approach on labour legislation.

The Ontario Liberal government, also at the behest of unions, introduced leg-islation creating the Ontario College of Trades – perceived by industry as turning control of apprenticeship over to the prov-ince’s unions.

Ontario’s Official Opposition Pro-gressive Conservative caucus released a white paper in June 2012 titled “Paths to Prosperity – Flexible Labour Markets,”

which contained a series of compelling recommendations on labour reform. It suggests that no clauses in any provin-cial legislation, regulation or collective agreement, should require a worker to become a member of a union or pay union dues as a condition of employment. Also included is that union leaders should be more accountable for how union dues are spent. Further, employers should no lon-ger collect union dues through paycheque deductions and should not have to collect dues on behalf of the union. The paper recommends amendments to legislation ensuring unions provide transparent disclosure on union revenues and union spending.

The PC white paper encourages the res-toration of secret ballot voting to ensure workers are shielded from potential intimidation from union organizers and employers – a right taken away in construc-tion by the provincial Liberal government in 2005.

QUEBEC It is still illegal in Quebec to operate a non-union construction company, even though the province’s high-profile Char-bonneau Commission continues to expose the corruption and scandal that defines the way organized crime operates in the construction industry.

The Charbonneau Commission is scheduled to hear evidence for years to come, and it seems unlikely that any changes will be introduced before the commission concludes its work.

NOVA SCOTIA In 2011, Nova Scotia’s NDP government passed Bill 100 and 102. Bill 100, an “Act to Establish a Unified Labour Board,” effectively guarantees successor rights to public sector unions. And Bill 102 allows an arbitrator or the Nova Scotia Labour

dations to reform Alberta’s labour relations rules, improving the competi-tiveness of its construction industry. Some of these recommendations formed part of the PC election platform.

During the 2012 provincial election, the PC party’s election campaign pro-posed amending Alberta’s Labour Code. This included introducing the “Paycheque Protection, Transparency and Freedom to Choose Act”, making it mandatory for unions to provide members with annual financial statements disclosing union spending, providing members the ability to opt out of paying the portion of dues spent on activities unrelated to collective bargaining and grievance administration.

The PC party platform promised to amend the Labour Code banning the imposition of f ines against members who work for non-union employers or employers with a non-signatory union and enabling parties to negotiate single collective agreements for all company workers or projects, rather than separate agreements for each trade group.

Since the election, the PC government has not implemented any of these pledges.

SASKATCHEWANOn May 2, 2012, the Government of Sas-katchewan issued a call for submissions, in response to a consultation paper on reforming provincial labour legislation. The government’s consultation paper asked stakeholders for feedback on 15 pieces of legislation, governing every-thing from employment standards to occupational health and safety to collec-tive bargaining legislation and the “Trade Union Act.” The government received more than 3,800 submissions.

On December 4, 2012, the Govern-ment of Saskatchewan introduced the “Saskatchewan Employment Act,” which consolidated 12 acts into one updated and comprehensive act. The new act included the ability of employers or employees to decertify a union that has been inactive for three or more years and made it more difficult for a union to fine a member for crossing a picket line. Following an unsuc-cessful application to decertify a union, and after waiting 12 months, employees could apply to decertify the union again. The new law will maintain province-wide

TheStateofLabourLaw

Assuming its approval by the Senate, Bill C-377 makes it mandatory for unions, and related

organizations, to file an annual standardized set of financial statements and schedules with

the Canada Revenue Agency.

OPENMIND_13_p06-10.indd 8 4/3/13 8:35:08 AM

Page 9: Open Mind Alberta 2013

000OM-CustomTruck-FP.indd 1 3/20/13 12:10:18 PMOPENMIND_13_p06-10.indd 9 4/3/13 8:35:40 AM

Page 10: Open Mind Alberta 2013

quickly passed Bill 37 in July 2012, which denies workers basic democratic rights to a secret ballot vote in a unionization election.

Newfoundland and Labrador’s new card-check certification removes the requirement for a secret ballot vote if the union submits evidence that 65 per cent or more of employ-ees in the bargaining unit sign a union membership application.

Bill 37 included a one-time final offer bal-lot option, giving an employer the right to request that its final offer be put to the mem-bership in a provincially supervised vote. The bill introduced potential access to first contract interest arbitration at the labour board’s discretion. Section 25 of the code was changed to give employers the right to engage in non-threatening and non-coercive

speech, and to give the labour relations board remedial powers to deal with unfair labour practices.

These changes came as a surprise to employers in Newfoundland and Labrador and were introduced quickly after very little consultation.

CONCLUSIONEmployee or employer rights can be easily stripped with changes to legislation. Gov-ernments need to take time to listen to all stakeholders before considering labour law reform. As we have seen, an election can mean costly changes, and the ever-shifting political priorities of those in power have a significant affect on indus-try and the individual.

Relations Board to impose a first col-lective agreement. Merit of Nova Scotia fiercly opposed both pieces of legislation as did the rest of Nova Scotia’s business community.

Nova Scotia’s business community is united in its opposition to first contract arbitration and has urged the NDP gov-ernment to reconsider its legislation.

Progressive Conservative Party leader Jamie Baillie promised that, if elected, he would focus on economic and job creation measures while eliminating the harmful labour legislation brought in by the NDP.

Liberal leader Stephen McNeil stated that first contract arbitration is “against the spirit of the collective bargaining pro-cess, slanting it in favour of the union,” but he has not committed to any changes should his party form government after the next election.

NEWFOUNDLAND AND LABRADORNewfoundland and Labrador Con-servative Premier Kathy Dunderdale

The State of Labour Law

It is not unusual to see labour laws change significantly when a new party is

elected and forms government.

OPENMIND_13_p06-10.indd 10 4/3/13 8:36:44 AM

Page 11: Open Mind Alberta 2013

OPENMIND SPRING 2013 11

BY KELLEY STARK

magine you are sitting in your offi ce, quietly doing the same job you’ve been doing for 25 years when out of the blue your supervisor walks in and says: “You need to be drug tested. Please go pee in this cup.” Would you be offended? What if the scenario was different and you were injured on the job because an impaired co-worker caused an

accident? Would your concerns be less about offending anyone and more about why a safety issue involving impaired employees wasn’t solved before someone, possibly you, got hurt? We trust our employers to protect both our privacy and provide us with a safe work environ-ment, but alcohol and drug testing can mean that one of those rights diminishes. So which one is more important?

Canada’s construction industry weighs all that comes with onsite drug and alcohol testing

I

ETHICSA Test for

OPENMIND_13_p11-15.indd 11 4/3/13 8:40:30 AM

Page 12: Open Mind Alberta 2013

12 OPENMIND SPRING 2013

The Irving Pulp and Paper plant in New Brunswick tried to implement a random alcohol testing program in 2006. The CEP union, unimpressed with the new policy, took the company to court and, by Decem-ber 2012, the case had gone all the way to the Supreme Court of Canada. A decision still awaits. Irving says it has a safety-sen-sitive workplace because the mill has had many alcohol-related inci-dents versus what the union claims: that random drug testing is unfair and invades the employees’ privacy.

M o r e r e c e n t l y , i n Alberta, a two-year ran-dom drug testing project was launched. The Drug and Alcohol Risk Reduc-tion Pilot Project (DARRPP), which found encouraging outcomes in other jurisdic-tions, gathered a group of companies in the oilsands to try out the new policy. Since drugs and alcohol are prevalent in the industry, the project’s success relies heavily on the deterrent-value of random testing. Suncor, one of the first oilsands compa-nies to jump on board with trial testing was stopped by the CEP union before even starting because the tests were considered invasive. The decision on Suncor’s case also has yet to be heard.

“It all comes down to balance between

privacy of the individual and safety in the workplace,” Walter Pavlic, partner at MacPherson Leslie & Tyerman LLP, says. “They’re always pushing the safety-in-the-workplace issue: ‘we can’t have people that are impaired; we can’t have people who use drugs’; and on the other hand it’s intrusive to ask people to pee in a cup, take blood or a breathalyzer if there’s no basis for it.”

There are different times that a com-pany can choose to test its employees: pre-employment or pre-placement testing is widely accepted, as is post-incident testing. It’s common to randomly test individual employees after they re-enter the workplace following a rehabilitation program, or if there is cause to believe that an employee is currently impaired.

“Random testing is a bit of the issue,” says Pavlic. “When and why and how depends on the circumstances. It becomes a problem when the employer random tests just because they can.”

All provinces can do random testing; it just seems more prevalent in Alberta. “Every province is looking into it, but Alberta is the most inclined to allow it because we have these massive job sites,” Pavlic says.

Sean Evans is the safety manager for Enbridge and chair of the committee of the Construction Owner’s Association of

Alberta’s (COAA) model for alcohol and drug test-ing. He has seen a real effort “to establish a fair and consistent approach to alcohol and drug test-ing programs, at least in the construction industry.” The committee found that its model was adopted by

other industries because it is well-tested and fair. It ensures that a number of checks and balances are in place so that people are treated in a manner that’s consistent with their human rights. “While it may have originated with a group that was centred in the construction industry in Alberta, we see that model being applied across Canada,” he says. (The entire model can be viewed at www.coaa.ab.ca.)

The model explains in detail the expec-tations of the employee, employer and union. It also offers resources for educa-tion and rehabilitation, and spells out what is considered to be above the limit of drugs or alcohol in an employee’s system. Descriptions are also included of where and how random testing should be admin-istered, based on guidelines set out by the United States Department of Transporta-tion Workplace Drug and Alcohol Testing Programs.

It’s interesting to note that random drug and alcohol testing is very common in the United States. “At Enbridge,” says Evans, “we operate pipelines that cross the border. Our employees that operate that pipeline, some of them based in Edmon-ton, have to be part of the random testing because the pipeline crosses the border and operates in the U.S.” The Canadian govern-ment has yet to force drug and alcohol test regulation on companies as the American government has.

“It all comes down to balance between privacy of the individual

and safety in the workplace.”- WALTER PAVLIC, PARTNER AT

MACPHERSON LESLIE & TYERMAN LLP

A Test for Ethics

OPENMIND_13_p11-15.indd 12 4/3/13 4:10:46 PM

Page 13: Open Mind Alberta 2013

Invest in your team.nait.ca/cit | 780.378.1230

YOUR CORPORATE TRAINING PROGRAM

TRANSFORM

EDUCATION FOR THE REAL WORLD

Tom Ross, partner at McLennan Ross LLP adds, “It frustrates (American com-panies) when they are sometimes told in Canada ‘that may not be legal or enforce-able here in Canada.’ With construction, that’s certainly the case. In transporta-tion, you have drivers that operate in both countries; they have to comply with the U.S. rules and it affects them in Canada, whether they like it or not. But for people who work in Canada on a major construc-tion project, they’re subject to the rules of Canada, regardless of where their employer is from.” The U.S. influence impacts policy in companies that also operate in Canada.

Employees have issues with the actual data from drug testing. A breathalyzer, used for alcohol testing, is conclusive. If an employee blows over a certain number, there is little room to argue that he is not impaired. Drug testing is a different story. “Dealing with drugs in the workplace is more of a technical issue, a scientific issue. The problem with some drugs is they have the capacity to stay in your system for some period of time,” Ross says, “You may have used drugs a couple of weeks ago, and you’re capable of working but you’re going to test positive on a random, or any kind of drug test. That’s been one of the challenges of drug testing in the workplace.”

“Even still, it’s a relevant piece of infor-mation; it just may not be a conclusive piece of information. And that’s the gen-eral issue with drug and alcohol testing,” he says, “You should not rely upon that as the sole answer to everything. It should only be a component of a comprehensive approach to safety in the workplace.”

Addiction is another major issue affect-ing companies and their decisions on drug testing. The Human Rights Commission of Alberta treats alcoholism and drug addiction as a disability. That means that an employee suffering from a dependency cannot be terminated without accommo-dations first being made by the employer. Does a disability excuse the fact that an employee showed up for work drunk and caused an accident at the workplace?

“Many programs provide the opportu-nity for people to be rehabilitated,” Ross explains. “And if people can rehabilitate

OPENMIND_13_p11-15.indd 13 4/3/13 4:10:17 PM

Page 14: Open Mind Alberta 2013

14 OPENMIND SPRING2013

themselves then they have an opportu-nity to return to the workplace. And if they can’t, or they don’t make the effort to rehabilitate themselves, then there’s only so much an employer can or should do.”

Pavlic is unequivocal. “Bottom line, firing some-o n e w h o d r i n k s a l c o -hol and shows up drunk is fine if it’s an onsite pol-icy,” he says. The problem arises when you fire some-one who’s an alcoholic, because it’s his or her dis-ability. Alcohol and drug addiction is treated like cancer. It’s a recognized disability and it’s hard to wrap your mind around.”

Employers then have to figure out how to avoid being sued for either breach of privacy or discrimination against a dis-ability. “You have to be prepared to take a certain amount of risk. You have to say, ‘I’m going to take the position that I will take on whatever litigation might be out

there, because it serves my greater pur-pose of having a safety-sensitive work-place, a drug-free workplace,’ ” says Pavlic. And that works right up until someone

complains. “If it’s not a safety-sensitive position, you’re going to have a prob-lem justifying having that kind of testing because there’s a balance that the courts put into place between the rights of the individual and the right of the employer to have a safe workplace. It’s a fine dance that goes on back and forth between them and the problem is the consistency of the posi-

ATestforEthics

“The problem arises when you fire someone who’s an alcoholic, because it’s his or her disability. Alcohol and drug addiction is treated like cancer.

It’s a recognized disability and it’s hard to wrap your mind around.”

– WAlTer PAvlIc

tions,” he says. The case decisions can go either way based on peculiar facts.

The real concern then becomes the balance between safety and privacy. Ross

concludes that the answer really would be a program that has safeguards in it, such as the ability for peo-ple to have the opportunity to rehabilitate themselves or have their disability accom-modated, then there’s a good argument that ran-dom test ing ought to be permitted.

It ’s uncertain where the whole industry stands on the subject, but the

upcoming Supreme Court decisions may sway a lot of companies. Pavlic says, “The trend seems to be shifting towards allowing more intrusive testing, more random testing.”

Workplace impairment is much less tolerated than it was in the past, but the decision to test or not is still currently made company by company.

The Government of Alberta estimates

trades positions by the year 2021—and SAIT Polytechnic’s blended learning apprenticeship programs are leading the

training to close that gap.

“Blended learning is designed for the many Albertans eager to advance their careers in

afford to take a leave from their job—and their paycheque—to attend on-campus apprenticeship training,” said David Roberge, Dean, School of Manufacturing and Automation at SAIT Polytechnic. “It’s also for the many business owners who are too busy to send their employees away to school.”

Apprenticeships are three or four-year training periods, with about 1,500 on-

classroom learning each year. Blended learning allows apprentices in selected programs to complete theory training online, during evenings and weekends, while continuing to work during the day.

SAIT Polytechnic launched blended options in three high-demand trades—electrician, welder and plumber— last year.Carpenter was recently added to the list.

“Taking the blended program enabled me to

keep a full paycheque,” said Rob Milton, a plumbing apprentice who opted for blended learning. “Being a father of three, I do have

How blended learning works

“It’s the best of time-tested apprenticeship

technology,” Roberge said. “We’re seeing a high success rate among motivated apprentices with the self-discipline to manage their time and complete assignments by the deadlines.”

Interactive graphics and videos complement reading materials to make theory easier to understand and can be watched again and again, at the learner’s pace. Knowledgeable SAIT instructors are only a click or call away, while online practice questions help

Blended learners have full apprenticeship privileges, including use of the campus library and recreation facilities as well as online and in-person instructor support.

Not all learning is completed off-campus. “Apprentices still need to come to SAIT for labs, but it provides them with additional weeks on the job,” said Scott MacPherson, Dean, School of Construction. “We’re

available to aspiring carpenters.”

A win-win-win situation

apprentices, employers, and the economy.

For learners from outside Calgary, it cuts

by all apprentices, regardless of where

in the classroom over the course of their apprenticeship.

Employers are also on board. “The blended learning program allows me to not lose my manpower for so much time. Time is valuable,” said John Swan, owner of Triple J Mechanical. In addition, apprentices can apply their learning to the

“By providing apprenticeship training when, where—and how—it’s needed, SAIT is making it easier for people to achieve their career goals, helping to prevent the projected labour shortage and fuelling our provincial economy,” said MacPherson.

For more on apprenticeship blended learning, visit sait.ca.

SAIT Polytechnic’s Apprenticeship Blended Learning blends the best of both worlds.

“Taking the blended program enabled me to keep a full paycheque,”

~ Rob Milton, plumbing apprentice

“By providing apprenticeship training when, where—and how—it’s needed, SAIT is making it easier for people

to achieve their career goals, helping to prevent the projected labour shortage and

fuelling our provincial economy,”

~ Scott MacPherson, Dean, SAIT School

of Construction

000OM-SAIT-FP.indd 1 3/20/13 9:57:11 AMOPENMIND_13_p11-15.indd 14 4/3/13 4:09:34 PM

Page 15: Open Mind Alberta 2013

RBC Group Advantage

Are you getting the mostfrom your employee benefits?

As part of Merit Canada‡, you are an

RBC Group AdvantageTM member and have access

to all-inclusive banking packages that could save

you up to $1,113 a year^. Make the switch today

and receive up to $625 in gift cards+!

Ask us about the RBC Group Advantage program.Visit rbc.com/meritcanada

TM

Save up to $1,113 a year ^on your everyday banking.

® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. ‡ All other trademarks are the property of their respective owner(s). ^ Savings were calculated assuming the use of all banking services available within the RBC VIP Banking package. The amount actually saved will vary depending on the extent to which you use each of the account services. For this calculation, the following assumptions regarding service use were made: overdraft protection, 1 cheque order annually, 2 Interac‡

e-Transfers per month, $2,500 CDN of travellers cheques purchased annually, plus use of 4 drafts/ services annually, travel coupon; the annual rental of a small safe deposit box. Monthly savings also include 100 debits (operating and alternate accounts), 3 Interac ATM withdrawals per month, 1 PLUS‡ ATM withdrawal, 2 cross-border debits per month, 2 certified cheque services, annual fee of the applicant/co-applicant credit card, 1 assisted stop-payment annually and Self-Directed RRSP. + To get $625 worth of gift cards/certificates, you will need a total of 75,000 RBC Rewards points. For more details, go to www.rbcrewards.com For complete terms and conditions of the group banking offer, go to www.rbc.com/groupterms

102027 (03/2013)

000OM-RBC-FP.indd 1 3/25/13 8:49:11 AMOPENMIND_13_p11-15.indd 15 4/4/13 2:42:51 PM

Page 16: Open Mind Alberta 2013

It helps to have a plan.

Find out more atWhat would you do if one of your workers got injured on the job? WCB can help you build a disability management program to help them recover and return to work safely.

403-201-9520 • [email protected] 104, 535 8th Avenue SECalgary, AB, T2G 5S9

www.matrixlabourleasing.comwww.matrixlabourleasing.com

Matrix Labour Leasing Ltd. is a quali�ed, professional Full-Service Human Resources Company for construction contractors across Canada.At Matrix Labour Leasing we are proud to provide you with our expertise, experience, and professionalism gained over the past 10 years in the construction and mining industry. Our success has developed over time by continuing to be consistent and committed to both our clients and employees. We are dedicated to providing top quality skilled labour to our clients for any project they may require.

For our employees, Matrix has been able to commit, and maintain employment for highly skilled trades from day one based on trust, dedication, and experience. And in turn, our clients will consistently receive the reliability, knowledge, and experience from our resources they require to complete any project.

OurValues

Multi-skilled workforce

A ccessible

T rust

R elationship

I ntegrity

X perience

OPENMIND_13_p16-21.indd 16 4/3/13 8:57:31 AM

Page 17: Open Mind Alberta 2013

OPENMIND SPRING 2013 17

New CareerTrade In for a

ust a few years ago, Charlotte Doerksen lived in and worked just outside of a small town south of Camrose called Ferintosh. Yes, Ferintosh.

“People always ask, ‘Where?’ when I say Ferintosh,” says Doerksen. The small town nestles in a neat grid between Little Beaver Lake and Highway

21. But it was a pit stop for Doerksen in a few ways. She worked in housewares at a local tire and general goods store – a job really meant to just pay the bills. Her boyfriend lived in Edmonton so there was a commute to see each other. And Doerksen wanted to provide a world of opportunities to her daughter Emilie, then four years old.

J

Pho

tog

ra

Phy

By:

KEL

Ly r

EDIN

gEr

Women get a better chance at success

in the construction industry with

specialized training

By Michelle lindstroM

OPENMIND_13_p16-21.indd 17 4/3/13 8:57:05 AM

Page 18: Open Mind Alberta 2013

concerned about the number of women in Edmonton living in or near poverty, founded WBF, a not-for-profit organi-zation, in 1998. The group arrived at the idea of pairing these women with an industry that paid well and was in need of skilled workers. Archer joined the organization around 2002 and helped expand the founders’ ideas and build the

organization to what it is today: a growing and trusted source for employers to find knowledgeable, hardworking tradeswomen.

Employees from WBF travel throughout Alberta and talk to women at scheduled group infor-mation sessions. Last year, 3,000 women in 40 communities heard what WBF had to offer. These types of sessions show women what opportunities are out there in the trades that they may not consider

otherwise. The information session is followed by career decision-making workshops for those women who want to take the process to the next level and learn more about the trades. “The work-shop helps women take a close look at the good, the bad and the ugly and really make an informed decision about coming into this type of career.” Archer says. “We accept women into our programs

In a moment of serendipity or maybe it was just time, but Doerksen’s mother told her about what she’d found in an Alberta Works office while on her own personal job hunt: a posting about the Journeywoman START Program, offered through Women Building Futures (WFB). “She knew I wasn’t happy in my job and she thought trades might be something I’d think of doing,” says Doerksen.

It wasn’t a far stretch since Doerksen had some experience in the trades before enrolling in WBF. “My first job ever was cleaning the machines in my dad’s shop,” she says. Her dad is a machinist and her brother is an electrician. “I like jobs where you can think but they also keep you physically active; I think sitting behind a desk all day, I’d get really bored.”

O f h e r r e t a i l e x p e r i e n c e , Doerksen says she worked really hard and got little in return. The jobs she could attain after completing just some of the Journeywoman START program started her pay at four dollars more per hour than she was earning in retail. Hard-to-please customers, willing to voice their opinions loudly, were job perks Doerksen was happy to leave behind as well.

Having a young child made Doerksen,

now 33, acutely aware that her career decisions affected more than just her. She needed to switch gears. She had taken English and theatre at the University of Alberta, Lethbridge and Ottawa. “Why three universities?” she asks. “Life happens.” And, she tended to move around a lot. She also did night classes, primarily, at the U of A Camrose campus

after having Emilie, but left the degree with one semester still to complete. She didn’t know then that it would be rele-vant to her future career, but the basic electrical knowledge she gathered during her university theatre tech experience helped Doerksen choose a trade at WBF.

“The trades are not for everybody,” says JudyLynn Archer, president and CEO of WBF. A group of social workers,

Field Law is a registered trade mark of Field LLP.

�eldlaw.com

Ready for lawyers who understand that a studisn’t just the best looking guy in the room?

“I lIke jobs where you can thInk but they also keep you

physIcally actIve; I thInk sIttIng behInd a desk all day, I’d get really bored.”

– charlotte doerksen, 2011 wbF grad

Trade In For a New Career

OPENMIND_13_p16-21.indd 18 4/3/13 8:58:24 AM

Page 19: Open Mind Alberta 2013

Continued on page 20

KRAWFORDCONSTRUCTION

Specializing in:

krawford.com

Construction Managers General ContractorsDesign Builders

who have thought it through, who are committed to this type of work and who have the right stuff to do it.”

Women fill less than 10 per cent of Canada’s trades workforce, and Doerksen, now a second-year electrical apprentice with Muth Electrical Management Inc., is among that percentage.

It’s still a predominantly male industry, but “non-traditional” doesn’t mean the roles are impossible to fill. An employer like Muth, an electrical company for multi-family residential, commercial and industrial projects as well as a recipient of the Merit Contractors Association Employer of Excellence Award, willingly hires competent tradespeople regardless of their gender. The company currently has eight female employees out of about 75 total in the field. Anecdotally, Doerksen says the ratio of women on the job is higher at Muth than she sees with other trades-related companies.

Gender has not been a challenge for Doerksen on the job. She’s more concerned about finding enough space to work with so many trades milling about on one site. And, of course, the cold can be an issue since most job sites are not in finished or heated spaces – all common workplace challenges most electricians face.

Lenora Forseth, WBF student employment co-ordinator, and Charlotte Doerksen are no strangers to the trades and hard work.

OPENMIND_13_p16-21.indd 19 4/3/13 11:14:25 AM

Page 20: Open Mind Alberta 2013

training and in the field after graduation. “Most of the trades are anywhere from three to four years (of training),” Forseth says, adding that it’s a long process from applica-tion to journeyman status. WBF students need to be aware of the timeline and commit to the program for success.

Forseth says Doerksen falls into the

“typical” graduate of WBF’s Journeywoman START Program. She has a good work ethic, is prompt, shows up and does so with commitment. “I think it’s a win-win for the employer and Charlotte,” she says. “They’re in that partnership together because that’s the process. She’s found an employer who appreciates her and what she brings to the table.”

If Doerksen’s daughter one day shows interest in the trades, she’d tell her: “Find a good company. That makes a big difference – the people you’re working with.” Doerksen determined Muth was the right company for her because she asked a lot of questions

“I really don’t question any female that comes out of that program,” says Heather Beltran, human resources, health and safety at Muth. “Prior to hiring Charlotte, I hired two other females from the (WBF) program and what I liked was that they had all their training, certificates and CSTS (Construction Safety Training System).” The CSTS alone saves employers the cost and time of sending new employees out to do the required eight-hour online course and quiz.

As part of the Journeywoman START program, “students will get hands-on training – but they will also get their safety certifications that will take them through to any employer because safety is such an important part of the industry,” says Lenora Forseth, the student employment co-ordinator at WBF.

The Journeywoman START program is 17 weeks long and includes hands-on training in a variety of construc-tion trades: carpentry, electrical, plumbing, sheet metal, welding, pipefitting and blue-print reading. It’s divided into week-long segments of specific trades training. While they learn some basics in several trades, at the outset of the program the women indicate which one they want to pursue after graduation. As applicants, they inter-view active tradespeople and write a career investigation report as part of the process. There are varying prerequisites on the WBF website, but the idea is to generate a willingness and eagerness to work during

“We recruit Women Who have thought it through,

Who are committed to this type of Work and Who have

the right stuff to do it.” – JudyLynn archer, president and ceo

of Women Building futures

during the interview pertaining to what kind of work they do, and policies on sick days, family emergencies and safety. “Just ask lots and lots of ques-tions,” she says.

“We have a really good work-life balance here at the company,” says Beltran. It’s something she’s proud

to tell prospective employees during an interview for a posi-tion at Muth. That balance and understanding can be hard for tradespeople to find in today’s industry.

Staggered between months of on-the-job training and work at Muth, Doerksen still needs to complete three more segments of studies at NAIT before she can then take the journeyman exam. She’ll always be connected to WBF throughout her trades career,

as the organization remains a go-to resource for grads searching for work at any point in their careers. Providing even more backup, Merit Contractors Association is a supporter of WBF and has a long history of linking graduates with firms looking to hire apprentices.

But Doerksen’s place is quite secure at Muth as she continues to impress the likes of Beltran with her NAIT marks, which the institute sends to Muth as part of the apprenticeship process. “She got 95 per cent on her exam and most of her coursework was 95 per cent and higher,” Beltran says. “She’s got a young daughter, and I know she’s got a significant other in her life, and it’s a lot of responsibility to pull off those kind of marks. That always impresses me.”

The Journeywoman START Program doesn’t find and make committed graduates overnight, Forseth says. That’s why the applicants are put through a lengthy application process and students are taught to stay focused – because it will be worth it.

It definitely has been worth it for Doerksen, since she can happily consider full-time retail, and all it entails, to be a distant memory. (See sidebar on next page for program details.)

Trade In For a New Career

OPENMIND_13_p16-21.indd 20 4/3/13 4:07:23 PM

Page 21: Open Mind Alberta 2013

Felesky Flynn LLP is one of

dedicating itself to providinglegal advice in the complex

area of taxation law

CALGARY5000 Suncor Energy Centre150 - 6 Avenue SWCalgary, AB T2P 3Y7(403) [email protected]

EDMONTON1980 Manulife Place

10180 - 101 StreetEdmonton, AB T5J 3S4

(780) [email protected]

www.felesky.com

Program StartSSeptember 20 1 3

CALL 780 -492-2260 to register and for more information

www.executiveeducation.ca

m A n A g i n g C o m P l e x i t y

Del iver ing reSultS

e n g a g i n g L e A d e r S h i pThe Advanced Program in Project Management is designed for those managing large, complex, strategic and mission-critical undertakings. The program provides the perspective, tools and expertises necessary to successfully realize results.

BUILD A FUTURE WITH WBFFor 15 years, WBF has helped women confi dently fi nd a place in the trades, and the not-for-profi t organization continues to expand its reach. Here is what it has to offer today, and what it’s working towards.

Journeywoman START Program• Takes about 12 to 20 new students every

two months, year-round.• Requires min. six weeks to complete all

preliminary stages (info session, career investigation, etc.) before women enrol for 17-week training.

• Provides hands-on training with basic tools, one week each of six core trades, academic studies (math, science and English), seven safety certificates, Workplace Culture Awareness and work experience.

WBF Heavy Equipment Operator Program• Has one time, early spring enrolment.• Co-ordinates graduat ion when

seasonal work begins and employ-ment opportunities are high.

• Suggests applying in August of the year prior to acceptance due to high demand for program spots.

WBF partnership programs: Partner organizations provide resources and prerequisites for specific training programs geared to their organization. Employment is not guaranteed, but the chances are good that competent students will be hired on with partnering companies. For example, Imperial Oil partnered with WBF to train women for potential hires as heavy equipment operators at its Kearl oilsands project.

Three- to six-week programsStudents are prepared for entry-level employment in a specific trade or occupation. Programs introduce students to basic training in carpentry, electrical, welding and ready-mix driver training (in partnership with Lafarge).For more information visit: www.womenbuildingfutures.com

OPENMIND_13_p16-21.indd 21 4/3/13 9:04:03 AM

Page 22: Open Mind Alberta 2013

22 OPENMIND SPRING2013

ILLU

STR

ATIO

N B

Y: m

Ich

AeL

BYe

RS

OPENMIND_13_p22-27.indd 22 4/3/13 9:10:40 AM

Page 23: Open Mind Alberta 2013

OPENMIND SPRING 2013 23

Manitoba construction workers question having to join and pay union dues to be able to work on hydroelectric projects

o what extent can a government require an individual to become a member of a union, and to pay dues to that union, as mandatory conditions

of employment? Does the Canadian Charter of Rights and Freedoms protect the right of open shop or non-unionized construction workers? Does it allow them to work on hydroelectric projects without being compelled to join and lend fi nancial support to a union they have never belonged to? These questions are at the core of a legal action filed in the Manitoba Court of Queen’s Bench last summer.

T

BY NICHOLAS MALONE

CHARTER CHALLENGE

OPENMIND_13_p22-27.indd 23 4/3/13 9:11:26 AM

Page 24: Open Mind Alberta 2013

24 OPENMIND SPRING 2013

Five local construction workers, with the support of the Merit Contractors Association of Manitoba as co-plaintiff, are challenging Manitoba Hydro’s author-ity to require them to join and pay dues to a union in order to work on hydroelectric construction projects.

Although focused on the provisions of two collective agreements imposed by Manitoba Hydro on open shop contractors and their employees, the case should serve to highlight a widespread and deeply entrenched labour policy in Manitoba that puts the interests of trade unions over the charter-protected rights of workers who chose to remain non-unionized.

The Floodway Expansion Project The case can trace its origins to the Manitoba government’s decision to impose a collective agreement on a con-struction project known as the Floodway Expansion project in 2005. The original proposal attempted to force open shop con-tractors to have their employees sign union cards and pay union dues as a condition of employment. The government justifi ed its decision by asserting that these clauses were necessary to complete the project “on time and on budget” by preventing strikes or lockouts. However, faced with prolonged media attention and lobbying efforts by local industry partners, the government eventually agreed to remove the mandatory union membership clause from the agree-ment. As much as they found the remain-ing provisions of the agreement distasteful with respect to the mandatory payment of dues, a number of open shop companies nevertheless decided to bid on the project.

Unfortunately, this relatively success-ful challenge to the terms of the Manitoba Floodway scheme failed to produce any long-term change in the government’s labour policy agenda. In fact, as recent develop-ments have shown, the use and imposition of restrictive Project Management Agree-ments (PMAs) are likely to continue to affect large-scale public infrastructure projects in the province for years to come. Of even greater concern to open shop contractors is the lack of any meaningful con-sultations or compelling jus-tifications for these policies, which, to a large extent, primarily impact the rights and employment prospects of thousands of open shop or non-unionized workers in the Manitoba construc-tion industry.

The East Side Road ProjectDecisions surrounding the East Side Road Transportation Initiative illustrate the on-going concerns and frustration that open shop contractors and their employees experi-ence on this issue. With a budget of approxi-mately $3 billion, and with more than $50 million in awarded tenders, the East Side Road project will lead to the construction and maintenance of an all-season road running 156 kilometres along the east side of Lake Winnipeg. This project is among the most significant and ambitious transportation initiatives in recent Manitoba history, both in scale and by reference to the extent of public and environmental consultations involved. This project undoubtedly holds significant opportunities for a wide range of Manitoba companies and workers, whether union or

open-shop, and should have attracted bids by a number of open shop contractors.

It was only after the tendering documents for some of the initial East Side Road projects became available in 2011 that contractors fi rst became aware that another PMA (largely modelled on the Floodway agreement) would again subject open shop contractors and their employees to mandatory union dues and fees as a condition of employment.

Manitoba Hydro By 2011, open shop contractors and their employees learned that another govern-ment-directed collective agreement would apply to the Bipole III Transmission Line Project, a project Manitoba Hydro under-took for the construction of converter stations and a new transmission line spanning over 1,300 kilometres from the Lower Nelson River generating station to southern Manitoba. The construction

and maintenance of Bipole III is expected to create

economic opportunities for local and

out-of-province companies for years to come. The Bipole III PMA not only requires its workers to pay union dues and fees but also forces them, as mandatory conditions of employment, to join either IBEW Local 2034 or IUOE Local 987. The government made the decision to impose this collective agreement on open shop contractors and their employees, once again, without any prior consultation.

Open shop contractors immediately expressed their concern that, absent any compelling justifi cation, these offensive and restrictive provisions amounted to a breach of their employees’ charter rights. Merit Manitoba urgently requested to meet with the premier or the minister responsible for Manitoba Hydro, but the government denied the request. Instead the government provided a letter stating

Charter Challenge

Although focused on the provisions of two collective agreements imposed by Manitoba Hydro on open shop

over the charter-protected rights of workers who chose to remain non-

The case can trace its origins to the Manitoba government’s decision to impose a collective agreement on a con-

greater concern to open shop contractors is the lack of any meaningful con-sultations or compelling jus-tifications for these policies, which, to a large extent, primarily impact the rights and employment prospects of thousands of open shop or non-unionized workers in the Manitoba construc-tion industry.

Manitoba Hydro By 2011, open shop contractors and their employees learned that another govern-ment-directed collective agreement would apply to the Bipole III Transmission Line Project, a project Manitoba Hydro under-took for the construction of converter stations and a new transmission line spanning over 1,300 kilometres from the Lower Nelson River generating station to southern Manitoba. The construction

and maintenance of Bipole III is expected to create

economic opportunities for local and

out-of-province companies for years to

Does the Canadian Charter of Rights and Freedoms protect the rights of open shop or non-unionized construction workers?

RBC Group Advantage

Are you getting the mostfrom your employee benefits?

As part of Merit Canada‡, you are an

RBC Group AdvantageTM member and have access

to all-inclusive banking packages that could save

you up to $1,113 a year^. Make the switch today

and receive up to $625 in gift cards+!

Ask us about the RBC Group Advantage program.Visit rbc.com/meritcanada

TM

Save up to $1,113 a year ^on your everyday banking.

® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. ‡ All other trademarks are the property of their respective owner(s). ^ Savings were calculated assuming the use of all banking services available within the RBC VIP Banking package. The amount actually saved will vary depending on the extent to which you use each of the account services. For this calculation, the following assumptions regarding service use were made: overdraft protection, 1 cheque order annually, 2 Interac‡

e-Transfers per month, $2,500 CDN of travellers cheques purchased annually, plus use of 4 drafts/ services annually, travel coupon; the annual rental of a small safe deposit box. Monthly savings also include 100 debits (operating and alternate accounts), 3 Interac ATM withdrawals per month, 1 PLUS‡ ATM withdrawal, 2 cross-border debits per month, 2 certified cheque services, annual fee of the applicant/co-applicant credit card, 1 assisted stop-payment annually and Self-Directed RRSP. + To get $625 worth of gift cards/certificates, you will need a total of 75,000 RBC Rewards points. For more details, go to www.rbcrewards.com For complete terms and conditions of the group banking offer, go to www.rbc.com/groupterms

102027 (03/2013)

000OM-RBC-FP.indd 1 3/25/13 8:49:11 AMOPENMIND_13_p22-27.indd 24 4/3/13 11:50:00 AM

Page 25: Open Mind Alberta 2013

The Government of Alberta estimates

trades positions by the year 2021—and SAIT Polytechnic’s blended learning apprenticeship programs are leading the

training to close that gap.

“Blended learning is designed for the many Albertans eager to advance their careers in

afford to take a leave from their job—and their paycheque—to attend on-campus apprenticeship training,” said David Roberge, Dean, School of Manufacturing and Automation at SAIT Polytechnic. “It’s also for the many business owners who are too busy to send their employees away to school.”

Apprenticeships are three or four-year training periods, with about 1,500 on-

classroom learning each year. Blended learning allows apprentices in selected programs to complete theory training online, during evenings and weekends, while continuing to work during the day.

SAIT Polytechnic launched blended options in three high-demand trades—electrician, welder and plumber— last year.Carpenter was recently added to the list.

“Taking the blended program enabled me to

keep a full paycheque,” said Rob Milton, a plumbing apprentice who opted for blended learning. “Being a father of three, I do have

How blended learning works

“It’s the best of time-tested apprenticeship

technology,” Roberge said. “We’re seeing a high success rate among motivated apprentices with the self-discipline to manage their time and complete assignments by the deadlines.”

Interactive graphics and videos complement reading materials to make theory easier to understand and can be watched again and again, at the learner’s pace. Knowledgeable SAIT instructors are only a click or call away, while online practice questions help

Blended learners have full apprenticeship privileges, including use of the campus library and recreation facilities as well as online and in-person instructor support.

Not all learning is completed off-campus. “Apprentices still need to come to SAIT for labs, but it provides them with additional weeks on the job,” said Scott MacPherson, Dean, School of Construction. “We’re

available to aspiring carpenters.”

A win-win-win situation

apprentices, employers, and the economy.

For learners from outside Calgary, it cuts

by all apprentices, regardless of where

in the classroom over the course of their apprenticeship.

Employers are also on board. “The blended learning program allows me to not lose my manpower for so much time. Time is valuable,” said John Swan, owner of Triple J Mechanical. In addition, apprentices can apply their learning to the

“By providing apprenticeship training when, where—and how—it’s needed, SAIT is making it easier for people to achieve their career goals, helping to prevent the projected labour shortage and fuelling our provincial economy,” said MacPherson.

For more on apprenticeship blended learning, visit sait.ca.

SAIT Polytechnic’s Apprenticeship Blended Learning blends the best of both worlds.

“Taking the blended program enabled me to keep a full paycheque,”

~ Rob Milton, plumbing apprentice

“By providing apprenticeship training when, where—and how—it’s needed, SAIT is making it easier for people

to achieve their career goals, helping to prevent the projected labour shortage and

fuelling our provincial economy,”

~ Scott MacPherson, Dean, SAIT School

of Construction

000OM-SAIT-FP.indd 1 3/20/13 9:57:11 AM

ADVERTISING FEATURE

OPENMIND_13_p22-27.indd 25 4/4/13 2:42:00 PM

Page 26: Open Mind Alberta 2013

26 OPENMIND SPRING 2013

its rationale for requiring open shop or non-unionized workers to join IBEW or IUOE, and to pay dues to these unions, as conditions of employment on the Bipole III project. Aside from an unequivo-cal position that this policy was simply “good business” for Manitoba, the letter also disclosed a familiar set of justifica-tions, namely to ensure workplace safety and to prevent strikes or lockouts. Need-less to say, these purported justifi cations proved even more perplexing to open shop contractors. Manitoba contractors, whether union or open-shop, are all sub-ject to the same Certificate of Recogni-tion safety standards program, which is administered by the Manitoba Construc-tion Safety Association.

Both in form and substance, the Bipole III collective agreement is not without precedent. Beginning in the late 1960s, major hydroelectric projects in northern Manitoba were traditionally subject to mandatory (and similarly restrictive) col-lective agreements. These ad-hoc agree-ments, as negotiated between local trade unions and the Hydro Projects Manage-ment Association (a negotiating and con-tracting agent for Manitoba Hydro) are now embodied in a model PMA known as the Burntwood Nelson Agreement (BNA), providing for union membership and the payment of dues as mandatory conditions of employment.

The practical and intended effect of the BNA and Bipole III agreement on open shop contractors and their employees became clear when employees reported to a BNA-covered project last spring. One of these employees, a co-plaintiff in the case launched last summer, signed a union membership card only under threat of being removed from the worksite if

he didn’t. Mirroring the experience of most, if not all open shop contractors who worked on the Floodway project, the employee’s refusal to consent to the deduction of union dues from his wages also forced his employer to make these payments on his behalf.

The legal action filed in June 2012 will focus on the provisions of the BNA and the Bipole III PMA. The action puts forward two principal arguments.

The first argument is that the requirement to join a designated trade union in order to

work and/or to remit dues to that union, whether or not the employee wishes to be a member of that union violates the affected employee’s freedom of asso-ciation under section 2(d) of the charter. This argument follows a 2001 decision by the Supreme Court of Canada (R. v. Advance Cutting & Coring Ltd., [2001] 3 S.C.R. 209, 2001 SCC 70), which rec-

Charter Challenge

ognized that the freedom of association guaranteed under section 2(d) of the char-ter includes an individual’s right not to associate.

The second argument is that, hav-ing been compelled to join a union or to remit union dues in order to work on the project, the employee’s freedom of expres-sion, protected under s. 2(b) of the charter, is violated. This is because unions publicly support political parties or policies that employees do not necessarily support. Employee-compelled union dues some-times provide fi nancial support to political or ideological causes not supported by the employee.

Preliminary motions fi led by Manitoba Hydro and other co-defendants are sched-uled for May 2013. The law fi rm of Heenan Blaikie LLP is representing the plaintiffs, including Merit Manitoba, with a team of counsel led by Peter Gall, Q.C., who appeared before the Supreme Court of Canada representing open shop contrac-tors from outside Quebec in the Advanced Cutting and Coring Case. Open shops are eagerly awaiting the results.

A co-plaintiff in the case signed a union membership card only under threat of being removed from the worksite if he didn’t.

OPENMIND_13_p22-27.indd 26 4/3/13 4:05:24 PM

Page 27: Open Mind Alberta 2013

Box 1058, Sioux Lookout,Ontario, Canada P8T 1B7

DO IT RIGHT THE 1ST TIME

Call Toll Free:1-800-465-1098 for ourFree 24 page Brochure

[email protected]

www.andersonslodge.com

· Working long hours and need time away with your family?

· Looking for a way to thank employees and managers?

· Looking to thank customers for their loyalty?

· We invite you to fish World Class fresh water for Walleye, Northern Pike, Smallmouth Bass, Lake Trout & Muskie

· All-inclusive 3 to 7 day Main Lodge & Fly In Outpost Packages

BEFORE YOU BOOK YOURNEXT FISHING VACATION

- CHECK US OUT!

BEFORE YOU BOOK YOURNEXT FISHING VACATION

- CHECK US OUT!venturepublishing ca

If you have a signifi cant milestone or business achievement to celebrate, Venture Publishing is your partner of choice for high quality custom publishing.

Call Ruth Kelly at Venture Publishing:> (780) 990-0839 ext 224> toll free on 1-866-227-4276 ext 224> or by email to [email protected]

Proud publisher of

OPENMIND_13_p22-27.indd 27 4/3/13 9:14:33 AM

Page 28: Open Mind Alberta 2013

EVOLUTION28 OPENMIND SPRING2013

ByCarissaHalton

ILLU

STR

ATIO

N B

Y: d

USh

AN

mIL

Ic

ConstructionOwnership

OPENMIND_13_p28-33.indd 28 4/3/13 9:28:38 AM

Page 29: Open Mind Alberta 2013

EVOLUTIONOPENMIND SPRING 2013 29

The handover of a company to another organization can be a successful and healthy experience. Merit members share their lessons learned

lot can happen to a company in the span of a century. In 1912, when oil wells were dug by hand at the start of the Texas oil rush, Bill Flint Sr. started a company building wooden barracks in the

oilfield. His company grew and when oil gushed from the ground in Leduc, Alberta, the Flint family moved its operations north of the border.

One of the first in energy field construction, Flint Energy Services Ltd. expanded and, in 1998, caught the interest of a venture capital company, SCF Partners. These wealthy, Texas oilmen were consolidators; they bought the Flint family’s Canadian operation and went on to make numerous acquisitions. In 2001, Flint Energy went public on the Toronto Stock Exchange and a hundred years after Flint’s first sales in the Texas hinterland, the company was acquired for $1.25 billion by U.S. engineering company URS Corp.

Ownership changes are often an integral, strategic part of growth for the construction industry. “It’s a very dynamic sector. This is the normal business model,” says Guy Cocquyt, vice-president of communications and research for URS Flint. “Companies are constantly being acquired, consolidated or spun off.”

Changes in leadership also represent a natural trans-formation for a company. “A company’s evolution of ownership and governance happens often by default,” says Dr. Lloyd Steier, vice-dean and faculty at the University of Alberta’s School of Business.

“Usually in response to the challenge of succession, there comes a time when all owners/founders must confront this important issue. They then seek ways and means to pass it on.”

Sometimes these founders have a son or daughter who is interested in taking the company on. Sometimes founders turn to employees to buy them out. Others seek companies

A

OPENMIND_13_p28-33.indd 29 4/4/13 1:50:30 PM

Page 30: Open Mind Alberta 2013

with whom they might merge or partner with, or they take the company public.

No matter whether the impetus for change is strategy or opportunity, every ownership transition presents different opportunities and challenges respective of a company’s own strengths, weaknesses and objectives. A company’s evolution is unique to its position in the local marketplace, the status of the global marketplace, and its company goals and culture.

Three Companies, Three Ownership Transitions Don Daly started up Territorial Electric Ltd. in 1980 and based it in Edmonton, Alberta. More than a decade ago, he wondered about how he would transition into retirement.

“A lot of companies I associate with are in the same state as we are,” he says. “The owners are getting close to retirement and looking for ways to sell off their company. At least a half dozen of my competitors have wanted to talk to me about what we’ve done.”

Daly wanted to recognize the work of loyal employees that had stuck with him in good times and bad. After reviewing the options, he presented employees with what his accountant called “golden handcuffs.” Initially, he sold a quarter of the company to eight employees, after devaluing the company so it was easy for employees to buy in. Within a couple years, the employees’ initial investments were fully paid out in dividends.

“It’s been a success,” says Daly. Twelve years after the process began, the employees reorganized themselves and are now in the stages to buy Daly out completely.

Clark Builders started in Yellowknife in 1974 with two primary partners. As the company grew, it moved to Edmonton and the initial partnership was extended to senior staff with an offer to buy shares in the company. As the company expanded further, the employees sought to buy out the initial two partners. After reviewing all the options, a strategic partnership was pursued, which allowed the employees to maintain the company brand, management control and employee ownership model they liked. A partnership with U.S.-based Turner Construction Company was completed in January 2012 when Turner bought 51 per cent of the company, and 49 per cent remained employee-owned. The deal provided Turner with a strong presence in the Canadian marketplace. Additionally, Clark Builders has access to additional human resource support, staff development opportunities, expertise in different market types, and emerging technologies.

While Clark Builders sought a partnership with another similar company, Flint Energy Services sought a way to expand its expertise to broader projects within the oil and gas market. Flint shared no overlapping services with URS Corp. when it was acquired in 2012.

At the point of acquisition, Flint was on target to hit $2 billion in revenue. Even at the size and scope of Flint’s operations, the oil and gas company found itself shut out of many larger oilsands projects where Engineering, Procurement and Construction (EPC) contracting was increasingly being used. EPC contracts require contractors to

Construction Ownership Evolution

OPENMIND_13_p28-33.indd 30 4/3/13 4:04:20 PM

Page 31: Open Mind Alberta 2013

Construction Ownership Evolution

bid on the whole project: design, build and commission. “The only way to do that is with a large engineering company,” says Cocquyt. “Flint couldn’t do this alone, so we looked at different options: mergers, joint ventures.” At the same time, URS Corp. began looking for new opportunities in the energy sector. A year after the ownership change, Flint URS has already begun to introduce Flint customers to the additional suite of services URS brings to Alberta and, as hoped, the company is now bidding on EPC projects.

Keys to SuccessWhen it came to its strategic partnership, Clark Builders spent approximately two years on due diligence, “We took a deep dive into each other’s business to get an understanding of what is ‘below the clothes,’ ” says Brian Lacey, vice-president construc-tion at Clark Builders.

In this “deep dive,” Clark didn’t just look at financials, legal and safety issues; it also broadened the scope to include a review of company culture. “You run a real risk by looking at the financial deal and not paying attention to the cultural concerns,” Lacey says, noting such risks include a company coming in and changing things overnight.

Both companies sent staff to visit the other’s sites. Clark Builders brought a range of people, from upper management to day-to-day operators, to Turner projects in Chicago and Seattle. “The day-to-day operators are the ones who have to live with outcomes. They ask the questions that senior management aren’t considering,” says Lacey. “They see the work through a different paradigm and I think it is critical companies value that perspective.” Staff members were also encouraged to go out for dinner, exchange stories and “let their guard down.”

Clark Builders shared its employees’ feedback regarding key symmetries in safety, schedule, quality and budget that was assessed on score cards on a Turner Construction job site. “You can get a good idea of a company’s approach after just a half hour on a job site,” says Lacey. On site, they asked: What is the level of control and management that’s supplied? Is everyone getting along? Are superintendents getting phone and radio calls about things that could have been organized through planning? It was important to Clark Builders to indicate to its

Rates do not include any taxes, surcharges, airport related fees or other point-of-sale charges. Vehicles subject to availability. Offer is not valid with any other special or promotions, and may not be combined with any other discounted rate or promotional offer. Vehicle must be returned to renting location. Exceptionand surcharge city list applies. Thrifty features a wide selection of quality vehicles. ®Registered Trademarkof Thrifty, Inc. ©2012 Dollar Thrifty Automotive Group Canada Inc. All rights reserved. 02/12

As a Merit Contractors Association member, Thrifty ispleased to offer you great carsat great rates.In addition, you’ll enjoy:• Unlimited daily kilometres at most locations• No charge for additional drivers• No surcharge for underage drivers aged 21-24• LDW (Loss Damage Waiver) available at $18.00 per day in Canada• FREE membership in Thrifty’s Blue Chip Express Rental Program

Quote your Thrifty CD#1660221113to ensure you receive all yourspecial Merit ContractorsAssociation rates and benefits.

The Electrical Contractors Association of Alberta The voice of the Eletrical Industry in the Province of Alberta, working

to ensure a professional & profitable membership through education,strong stakeholder relationships and development as an

industry information centre.

Electrical ContractorsAssociation of Alberta (ECAA)

17725 - 103 AvenueEdmonton, AB T5S 1N8

780.451.24121.800.252.9375

www.ecaa.ab.ca

OPENMIND_13_p28-33.indd 31 4/3/13 9:31:05 AM

Page 32: Open Mind Alberta 2013

32 OPENMIND SPRING2013

recognized it can be very disruptive,” says Cocquyt. “What I liked about this transition with URS is that Flint’s employees woke up and experienced no management or system changes. With very little distraction, we were able to focus on customer service.”

Poorly managed transitions can threaten the very thing that made a company successful in the first place, such as positive relationships with clients and the community. In the event of making big changes, like integrating operations, Cocquyt recommends doing them as quickly as possible. Of course, less overlap or redundancy makes for less change in the

company, its staff and client experience. Cocquyt says the successful mergers tend to be the ones with little to no redundancy.

It is a Global MarketplaceAlberta’s construction industry is dynamic and growing and, with further instability in global markets expected, companies can be certain that even more international companies will invest in Alberta’s construc-tion industry. “We’ve really been sheltered from recession in Alberta,” Lacey says. “When firms realized loss of opportunity in the U.S. or Europe, everybody has focused on Alberta (and Canada) as a land of opportunity.”

“Globalization is a fact of life,” Dr. Steier says. “Our industry has to be resourceful and resilient to survive.” Lacey and Clark Builders know this first-hand. “There is no option; we must be economical and efficient in order to compete,” says Lacey, adding that the partnership with Turner strategically positions Clark to achieve this goal.

When it comes to Daly’s goal to retire, he’ll soon realize it … sort of. He was asked by the new owners to stay on to make coffee and steer the ship every once and a while. “I don’t think I can go from 100 miles an hour to one overnight,” he says.“Besides, my

partnering company what was important to its existing staff.

“We found that any one of their people could tell us the end date, which told me that they were all working towards a common goal,” says Lacey. “That gave us a good feeling for the pulse of the project and the company.”

Lacey is confident that the transition has gone so successfully because they addressed company culture as being an important symmetry. He does caution, “It is a demand on the business – the time and resources required need to be fully recognized and the time set aside. It could be a year, year-and-a-half, of major disruption, but the investment is in the future success of the company.”

Territorial Electr ic ’s Daly stresses one thing t o p e o p l e w h o ask him about the success of his company’s ownership transition, “If you think it’s going to take five years, double it. Everyone is busy running a business. If something is going to get pushed to the back burner, this is it.”

Successful ownership changes take time, not only for due diligence, but also for the transition of new people, processes and expectations. For instance, Cocquyt now has a new ownership team to report to and there is extra work required in educating new people to the business. Also, no matter how much or how little operational overlap there is, it takes time to integrate large accounting and data systems. Flint’s accounting team, for instance, had to convert its reporting system from IFRS (the system for publicly traded companies in the Canadian industry) to the American GAP system. “It went really smoothly,” says Cocquyt, “because we have good people.”

People cannot be overlooked in the success or failure of a transition. Daly hired, retained and rewarded employees who showed passion and trustworthiness. He also relied heavily on his accountant and lawyer so that the ownership transition was done properly.

When it comes to actually making the changes, the key to a successful transition is managing these changes carefully. “We

ConstructionOwnershipEvolution

Successful ownership changes take time, not only for due diligence, but also for the transition of new

people, processes and expectations.

wife told me I better not plan to sit across the table from her all day: she says one of us won’t survive.”

No matter how retirement treats Daly, at least he knows that his company has been left in good hands. It is owned by people he trusts who will not only see that Territorial Electric survives, but thrives.

GOLDEN HANDCUFFSEmployee-owned compan iesrepresentsomeofAlberta’slargestconstructionorganizations,likePCLandGrahamConstruction.

Dr.LloydSteier,vice-deanoftheUniversityofAlberta’sSchoolofBusiness,says,“Itisofteninacompany’sbestinteresttosharetheprofitsofacompanywiththosewhohelpedmaketheprofits.It’ssimplygoodbusiness(and)agreatwaytomotivatepeoplewho,inturn,workhardandstaywithyou.”

Oftenusedasahumanresourcesstrategy,employeeownershipcanalsorepresentagrowthopportunity.“LookattheexampleofWestJet,”saysSteier.“Theirprofit-sharingmayhavebeenaHRstrategybutitispivotaltotheirsuccessinthemarketplace.”

ForDonDaly,founderofTerritorialElectric, sharing the companyownershipwithhisemployeesensuredthathishardest-workingemployeesdidn’tleavetostarttheirowncompanies,effectivelybecomingcompetition.“Iwantedmylong-term,loyalemployeestoberewarded.Theyalldemonstratedovertheyearsthattheyhadgoneoverandabovetheircallofduty.Theyshowedpassionandwereabsolutelytrustworthy.”

Bykeepingseniorleaders,thecompanywasabletoramp-upquicklyandeffectively.“Wehadtrustedpeopletorunfieldofficesonthelargerprojects,”saysDaly.Thankstothegoldenhandcuffs,thiscapacityforgrowthpositivelyimpactedtheemployee-shareholdersatthemostbasiclevel:financially.Foreveryone,founderandstaff-owners,itmadegooddollarsandsense.

comfortsafety

Imagewear, like employers across Canada,

believe that for their employees to keep working,

they need to be comfortable and safe.

Imagewear has the largest selection of leading

innnovative industrial wear and footwear

available anywhere in Canada.

To ensure your workers are comfortable and

have the safest gear, we offer a voucher

program and/or employee savings card that’s

truly unique in it’s ability to give workers the

chance to try on and pick up exactly the right

clothing and footwear at any of our 380+ Mark’s stores

across Canada.

To fi nd what works best for your company,

contact one of our knowledgeable sales consultants at:

P 1.800.663.MARK (6275)

E [email protected]

W imagewear.ca

&

000OM-Imagewear-FP.indd 1 3/20/13 10:23:58 AMOPENMIND_13_p28-33.indd 32 4/3/13 9:32:16 AM

Page 33: Open Mind Alberta 2013

comfortsafety

Imagewear, like employers across Canada,

believe that for their employees to keep working,

they need to be comfortable and safe.

Imagewear has the largest selection of leading

innnovative industrial wear and footwear

available anywhere in Canada.

To ensure your workers are comfortable and

have the safest gear, we offer a voucher

program and/or employee savings card that’s

truly unique in it’s ability to give workers the

chance to try on and pick up exactly the right

clothing and footwear at any of our 380+ Mark’s stores

across Canada.

To fi nd what works best for your company,

contact one of our knowledgeable sales consultants at:

P 1.800.663.MARK (6275)

E [email protected]

W imagewear.ca

&

000OM-Imagewear-FP.indd 1 3/20/13 10:23:58 AMOPENMIND_13_p28-33.indd 33 4/3/13 9:32:51 AM

Page 34: Open Mind Alberta 2013

34 OPENMIND SPRING2013

ILLU

STR

ATIO

N B

Y: IS

AB

eLLe

cA

Rd

INA

L

OPENMIND_13_p34-39.indd 34 4/3/13 9:36:09 AM

Page 35: Open Mind Alberta 2013

OPENMIND SPRING 2013 35

By Terrance Oakey

Step back to review the progress of the open shop sector. Its lessons can help predict the challenges ahead

Union Financial Transparency The House of Commons passed an impor-tant piece of legislation in December 2012: Bill C-377 (An Act to Amend the Income Tax Act – Labour Organizations). It was sponsored by British Columbia MP Russ Hiebert and will require unions and other labour organizations in Canada to file annual public reports detailing their financial statements, salaries paid to top employees, time spent on lobbying and political activities, and certain information about expen-ditures over $5,000. If this legislation is passed by the Senate, it will shine a light on the more than $4 billion that unions collect annually in forced contributions from workers and bring Canada’s union financial disclosure laws in line with those in Australia, New Zealand, Germany,

France, Ireland, the U.K. and the U.S. Canada’s union leaders spent vast amounts

of money trying to defeat this bill – a massive lobby that is expected to continue as the Senate reviews the legislation. This is despite the fact that the House of Commons already amended Bill C-377 to address most of the concerns union leaders raised. The interventions from union leaders that resulted in amendments made Bill C-377 a better piece of legislation. Contrary to union rhetoric, the reporting requirements are not onerous and will be easy to implement with basic accounting practices. Yet union leaders still oppose the bill, suggesting the real moti-vation for their campaign against it is a refusal to concede that they need to operate in a more transparent manner.

he open shop sector and the forces of free enterprise saw another year of substantial progress in 2012. Merit

Canada’s progress was met with opposition at every turn by the leadership of the building trades unions and their allies in the broader left-wing labour movement. Positive reforms took place dealing with immigration reform, union financial disclosure, the federal fair wage act and open tendering.

OPENMIND_13_p34-39.indd 35 4/3/13 9:36:46 AM

Page 36: Open Mind Alberta 2013

Congratulationsto all 2013

Contractorof the Year

award winners!

The ARHCA is proud to partnerwith Merit Contractors Association!

While union leaders applied intense pressure on MPs who supported the legis-lation to change their position, those MPs recognized something that labour leaders did not: 86 per cent of unionized work-ers support greater fi nancial transparency for unions. Therein lies the fundamental disconnect between union leaders and Bill C-377. The disclosure provisions of the legislation should empower union leaders since their members will easily be able to see how the union spends their dues. In fact, the whole union model of forced contributions and generous tax breaks will be enhanced when the general public is able to see how unions spend their money. If unions want to continue to benefi t from the public trust, they need to earn it by operating in a transparent manner.

We should applaud the members of Parliament who voted in favour of Bill C-377 for their support of transparency and accountability. They recognize that unions cannot benefi t from the public trust through forced contributions from workers while simultaneously receiving generous tax breaks worth more than $400 million annually. To argue that unions have no public disclosure obligations simply defi es common sense.

Federally Regulated Wage Rates In the 2012 spring budget, the Harper gov-ernment repealed the Fair Wages and Hours of Labour Act, better known as the Fair Wages Act. This was a long overdue policy change that treats the construction industry like any other indus-try that does business with the federal government. It was a good policy change for workers, governments and taxpayers.

Merit Canada is a strong supporter of the govern-ment’s decision as Merit believes that construction contracts, employment and individual compensation in the construction indus-

Merit Canada’s Progress

try should be based on merit, regardless of employee affi liation.

The Fair Wages Act was adopted in the 1930s to regulate the wages and hours of labour for construction workers engaged in projects funded by the Government of Canada. Back then, there were few, if any, laws and regulations in place at any level to protect the interests of workers. The world is much different today as there are a host of provincial and territorial measures in place to enhance and protect working conditions, employment standards, labour relations, wages and hours of labour.

There is no longer any valid need for federal government regulation in this area. According to Statistics Canada, construc-tion workers are paid an average rate of $28.35 per hour in our country. This makes them the second-highest-paid workers, exceeding the national average by some 30 per cent.

After 80 years, the Fair Wages Act was outdated, created unnecessary adminis-trative costs for the government and the construction industry, infringed on the jurisdiction of the provinces and territories, and signifi cantly increased the burden on Canadian taxpayers.

The Fair Wages Act obliges companies to establish dual-wage structures for private- and public-sector work. Many small and family-run open shop construction compa-nies simply refuse to bid on federal projects because of this costly and burdensome leg-

Repealing the Fair Wages and Hours of Labour Act sets the stage for millions of dollars in savings for

government, open shop companies and taxpayers.

OPENMIND_13_p34-39.indd 36 4/3/13 4:03:00 PM

Page 37: Open Mind Alberta 2013

Elan Construction Limited#100, 3639-27th St. N.E.Calgary, AB T1Y 5E4Tel: (403) 291-1165Fax: (403) 291-5396elanconstruction.com

General ContractingProject ManagementButler Building SystemsDesign/Build Contracting

islation. And what is the result? Lower levels of competition and increased construction costs for the government.

Repealing the Fair Wages and Hours of Labour Act sets the stage for millions of dollars in savings for government and tax-payers. The antiquated wage regulations needlessly increased the marginal cost of labour. This, in turn, discouraged employ-ers from hiring additional workers, even during times of peak demand. Who gets hurt here? New job seekers, in particular, young people and other groups under-rep-resented in the construction trades, such as women and First Nations. The construc-tion industry is vital to Canada’s economic health. We need competition governing leg-islation that refl ects the society and market conditions in which we live today — condi-tions far different than those of the Great Depression.

Open Tendering What rules should the federal government use when spending federal monies on infra-structure projects? As governments across the country face fi nancial pressures, there is a renewed need to take action on out-dated regulations and red tape that increase construction costs. While the federal gov-ernment requires open and competitive bid-ding for its own infrastructure projects, the same is not true for all jurisdictions across the country.

Instead of allowing open tendering, many jurisdictions have rules that allow only certain companies, with agree-ments with pre-selected unions, to get all of the contracts. Non-union construction companies or companies with members of the wrong union aren’t even allowed to bid.

In Hamilton, Ontario, of approximately 260 contractors, only 17 contractors had workers registered with the proper union that city rules require. Ninety-four per cent of the available companies aren’t even allowed to bid on projects. In one case, the city disqualifi ed four out of seven bids for a multimillion-dollar construction contract because bidders weren’t affi liated with the proper union.

This also creates problems for workers. If the companies they work for aren’t even allowed to bid on construction projects, how can their company compete and keep workers? As Penny Allen, the Greater Essex

County District School Board’s super-intendent of business argues: “It’s not fair. All contractors pay taxes, but we, as a publicly funded body, can only put our tenders out to certain contractors that are unionized.”

It is surprising that in 2012, so many Canadian cities still have rules on the books that allow contracts to only be bid on by those affi liated with certain unions and exclude all others. Cities such as Toronto, Hamilton, London, Oshawa, Thunder Bay, New Westminster and Burnaby, and provincial agencies such as Ontario Power Generation and Hydro One, and even school boards have rules in place that restrict open bidding.

Recent media reports on the Toronto District School Board’s problems with repair work show all too well the conse-quences of such restrictive bidding proc-esses. Costs are infl ated ($143 to install a pencil sharpener), productivity is reduced (bills were infl ated to cover workers who did not show up), and who is left with the bill? The taxpayer.

Canadians know that allowing only one pre-selected bidder on every single construction contract is not the best way to go. No Canadian family would operate that way with their own home renovation projects. Opening up bidding allows for competition and leads to lower costs and higher productivity.

The Canadian government is invest-ing $2.275 billion under the Provincial-Territorial Base Fund. Considering that labour costs amount to as much as 40 per cent of a construction project, and that open-shop contractors offer the same services at up to 10 per cent lower costs, savings to Canadian taxpayers from this policy could amount to up to $91 million – and that’s just one infrastructure agreement.

U.S. studies suggest that closed tender-ing rules increase the cost of construc-tion between 12 and 18 per cent. The City of Hamilton estimates that restric-tive clauses inflate the prices of its con-struction projects by up to 40 per cent. By allowing provinces and munici-palities to spend federal funds through their closed tendering processes, the costs of projects increase, fewer projects get funded and fewer jobs are created. Higher costs mean lost opportunities

OPENMIND_13_p34-39.indd 37 4/4/13 1:42:48 PM

Page 38: Open Mind Alberta 2013

Merit Canada’s Progress

and wasted tax dollars. Providing equal opportunity for all contractors to submit their best bids will increase competition and ensure that Canadian taxpayers receive the best value for their money. Federal rules would ensure that local governments would behave more equitably when spend-ing federal tax dollars.

Federal Skilled Trades Program According the Construction Sector Council, there will be a shortage of over 300,000 skilled tradespeople in Canada by the end of the decade. Merit Canada strongly supported the new Federal Skilled Trades Stream announced by Citizenship and Immigration Minister Jason Kenney. This change is long overdue.

Canada’s immigration system must respond better to the needs of employers to ensure those immigrating to Canada have the skills required to obtain long-term sta-ble employment. It is sound public policy to have an immigration system that works to ensure long-term growth and prosperity for Canada.

Merit also welcomed announced changes to the Skilled Worker Program. Changes to the criteria for acceptance of admission outlined by Minister Kenney ensures immigrants will have jobs waiting so they can provide for their families.

The fi nal changes to the Federal Skilled Worker Program selection criteria include:

• Minimum official language thresholds and increased points for offi cial language proficiency, making language the most important factor in the selection process;

• Increased emphasis on younger immi-grants who are likelier to acquire Canadian experience, likelier to adapt to changing labour market conditions, and who will spend a greater number of years contributing to Canada’s economy;

As governments across the country face fi nancial pressures, there is a renewed need to take action

on outdated regulations and red tape that increase construction costs.

www.journalofcommerce.com

We’ve had Alberta

covered since1911

Available in print and digital formatsINDUSTRY NEWS PROJECT LEADS ECONOMIC FORECASTING

101 - 4299 Canada Way, Burnaby, BC V5G 1H3T +1(888) 878-2121 F +1 (604) 433-9549

E [email protected]

C452-13

• Introduction of the Educational Credential Assessment (ECA), so that education points awarded refl ect the for-eign credential’s true value in Canada;

• Changes to the arranged employment process, allowing employers to hire appli-cants quickly, if there is a demonstrated need in the labour market; and

• Additional adaptability points for spousal language ability and Canadian work experience.Merit Canada’s Ottawa offi ce has been

operating for almost two years, yet its impact to industry has already been sub-stantial. Merit Canada will continue to liaise with government officials on these and other priorities of concern to the open shop contractor.

OPENMIND_13_p34-39.indd 38 4/3/13 4:01:43 PM

Page 39: Open Mind Alberta 2013

WE SPECIALIZE IN

CONCRETE REHABILITATION, NEW CONSTRUCTION,EXPANSION JOINT SYSTEMS, SHOTCRETE,WATERPROOFING, METALIZING & MORE.

For more info: Phone: 905-857-7400 or visit hhcinc.ca© Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd

Audit Tax Advisory

www.GrantThornton.ca

Building is your business.Growing it is ours.Private construction, specialty trades, general contracting—whatever area of the construction industry you’re involved in, we can help your company thrive and grow. At Grant Thornton LLP, we have extensive experience working with clients in the construction sector. Whether you’re looking for audit, tax or business advisory services, we have the resources and expertise that will help unlock your potential for growth.

At Grant Thornton, we’re very supportive of industry organizations and events, and we’re proud to be a member of the Merit Contractors Association.

edmonton | Calgary | Camrose | wetaskiwin

000.Adroit_1-2H_nBL.indd 1 3/16/10 9:27:54 AM

OPENMIND_13_p34-39.indd 39 4/3/13 9:46:39 AM

Page 40: Open Mind Alberta 2013

40 OPENMIND SPRING 2013

BY ELIZABETH CHORNEY-BOOTH

t’s no secret to people in the construction industry that a com-pany’s success depends on its pro-ductivity. After all, efficient and

effective work practices directly impact a business’s bottom line, so increasing productivity standards is essentially a no-brainer. But as obvious as the need for increased productivity standards is for any company, actually achieving those standards and identifying areas that need to be tweaked can become diffi cult and complex.

I

The of

ProductivityImportance

tition. Many fi rms even build productivity measures into their contracts as a way to assure clients that they will do whatever it takes to complete jobs effi ciently and cost-effectively. To even be considered a contender for the best jobs available, it is essential for all organizations to raise the bar for productivity standards, or at least keep up with rival companies that do.

“Say you’re up in the oilsands in Alberta, the market has been somewhat soft [because] the margins are being squeezed,” Magnus says. “For an organization to make as much money as they have in the past, they’ve got to figure out productivity issues. It’s the only place to go to fi gure out how to do a job faster and more effi ciently.”

When Magnus consults with clients, he encourages them to look at the big picture of productivity before getting mired in the details. Once that overview is

in place, he helps organizations to model a productivity plan and set tangible behaviours that will result in increased effi ciency. Those behaviours can include strategies to enhance planning and scheduling, and tactics to rectify some-thing as simple as unnecessary trips back to the shop to pick up equipment that hasn’t been brought to the work site.

Magnus says that the road to improved productivity starts with an attitude shift at

Canadian construction companies fi nd their competitive edge in effi ciency processes

the top level of an organization, whether it’s a large fi rm or a small contractor with only a few employees. If management takes a big-picture approach and encour-ages a culture of productivity throughout the company, employees will more likely adapt to tangible changes that affect the way they work.

Janaka Ruwanpura, vice-provost (inter-national), former Canada research chair

Ron Magnus, managing director of FMI’s Center for Strategic Leadership in Denver, Colorado, says that with our stalled economy pushing companies to compete for the same jobs, increased productivity is more than just a way to manage costs – it’s a way for companies to set themselves apart from the compe-

Even if you’re busy, take time to step back and evaluate your processes.

If the owners/managers feel too close to the processes

to see the problems, then connect with a consult-ant – they’re out there.

Know that each company has its own needs and solutions. A plan of action for one company may not work for yours, and that’s OK.

OPENMIND_13_p40-41.indd 40 4/3/13 9:47:40 AM

Page 41: Open Mind Alberta 2013

OPENMIND SPRING 2013 41

and professor in project management systems, Schulich School of Engineering at the University of Calgary, studies 10 specific targets that he says construc-tion company leaders should examine because they can affect company output. Some of those targets include employee motivation/satisfaction, the relationship between subcontractors and main contractors, material management to reduce wasted trips, “tool time” (actual hands-on, working time) optimization, office to on-site communication and weather-related issues.

Another problem, Ruwanpura says, is that most companies focus so much

on working quickly and taking on as many jobs as possible that they don’t see the obvious internal productivity problems they would if they took a step back for self-examination. “Productivity is not about working hard and fast. It’s about how you really analyze where the problems lie,” he says. “When you’re in a chaotic environment, you don’t pay attention. You just run projects. You don’t have time to make changes; you’re just running.”

For some companies, Ruwanpura suggests they place a dedicated per-son on the ground to communicate productivity needs – called a construc-tion productivity improvement offi cer. “They use this person as a facilitator for the entire team so they can identify the problems and mitigate the solu-tions, and then measure the output,” he says, adding that, at the end of the day, companies need to measure two things: how much they produce and how much tool time is being netted.

Ruwanpura suggests company leaders question how communication occurs within their organization; how they determine employment skill sets for future staff; and how they deal

with existing employee motivation and morale. It also helps if the harder aspects are examined, like the management of material resources and the accuracy of estimates. If any of the findings aren’t satisfactory, adjustments and changes must be made.

Each company has different specifi c needs, and Ruwanpura agrees with Magnus that productivity is not about the small details, but rather the bigger picture improvements involving com-munication and organization. Since the solutions vary from company to company, improvements come from a series of changes and tweaks rather than a single magic bullet.

Ethan Cowles, senior consultant at FMI, works directly with contractors looking to make productivity improve-ments. He says that it can be tricky to implement productivity measures because construction professionals are notoriously reluctant to change. “Con-struction is one of those industries where, for whatever reason, people are wired to think that planning is a waste of time,” Cowles says. “Many people think that if they’re not actively installing work, then they must be goofi ng off.” Activity then gets confused with productivity.

Cowles says that raising productivity standards in the fi eld includes the impor-

tant step of management empowering its foremen. Managers accomplish this through effective communication in which they state job expectations clearly. It also means proactive measures are required to ensure required materials and resources will be on site, and on time. When the project begins, responsi-bility and accountability must be shared so everyone on the site feels a part of the process to complete their jobs as effi-ciently and budget-friendly as possible.

Companies should develop a clear plan of what needs to be accomplished weeks before a job even starts, says Cow-les, so crews can hit the site with a sense of momentum. Aiding that momentum, employees also need proper training, appropriate work materials, and hard copies of the overall plan and checklists. It’s imperative, once the job is in progress, that foremen and crews track relevant progress (such as completion dates, mate-rial use/waste, unforeseen/unbudgeted challenges) for productivity measure-ments to be recorded and adjustments to be made to the plan, if needed.

Modifying long-standing company procedures requires managerial fore-thought as well as a buy-in from field employees. Both Cowles and Ruwanpura say it is possible to get all the players on the same page and signifi cantly increase productivity by setting clear expectations, defi ning processes and developing effec-tive channels of communication. “Inter-nally, a company needs to know that productivity is valuable and it’s got to be somebody’s responsibility,” Cowles says. “Sometimes it’s a combination of people, but somebody needs to feel the weight and the responsibility to know that they’re following their own best prac-tices.” If nobody has the responsibility to create a successful culture, the impor-tance of the idea falls by the wayside.

Productivity is obviously a game-changer in construction and is not something to be swept aside. For companies who are struggling with profits and just don’t know why, there are consultants out there who can point out issues that company leaders are just too far into the processes to see. Taking a step back every now and then may be all an organization needs to do in order to move forward.

Improved productivity comes from all staff levels being on board with change.

Change requires bigger-picture thinking and changing the company culture.

Productivity can and should be used to give companies a competitive edge in

the construction industry.

OPENMIND_13_p40-41.indd 41 4/3/13 9:48:27 AM

Page 42: Open Mind Alberta 2013

illu

stra

tio

n b

y: s

tev

e a

da

ms

42 oPenmind sPrinG 2013

by BenFreeland

OPENMIND_13_p42-45.indd 42 4/4/13 1:44:07 PM

Page 43: Open Mind Alberta 2013

The Coming Quiet

OPENMIND SPRING 2013 43

Revolution

n October 2010, Maclean’s magazine released an issue with an inflammatory cover image that caused all hell to break loose in the province of Quebec. The cover featured the beloved Bonhomme Carnaval snowman carrying a briefcase

overflowing with money; the headline read: “The Most Corrupt Province in Canada.”

The backlash in Quebec was fierce, prompting Rogers Publishing to issue an apology. At the same time, however, a small but vocal cho-rus of Quebecers, including a number of prominent journalists, came to the defence of Maclean’s journalist Martin Patriquin and his report on the state of institutionalized corruption in Canada’s second- largest province. For the locals, the allegations were not only undeni-able, but also old news that the rest of the country needed to hear.

The Maclean’s exposé did much to draw national attention to Quebec’s deep economic and political dysfunction. It also correctly identified the major driving forces behind the corruption: the enor-mous influence wielded by the province’s large construction unions and an extraordinary level of intrusion into the industry by the pro-vincial government.

I Since 1968, union membership has been mandatory for construc-tion workers in Quebec, making it the only jurisdiction in North America with such regulations. Coupled with legislation passed in 1976, which gave the provincial government sweeping power over labour supply at the behest of the province’s five big construction unions, this resulted in a closed and rigged system characterized by inflated costs and a lack of transparency permitting a deep penetra-tion of organized crime.

In 2011, the embattled Liberal government of Jean Charest finally took decisive action against this culture of corruption with the launch of the Charbonneau Commission. Meanwhile, recent legis-lative moves in and out of the province give fresh hope to Quebecers who view the province’s domineering unions with the same acri-mony they once reserved for the heavy-handed clergy of pre-Quiet Revolution Quebec.

The roots of this closed system are not difficult to comprehend. At the dawn of Quebec’s Quiet Revolution in the 1960s, support for organized labour was widespread in the wake of autocratic regime of Maurice Duplessis and his Union Nationale party. The period after

By Ben Freeland

For nearly half a century, Quebec’s construction industry has been held hostage by overregulation, opacity and heavy-handed big labour machinations. For most Quebecers, an open shop revolution is long overdue

OPENMIND_13_p42-45.indd 43 4/3/13 9:50:35 AM

Page 44: Open Mind Alberta 2013

Duplessis was characterized by the whole-sale transfer of authority over education and health care from the Catholic Church to the provincial government, as well as the rapid expansion of unions. But while unioniza-tion offered workers better working condi-tions than before, it did nothing to ensure industrial harmony. Union factionalism lead to well-publicized spates of violence at many mega-projects and threat-ened to derail the province’s break-neck industrialization.

Prior events all led to the 1976 creation of the Commission de Construction du Québec (CCQ) – a special government department charged with overseeing con-struction industry manpower. The provincial government essentially established itself as a tributary to the Quebec’s five main construction unions, instituting wage schedules and controlling the number of union cards issued. In doing so, the provin-cial government allowed itself “to be taken hostage by the disreputable elements of the trade union movement,” journalist and political scientist L. Ian MacDonald wrote.

The arrangement curbed building-site violence and decreased work stoppages, yet this labour peace was a straight-jacketed industry characterized by the CCQ’s intimi-dation. (Between 1978 and 1996, the CCQ levied close to $25 million worth of fines for work done without the required union

card.) The resulting system also made it vir-tually impossible for skilled tradespeople outside of Quebec to work in the province since it barred out-of-province firms from bidding on building projects. Alternately, many skilled tradespeople within Quebec were forced to seek opportunities outside the province while starving the province’s industry of fresh talent and competition.

Michel Kelly-Gagnon, president and CEO of the pro free market Montreal Economic Institute said in his presentation at the 2012 International Open Shop Conference in Ottawa, “Quebec’s construction industry is special, and not in a good sense. It’s a shame because Quebec’s construction workers actually have an excellent reputation in terms of actual skills and work ethic.”

The formation of Alberta’s Merit Contrac-tors Association in 1986 started the open shop model of construction from a small movement widely perceived as a temporary blip to the sector. The Merit phenomenon

did not go unnoticed in La Belle Province, leading a small, but vocal, contingent of contractors to publicly question why the “freedom of association” guarantee out-lined in the Canadian Charter of Rights and Freedoms was systematically denied for Quebec workers.

Finally, the issue came to a head with the initiation in 1993 of the R. v. Advance Cutting

and Coring et al. Supreme Court case. The case was led by Jocelyn Dumais, a Gatineau concrete contractor well known for his acts of civil disobedience against Quebec’s closed shop system. Dumais also briefl y ran as a can-didate for the centre-right Action Démocratique du Québec party but withdrew from the politi-cal scene in order to focus on his lobbying efforts. The plaintiffs

in Advanced Cutting and Coring argued that Quebec’s policy of mandatory union membership for construction workers con-travened their constitutional right to free-dom of association. The court heard the legal arguments in March 2000, and decided after 18 months by a vote of fi ve to four, that Que-bec’s turbulent labour relations history made its mandatory unionization law a justifi able and permissible exception to the Charter.

For a decade after that ruling, little changed on the labour reform front, despite the many scandals besetting the province’s construction industry. In 2011, prospects

INSURANCE | BONDING | RISK MANAGEMENT

Lloyd Sadd addresses the unique challenges contractors face by providing a group of over 20

professionals that specialize in the risks and exposures of the construction industry. We have

dedicated significant resources to understanding this industry and the issues that Alberta

contractors face to develop practical, creative, and cost-efficient solutions that assist

contractors in managing risk. We Listen. We Think. We Deliver. i n s u r a n c e b r o k e r s

CALGARY | EDMONTON | GRANDE PRAIRIE

www.lloydsadd.com

For a decade after that ruling, little changed on the labour

reform front, despite the many scandals besetting the province’s

construction industry.

The Coming Quiet Revolution

OPENMIND_13_p42-45.indd 44 4/3/13 12:53:36 PM

Page 45: Open Mind Alberta 2013

of change resurfaced with the launch of a massive public inquiry into the manage-ment corruption of a public construction contract: the Commission of Inquiry on the Awarding and Management of Public Con-tracts in the Construction Industry or the Charbonneau Commission. In the midst of this highly publicized inquiry, Quebec’s then Labour Minister Lise Thériault took an uncharacteristically bold step by intro-ducing Bill 33 in December 2011. The bill’s aim was to end the practice of union place-ment of employees (or placement syndicale) and force the CCQ to actually assign work-ers based on employers’ needs.

In the same year, B.C. Conservative MP Russ Hiebert tabled a groundbreaking pri-vate member’s bill that, if passed, would require unions to publicly open their books. Bill C-377 found vocal champions in Que-bec, most notably the Montreal Economic Institute and the Quebec Employers Coun-cil. While Quebec’s construction unions rallied against the bill, a Quebec Employers

Council survey (conducted by Léger Market-ing) indicated that a staggering 97 per cent of Quebecers believed that unions should be legally required to disclose their spending.

For the time being, a wholesale repeal of Quebec’s mandatory unionization law remains unlikely. The current Parti Québé-cois government remains steadfast in its defence of the labour status quo: current PQ Labour Minister Agnès Maltais took a vocal stance against Bill C-377 and Min-ister Maltais articulated similar feelings in a December 2012 letter to federal Labour Minister Lisa Raitt.

Nevertheless, Quebec’s advocates for worker freedom in the construction indus-try are more optimistic now than they have been in a long time. “Public opinion is on our side,” asserts Dumais. “The unions have lost a lot of public support in Quebec and, as a result, you’re hearing a lot less out of them.” He contends that if the issue were brought before the Supreme Court once again, the results would be quite different.

“I think the time is right for another run at overturning the law,” he says, adding that he has spoken with experienced legal counsel who supports this view as well.

Dumais asserts that the impact of over-turning Quebec’s union-only legislation would be felt well beyond just Quebec. “In my opinion, overturning this legislation would bring to an end attempts like the heavy-handed union tactics like we’re see-ing with Manitoba Hydro at the moment,” he says. “A lot of these union leaders think that as long as they have the upper hand in this province, there’s still hope for the same kind of thing elsewhere. Breaking their lock in Quebec would send a powerful message.” As for the “labour harmony” canard for-ever trotted out by defenders of Quebec’s closed shop construction regime, Dumais dismisses the argument as ridiculous and insulting to Quebecers. “It’s 2013. We’re way beyond all that. The issue of labour-related violence is in the past. It’s the future we’re concerned about.”

Merit Contractors Association, Alberta Venture and the Alberta Roadbuilders and Heavy Construction Association extend their thanks to the generous sponsors and to everyone who attended the Contractor of the Year Awards Gala!

THANK YOU

CONGRATULATIONS TO ALL THE FINALISTS AND WINNERS OF THIS YEAR’S CONTRACTOR OF THE YEAR AWARDS!

Presented by Sponsored by Dessert Sponsor

OPENMIND_13_p42-45.indd 45 4/3/13 2:01:09 PM

Page 46: Open Mind Alberta 2013

CERTAINCERTAINFE W T H I N G S A R E T H I S

A membership with Merit Contractor’s Association is certain to bring stability to your

construction business. Recent upgrades to the Merit Benefit Plan

include improved coverage for employees and decreased costs for employers.

Merit’s superior service will provide your company with an immediate competitive

advantage and the certainty of long-term stability.

Don’t miss a sure shot.

www.meritalberta.comEDMONTON: 780.455.5999 or 1.888.816.9991 CALGARY: 780.455.5999 or 1.888.816.9991

000OM-Merit-FP.indd 1 3/25/13 8:13:43 AMOPENMIND_13_p46-50.indd 46 4/3/13 9:53:10 AM

Page 47: Open Mind Alberta 2013

OPENMIND SPRING 2013 47

erit Contractors Association, Alberta R oa d bu i ld er s a nd Heavy Construction Association (ARHCA)

and Alberta Venture magazine present this year’s Contractor of the Year Award winners and finalists. The finalists are companies and individuals that strive for efficiency, innovation and practicality, and their suc-cess in their journey is why they are recog-nized as leaders in the industry.

Public and private companies that have a regional office in Alberta can be eligible entrants for these awards. The organiza-tions also need to sell construction services, employ trades people, and/or contract out labour supply in the industrial, commer-cial, institutional, residential, civil, road building or oilfield construction sectors.

The six award categories include: General Contractor Under $50 Million, General Contractor Over $50 Million, Trade Contractor Under $15 Million, Trade Contractor Over $15 Million, Heavy Civil and Construction Person of the Year.

Keep reading to find out which compa-nies were chosen by this year’s adjudication panel and why.

General ContraCtor Under $50 Million

WINNER Rockwood Custom Homes, based in Calgary, builds or renovates 10 homes worth between $1.2 and $20 million each year. Rockwood prides itself on delivering both the dream home and the dream experience and co-founder and CEO Allison Grafton says their clients come first in everything. Customers rarely have a big budget surprise at the end of the project because the builder carefully estimates costs, tracks spending and keeps customers in the loop monthly. In fact, 98 per cent of Rockwood homes have come in on or under budget. To end the project with a bang, Rockwood owners give clients an engraved iPad loaded with warranties and manuals. This builder is all about making the client experience the best it can be.

An example of Rockwood’s custom mastery

Key PlayersAlbertain

Construction

CERTAINCERTAINFE W T H I N G S A R E T H I S

A membership with Merit Contractor’s Association is certain to bring stability to your

construction business. Recent upgrades to the Merit Benefit Plan

include improved coverage for employees and decreased costs for employers.

Merit’s superior service will provide your company with an immediate competitive

advantage and the certainty of long-term stability.

Don’t miss a sure shot.

www.meritalberta.comEDMONTON: 780.455.5999 or 1.888.816.9991 CALGARY: 780.455.5999 or 1.888.816.9991

000OM-Merit-FP.indd 1 3/25/13 8:13:43 AM

By AlexAndRiA eldRidge And Michelle lindstRoM

the 2013 contractor of the year Awards recognize those who raise the bar

OPENMIND_13_p46-50.indd 47 4/3/13 9:55:48 AM

Page 48: Open Mind Alberta 2013

48 OPENMIND SPRING 2013

FINALISTPCL Construction Management Inc., a well-known Alberta builder, has many projects under its construction belt: bridges, light-rail transit, pipelines, and more for clients such as the City of Calgary and the City of Edmonton. As an employee-owned company, PCL prides itself on its corporate culture, and also pro-vides extensive learning opportunities for staff with an in-house college offering both leadership and technical training.

FINALIST For more than 22 years, Seagate Contract Management has specialized in contract management for interior commercial spaces in Edmonton. It has renovated countless spaces in West Edmonton Mall, including the 25,000-square-foot Gold’s Gym that opened in 2006. Seagate also specializes in salons and spas, professional spaces (medical offi ces), and has done extensive work renovating Edmonton’s NorQuest College.

FINALISTK&D Turnaround Services is an expert in the installation of mass transfer equipment for the petrochemical and refining industries. With offi ces in both Houston and Nisku, the company has done work across the world for companies such as Suncor Energy, BP Oil, Imperial Oil and others.

GENERAL CONTRACTOR OVER $50 MILLION

WINNER Founded in 2004 and based in Calgary, Strike Energy Services is an oil and gas construction and services company with 800 employees spread out over 14 different locations. Strike’s low turnover rate directly relates to its focus on employee engage-ment and company culture. Stephen Smith, Strike’s CEO, began the company as an employee-owned venture from the begin-ning because “we wanted the management to have a stake in the game,” he says. Additionally, employees are encouraged to share the non-profi t organizations in which they are involved within their communities and Strike will add it to the over 100 charita-ble organizations it already supports. Strike School of Business also offers employee training in everything from safety to lead-ership development. “We treat our employees as we’d like to be treated ourselves,” Smith says.

FINALIST WorleyParsonsCord is a major industrial construction con-tractor and one of the largest providers of industry modules in Western Canada. In 2012, the company delivered more than $750 million in project work for clients such as Suncor, TransCanada and Enbridge. Part of the global WorleyParsons corporation, WorleyParsonsCord has a detailed safety framework and has won numerous awards for its outstanding safety practices.

TRADE CONTRACTOR UNDER $15 MILLION

WINNER

Demolition at its fi nest by R3

Edmonton-based demolition company R3 Deconstructionbuilds people up. Travis Blake, the company president says an offer is made to prospective employees (typically unskilled labourers): If they commit one year to R3 fi rst, training and lead-ership opportunities will be offered, allowing the employees the chance at a career instead of a short-term job. R3, which has 23 full-time staff members, prides itself on caring about its people, offering free legal services and banking education. The company was only incorporated in 2010, but made over $2 million in rev-enue for 2012, which can be partially attributed to R3’s unique approach to demolition. Employees carefully plan a structure’s deconstruction and then sort out materials that can be reused or recycled.

FINALISTB&B Demolition was founded in 1999, and has since created a name for itself as a company dedicated to customer service and environmental consciousness. Although the company began as a specialist in commercial interior demolition, it expanded its services to become one of Edmonton’s most diverse demolition companies. B&B’s list of completed projects include residential, commercial, and industrial sectors, as well as over 700 projects in West Edmonton Mall.

Key Players in Alberta Construction

OPENMIND_13_p46-50.indd 48 4/3/13 10:02:16 AM

Page 49: Open Mind Alberta 2013

OPENMIND SPRING 2010 49

FinalistFounded in 2012, EverLine Coatings and Services is a property maintenance company that began specializing in parking lot line marking, but now offers services such as parking lot sweep-ing, snow removal and more. The company won the 2012 Calgary Chamber of Commerce Breakout Business Award and prides itself on being different than other contractors in its approach to client relationships. Some of EverLine’s major clients include Chinook Centre, Foothills Medical Centre and the Calgary Airport.

Trade ConTraCTor over $15 Million

WinnerVertex is a $110-million resource sector service provider in Sherwood Park offering everything from scaffolding to environ-mental consulting to oilfield hauling. Vertex has 12 branch offices across Western Canada and the U.S. and over 750 employees in its three divisions of construction, professional services, and oilfield rentals and hauling. Vertex CEO Terry Stephenson says, “It does seem a little spread out, but if we branched out into something it’s because it fits with what our customers need or want.” Recently, the company implemented 3-D modelling, which will soon feed into their computerized cutting tables for a quicker and more accurate drafting process. But no matter what area the innovation is in, Vertex always does it in an effort to satisfy their customers.

FinalistEdmonton-based NCSG Crane & Heavy Haul Services has the equipment and geographic reach to meet almost any heavy haul or crane rental need with its nine branch offices across Western Canada and Western U.S., and over 600 pieces of machinery. In 2012, the company’s strong commitment to safety had it named 10th among the top 100 crane-owning companies in North America according to American Cranes and Transport magazine.

Heavy Civil

Winner

Sprague-Rosser’s Fort McMurray project: Rainbow Creek Drive Extension

Sprague-Rosser Contracting Co. Ltd. began as an excava-tion subcontractor 45 years ago in Edmonton. When new CEO Jeff Jessamine took over in 2009, the focus changed to becom-ing a civil contractor, bidding against companies like PCL and Graham for projects. “We re-engineered the culture,” Jessamine says. “We had to get everyone singing the same song and set new visions and values.” The company had 13 recordable workplace incidents in 2009 and slashed that to zero the following year and have held a record of zero incidents for the past 15 months. Safety really boils down to planning and education, says the CEO. As a result, Sprague-Rosser developed a program to go into schools and educate children and parents about the hazards of a worksite and what to expect.

FinalistFounded in 1964, M. Pidherney’s Trucking has operated throughout central Alberta and worked in civil construction and oilfield services for more than four decades. During peak season, over 400 employees assist Pidherney’s function as a diverse gen-eral contractor for everything from gravel delivery to remedia-tion services. It also is quite active in the community, supporting numerous charities and events throughout the province.

Vertex’s insulation work helped this gas processing facility in northeastern B.C.

OPENMIND_13_p46-50.indd 49 4/3/13 10:03:02 AM

Page 50: Open Mind Alberta 2013

50 OPENMIND SPRING2013

BILL KNIGHT,FounderandCEOofB&BDemolition

KeyPlayersinAlbertaConstruction

WINNER Bill Knight, the founder and CEO of B&B Demolition, stumbled into Edmonton’s demolition industry nearly two decades ago and has been a key figure in building the reputation of the demoli-tion trade in Alberta. “Anybody that has a sledgehammer and a half-ton thinks they can be a demolition contractor,” Knight says. “We try to put a different face to it.” He was the first demolition contractor in Canada to receive a gold seal certification for estimating and has piled on the acco-lades ever since. As a Grade 9 dropout, Knight came to Alberta at 16 and worked odd jobs until he got into demolition. “I’ve done everything from milk cows to build pallets to work in a Styrofoam cup factory,” he says, adding he’s also been fired from most of them. B&B Demolition started in 1999 by gathering all of his money at the time – about $3,800 – and running it out of his basement with his mother as the receptionist. It was a rocky start, but the company has expanded to be worth $10 million, with approximately 70 team members working in demolition for commercial, industrial and more. Major clients for B&B include Wendy’s, Tim Hortons and West Edmonton Mall. “I’m not going to over-promise and undera-chieve and I think that’s why we’ve risen to the top,” he says. “I think business is very simple: do what you promise.”

And while the growth of B&B is incred-ible, Knight’s favourite part of his success is the ability to give back. Both Knight and his company have contributed to countless charities including the Lois Hole Hospital, Kids for Cancer and more.

It’s not easy to change the way an entire industry views demolition, but Knight doesn’t seem too intimidated by the pros-pect. For him, it just starts with what they’re doing at B&B – and that’s the best job they can. “You set a standard of qual-ity that people expect,” he says. “Then contractors demand it and everyone else needs to change to catch up to that stand-ard. That’s my theory.”

PH

OTO

BY:

CU

RTI

S C

OM

EA

U

Merit,theAlberta Roadbuilders and Heavy Construction Association and Alber ta Venture magazine thank theadjudicationpanelforassistingwiththeContractor of the Year Awards.Thisyear’sjudgesincludeBruce Moisey,formerpartnerofAlbercoConstructionandapastchairmanoftheARHCA,Carl Knowler,CanadianWesternBank,andAminah Robinson,UniversityofAlberta.

ConstruCtion Person of the Year

OPENMIND_13_p46-50.indd 50 4/4/13 1:49:30 PM

Page 51: Open Mind Alberta 2013

OPENMIND SPRING 2013 51

Federal immigration reforms can help the construction industry cope with a shortage of skilled workers

espite the best efforts of governments, business asso-ciations and contractors to promote apprent iceship

programs, improve productivity and reach out to under-represented communities, forecasts continue to indicate that there is an imminent and significant shortfall in domestic human resources. In short, Canada’s labour force is dangling on the edge of a demographic cliff.

According to Human Resources and Skills Development Canada (HRSDC), the median age of Canada’s population in 1971 was 26.2 years old. As of 2011, the median age was 39.9 years. Our working-age population is expected to decrease by 13 per cent over the next few decades.

Dby Bill Stewart

Cliff More than 20 per cent of the current

construction industry workforce is expected to retire over the next seven years. According to the Construction Sector Council, this will contribute to a nationwide shortage of 300,000 construction workers. Industry will feel the impacts.

The Construction Owners Association of Alberta (COAA) is a major group of purchasers of construction services – many of which are involved in developing oil- sands in northern Alberta. The industry estimates current and intended investment to be $250 billion, and COAA members have a significant interest in construction workforce issues. In 2011, they estimated that industry would need almost 160,000 offshore construction workers over

the next seven years to meet projected construction needs.

For years, most of the 250,000 permanent immigrants coming to Canada annually came in under the Federal Skilled Worker sub-category. Changes in immigration legislation in 2002 established selection criteria based on the theory that the more education an immigrant had, the more likely he or she would be to succeed in resettling.

Consequently, 46 per cent of admissions under the Skilled Worker program held a master’s degree or PhD whereas only three per cent of admissions held a formal trade certificate. The result for construction was that fewer than 700 immigrants with trades training were admitted to Canada annually while countless numbers of

OPENMIND_13_p51-53.indd 51 4/3/13 10:54:42 AM

Page 52: Open Mind Alberta 2013

52 OPENMIND SPRING 2013

foreign-trained doctors, accountants and nuclear physicists were underemployed as janitors, caretakers or taxi drivers. The law at the time also stipulated that all appli-cations be processed in the order in which they were received, which resulted in a backlog of hundreds of thousands of applications.

With apprenticeship training programs running at unprecedented levels and the industry experiencing full employment, many contractors were forced to resort to short-term international recruitment through the controversial federal Temporary Foreign Worker (TFW) program. However, this program was fraught with bureaucratic red tape and delays too.

Many of the problems associated with the TFW program are attributed to it being jointly administered by two federal departments. Prior to offering temporary employment to a foreign national, the employer must obtain a Labour Market Opinion (LMO) from HRSDC. HRSDC’s role is to certify that the employer made reasonable efforts to recruit within Canada first

and that the terms and conditions of employment are not fraudulent and in accordance with prevailing local wage rates and employment standards. Once

the employer obtains the LMO, the employer and prospective employee must then satisfy both CIC and provincial regulatory authorities responsible for accreditation, that they are eligible to work temporarily in Canada.

Employers experienced tremendous difficulty with the TFW program. The Auditor General of Canada (AGC) delivered a scathing critique of how the LMO process was administered. An audit noted, “We found that directives

The Demographic Cliff

on how to assess whether employers meet some or all of the factors outlined in the regulations are not clear or incomplete; interpretations vary from one regional

offi ce to another and even within the same offi ce.”

That Was Then, This is NowI n s p r i n g 2 0 1 2 , t h e f e d e r a l g o v e r n m e n t b e g a n r e t o o l i n g its policies and procedures for permanent and temporary workers.

To reduce a backlog of 300,000 applications, Immigration Minister Jason Kenney announced that all applications received prior to February

28, 2008, under the Federal Skilled Worker program, would be returned to applicants. This paved the way for the Immigration Department to process applications based on labour market needs, instead of their place in the queue.

In April 2012, HRSDC Minister Diane Finley announced the Accelerated Labour Market Opinion (A-LMO) program to expedite the processing for targeted TFW applications. The program enabled employers with a positive compliance

OUR WORKING-AGE POPULATION IS EXPECTED TO DECREASE BY 13 PER CENT OVER THE NEXT

FEW DECADES. – Human Resources and

Skills Development Canada

OPENMIND_13_p51-53.indd 52 4/3/13 10:55:12 AM

Page 53: Open Mind Alberta 2013

record of two years to have new applica-tions fast-tracked. This new approach is working exceedingly well.

In July 2012, Minister Kenney announced the extension and expansion to the Alberta Pilot Project. Employers no longer need HRSDC approval and an LMO to recruit internationally for skilled workers in seven high-demand occupations. This move significantly helps companies – particularly construc-tion and maintenance companies – to respond more quickly to the needs of resource developers. In most cases, TFWs brought in under this stream are allowed to move between employers in Alberta over a two-year period – a feature unavailable in other TFW streams. While the pilot project provides much-welcome relief in expediting international recruitment, it is for the most part only available to construction companies and not other industries experiencing acute shortages. Moreover, it is restricted to Alberta operations only. Industry is also critical of provincial regulatory rules that create different credential recognition streams and the process and length of time it takes to recognize trade credentials for optional and compulsory certifi ed trades.

To deal with the bias in the FSW

immediate innovativeimpactful

corporatetraining

Plan for SuccessRed Deer College (RDC) is committed to providing innovative training programs speci�c to your industry. By supplying you with the right resources and expertise, we give you the essential training tools to grow your workforce, strengthen partnerships in the industry, and expand your business.

We will work with you to identify your training needs and recommend e�ective and a�ordable training solutions, customized to your exact requirements. You will receive:

Contact Rodney Holt for a free assessment and consultation403.342.3550 | [email protected]

program favouring applicants with university education over those with trades skills and experience, a new, dedicated skilled trades class was created in 2012 within the permanent immigrant stream. Rather than having to qualify under the “points” system, applicants in this class are now assessed on whether they have a valid long-term employment offer or appropriate working credentials and experience in a trade. They must also demonstrate that they have language skills appropriate for their occupation. In December, Minister Kenney announced that 3,000 spots were being allocated to applicants under this stream.

The introduction of this new and distinct category coincides with a series of other proposed changes to the Skilled Worker program point-system grid the government implemented in January 2013. The changes included:• Making language the most important

selection factor including introducing minimum language fl uency thresholds and increasing the number of points awarded for linguistic ability;

• I n c r e a s i n g p o i n t s f o r y o u n g e r immigrants on the basis that younger immigrants are more likely to “gain valuable Canadian experience” and will be in the workforce and contributing to

Canada’s economy for longer;• Increasing points for Canadian work

experience and reducing points awarded for foreign work experience;

• Simplifying the arranged employment process to prevent fraud and allow employers to more quickly fi ll vacancies;

• Awarding additional points for spousal language ability and Canadian work experience.

While both temporary and permanent immigration are important tools in helping employers meet their human resource needs, immigration is not a stand-alone “silver bullet” solution to solving the shortage of skilled workers in Canada. The C.D. Howe Institute recently calculated that immigration numbers would need to increase to between 625,000 to one million annually to fully address Canada’s aging workforce and the shortage of workers. While other strategies and policies, in terms of apprenticeship, improving productivity and outreach engagement are all key to solving human resource problems, 2012 will be seen as a watershed year since the federal government made remarkable progress in reforming our immigration system to making it more responsive to the needs of Canada’s changing labour force.

OPENMIND_13_p51-53.indd 53 4/3/13 10:55:34 AM

Page 54: Open Mind Alberta 2013

54 OPENMIND SPRING 2013

Capital expenditures for construction in Alberta (in $ millions):

2008

2009

2010

2011

2012

44,707.2 61,026.3 69,736.8 76,605 77,594.6

Value of building permits (monthly) in Alberta – Seasonally Adjusted

% change

Jan. 2012 Nov. 2012 Dec. 2012 Jan. 2012 - Jan. 2013

Residential:

Non-residential:

Alberta total:

(in $ millions)

593.1 739.1 669.2 20.4

350.0 679.6 570.7 30.9

943.1 1,418.7 1,239.9 24.3

593.1 739.1 669.2 20.4

943.1 1,418.7 1,239.9 24.3

Yearly value of all building permits in Alberta ($ millions)

2008

2009

2010

2011

2012

13,141.2

11,276.9

11,425.4

12,716.9

14,662.9

New housing price index ($ thousands)

2009 2010 2011 2012 2013 (est)

Calgary:

100.6

93.9

95.6

95.5

97.1

101.0

89.7

89.0

89.9

90.7

Wholesale merchants’ sales by industry unadjusted ($ millions) across Canada

2008 2009 2010 2011 2012

Building material and supplies 77,235.9 66,932.4 73,935.3 78,723.3 81,522.1

Electrical, plumbing, heating and air-conditioning equipment and supplies 24,163.6 21,783.2 23,245.9 25,161.1 25,660.9

Metal service centres 18,972.7 13,163.1 15,022.7 17,750.4 18,827.8

Lumber, millwork, hardware and other building supplies 34,099.6 31,986.1 35,666.7 35,811.8 37,033.4

Machinery and equipment 115,358.6 103,460.8 110,411.2 123,235.0 128,177.2

Average number of employees covered under the

Merit Hour Bank Benefi t Plan: 2007 2008 2009 2010 2011 2012

33,875 38,314 38,187 39,371 43,089 48,015

Total manhours worked under the Merit Hour Bank Benefi t Plan:2007

2008

2009

2010

2011

2012

69,743,223

77,595,931

74,140,547

79,583,013

87,908,004

96,729,350

Edmonton:

2007 69,743,223

2009 74,140,547

2011 87,908,004

2008 100.6 101.0

2010 95.6 89.0

2012 97.1 90.7

(SOURCE: Merit Contractors Association)

(SOURCE: Statistics Canada)

Construction price index for apartment buildings in:

2008

2009

2010

2011

2012

Calgary

174.4

160.7

156.6

160.1

167.2

Edmonton

168.6

148.4

150.9

156.1

163.1

% change Calgary

11.2

-7.9

-2.6

2.2

3

% change Edmonton

17.8

10.9

-12.0

1.7

3

BE A THINKER. BE A CREATOR. ENJOY IT.

THE WAY RADHE WORKS:

000OM-CWB-FP.indd 1 3/26/13 8:04:05 AM

NUMBERSBY THE

OPENMIND_13_p54-56.indd 54 2013-04-04 1:52 PM

Page 55: Open Mind Alberta 2013

BE A THINKER. BE A CREATOR. ENJOY IT.

THE WAY RADHE WORKS:

000OM-CWB-FP.indd 1 3/26/13 8:04:05 AM

NUMBERS

OPENMIND_13_p54-56.indd 55 4/3/13 10:22:10 AM

Page 56: Open Mind Alberta 2013

000OM-ACSA-FP.indd 1 3/20/13 11:02:00 AMOPENMIND_13_p54-56.indd 56 4/3/13 10:23:22 AM