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February 2006

Vol. 11, No. 9 Week of February 26, 2006

Alberta tackles 100,000-job shortfall

Shortfall part of new 400,000 jobs expected by 2015; government plans to promote province, also skills upgrading for own workers

By Gary Park

For Petroleum News

With strong backing from the petroleum industry, the Alberta government is rolling out a strategy to head off forecasts of a 100,000-worker shortfall over the next decade.

The framework released earlier in February proposes four main objectives — inform, attract, develop and retain — to entice outsiders to take up the 400,000 jobs expected to be created in Alberta by 2015.

It’s a challenge that Alberta has no hope of meeting from its own population of just 3.2 million that is forecast to grow by only 1.6 percent a year over the 2000-2030 period.

Having accepted the need to reach outside its borders, the government plans to promote the province as a destination of choice, to recognize professional qualifications before immigrants arrive in the province, expand the employer-driven immigration program and encourage the Canadian government to clear away obstacles in the immigration process.

In addition the province will put a heavy emphasis on ensuring young people are more aware of their opportunities and what skills upgrading is available.

Spokesmen for the Canadian Association of Petroleum Producers, the Petroleum Services Association of Canada, the Canadian Association of Oilwell Drillers and the Small Explorers and Producers of Canada — while needing more time to absorb the government’s proposals — welcomed the effort to ease a labor shortage that poses one of the greatest threats to expansion of the oil sands.

Sands expected to create 8,000 more jobs

The Petroleum Human Resources Council of Canada estimates the oil sands sector will create 8,000 more direct jobs over the next 10 years, with attrition compounding the problem given that almost four of every 10 workers are aged 45 or older.

Don Herring, president of oil well drillers, said an untapped resource is available within aboriginal populations.

To that end the province is recommending a training program for Natives who live in urban areas and are not closely involved in their tribes.

The new Canadian government is ready to join the search for solutions by pledging C$400 million for a new apprenticeship incentive program, while Prime Minister Stephen Harper has said he is ready to cut immigrants’ landing fees in half and continue to reduce it as the “fiscal situation allows.”

Harper also promised to set up an agency to assess and recognize international credentials and experience.

The Alberta government has set a March 1 deadline to receive response to a questionnaire and written submissions. It hopes to release a final strategy later in 2006.

Hiring foreign workers not simple

But hiring foreign workers will not be a simple matter as Canadian Natural Resources has discovered in its efforts to go offshore for labor to help build its C$10.8 billion Horizon oil sands project.

The Alberta Building Trades Council and the Alberta Federation of Labor are objecting to Canadian Natural’s overtures to China Huanqiu Contracting & Engineering to hire Chinese laborers.

Although no decision has been made, a spokesman for Canadian Natural said any foreign workers must be Canadian certified and comply with all Canadian legislation.

The unions argue that the work can be done by unemployed Canadians and argue that negotiations with the Chinese are setting a “dangerous precedent.”

Under the Canadian government’s Foreign Worker Program as many as 20,000 foreigners are forecast to be working in Alberta this year, double last year’s count.






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