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Oil patch slow to tackle labor shortage
For all the talk of labor woes in the Canadian oil and gas sector few companies have strategies in place to tackle the worsening shortage of workers, according to a consulting firm of Deloitte.
In a survey of 55 senior oil and gas, mining and utilities managers, Deloitte found that 18 percent of firms have strategies in place and less than 40 percent have pinpointed the critical skills they need to cover to grow their businesses.
But more than 80 percent said the issue had been discussed at their board level, almost double the response of a year ago.
The survey also found that take-home pay and staying level with the competition on salary hikes did not rate highly among the most critical “people issues” facing the industry.
The survey concluded that an inability to attract and retain skilled labor is already taking its toll on production and efficiency.
For the oil and gas sector the problem will grow in proportion to the rise in exploration and development, especially in new oil sands projects, the consultant said.
Proactive measures suggested The report said that with conventional activity on the decline and the oil sands expected to “eventually produce” most of Canada’s oil, finding sufficient skilled workers for the pending boom in heavy crude extraction will be a challenge.
Deloitte identified the greatest need as occurring in the engineering and construction segment: pipe fitters, carpenters, welders and design and construction engineers.
In addition, it said shortages in project management and engineering and a shortage of heavy equipment operators and engineers from all disciplines is anticipated.
Deloitte partner Dick Cooper suggested the industry should take proactive measures by partnering with post-secondary institutions across Canada to “focus on these skills deficiencies.”
The Conference Board of Canada forecast earlier this summer that Alberta could face a shortfall of 330,000 workers a year by 2025.
In another new report, Mercer Human Resource Consulting said workers in the oil and gas and petrochemical industries in Alberta are expected to receive average salary increases of 5.7 percent in 2007, compared with a Canada-wide average in all sectors of 3.7 percent and compared to a projected cost-of-living rise of 2 percent.
—Gary Park
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