Man and woman as workers on excavator in quarry pointing at things
by Shantel Lipp Shantel Lipp

Developments to Watch in 2023

Shantel Lipp

As we welcome in the new year, now is a good time to reflect on the events and progress of 2022, and delve into what we can expect moving into 2023. 

I am watching two developments that I expect will soon be clarified. The first is project carryovers. I’ll be watching to see what impact they will have on the 2023–24 budget. You may recall that, much to my disappointment, last year’s budget did not include money for new projects. The province reported it was dedicating $453 million in the budget to capital projects, but virtually all the work available from the ministry had already been tendered before the spring tender was out.

Last year, numerous projects were completed for the Ministry of Highways, including paving work on Highway 1 west of Moose, Highway 6 south of Naicam and Highway 37 in the Shaunavon and Gull Lake area. Passing lane projects on Highways 7, 12 and part of 16 also wrapped up. There were also many resurfacing projects, including ones near North Battleford on Highway 4 and west of Humboldt on Highway 5 as well as south of Kindersley, on Highway 21. The fall tender was slightly smaller than is typical, but we understand the ministry will be releasing schedules throughout the winter – projects such as small span bridges, crushing and hauling and trapline jobs in preparation for the spring.

The Saskatchewan First Act was introduced in November of last year to assert the province’s legislative jurisdiction over exploration for non-renewable natural resources as well as developing, conserving and managing non-renewable natural and forestry resources and operating sites and facilities for generating and producing electricity.

Meanwhile, there are highway construction projects continuing. Through the winter, some work can be done, including hauling heavy materials in preparation for next season. As that work moves ahead, I will maintain my relationship with Highways Minister Jeremy Cockrill, making the case that Saskatchewan must continue to spend on its infrastructure to continue its economic momentum and encourage investment in this province. I will also look to gain information from the ministry to share with members. 

Saskatchewan’s historic legislation 

The second development I am monitoring is what the provincial government called “historic legislation.” The Saskatchewan First Act was introduced in November of last year to assert the province’s legislative jurisdiction over exploration for non-renewable natural resources as well as developing, conserving and managing non-renewable natural and forestry resources and operating sites and facilities for generating and producing electricity. 

This legislation will also create an Economic Impact Assessment Tribunal, its purpose for “conducting economic impact assessments in relation to federal initiatives.” The members of the tribunal will be appointed by the Lieutenant Governor, who will refer them any federal initiative that could cause economic harm to Saskatchewan. 

The tribunal will also complete an assessment and report its findings and recommendations to the minister. Those recommendations could be about the nature of the economic impact on projects, operations, activities, industries, businesses and residents in the province. It could also include steps to minimize unintended consequences. While there has been plenty of discussion about friction in the relationship between the provincial and federal governments around policies such as the carbon tax, The Saskatchewan First Act is still new and many are in the process of reviewing it, including me. 

You may recall a white paper, Drawing the Line: Defending Saskatchewan’s Economic Autonomy, being released in October of 2022, which provides some insight into the government’s introduction of this legislation. In that paper, it is stated that the Government of Saskatchewan is exploring all its options and has an objective to protect this province’s economic future so that natural resources can continue to be extracted and developed responsibly, trade corridors can be expanded to provide the world what it needs and the residents and businesses are protected from “harmful” federal policies. 

SHCA has an interest in this province’s trade corridors and continues to discuss this matter with the provincial government. I am interested to see how this legislation and these objectives could impact our members. I would also be interested to know what you think of this white paper and this new legislation.  

Shantel Lipp
by Shantel Lipp Shantel Lipp

Fighting for Industry Every Year

Shantel Lipp

Whenever a new year begins, it is common to think about what is ahead in the months to come. 

Looking at where we are at is a good place to start when considering what is possible in the future. We know right now that Saskatchewan is strong. The provincial economy is performing better than many other parts of Canada. 

That strength is indicated by measures such as merchandise exports, which is the dollar value of goods being sold to other countries from Saskatchewan. In the first week of this month, the Saskatchewan government promoted that merchandise exports in November 2022 were 44.5 per cent higher than they were a year earlier and came in at a total value of more than $5 billion.

November was not a fluke. That increase was part of a pattern seen through most of 2022. Merchandise exports increased 43.5 per cent in the first 11 months of the year, compared to the same period in 2021. The provincial government tied that accomplishment to Saskatchewan’s strong and stable supply chain. Saskatchewan’s highways played a role in that accomplishment. 

If you can’t move it, you can’t sell it. That reality was reaffirmed in a report produced by the Canada West Foundation that you might recall from 2022. The report, From Shovel Ready to Shovel Worthy: The Path to a National Trade Infrastructure Plan for the Next Generation of Economic Growth, was initiated by the Western Canada Roadbuilders and Heavy Construction Association (WCR&HCA), to which the Saskatchewan Heavy Construction Association belongs.

Nations of the world pay attention to the trade infrastructure in other countries. The world needs what Canada produces and Saskatchewan, in particular, has a lot to offer the world, but producing it is not enough. We must move it through our country and beyond its borders.

Saskatchewan needs the rest of the world to have confidence that what we are producing for export will be moved through Canada efficiently and reliably so we, as a trading partner, are competitive in the world. The report recommends a national plan for trade infrastructure. It reminds governments that they decide on investments in trade infrastructure, but it is other nations who notice when governments don’t consistently invest in projects that will ensure trade infrastructure remains reliable and competitive. The plan should select projects for investment that make Canada more competitive. Those are shovel worthy projects that support the movement of goods and people in an efficient and effective manner. 

It is more than heavy construction associations bringing forward the recommendations from this report to provincial and federal governments in Canada. These recommendations have been endorsed by several associations and organizations concerned with the current investment, the lack of coordination and planning on a long-term strategy and the state of the federal trade corridors fund.

As we move into 2023, Saskatchewan will continue to depend on exports to ensure the provincial economy remains strong. In our province, the Saskatchewan Heavy Construction Association will continue to work with the provincial government to encourage consistent investment in our highways. Consistent investment in Saskatchewan’s highways is a signal to the world that this province is prepared to continue being a strong exporter of the goods and resources that countries around the world require.

Saskatchewan’s government has a goal of building and upgrading 10,000 kilometres of highways in the province by 2030. The members of the Saskatchewan Heavy Construction Association are prepared to work with the government to meet that goal. As the voice of the industry, the Saskatchewan Heavy Construction Association will make sure government knows what the heavy construction industry needs to get the job done.

The Saskatchewan Heavy Construction Association will also continue to work with regional and national partners to promote consistent and strategic investment in trade infrastructure beyond this province. Saskatchewan’s economic strength is a benefit to the entire country and the Saskatchewan Heavy Construction Association is proud of its role in developing that strength.

by Shantel Lipp Shantel Lipp

Fighting for Industry Every Year

Shantel Lipp

The end of 2022 is within sight. I am proud of all we accomplished this year, and I am looking forward to making more progress in the upcoming year.

This year, I recognized we need to continue to help others fully understand our industry. Those we work with need to continuously hear from us to better understand our members, the contributions you make and the challenges you face. 

For example, the City of Regina put forward a motion about local procurement and economic recovery. In that motion was a fair wage policy for all construction, maintenance and service contracts. I made a submission on behalf of the Saskatchewan Heavy Construction Association explaining the implications of such a policy and I asked questions that showed the kinds of challenges such a policy would create. 

Knowing how we attract and compensate employees, the qualifications of those employed in the industry as well as how our members work with a general contractor were just some of the points I made in my submission. In the end, the motion was defeated, but I recognize it was a good opportunity to help a level of government understand what businesses like yours need to be successful working with them. 

Another example of how I worked to ensure governments and others better understand our industry to improve their relationship with members is the work I did with the Ministry of Highways to develop adjustments to the fuel escalation clause. 

Earlier this year, the Ministry of Highways presented some proposed adjustments to the fuel escalation clause. That proposal was reviewed, and several members provided additional improvements they would like to see added. I brought forward their requests and provided actual figures and examples of how our industry has been impacted by the price of diesel fuel climbing. Ultimately, after some back and forth, updates were made and included in fall tenders.  

On a broader scale, we are working with other heavy construction associations in Western Canada to draw attention to the need for Canada to invest in its trade infrastructure. We were part of the release of a report From Shovel Ready to Shovel Worthy that was produced by the Canada West Foundation. That report encourages both the federal and provincial governments to plan their investment more strategically in infrastructure that supports the movement of goods and people through and far beyond our country. 

It is important that we continue to raise the profile of our industry by explaining the work that we do, how that work gets completed and how that work contributes to improving our province and country. When we can help others recognize the significance of the work being done by our industry, we can not only benefit our members, but we can also improve what is possible in our province and country because of what members like you build. This is what makes me proud of the role I hold and the work that I do on your behalf. 

You’ve worked hard through this year and now, with the construction season done for the year and the next one still months away, I hope you have an opportunity to rest and recover – and maybe even escape the cold – to get back at it once winter fades away. I wish you all a very merry Christmas and all the best in the new year, when I look forward to getting back to work to make even more progress on your behalf. 

by Shantel Lipp Shantel Lipp

Inflation

Shantel Lipp

As 2022 continues to move ahead, one word keeps popping up again and again as businesses and households review their finances: inflation.

As costs increase, everyone must find ways to make ends meet. What that means for our industry has been calculated in an economic impact analysis done for the Saskatchewan Heavy Construction Association.

That analysis found that the industry is expected to face a further $426.7 million in new costs. The analysis looks at what that would mean for the profitability of the industry. It finds the industry profits $670 million per year on sales of $9 billion. Subtract $426.7 million in new costs and profits are squeezed to $243.4 million.

Knowing that profits are not distributed uniformly among all companies in the industry, reducing an industry’s profits by more than half would be too difficult for some companies to survive. It would also mean far fewer jobs in the industry as employment numbers could drop by more than half. 

One of those additional costs that our members face is an increase in the price of diesel. That increase in fuel has been difficult for many of our members under the existing contracts they have with the Ministry of Highways. 

You might recall that in July, I said in my President’s Message in The Interchange that we were discussing this situation with the Ministry of Highways. Seeing that the increase in fuel was estimated by the ministry to be around 69 per cent, it was important that we find a way to resolve the issue. 

Earlier this year, the Ministry of Highways presented our association with some proposed adjustments to the fuel escalation clause. 

The ministry had proposed expanding the scope to include additional types of work. It is also looking at the consumption rate and applying the existing consumption rates more broadly in some areas of work. It is looking at better options to address fuel consumption for haul. Then, there is payment. The ministry is using a monthly adjustment to apply interim adjustments in advance of a final calculation.

Our industry has reviewed the proposal and a number of SHCA members provided additional improvements they would like to see beyond what the ministry has proposed.  

All of this should help contractors with their cash flow.

We provided actual figures and examples of how the industry has been impacted by the price of diesel fuel escalating. We asked for compensation for our members that currently provide asphalt concrete products that go into making the binder materials for crushing, micro-
surfacing, paving and more. Then, there are the various types of work that also consume diesel fuel that the ministry didn’t include in its presentation, such as rock excavation and hauling used for dirt excavation. 

We have been working with the ministry on revising the industry consumption rates to reflect more realistic figures. It should be reasonable and fair to both industry and government. 

The result of all that work is that there have been updates that will be included in fall tenders. Look for updates to the specifications for bid requirements and conditions, measurement and payment (which includes details on payment for extra work, partial payments, final payments, and diesel fuel adjustments) and site occupancy, which will be incorporated into all contracts with a tender close date of Sept. 19 or later.

Also, a dating error has been corrected in the Weekly Diesel Fuel Prices document and the payment schedule has been changed to monthly instead of at the completion of each phase of the project. All of this should help contractors with their cash flow. 

Having this situation addressed by the provincial government was important and I am pleased we have been able to make this progress. 

I must say that I have enjoyed getting to know the new Minister of Highways, Jeremy Cockrill, who moved into the role in May. I appreciate the interest he has in getting to know the industry, its pressures and successes as well as its people. 

I appreciate all of you who contributed input so that we could provide the government accurate and meaningful information so your need could be addressed. 

Shantel Lipp
by Shantel Lipp Shantel Lipp

President’s Message

Shantel Lipp

Now that we are in November, the end of 2022 is within sight. The end of a year is a good time to reflect on what has happened and what to expect in the future. 

What I am watching now are two developments that I expect will be more fully explained in the coming year. The first is project carryovers. I’ll be watching to see what impact they will have on the upcoming 2023–24 budget. You will recall that the current budget did not include money for new projects. The province said it was dedicating $453 million in that budget to capital projects, but virtually all the work available from the ministry had already been tendered before the spring tender was out.

Numerous projects were completed for the Ministry of Highways this year, including paving work on Highway 1 west of Moose, Highway 6 south of Naicam and Highway 37 in the Shaunavon and Gull Lake area. Passing lane projects on Highways 7, 12 and part of 16 have wrapped up. There have been numerous resurfacing projects, including ones near North Battleford on Highway 4 and west of Humboldt on Highway 5 as well as south of Kindersley on Highway 21. The fall tender was slightly smaller than is typical, but we understand the ministry will be releasing schedules throughout the winter – projects such as small span bridges, crushing and hauling and trapline jobs in preparation for spring.

Meanwhile, there are highway construction projects continuing at this point. Through the winter, some work can be done, including hauling heavy materials in preparation for next season. As that work moves ahead, I’ll be maintaining my relationship with Highways Minister Jeremy Cockrill, making the case that Saskatchewan must continue to spend on its infrastructure to continue its economic momentum and encourage investment in this province. I’ll be looking to gain information from the ministry that I can share with members. 

I’m also monitoring what the provincial government is calling “historic legislation.” The Saskatchewan First Act was introduced earlier this month to assert the province’s legislative jurisdiction over exploration for non-renewable natural resources as well as developing, conserving and managing non-renewable natural and forestry resources and operating sites and facilities for generating and producing electricity. 

This legislation would create an Economic Impact Assessment Tribunal. Its purpose would be for “conducting economic impact assessments in relation to federal initiatives.” The members of the tribunal would be appointed by the Lieutenant Governor, who could refer to the tribunal any federal initiative that could cause economic harm to Saskatchewan. 

The tribunal would complete an assessment and report its findings and recommendations to the minister. Those recommendations could be about the nature of the economic impact on projects, operations, activities, industries, businesses and residents in the province. It could include steps to be taken to minimize the impact as well as unintended consequences. 

While there has been plenty of discussion about friction in the relationship between the provincial and federal governments around policies such as the carbon tax, The Saskatchewan First Act is still new and many are in the process of reviewing it, including me.

You may recall a white paper, Drawing the Line: Defending Saskatchewan’s Economic Autonomy, released in October that provided some insight into the government’s introduction of this legislation. In that paper, it is stated the Government of Saskatchewan is exploring all its options and has an objective to protect this province’s economic future so that natural resources can continue to be extracted and developed responsibly, trade corridors can be expanded to provide the world what it needs and the residents and businesses are protected from “harmful” federal policies. 

SHCA has an interest in this province’s trade corridors and continues to discuss this matter with the provincial government, so I will be interested to know how this legislation and these objectives could impact our members. I’d also be interested to know what you think of this white paper and the legislation that has been introduced. 

by Shantel Lipp Shantel Lipp

Hiring Ukrainians

Shantel Lipp

October is the month of Thanksgiving, and I am often reminded just how much we have to be thankful for living in this part of the world.

Each day, when we check in on the news of the world, front and centre are updates about Russia’s invasion of Ukraine.

Here at home in Saskatchewan, we are working hard to ensure our industry has the employees it needs in order to complete the projects that our province needs done. 

Ukrainians displaced by the conflict who are making their way to Canada are being met with services and supports to help them settle in our province. Finding work here is one of the obstacles they will need to overcome, but there are many in the province committed to helping them make the connections they need to secure employment. 

I am proud to say SHCA is one of those organizations that is working to provide opportunities. To bring workers and company owners together, SHCA has been working with the Ukrainian Canadian Congress, Employer Services and others connected with Ukrainian immigrants.  

SHCA connected with Andrii Stakhov, who is employment liaison with Ukrainian Canadian Congress – Saskatchewan Provincial Council. He helps displaced Ukrainians every day to find employment after arriving in Canada.

An employment form has been developed by the Ukrainian Canadian Congress – Saskatchewan Provincial Council. Each employer can post jobs. I would encourage all our members to fill out the employment form to communicate about opportunities to work for your company. We will be doing more to help them learn about our industry.

Andrii reviews resumés to understand what type of employment would suit each candidate, depending on their experience and credentials. He also considers their current ability to speak English. 

There is also the Sunflower Network, which is a group of business and community leaders volunteering to help Ukrainian families building news lives in Saskatchewan. One of our members, Nemanishen Contracting, hired an employee they met through the Sunflower Network and are pleased with his progress of learning our industry. 

Like I said, we take time in October to give thanks and I thought this was a good time to remember one of the reasons why I am thankful to live in Saskatchewan. Like many of our members, SHCA believes that if you can help someone in need, you should. Giving these folks – who are new to our great province – an opportunity to provide for their families has been very rewarding. 

Thank you to all members who have expressed an interest in helping Ukrainians who are making Saskatchewan their new home.

by Shantel Lipp Shantel Lipp

President’s Message

Shantel Lipp

As 2022 continues to move ahead, one word keeps popping up again and again as businesses and households review their finances: inflation.

As costs increase, everyone is having to find ways to make ends meet. What that means for our industry has been calculated in an economic impact analysis done for the Saskatchewan Heavy Construction Association.

That analysis found that the industry is expected to face a further $426.7 million in new costs. The analysis looks at what that would mean for the profitability of the industry. It finds the industry profits $670 million per year on sales of $9 billion. Subtract $426.7 million in new costs and profits are squeezed to $243.4 million.

Knowing that profits are not distributed uniformly among all companies in the industry, reducing an industry’s profits by more than half would be too difficult for some companies to survive. It would also mean far fewer jobs in the industry as employment numbers could drop by more than half. 

One of those additional costs that our members face is an increase in the price of diesel. That increase in fuel has been difficult for many of our members under the existing contracts they have with the Ministry of Highways. 

You might recall that in July, I said in my President’s Message in The Interchange that we were discussing this situation with the Ministry of Highways. Seeing that the increase in fuel was estimated by the ministry to be around 69 per cent, it was important that we find a way to resolve the issue. 

Earlier this year, the Ministry of Highways presented our association with some proposed adjustments to the fuel escalation clause. 

The ministry had proposed expanding the scope to include additional types of work. It is also looking at the consumption rate and applying the existing consumption rates more broadly in some areas of work. It is looking at better options to address fuel consumption for haul. Then, there is payment. The ministry is using a monthly adjustment to apply interim adjustments in advance of a final calculation.

Our industry has reviewed the proposal and several SHCA members provided additional improvements they would like to see beyond what the ministry has proposed.  

We provided actual figures and examples of how the industry has been impacted by the price of diesel fuel escalating. We asked for compensation for our members that currently provide asphalt concrete products that go into making the binder materials for crushing, micro-surfacing, paving and more. Then, there are the various types of work that also consume diesel fuel that the ministry didn’t include in its presentation, such as rock excavation and hauling used for dirt excavation. 

We have been working with the ministry on revising the industry consumption rates to reflect more realistic figures. It should be reasonable and fair to both industry and government. 

The result of all that work is that there have been updates that will be included in fall tenders. Look for updates to the specifications for bid requirements and conditions, measurement and payment (which includes details on payment for extra work, partial payments, final payments and diesel fuel adjustments) and site occupancy, which will be incorporated into all contracts with a tender close date of Sept. 19 or later.

Also, a dating error has been corrected in the Weekly Diesel Fuel Prices document and the payment schedule has been changed to monthly instead of at the completion of each phase of the project. All of this should help contractors with their cash flow. 

Having this situation addressed by the provincial government was important and I am pleased we have been able to make this progress. 

I must say that I have enjoyed getting to know the new Minister of Highways, Jeremy Cockrill, who moved into the role in May. I appreciate the interest he has in getting to know the industry, its pressures and successes as well as its people. 

I appreciate all of you who contributed input so that we could provide the government accurate and meaningful information so your need could be addressed.

Shantel Lipp - SHCA President
by Shantel Lipp Shantel Lipp

The Path to a National Trade Infrastructure Plan

Shantel Lipp

Canada can continue to spend on infrastructure that members like you build and maintain. 

But investing in infrastructure that supports trade would be a better use of that money and a new report by the Canada West Foundation (CWF) explains why. The report is titled From Shovel Ready to Shovel Worthy.

Several industry and trade groups across the country and here in Saskatchewan are sharing why this report matters to Canada’s future, including the Western Canada Roadbuilders & Heavy Construction Association (WCR&HCA), Saskatchewan Trade and Export Partnership, Business Council of Canada, Canadian Chamber of Commerce, Canadian Construction Association (CCA) and Export Development Canada. The Saskatchewan Heavy Construction Association (SHCA) is also on that list. 

The world needs what Canada produces and Saskatchewan, in particular, has a lot to offer the world, but producing it is not enough. We must move it through our country and beyond its borders. 

We need the rest of the world to have confidence that what Canada produces for export will be moved through the country efficiently and reliably so we, as a trading partner, are competitive in the global market. 

The world need what Canada produces and Saskatchewan, in particular, has a lot to offer the world, but producing it is now enough. We must move it through our country and beyond its borders.

For more than a decade, those in the know have watched Canada spend on projects that are ready for construction. Instead, a better use of that money would be to invest in projects that will provide a return on that spending by improving Canada’s supply chain competitiveness. 

For every $1 invested in trade transportation infrastructure, the GDP boost is $1.30, often in the same year. This is one of the messages being shared by Chris Lorenc, the president of the Manitoba Heavy Construction Association, who also serves as president of the WCR&HCA as he promotes this report’s importance.

Canada doesn’t need to start from scratch when developing a plan for investing in
shovel-worthy projects. The shortcut is to take the best parts of already established national plans developed by Canada’s competitors. 

We just need to look at their success and build upon them by combining those with Canada’s own successes, such as the Asia-Pacific Gateway and Corridor Initiative and Transport Canada’s current Regional Transportation Assessments.

In this issue of Think BIG, the report is more fully explained and includes seven points for how to build Canada’s first national plan for trade corridor infrastructure. Read that article by flipping to page 26. 

Here in Saskatchewan, we have seen major investments being made by the private sector that will further develop this province’s trade potential by putting money towards producing commodities the world requires and adding value to those commodities. Saskatchewan is on the world map because of announcements such as BHP approving $7.5 billion for the Jansen potash project to the numerous canola crush plants that were announced to the resources in high demand being developed in this province, including lithium and helium. 

That is all good news, but we must also pay attention to how we are going to move those commodities from this province through Canada and beyond our borders. This report and our conversation as an industry about it will bring attention to the need for Canada to develop a national plan for developing and maintaining our trade infrastructure. I appreciate your interest in moving that conversation forward for the benefit of our industry, province and country. 

Shantel Lipp - SHCA President
by Shantel Lipp Shantel Lipp

Providing Industry Input

Shantel Lipp

Busy, busy, busy. It’s that time of year when many in the province are enjoying their summer vacations, while those of us in the heavy construction industry are hard at work, continuing to make progress on important initiatives.

This month, one of the initiatives I am working on involves the City of Regina. A motion that I have been following closely was up for debate by Regina city council.

That motion is about local procurement and economic recovery. What was of particular interest in that motion is that it calls for a fair wage policy for all construction, maintenance and service contracts.

In mid-August, the motion came up before council and I made a submission on behalf of the Saskatchewan Heavy Construction Association. Ours was among a number of submissions made by private employers, business groups, industry associations, labour groups and more.

SHCA’s position is that a fair wage policy should not be implemented at this time. This was the recommendation of city administration, and we agree with that recommendation. To us, it is government over-reach.

Council voted on the motion that would bring about a fair wage policy on Aug. 17. The vote was split, 5-5, meaning the motion was defeated. Mayor Sandra Masters was quoted in the media as saying, “The information that was shared with council is that we are providing a solution for a problem that may not quite exist right now.”

In my submission, I explained the implications of such a policy and raised questions not yet answered about it. I share this so you know what we brought forward.

For example, I described the current financial stresses in the construction industry with increased costs for fuel, building materials, equipment, vehicles, parts and more.

Competition for labour is very tight right now, so employers recognize they need to pay their people well. Asking these employers to pay even more would mean some would have to lay off employees or close their doors.

Second, I reminded them that contracts awarded by the City of Regina are usually with a general contractor, who enlist sub-contractors. A GC would have difficulty providing wage information for the employees of the sub-trades. Then, there is the administration of that wage information. There are privacy implications. Plus, it would be difficult to control or manage that information as contractors can and do move workers between job sites. City officials would also have more work, which could further delay the awarding of contracts, which would impact scheduling and capacity for the industry.  

Third, in response to it being proposed that a mandatory apprenticeship requirement be enacted, I explained that heavy civil construction does not have apprenticeship or journeyman designations for occupations outside of the heavy equipment mechanic positions. Having such a requirement for all contractors would exclude our sector from bidding on city work.

Fourth, I explained how employees in our industry are compensated, which is based on skill, training, experience and the type of work they are undertaking. These factors are also weighed against what the market will bear. Only mining employees receive better pay than those in our industry in our province. Employees in our industry also receive benefits such as medical, dental, health spending accounts, company vehicles and additional training.

Finally, I described the quality of the work done by our members. I explained that those doing municipal construction work invest significantly in quality control to ensure the products and materials they provide meet or exceed specifications. Contractors invest in quality control testing, spending on equipment and services.

The City of Regina has been doing a remarkable job on local procurement. Almost all construction services are awarded locally, and all have been staying with Saskatchewan contractors. The community benefits when local vendors are trusted.

That is also why we asked that city administration and council to work with sectors such as ours on a second motion around Indigenous procurement that was before council. We encouraged the City of Regina to work with sectors like ours as it creates its policy on this as we have strong representation of Indigenous people working in our industry. We know there is more work to be done as we talk and learn while building a stronger relationship, but a lot has been learned so far that we could share. This motion on Indigenous procurement was passed unanimously.

I appreciate that city administration and council engaged business as it considered these motions and policy to be developed. Industries like ours have learned a lot as we worked through policy changes with various levels of government. Being able to bring that valuable experience to the table contributes to government’s understanding what business needs to be successful working with them.