January 2020

Western Canada is struggling to have its voice heard.

From officials in provincial government offices to farmers in canola fields, bending an ear to anyone east of Manitoba has its challenges.

Our industry is not immune to alienation.

This is why I, along with my counterparts in B.C., Alberta and Manitoba, are collaborating on a policy paper that overall highlights a national importance of the economic impact that our sector brings to the table.

Together, our association, the Manitoba Heavy Construction Association, Alberta Roadbuilders and Heavy Construction Association and B.C. Road Builders have a vision for western and national economic growth. 

We want this policy paper to have a national scope. But it definitely will a possess a distinct Western Canada flavour. This paper will signify the importance of the West in terms of the larger picture.

Our friends at the Canada West Foundation, with years of experience in building a framework similar to the tone we have in mind, will work to put together this document.

It is our hope this policy paper will spur discussions at the federal level in terms of the economy and the importance of investing in trade-enabling infrastructure. 

Western Canada is rich with natural resources, but our country’s global reputation as a reliable trading partner is at serious risk.

Our country needs the full vigor of Western Canada’s economy for the health of the nation. Western Canada contributes nearly 38 per cent of Canada’s real gross domestic product. The western provinces contribute 37 per cent of Canada’s exports.

The return on investment in trade-enabling infrastructure is well documented. It is essential to our national, regional, provincial and local advocacy efforts to assemble the business case into this policy paper.

Growing the economy needs to be our first priority at each level of government. Without a healthy economy, other areas will suffer when it comes to funding critical services and reaching environmental stability.

This paper will have the opportunity to deliver a compelling message, one that we hope will influence public opinion.

The Canadian Construction Association (CCA) is displeased to learn that the Supreme Court of Canada has dismissed an appeal brought forward by contractor, J. Cote & Son Excavating.

Last week’s decision effectively upholds the use of “reprisal clauses” in tender documents. The clause used by the City of Burnaby against J. Cote & Son Excavating stated that the city would not accept tenders from any party that is, or has been within the last two years, involved in legal proceedings initiated against Burnaby arising out of a contract for works or services.

“The clause effectively forces consultants or contractors who may have a dispute with the city to choose between pursuing their legal rights and bidding on city contracts for the next two years,” said Mary Van Buren, CCA president.

This ruling has serious implications for contractors; it condones placing contractors on a two-year blacklist that bans them from bidding on city projects.

“The inclusion of these types of clauses in contracts essentially allows contractors to be financially punished for exercising their legal rights,” explains Van Buren. “The result is contractors are deterred from accessing the courts to enforce their legal rights because they fear being banned from future participation in projects.”

The decision by the Supreme Court of Canada effectively means that there is no constitutional barrier to municipalities using reprisal clauses. CCA will continue to closely monitor any developments as the association believes this case ruling could have major implications for the construction industry in all of Canada.

The Quarter 1 2020 issue of Think BIG is on its way!

The Saskatchewan Association of Rural Municipalities (SARM) is seeking a contractor to inspect every rural bridge in the province over a three-year period.

Read more from the Regina Leader-Post. 

The Saskatchewan Workers’ Compensation Board (WCB) has approved the 2020 average employer premium rate of $1.17 per hundred dollars of payroll. This is the same rate as 2019, marking the first time in 12 years the average premium rate has not dropped.

“While our average premium rate hasn’t changed from last year’s rate, average premium rates will go up for some industries and down for others,” said the WCB’s CEO Phil Germain. “We are seeing a number of factors that are causing some industry rate codes’ average premium rate to increase: consistently high numbers of serious injuries and fatalities, claims costs increasing and decreases in industry payrolls.”

Claims that are more serious in nature need additional longer-term treatments, which affect claims costs. Claims costs increased 7.62 per cent from 2017 to 2018. Overall mental health claims costs increased by 59 per cent in 2018 compared with 2017. In 2018, there were 48 work-related deaths compared with 27 in 2017, an increase of 78 per cent.

The 2020 average premium rate is 43 per cent below the 17-year high of $2.05 in 2004. Preventing work-related injuries influences premium rates.

“Over the last decade, thanks to the efforts of workers, employers, safety associations and other leaders, injuries on the job have declined overall. The workplace total injury rate in our province has dropped by almost 50 per cent since 2008. Over the last three years, 88 per cent of Saskatchewan employers have achieved zero injuries,” said Germain. “However, now that our average premium rate has levelled off, this signifies we all have more work to do. If claims costs continue to increase at a faster rate than payroll, it is likely that the 2021 average premium rate may increase.”

While the total number of injuries including time loss injuries have dramatically declined, the more serious injuries have not decreased. From 2010 to 2018, we have seen roughly the same number of serious injuries per year at approximately 2,400. During the same period, serious injuries have represented nine per cent of all claims, 86 per cent of compensation days and 81 per cent of costs.

“This tells us that the number of serious injuries and more costly injuries are not dropping as fast as all other injury types,” said Germain. “In order to start seeing premium rates go down again, we need to focus on eliminating serious injuries and fatalities.”

In 2020, 33 per cent of Saskatchewan employers covered by the WCB will see a decrease or no change to their industry premium rate, with the decreases ranging from 0.7 per cent to 12.0 per cent. The premium rates for 67 per cent of employers will increase in 2020, with the increases ranging from 0.8 per cent to 11.1 per cent.

“For more than a decade, many workers and employers have worked together to prevent work-related injuries in this province,” said WCB Chairperson Gord Dobrowolsky. “We cannot thank you enough for preventing injuries and saving lives. Yet we must not become complacent. We all need to work together toward our goal of zero injuries in 100 per cent of Saskatchewan’s workplaces.”

The Heavy Construction Safety Association of Saskatchewan is hosting its AGM Awards Banquet on March 27, 2020 in Regina.

Register here.

SHCA members are encouraged to attend SUMA’s largest annual event in Regina; the theme of the event is Building Sustainable Hometowns.

Download the event brochure and register on SUMA’s website.

SHCA members are encouraged to attend SARM’s largest annual event in Regina, beginning March 9. There is no registration fee and everyone is invited to attend.

Learn more: SARM Annual Convention.

Reduced 2020 ad rates for SHCA members!

The 2020 SHCA Rental Rates Guide and Membership Roster is currently open for advertising sales! Book your advertising space today by calling the Lester office: 204-953-2189 or emailing adsales@lesterpublications.com.

At Lester, the official publishing partner of SHCA, we understand that times are tough for construction companies in Saskatchewan. But did you know that an economic slowdown is one of the best times to market your business? 

Consider this:

• You can be the first choice: With less jobs to go around, keep your business top of mind for your current customers to make sure you stay their first choice.
• You can boost your credibility: Having a consistent presence in a reputable industry publication reinforces your company’s credibility. What’s more alluring than credibility during a time of instability? Spark confidence in potential and existing customers alike by showcasing your brand.
• You can fill your funnel: Even if a customer isn’t buying today, advertising is your opportunity to get people thinking about your company when they start considering what to buy and from whom. A prepared advertiser gets the sales funnel started with effective marketing during tough times.
• You can be the loudest: If your competitors are keeping quiet, what better time to get your company’s messaging across? Customers become more selective and do more research on purchases during tough times. Be visible to remind them of you when they need to make a purchasing decision.
• You can stay on top for years to come: Statistically, companies that push their marketing efforts forward during tough times have higher sales not only during that period, but also in more abundant years that follow.

Investing in advertising during tough economic times may feel counter-intuitive, but it will pay off. At the same time, we understand that there is a limit on available funds. That’s why for 2020, we’ve decreased our advertising rates so that your company can still take advantage of the marketing opportunities in SHCA’s communications products. Contact Lester to get in front of Saskatchewan contractors, municipal decision-makers and government stakeholders today.

Download the SHCA 2020 media kit.