The Western Canadian Roadbuilders & Heavy Construction Association (WCR&HCA) are heading to Waikiki, Hawaii, Feb. 5–9, 2023, for the Stronger Together Conference. Hosting hundreds of delegates from across Western Canada, the conference offers industry speakers, education and an array of networking events. Don’t miss out on this opportunity to connect!
Click here for more information about the conference; we hope to see SHCA members there!
Interested in becoming a sponsor? Find out more.
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.
The Western Canadian Roadbuilders & Heavy Construction Association (WCR&HCA) are heading to Waikiki, Hawaii, Feb. 5–9, 2023, for the Stronger Together Conference. Hosting hundreds of delegates from across Western Canada, the conference offers industry speakers, education and an array of networking events. Don’t miss out on this opportunity to connect!
Click here for more information about the conference; we hope to see SHCA members there! Interested in becoming a sponsor? Find out more.
The Canada Digital Adoption Program (CDAP) is creating short-term job opportunities for post-secondary students to help small businesses grow their e-commerce and digital presence online. This is an exciting employment opportunity for post-secondary students or recent graduates to help Saskatchewan small businesses develop their e-commerce footprint.
These opportunities are made possible by the federal government’s investment in CDAP – Grow Your Business Online, which is being delivered in Saskatchewan by Connected Saskatchewan. The provincial government, through SaskJobs, is also supporting the e-commerce advisors as they build digital skills. Connected Saskatchewan is a partnership with the Saskatchewan Economic Development Alliance (SEDA), Saskatchewan Polytechnic, Economic Development Regina (EDR) and Digital Main Street.
“I’m completing a Sask Polytech co-op term as an e-commerce advisor,” said Steven Brenzen, Sask Polytech business information systems diploma student. “I get to meet and help people who are passionate about their businesses. I’m able to use my skills to help them promote and grow their companies. Clients are grateful to have someone with digital expertise help them with their digital and website goals. I work with clients across Saskatchewan, including clients in rural areas. Overall, it’s been a really positive experience.”
“CDAP is so helpful to businesses,” said Ryssa Alarcon, marketing manager at Axiom Equipment Group. “We received rapid responses from our CDAP advisor, and we really felt guided through it all. As we currently build and ramp up our e-commerce, we’re so grateful to have that extra support and budget.”
CDAP will support 384 e-commerce advisor placements over three years. The first cohort started in May 2022. Sask Polytech, along with Digital Main Street, are providing e-commerce advisors with one week of intensive training on digital tools and cybersecurity best practices. E-commerce advisors will work with a handful of small businesses during their work term. Faculty and Digital Main Street will continue to make ongoing educational resources available to the e-commerce advisors throughout their work term.
“An online presence is becoming increasingly important for any business to compete in today’s world,” said Spencer Nikkel, program manager at SEDA. “We are thrilled that the government has identified helping small businesses create or improve their online presence as a priority. We look forward to many Saskatchewan success stories coming out of this program, including growing businesses and a digitally equipped workforce.”
“Entrepreneurs and small businesses are the backbone of our economy, and EDR is excited to work with all of the Connected Saskatchewan partners to ensure more Saskatchewan entrepreneurs have the resources they need to digitize their growing businesses,” EDR events and conventions business development manager Brendan Manz said.
Connected Saskatchewan supports the socio-economic health and competitiveness of municipalities and First Nations. Eligible businesses for CDAP – Grow Your Busines Online will receive a micro-grant of up to $2,400 to help with costs related to improving their digital presence and will be supported by a network of e-commerce advisors.
Learn more at connectedsask.ca/cdap.
Aecon is pleased to announce it has been named on the Corporate Knights 2022 list of the Best 50 Corporate Citizens in Canada, illustrating its significant progress in embracing and operationalizing net-zero construction practices.
The annual list recognizes corporate sustainability leadership in Canada utilizing a transparent and quantitative methodology to evaluate Canadian companies on Environmental, Social and Governance (ESG) performance.
“We are proud to be recognized on this prestigious list as we move forward as the Canadian leader in sustainable construction,” said Jean-Louis Servranckx, president and CEO of Aecon. “We look forward to continuing to set industry benchmarks – driven by our commitment to integrating innovation into our business strategy, introducing new methods and technologies across our operations and consistently expanding our multidisciplinary sustainability capabilities.”
Aecon was among 13 companies on this year’s list to have net-zero commitments. It was also among 25 companies to achieve year-over-year emissions-intensity reductions of at least 7.6 per cent – the global benchmark for a net-zero trajectory.
“We strive to consistently improve our sustainability performance in support of our purpose to build what matters to enable future generations to thrive,” said Yonni Fushman, EVP, chief sustainability officer and chief legal officer, Aecon.
In 2020, Aecon became the first construction company in North America to conduct an inventory of all the greenhouse gases (GHG) produced in its operations, which helped set targets to achieve a 30 per cent reduction in direct CO2 emissions by 2030 and reach net-zero by 2050. This past year, Aecon made substantial progress toward reaching these targets and achieved a 15 per cent year-over-year CO2 emissions reduction on an intensity basis while also completing a comprehensive GHG inventory, including a scan of indirect (Scope 3) emissions.
“As we work toward achieving our sustainability targets, we’re also partnering with our clients to achieve their own ambitious net-zero goals. We’re evolving our diverse sustainability solutions business model to help our clients navigate the complexities of a transformative energy market, ensure integrated project management throughout the project lifecycle and achieve consistent on-time project delivery,” said Fushman.
To learn more about Aecon’s sustainability program, please visit aecon.com/sustainability.
Today, job numbers released by Statistics Canada for June 2022 show Saskatchewan added 22,300 jobs, an increase of 3.9 per cent, compared to June 2021. All of the growth was in full-time jobs.
Seasonally adjusted unemployment rate fell to 3.9 per cent in June 2022, the second lowest among the provinces. It was down from 6.6 per cent a year ago, down from 4.8 per cent a month ago, and well below the national average of 4.9 per cent. 3.9 per cent represents the lowest unemployment rate in Saskatchewan since November 2014.
“Saskatchewan’s economy continues on a strong and enviable growth path with a low unemployment rate and significant job gains,” Immigration and Career Training Minister Jeremy Harrison said. “Our government will continue to support the job creators and workers to accelerate our economic growth in communities across the province.”
For two consecutive months, several all-time employment records were hit, including overall employment (592,900), female employment (276,300), off-reserve Indigenous employment (67,400), and off-reserve Indigenous full-time employment (55,700).
Major year-over-year employment gains were reported for healthcare, and social assistance up 8,200 jobs, construction up 4,000 jobs, accommodation and food services, up 3,400 jobs. Over the same period, the private sector was up 19,000 jobs (+5.8 per cent), female employment increased by 11,300 jobs (+4.3 per cent) and youth (aged 15-24) employment was up by 6,000 jobs (+7.1 per cent).
In June 2022, Saskatchewan’s seasonally adjusted employment of 577,800 exceeded its pre-COVID February 2020 employment level of 574,100.
The Brandt Group of Companies is pleased to announce that they will be opening a new utility trailer manufacturing facility in Moose Jaw with production expected to commence in late summer 2022. The company plans to create up to 200 positions over the next three years including assemblers, welders, material handlers, engineers and supervisors, and is hoping to draw as many employees as possible from the local labour pool.
Hiring will begin immediately with the addition of 70 jobs.
“Brandt is very excited to become an active member of the Moose Jaw business community and we will be utilizing local contractors to prepare the facility for production,” said Murray Yeager, Brandt vice president, Manufacturing. “Later, when the upgrades are complete, we will employ local vendors for everything from supplies and janitorial services to maintenance and snow removal.”
Moose Jaw was considered an ideal location for the plant, with its strong workforce and history as a centre for trailer production. The move is being made to free up space at Brandt’s North Regina Works campus to expand production for other product lines currently being built in their Regina facilities.
The company also has long-term plans for additional expansion and more equipment purchases to outfit the plant to produce utility trailers for North America-wide distribution.
The 64,000 square foot facility was originally home to General Cable and was purchased by Brandt in 2012.
SHCA’s golf tournament in Regina is coming up in August! Dust off your clubs and
prepare for a day filled with golf, food, drinks, networking and fun.
Contact the SHCA office for more information.
| Wascana Golf & Country Club |
|---|
| Thursday, August 18, 2022 |
| Regina, Sask. |
The construction season is underway, and work is in full swing. While that work moves ahead, the realities of inflation have been unavoidable.
Since the start of the year, the price of diesel has climbed substantially. Continuing to pay that much more for fuel has been difficult for many of our members under the existing contracts they have with the Ministry of Highways, which has estimated the increase to be around 69 per cent.
Now, there is a conversation happening about what to do about this situation. Recently, the Ministry of Highways presented our association with some proposed adjustments to the fuel escalation clause. Since the start of the year, the ministry has been reviewing prices and policy and exploring potential options for updating the policy and the budget impacts of those possible updates. Then, in late March, there was a standard practice bulletin posted that directed that interim diesel fuel adjustments be calculated and applied monthly to improve contractors’ cash flow. But, at that time, no formal changes were applied to the policy.
Then, in June, the ministry began a process to review options – with industry – for updating and expanding the diesel fuel adjustment. The risk associated with the cost of diesel is shared by the ministry and contractors, but not all types of work or components of work are eligible for the adjustment. Not all diesel consumed on a project is included.
This shared risk will continue, but the ministry is open to taking on a greater share of the risk. The ministry has proposed expanding the scope of work 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 also 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.
While the ministry has some ideas, it had asked for industry to provide input on a few questions:
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.
We provided actual figures and examples of how the industry has been impacted by the escalation in diesel fuel. We’ve also 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. Finally, we will be 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 deadline for comments was July 8.
The ministry is aiming to complete any updates to the diesel fuel adjustment by Aug. 15 this year in order to include them in all fall tenders. Changes through the supplemental agreement will be applied retroactively to the active contracts back to Jan. 1.
I know the current situation is not sustainable for our industry and this is a crucial conversation for many of our members whose future depends on this situation being addressed by government. We appreciate all of you who have contributed your input so that we can provide government accurate and meaningful information to ensure changes address your real need.