Shantel Lipp
by Shantel Lipp Shantel Lipp

Growing Our Economy

Shantel Lipp

I am seeing evidence that a conversation very important to our industry is being taken seriously by others in this province. I discussed in my President’s Message the report titled From Shovel Ready to Shovel Worthy: The Path to a National Trade Infrastructure Plan for the Next Generation of Economic Growth that was completed by the Canada West Foundation (CWF). 

We know this is a report that matters not just to our industry, but to our province, our entire country and the future. Saskatchewan people continue to hear announcements about private businesses increasing their production to meet the world’s needs. As the report explains, we need 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 globally. For more than a decade, those in the know have watched Canada spend money 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. 

The Western Canada Roadbuilders & Heavy Construction Association (WCR&HCA) helped initiate the Shovel Worthy report, but it has been endorsed by several associations and organizations concerned with the current investment, the lack of coordination and planning on a long-term strategy as well as the state of the federal trade corridors fund. 

Many stakeholders were involved in the preparation and release of the report, and since then, they have been sharing why this report matters. A coalition of five national organizations – Business Council of Canada, the Canadian Chamber of Commerce, the Canadian Construction Association, the CWF and the WCR&HCA – are approaching the three orders of government to advocate for a national building strategy to invest in Canada’s trade corridors, which will amplify trade-based economic growth. We hope their advocacy will persuade the federal government to commit to a national plan for trade corridor infrastructure in the budget year 2024. This would help Canada reinvest in the assets that have shaped our country – and can make our country even better going forward.

Restoring Canada’s global reliability reputation ranking is critical and will require leveraging a coordinated investment commitment of the municipal, provincial and federal government partnering with the private sector. That collaboration will be part of what Goldy Hyder of the Business Council of Canada will be delivering during his speech at the Saskatchewan Chamber of Commerce Business Conference at the end of May. 

The Saskatchewan Chamber of Commerce represents the Saskatchewan business community and is known as the “Voice of Saskatchewan Business.” The theme of their2023 Conference is “Transportation and Infrastructure: Connecting Saskatchewan to the World.” The chamber says that those speaking at this event will address how we can unlock Saskatchewan’s transportation and infrastructure potential to position our province as a global supplier.

Hyder is going to speak about how Canada’s economy depends on reliable physical infrastructure to connect supply chains, enable people and goods to move freely, support millions of jobs, facilitate the energy transition and ensure that the economy continues to grow. 

Building new infrastructure in Canada has been made difficult – even though it does not need to be such a challenge. He will explain that governments must work with the private sector to expedite approvals for major, game changing, nation-building projects. The Shovel Worthy report makes the point that the private sector should be brought to the table as an ongoing contributor of sophisticated supply chain expertise and front-line operational experience to complement the best features of public-sector policy.

Also speaking at this conferenceis Highways Minister Jeremy Cockrill. He is expected to describe how being a landlocked province presents challenges – making a safe, reliable and sustainable transportation system essential if this province is to compete in the global marketplace. Knowing that the “Voice of Saskatchewan Business” values this province’s infrastructure enough to dedicate an event to discussing its importance is highly encouraging. Watch for a report on his speech, as well as Hyder’s, in the next issue of Think BIG magazine. 

Just last month, I applauded Cockrill for signing a memorandum of understanding (MOU) with Manitoba and Alberta to strengthen the economic corridors between our provinces. That MOU focuses on four areas of cooperation between the three governments. First, improve efficiency of inter-provincial highway and rail networks. Second, encourage the federal government to fund infrastructure and national supply chain solutions. Third, keep their economies competitive and grow capital investment, and fourth, harmonize regulations to support businesses, industries and shippers. That relationship between Saskatchewan’s government and Alberta and Manitoba’s should encourage the province to look at what we have been promoting for our industry here. 

Those neighbouring governments are making three-year commitments, but we know provinces would see more value from five-year investments. That will provide the industry, as well as those supplying it, some certainty so you can develop even better business plans and make sound investment decisions. That way, you are even more efficient and productive. Those supplying the industry – including those in design and engineering, materials, fuels, aggregates, oils and equipment supply – would also be able to organize themselves better so they are prepared for the level of investment made by the government. 

But it’s about more than the industry. It’s about the economic growth in this province and the benefits that has for us living here.  When you invest in the infrastructure that will get what Saskatchewan produces to market more efficiently, our province becomes more competitive in the world – which means even more trade. That grows our economy so even more revenues can be generated to support areas such as healthcare, education and social programming to make Saskatchewan an even better place to live.

by SHCA SHCA

SHCA supports the memorandum of understanding between Saskatchewan, Manitoba and Alberta

The Saskatchewan Heavy Construction Association (SHCA) commends the provincial government on signing the memorandum of understanding with Manitoba and Alberta to strengthen the economic corridors between our provinces.

“The Saskatchewan economy is dependent on trade and the demand for what we produce here increases every year,” said SHCA president Shantel Lipp. “Heavy construction plays a vital role in creating the infrastructure that moves our products to the world.”

The memorandum focuses on four areas of cooperation between the three governments:

  • Improve efficiency of inter-provincial highway and rail networks
  • Encourage the federal government for infrastructure funding and national supply chain solutions
  • Keep their economies competitive and grow capital investment and harmonize regulations to support businesses, industries and shippers

“While this memorandum is a step in the right direction, SHCA continues to encourage the
government of Saskatchewan to look at long-term funding commitments similar to Manitoba and
Alberta,” said Lipp. “Long-term commitments will help the industry plan for future growth, which will
contribute to meeting the goals set out in the memorandum.”

This fall, SHCA will be hosting the first-ever industry summit for Saskatchewan, bringing together contractors, suppliers, engineers and other professionals to discuss infrastructure and transportation. “This memorandum complements our industry summit as we will be looking at ways to improve our infrastructure to create better supply chain flow through our trade corridors,” said Lipp. “As well, we are hoping to have a tri-provincial panel at the summit to discuss how inter-provincial cooperation helps our industry meet the challenges of growth.”

The Industry Summit and Trade Show will take place from Nov. 29 to 30, 2023 in Regina. SHCA represents over 200 member businesses in the heavy construction industry in Saskatchewan.

Sunrise scene with sun rays over a county gravel road as wooden power poles and power lines stand along a ditch with natural prairie grasses in Rocky View County Alberta Canada.
by SHCA SHCA

Provincial Investments Important to Saskatchewan’s Hometowns

Provincial investments are important to improving the quality of life in Saskatchewan’s cities, towns, villages, resort villages and northern municipalities. 

With the release of the 2023-24 provincial budget, the Saskatchewan Urban Municipalities Association (SUMA) recognizes the province’s effort to improve the lives of Saskatchewan’s residents, particularly through increased funding for infrastructure and health services. 

SUMA is pleased to see an investment of $89.4 million to build, operate and maintain the transportation system in northern Saskatchewan. The additional $6 million for the preservation and maintenance of northern roads to support the province’s forestry industry will also help support economic development in Saskatchewan’s northern communities.

All of Saskatchewan’s hometowns will benefit from the record investment of more than $297 million in Municipal Revenue Sharing, a 13 per cent increase from the 2022-23 year. However, with more than 80 per cent of Saskatchewan’s population calling an urban municipality home, SUMA believes the funding allocations need to be adjusted to reflect where Saskatchewan’s population lives and works, while recognizing the greater cost of providing services in Saskatchewan’s northern municipalities. 

“Municipal Revenue Sharing helps fund the projects that matter most to our communities,” SUMA president Randy Goulden said. “As Saskatchewan’s population continues to move to our villages, towns and cities, we need to ensure the revenue sharing model recognizes that shift and enables our hometowns to provide and maintain the infrastructure and services residents expect.”

With a projected $1 billion surplus, SUMA is disappointed that PST will continue to be applied to municipal construction projects. While the increased Municipal Revenue Sharing is welcome news for Saskatchewan’s hometowns, municipalities will be returning a significant portion of the funding to the province through PST on municipal construction projects. Data gathered by SUMA showed that medium-sized cities in Saskatchewan returned 24 to 39 per cent of their total Municipal Revenue Sharing grant back to the province in the form of PST on municipal construction projects in 2021. 

“As costs continue to rise due to inflation, the percentage of Municipal Revenue Sharing that we return to the province in the form of PST on our municipal construction projects also continues to increase,” said Goulden. “We could do so much more in our communities if the funding stayed in our municipalities.” 

by SHCA SHCA

Second Strategy Looks to Continue Work in Reducing Fatalities and Serious Injuries in the Workplace

In 2019, WorkSafe Saskatchewan, a partnership between the Saskatchewan Workers’ Compensation Board (WCB) and the Ministry of Labour Relations and Workplace Safety, launched the first three year Fatalities and Serious Injuries Strategy in an effort to help eliminate workplace fatalities and serious injuries.

WorkSafe Saskatchewan / Work to live.

In March, a new five-year strategy launched that focuses on two key streams of work that will be undertaken to reduce injuries and fatalities – a regulatory and enforcement stream, and a prevention and learning stream.

“Workplace safety is everyone’s responsibility,” Labour Relations and Workplace Safety Minister Don Morgan said. “This new strategy continues to make working with stakeholders to eliminate workplace injuries and fatalities in our province a priority. Everyone deserves to come home safely at the end of the day.”

“Collaboration with stakeholders is critical to bringing our injury rate down,” WCB board chair Gord Dobrowolsky said. “Building on the work of the last strategy, we will continue to engage workers and employers in finding ways to keep all workers safe on the job.” Under this strategy, the three main priority workplace sectors of focus are:

  • Health care
  • Transportation
  • Construction

These industries were chosen due to the high-risk nature of their work. Approximately 2,400 Saskatchewan workers are seriously injured each year in Saskatchewan. Copies of the 2023-2028 Fatalities and Serious Injuries Strategy are available at www.worksafesask.ca.

Shantel Lipp
by SHCA SHCA

Building Relationships

Shantel Lipp

Spring finally feels like it may be on its way. As we say goodbye to winter, we have also been preparing for another construction season.

Some of that preparation for our association is learning where government is at and sharing with government what matters to our industry. Each year, as the province and municipalities take stock of their situation and look around at what progress there is to be made, we must make sure we are there to offer our support while also making it clear what would improve our working relationship.

It is important that we share what will make our industry stronger, but we have an additional message we believe resonates with government. It is how our industry contributes to a growing economy.

Across Western Canada, heavy construction associations encourage governments to recognize the value of investing in trade infrastructure. Here in Saskatchewan, we know our growth depends on trade. Those buying Saskatchewan commodities want to know that this province has the infrastructure to move what they are purchasing. Investing in the infrastructure that will get those goods to market more efficiently will make the province more competitive in the world. That means more trade, which grows our economy. That economic growth can then generate revenues that support areas such as health care, education and social programming, making Saskatchewan an even better place to live.

Our association encourages the Saskatchewan government to recognize the value of making five-year commitments. It helps build our reputation in the world for being a reliable and competitive trading partner while telling voters the government of this province invests purposefully and strategically so a return on that investment is delivered.

That was one of the messages I delivered on what is an important day for many in our industry – the day the provincial government releases its budget, which this year was March 22. I congratulated the Saskatchewan Party government on delivering a budget that included an increase. I also described your interest in learning more about the Ministry of Highways capital program breakdown and how I will be sharing its impact on our industry.

It was a good opportunity to share that our industry hopes for a broader discussion on planning and investments over a longer term going forward. But a relationship isn’t built and maintained in a day. I often meet with government officials and welcome members who wish to join me at those meetings. I am encouraged by those who are eager to share their experiences and insights during those meetings.

It was great to see all of you who came to the MLA reception on April 4. If you have not been to this event before, I encourage you to talk to those members who have participated. It is a solid opportunity to have a conversation with those elected to form government as well as members of the opposition and share what you feel they need to know about your current challenges and successes. It is often the stories from our members that stick with MLAs and help them to remember what matters to our industry when making decisions.

Those stories were shared during the Spring Kick-Off and Industry Awards Gala. It was a wonderful opportunity to learn, mingle and celebrate together in Regina, reminding us all why we choose this industry for our livelihoods. There were representatives from all three levels of government there to share with our industry and to hear from our members and executive. We thank them all for participating and consider their interest an opportunity to better our relationship to continue to do more together in the future.

I recognize there is an opportunity at the municipal level and that there are relationships to maintain. While the provincial government is a source of a lot of work for our members, I know many of you are doing work for municipalities. I am in regular contact with the City of Regina and the City of Saskatoon, but I also find opportunities to connect with other municipalities through my relationship with SARM and SUMA. There is important work needed by these governments that I know members are supporting, and I continue to pursue these relationships in support of you.

This has been a long winter, but it is good to see spring arriving. As we get ready for the construction season, I look forward to moving these relationships ahead as you get ready to begin this year’s projects.

by SHCA SHCA

Ontario Prepping Students for Jobs in Skilled Trades

The Ontario government is implementing a new high school graduation requirement to help better prepare students across the province for the jobs of tomorrow. Starting with students entering Grade 9 in September 2024, all students will now be required to earn a Grade 9 or 10 Technological Education credit as part of their Ontario Secondary School Diploma.

“I am proud to announce another step forward to ensure all students learn the critical skills necessary to succeed and get a good paying job,” said Stephen Lecce, Minister of Education in Ontario. “By requiring students to take at least one Technological Education credit in high school, we are opening up doors and creating new pathways to good jobs in STEM and the skilled trades. All students will benefit from a greater emphasis on hands-on learning experiences and technical skills in the classroom so they can graduate with a competitive advantage in this country.”

This new learning graduation requirement will expose Ontario’s students to at least one Technological Education course that could guide them to a future career in the highly skilled workforce, including the skilled trades. With more than 100,000 unfilled skilled trades jobs right now, it is critical Ontario attracts more young people to pursue a fulfilling, good-paying career in the trades.

The Technological Education curriculum covers a broad range of sectors, including construction, transportation, manufacturing, computer technology, hospitality and communication. In Ontario, men make up more than 70 per cent of workers in trades-related occupations. The exposure to these career pathways as a mandatory graduation curriculum requirement will ensure more young women make the choice to pursue a career in the trades.

While almost 39 per cent of Ontario secondary schoolstudents were enrolled in a Technological Education course in 2020–21, nearly 63 per cent were male students. With this graduation requirement, more young women will have an opportunity to explore the trades. This new requirement means a student may be introduced to programming learning in Grade 9, explore the apprenticeship pathway further and may ultimately decide to become an aerospace manufacturing technician, for example.

“For Ontario to succeed, we need more women and girls to pursue fulfilling careers in the skilled trades. I am proud our government is taking action to ensure students across our province have the tools and skills they need to build a new generation of prosperity in Ontario,” said Charmaine Williams, Associate Minister of Women’s Social and Economic Opportunity. “This mandatory graduation requirement means a brighter future – not just for women and girls – but for our entire province.”

This new graduation requirement builds upon other actions taken by the government to bolster its Skilled Trades Strategy, including developing an accelerated Grade 11 to apprenticeship pathway for students to get into the skilled trades faster.

“Ontario is facing the largest labour shortage in a generation, which means when you have a career in the skilled trades, you have a career for life,” said Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development. “That’s why our government is taking an all-hands-on deck approach to attract and train our next generation of skilled trades workers for better jobs and bigger paycheques for themselves and their families.”

by SHCA SHCA

Saskatchewan Cities Feeling Pinch of PST on Municipal Construction Projects

As municipalities finalize their municipal budgets and prepare for the 2023 construction season, Saskatchewan’s hometowns are continuing to feel the pinch of PST on municipal construction projects. Cities are paying millions of dollars in PST on infrastructure projects designed to improve the quality of life for their residents and surrounding areas. 

“Local governments are responsible for approximately 60 per cent of public infrastructure,” Mayor Gerald Aalbers, chair of the SUMA City Mayors’ Caucus and vice-president of cities for SUMA, said. “Our hometowns largely build and maintain that infrastructure through government grants like the Municipal Revenue Sharing program. But one-quarter or more of our Municipal Revenue Sharing dollars are being returned to the province in the form of PST on construction projects.” 

Based on data gathered by SUMA, medium-sized cities in Saskatchewan returned 24 to 39 per cent of their total Municipal Revenue Sharing grant back to the province in the form of PST on construction projects in 2021. The City of Yorkton paid approximately $1 million in PST on their infrastructure projects, and for the City of Prince Albert, the total was $2.8 million. Through Municipal Revenue Sharing, the cities received $3.2 million and $7.1 million, respectively.   

When the exemption of PST on construction projects was removed in 2017, Saskatchewan’s hometowns raised concerns over the additional costs, requesting an exemption. With inflation, costs have increased drastically, further impacting the already limited budgets of Saskatchewan’s municipalities. For those cities undertaking major infrastructure projects, like the City of Prince Albert, the percentage of funding returned to the province through PST on construction projects is anticipated to rise substantially.

“We truly appreciate the funding provided to our communities through programs like Municipal Revenue Sharing,” Mayor Aalbers said. “But we are returning a significant portion of this funding through PST on municipal construction, funding that could instead be used to enhance municipal services and limit property tax increases.”

The impact of PST on infrastructure projects in Saskatchewan’s cities was discussed during the virtual SUMA City Mayors’ Caucus meeting on Feb. 9. SUMA’s City Mayors’ Caucus brings together representatives from Saskatchewan’s 16 cities to discuss issues of common concern and project a strong, unified voice on the most pressing and important local and provincial issues facing Saskatchewan’s cities.