Canada needs to invest in trade infrastructure

By Martin Charlton Communications

The world needs what Saskatchewan produces, but producing these commodities is not enough. 

We have to get our goods to other countries and doing so depends on having an effective system of infrastructure to move commodities through Canada and beyond its borders. 

Further developing and maintaining an infrastructure system that supports trade is important for Canada’s economic future. Moving goods to and from other countries makes up two-thirds of this country’s income (as compared to just over a quarter for the U.S. and 45 per cent for Australia, according to World Bank figures.)

Today, many Canadians are learning about the supply chain vulnerabilities of this country with news headlines about empty store shelves, flooding in B.C. and truck blockades at the border.

Others saw it coming for more than 10 years and are now stating what they believe is necessary to ensure Canada has a strong trade infrastructure system. 

“This is a lost decade for investment in export capacity – equipment, facilities and the public infrastructure necessary to produce and transport goods to global growth hot-spots,” said Peter Hall, the former chief economist for Export Development Canada. “What we are seeing right now is a lack of ability to grow because of that missing investment.”

A new report by the Canada West Foundation (CWF) titled From Shovel Ready to Shovel Worthy: The Path to a National Trade Infrastructure Plan for the Next Generation of Economic Growth could be a starting point to ensure Canada doesn’t continue to miss out. The report was released publicly in mid-May. 

That report explains how Canada got to this point and describes what would be a better way forward. John Law is the lead author of the report. He is a senior fellow at CWF and a leader in Canada’s transportation and infrastructure sector.

Law has a played a significant role in the development of national and interprovincial transportation policy, serving in a number of senior positions in industry and government including as president of the Transportation Association of Canada (TAC), chair of the Canadian Council of Deputy Ministers responsible for Transportation and Infrastructure, founder and chief executive officer of Saskatchewan’s Global Transportation Hub, and deputy minister of the Saskatchewan Ministry of Highways and Infrastructure.

It is not just those in this country who are noticing and questioning Canada’s infrastructure, Law writes in the report. Confidence in the reliability and competitiveness of Canada’s trade infrastructure has been slipping in other parts of the world, according to international surveys. 

Canada was the only country in a 2021 analysis by the European Court of Auditors where major transportation projects are not planned as part of a national long-term strategy. That analysis described how Canada doesn’t effectively coordinate what projects proceed, which means projects with lower returns on investment are being selected. This country also has no system for monitoring the performance of projects after they are done to see what improvements can be made in the future. It describes Canada’s way of planning infrastructure as “a big risk to future prosperity.”

Saskatchewan people continue to hear announcements about private businesses increasing their production in order to meet the world’s needs. A number of canola processing plants have been announced in the last two years. Potash mines, including those owned by BHP and K+S, are moving ahead with plans to increasing their production. Then there is the new development for resources in this province, including lithium, helium and more. 

“Canada’s economy depends on the ability to access world markets which includes the transportation of goods through road, rail, ports and pipelines efficiently and dependably,” said Chris Dekker, the president and CEO of Saskatchewan Trade and Export Partnership. “As a landlocked province, Saskatchewan is particularly impacted by trade corridor issues. The CWF report captures the existing and growing infrastructure challenge and outlines a tangible path toward the next generation of economic growth.”

Moving from spending to investing in Canada’s trade infrastructure requires moving away from putting money towards projects ready to be built and moving towards a plan that invests in infrastructure that supports the movement of goods and people in an efficient and effective manner. 

Paying to complete projects that are picked because they are ready for construction to begin is what is meant by shovel ready. Instead, projects that are shovel worthy are those that have been determined to be able to produce a maximum return on the investment made in them and can increase 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 Western Canada Roadbuilders and Heavy Construction Association (WCR&HCA), as he promotes this report’s importance.

The WCR&HCA helped initiate the report, but it has been endorsed by a number of 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. There have been numerous stakeholders involved in the preparation and release of the report.

In addition to circulating the Shovel Worthy report to stakeholder partners and political offices, the WCR&HCA is working with CWF and the Canadian Construction Association to get the report in front of and seriously considered by the federal and provincial governments.

They want governments to know that shovel-
worthy projects – those that make Canada more competitive – are what belong in a national plan that has a long-term view and is always being updated. That plan is how Canada can return to its place in the top 10 of global trade infrastructure rankings, which is needed to restore the confidence of Canada’s trade customers. 

“As a trading nation, Canada’s success is closely linked with the strength and competitiveness of our multi-modal transportation systems and key trade corridors. Saskatchewan and the West produce much of what the world needs,” said Shantel Lipp, president of the Saskatchewan Heavy Construction Association. “There are established best practices from other jurisdictions that can help us create a new national framework, without having to re-invent the wheel, we just need to look at their success and build upon it.”

By pulling out the best features of national infrastructure plans developed by Canada’s competitors and combining those features with Canada’s own infrastructure programs that have been successful – such as the Asia-Pacific Gateway and Corridor Initiative and the Regional Transportation Assessments done by Transport Canada, Canada can more quickly get up to speed than it would be able to starting from scratch.

Having such a plan – which can be referred to when spending decisions are being made – is how Canada can also make sure that it gives serious consideration to challenges posed by climate change and ensure harm to marginalized communities is prevented or at least handled well. 

There are seven points the report makes about how to build Canada’s first national plan for trade corridor infrastructure. They are:

Define Canada’s national trade corridor network to put all levels of government and industry on the same page.

Bring the private sector 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.

Apply criteria of national significance
to guide the planning process and
decision making. 

Develop an “evergreen,” decades-long pipeline of national infrastructure projects.

Undertake regular assessments of infrastructure projects in relation to established criteria.

Begin a new forward-looking approach to the collection of data and use of forecasting and modelling tools.

Coordinate the communications of domestic infrastructure working groups and aggressively share progress on the above recommendations with industry and foreign customers.

The Shovel Worthy report concludes by stating that Canada’s network of trade corridor assets, which includes highways, railways, ports and airports, connects this country to global trade. Quality trade infrastructure is key to enabling Canada’s trade-dependent economy and makes a national plan necessary if the country’s economy is to continue to grow.  

The report, it says, is just the starting point to see that national plan be developed in order for Canada to again be considered trustworthy and dependable as a trade partner. That plan will not only improve efficiency, but also help Canada address climate change shock and anticipate trade changes. The plan must consider local strengths and priorities by keeping regions involved in national planning.  

Beyond building and maintaining roads, heavy construction has a huge economic impact in Saskatchewan

By Martin-Charlton Communications

How does Saskatchewan benefit from having a heavy construction industry as a part of its economy? 

Much more than paved roads are gained by this province and its people. The benefits Saskatchewan experienced last year are described in a new economic impact study done by Praxis for the Saskatchewan Heavy Construction Association (SHCA). Praxis explains that “a comprehensive economic impact study is a critical (way) to gain an understanding of how the industry benefits the provincial economy in terms of job opportunities, other economic activity and government revenues.”

The money this industry generates for Saskatchewan is in the billions of dollars. The industry supports tens of thousands of jobs and adds significantly to government revenues. It is not just the province as a whole that benefits. The industry also benefits the communities where crews complete projects – an impact that is quantified in this study.

Defining the heavy construction industry was part of the process of determining its economic impact on the province’s economy. Praxis listed the work that falls within the scope of the sector, and it includes much more than just highways, roads and parking lots. Work done to excavate and prepare sites for commercial and industrial sites is included. So, too, is work around water infrastructure, such as dams, irrigation structures, hydro-electric and water diversion tunnels, water and sewer lines, water drainage and irrigation ditches and minor bridges. 

Saskatchewan benefits directly and indirectly from the heavy construction industry. The direct, indirect and induced impacts take into account what the industry itself contributes as well as the industries that are suppliers to it and even how that activity trickles down to spending by households in the province. 

All that spending on local goods and services as well as payments to labour and business profits was determined to be over $14 billion last year. A breakdown of that figure shows that more than half – $8.4 billion – was spending by the heavy construction industry. That is up from 2012, when it was at $6.9 billion, according to an earlier economic impact analysis done for SHCA by McNair. 

Then, there was spending of more than $3 billion by the industries that supply heavy construction. The industries highlighted include manufacturing, wholesale trade, retail trade, transportation and warehousing, finance (including insurance and real estate) as well as professional, scientific and technical services. 

Finally, there is the change in household spending in the province as industries add labour because of growing demand for outputs due to the heavy construction industry’s activity. In Saskatchewan, that was at $2.7 billion. 

The spending that was done strictly within Saskatchewan because of the heavy construction industry is quantified as well in the study. Heavy construction added $6.2 billion to Saskatchewan’s GDP. 

Saskatchewan communities benefit when heavy construction crews show up to work on projects. The Praxis study found that the money spent at local hotels or campgrounds as well as meals at restaurants and bars plus purchases of fuel all support local communities’ economies. Each year, these crews spend about $400 million in these communities, which supports more than 1,000 local jobs.

What all this economic activity by the industry means for jobs and labour income in the province is also included in the Praxis study. It quantifies the number of jobs in the heavy construction industry as well as those industries that supply it plus those that benefit from all that economic activity.

A total of 47,816 jobs were created and maintained in Saskatchewan by the heavy construction industry last year. There were more than 22,000 jobs in the heavy construction industry last year and the people filling those positions were paid $1.5 billion in income. That includes wages, salaries and employer contributions to pensions and benefit packages. These employees spend $1.1 billion as consumers. 

Other industries that supply heavy construction were able to employ 11,235 people and pay them $672 million last year. These would be jobs in manufacturing, wholesale trade, retail trade, transportation and warehousing, finance (including insurance and real estate) as well as professional, scientific and technical services and other industries.

On top of that were the 14,377 jobs created and maintained largely in the retail and service industries because of that economic activity. Those jobs paid $615 million in income. 

That earlier economic impact analysis by McNair also included a forecast on job numbers. It forecast that the number of jobs in the heavy construction industry would grow, and it expected there would be 26,890 jobs in the industry in 2021. Instead, what the recent Praxis study shows is the number of jobs has dropped. There were 22,203 jobs in the heavy construction industry last year, which is about 1,000 fewer than there were in 2012. 

Employment numbers could potentially drop further because of how much input costs have increased for the industry. Inflation is impacting input costs and gas prices are climbing. What adds to the crunch is that most contracts for heavy construction work to be done in 2021 were signed a year before prices started to rise.

Some of the increases creating the most pressure come from fuel, fabricated metal products, professional services and computer/electronic products. Because of these rising costs, the heavy construction industry is expected to face an additional $426.7 million in new expenses. The study says the industry’s profits are at $670 million a year, meaning that this increase in costs reduces those profits to $243.4 million. Some businesses won’t survive seeing their profits cut in half. That drop in profits could also mean that job numbers in the industry are cut by half.

It is important information for governments to know. What is also important is that politicians and bureaucrats be reminded how much the heavy construction industry adds to government revenues. The Praxis study states that the provincial and federal governments have $1.7 billion added to their revenues by the industry. The federal government gets the larger share of that at $982 million with the provincial government receiving $767 million. This revenue is generated through income tax, corporate and business taxes as well as sales and excise taxes. 

The benefits Saskatchewan receives because of the heavy construction industry are plentiful. It goes far beyond benefitting from the projects completed by those in industry. Roads and highways are built and maintained by some while others excavate and prepare sites for commercial and industrial sites and still others work on water infrastructure. 

The work done to see these projects completed is undertaken by tens of thousands of people employed by the heavy construction industry, who earn more than a billion dollars that they spend as consumers. Tens of thousands more people are employed in other industries that supply the heavy construction industry and those who benefit from its spending in communities where projects are completed. Government coffers grow because of this economic activity. Saskatchewan is a much better place to live and work because of this industry. 

Golfers took to the golf course at the Elk Ridge Resort in Waskesiu, Sask., on May 26, 2022

Featuring Kevin Paul, Stantec Consulting Ltd.

Kevin Paul is the operations leader for Stantec Consulting Ltd.’s Infrastructure Group in Saskatchewan. Having been with Stantec for more than six years and in the construction industry for more than 16 years, Paul is a steadfast supporter of SHCA.

He answered some questions for Think BIG about his experience working in the Saskatchewan heavy construction industry and why he believes SHCA membership is so valuable.

What do you like most about working in Saskatchewan’s heavy construction industry?

I love working with the people in the industry. One of the best projects I have been able to work on over my career has been as the program manager (owner’s engineer) for the Ministry of Highways Stimulus Program. It allowed myself (and my team) to work with some of the industry’s best talent, both on the consulting and contracting sides of the fence. The relationships that I have been able to either develop or strengthen while working in this program have been invaluable. This industry has so many talented people who never back down from any challenge or issue that we may come across. 

Why did your company originally decide to join SHCA?

At Stantec, a core part of our business is within the heavy construction industry and being a member of SHCA allows us to be more connected with the industry. SHCA represents a very diverse group of members, varying from contractors to consultants and suppliers of various materials that are used within our industry. 

In what ways do you participate in SHCA?

SHCA provides our company the opportunity to participate in various ways throughout the year. Our team attends networking events, both the southern and northern golf tournaments and the annual convention. Stantec has also submitted projects for the annual Design Award the association gives out each year. We have been very fortunate to have received this award the past two years and look forward to submitting many more projects in the future! Our design and construction teams also utilize the annual Rental Rates Guide that is published by the association on an almost daily basis. The guide has a lot of valuable information that we rely on each year when it is published. We also have sent many team members through different training opportunities as they are offered though the association.

Why does your company renew its SHCA membership each year?

Stantec renews its membership each year because we value what the association does for the industry each day. SHCA has a very strong voice with some of our biggest clients and with the provincial government. Their advocacy and voice to promote their members’ best interests and concerns is invaluable. 

Can you think of anything you may have missed out on if you were never an active member of SHCA?

Missing out on the opportunity to attend the networking events would be one thing we would miss a lot if we were not members of the association. The new relationships that we make at these events and the strengthening of the existing ones that we currently have would be greatly missed. 

Do you think that SHCA members have business advantages over non-members?

The daily tender postings and results that they email to membership is very valuable. These allow us to see industry trends and help guide us on where we should take our business. The association also provides its members with a unified voice to advocate for what is best for the industry at various levels of government and with certain clients.  

If someone in the Saskatchewan heavy construction industry wasn’t participating in SHCA because they didn’t think it would benefit them, what would you say to them to convince them otherwise?

I would say that those firms are missing out on having a very knowledgeable association advocate for businesses of all sizes and supporting the heavy construction industry in varying ways. 

In your opinion, what’s the single greatest benefit of belonging to SHCA?

As a consultant, the most important thing to me is the relationships we have with the industry. SHCA allows us to connect and grow and develop those relationships and be trusted partners with each other. 

Sharing news that SHCA members need to know

Stronger Together: We’re Going to Waikiki!

The Western Canadian Roadbuilders & Heavy Construction Association (WCR&HCA) is heading to Waikiki, Hawaii, Feb. 5–9, 2023 for the Stronger Together Conference. Joined by 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!

For more information, visit the event website: 

Saskatchewan Potash Producers Ramp Up Production

In response to the growing demand and escalating concern around global food security, Saskatchewan’s potash sector is ramping up production. Saskatchewan is positioning itself to fill the market gaps left because of the sanctions placed on Russia and Belarus.

“Global interest in Saskatchewan is at an all-time high as countries look to us as an ethical and reliable producer for their resource needs,” Energy and Resources Minister Jim Reiter said. “We are proud of our world-class potash sector for stepping up to meet growing global demand for decades to come.”

The Mosaic Company, K+S Potash Canada and Nutrien Ltd. have all announced planned potash production increases at their Saskatchewan facilities in response to global supply uncertainty.

Nutrien announced they will be ramping up annual potash production capability to 18 million tonnes by 2025. This represents an increase of more than 5.0 million tonnes, or 40 per cent, compared to 2020, and will lead to approximately 350 new jobs in the province.

“In addition to increasing potash production by more than 2.0 million tonnes since 2020, Nutrien will invest in the province of Saskatchewan to accelerate potash production capability to 18 million tonnes by 2025, and continue evaluating a pathway to 23 million tonnes,” Nutrien CEO Ken Seitz said. “With decades of experience and technology leadership across our network of six low-cost mines in the province, Nutrien is ideally positioned to help sustainably feed a growing world.”

K+S Potash recently announced plans to increase production to 4.0 million tonnes per year over the next few decades at their Bethune facility. K+S is looking to hire more than 70 new employees to carry out these operations.

Mosaic is also taking action to increase its annual potash operating capability by a further 1.5 million tonnes by the second half of 2023 at their new Esterhazy K3 operation and Colonsay mine. Since resuming production at Colonsay in 2021, Mosaic has added 150 jobs at the site.

BHP is looking to accelerate the timeframe for the construction of its $12 billion Jansen project, and several other companies have new potash mine projects at varying stages of development.

Saskatchewan is the largest potash producer in the world and the sole producer in Canada, typically accounting for about 30 per cent of global potash production. Over the last 15 years, the potash industry has committed approximately $30 billion of investment for new mines and expansions.

Saskatchewan’s potash sector accounts for approximately 11 per cent of provincial GDP and supports roughly 6,000 direct and indirect jobs. Saskatchewan’s potash production and the value of sales both set new records in 2021, reaching 14.2 million tonnes K2O and $7.6 billion respectively.

Given the province’s substantial potash reserves, the sector will continue to drive investment, create new jobs and bring opportunity to the people of Saskatchewan.

Rethinking and Reimagining a Forward-thinking Canada

Western Transportation Advisory Council (WESTAC) members gathered in Regina and online in April to attend the annual Spring Member Forum. Sessions and member discussions focused on components and considerations for a new economic plan for Canada.

Hon. Fred Bradshaw, Minister of Highways, Government of Saskatchewan and chair of WESTAC, opened the forum by emphasizing the importance of thinking beyond infrastructure and provincial borders to broader transportation networks to solve the challenges facing the industry. 

The speakers provided members with insights to consider when rethinking and reimagining what the future of Canada could look like. External factors increasingly influence decision-making at an operational and strategic level. These external factors include climate challenges, demographic realities and geopolitical influences in our ever-interconnected world. Darrell Bricker, CEO at Ipsos Public Affairs, kicked off the forum by focusing on the shifts in demographics that will inevitably impact the planning and operational capacities of all organizations.

WESTAC was honoured to have Premier Scott Moe address the members on Saskatchewan’s tremendous growth plan. This address set the stage for the afternoon sessions, looking at new and emerging opportunities in Saskatchewan of interest to our membership, including potash, canola, hydrogen, helium and lithium.

“The recipe for success in Saskatchewan is quite simple. We attract investment; we develop our natural resources; we sell them to people in other areas of the world. We create jobs, people move here and, ultimately, we can fulfill our growth agenda and reinvest that revenue back into our growing and vibrant communities. The recipe for success is equally simple for Canada,” remarked Premier Scott Moe while addressing WESTAC members.

The forum provided an opportunity for collaboration and thoughtful dialogue beneficial for the overarching Canadian supply chain.

Other topics covered by speakers included:

• Reimagining transportation and logistics
• Resources of the future and where Canada has the edge
• Globalization and the future of Canada as a trading nation
• Emerging industries in Saskatchewan
• Canadian security

“There are plenty of reasons for cautious optimism about Canada’s economic future,” said WESTAC president and CEO, Lindsay Kislock. “We are leaders in several industries providing low-carbon products that the world needs now more than ever. Through collaboration and timely decisions, we can grow our contribution to world markets and contribute to lowering global emissions.”

A complete list of speakers can be found here. A proceedings report will be available to members in the coming weeks.

Caterpillar and the National Hockey League Announce Multiyear Global Sponsorship

Caterpillar Inc. and the National Hockey League (NHL^®) recently announced a multiyear global sponsorship naming Caterpillar the official heavy equipment and industrial power sponsor of the NHL. Launching this fall at the start of the 2022–23 NHL regular season, the sponsorship will focus on recognizing the people who manufacture, sell and operate Cat^® products and services.

“Caterpillar and the NHL both represent committed and passionate doers who work hard as part of a team to accomplish a goal,” said Yvette Morrison, global head of marketing and brand for Caterpillar. “We will use this sponsorship to engage with customers and employees, providing them with an enjoyable experience.”

As part of the sponsorship, Caterpillar and its dealers may identify opportunities to assist the NHL by providing behind-the-scenes products and services to support NHL games and special events.

“We are excited to welcome Caterpillar to the NHL family to engage our passionate fans and Caterpillar’s customers around the globe,” said Max Paulsen, NHL senior director, Business Development. “Caterpillar is one of the top brands in the world and aligns with the many attributes our great sport embodies. We look forward to creating compelling and unique initiatives that will delight new and existing fans while providing Caterpillar extensive brand visibility at our tentpole events and across NHL media platforms.”

The NHL will collaborate with Caterpillar to incorporate Cat products into NHL events by highlighting the company’s heavy equipment machines and industrial power generators with TV-visible signage and in-arena branding at the NHL’s marquee events, including NHL^® All-Star Weekend, NHL Stadium Series^™ and NHL Winter Classic^®. The NHL will also work with the company to promote hockey in local communities through Caterpillar’s network of dealers.

SRC Celebrates Grand Opening of New Mining and Minerals Facility

The Saskatchewan Research Council (SRC) recently celebrated the grand opening of a new facility that consolidates SRC’s mining and minerals operations into one purpose-built facility to serve its clients more effectively. The new location, funded by the Government of Saskatchewan, provides additional opportunities to continue expanding SRC’s services and capabilities.

“SRC has worked with the mining and minerals industries in Saskatchewan, across Canada and worldwide for 75 years,” said Jeremy Harrison, the Minister Responsible for SRC. “By helping its clients, SRC strengthens the Saskatchewan economy with growth, quality jobs and a secure environment.”

In June 2020, the Government of Saskatchewan and SRC announced $15 million in funding for the 18-month construction project that brought 50 immediate jobs to Saskatchewan’s construction industry, as well as long-term impacts to Saskatchewan’s mining and minerals industry through increased production and cost-savings. This project was part of the Government of Saskatchewan’s $7.5 billion, two-year capital plan to build a strong Saskatchewan and stimulate Saskatchewan’s economic recovery.

“The consolidation into a fit-for-purpose building allows SRC to optimize and expand expertise and capabilities as we move into driving new technology and innovation to support the mining and minerals industry,” SRC president and CEO Mike Crabtree said. “This will in turn allow mining companies to produce more ore with less waste, reduced energy costs and reduced greenhouse gas emissions – developments which will be essential to ensuring the long-term sustainability of Saskatchewan’s mineral resources.”

The facility now houses roughly 90 employees working in SRC’s Geoanalytical Laboratories, Mineral Processing and Development Engineering and Manufacturing groups.

SRC is Canada’s second largest research and technology organization. With 350 employees, $137 million in annual revenue and 75 years of experience, SRC provides services and products to its 1,500 clients in 27 countries around the world.

More People Working in Saskatchewan Than Ever Before

Job numbers released by Statistics Canada for May 2022 show Saskatchewan added 19,800 jobs, an increase of 3.5 per cent, compared to May 2021. All the growth was in full-time jobs.  

The seasonally adjusted unemployment rate fell to 4.8 per cent in May 2022. It was down from 6.1 per cent a year ago, down from 5.5 per cent a month ago, and below the national average of 5.1 per cent. 

“Saskatchewan’s economy is on the right track with significant job gains and a low unemployment rate,” said Jeremy Harrison, Immigration and Career Training Minister. “Our government will continue to provide a competitive environment to accelerate our economic growth in communities across the province.”

A number of all-time employment records were hit in May 2022, including overall employment (587,000), female employment (272,300), off-reserve Indigenous employment (65,800) and off-reserve Indigenous full-time employment (54,100).

Major year-over-year gains were reported, with construction up 5,400 jobs.

In May 2022, Saskatchewan’s seasonally adjusted employment of 578,100 exceeded its pre-COVID February 2020 employment level of 574,100. 

A recent report from the Conference Board of Canada projects that Saskatchewan’s economy will lead the country with real GDP growth of 7.9 per cent in 2022, well above the national average of 4.0 per cent.

Saskatoon Celebrates Completion of Wastewater Treatment Plant Digester and Heating Upgrades Project

In June, the City of Saskatoon announced that work is completed on the Digester and Heating Upgrades project at the wastewater treatment plant (WWTP).

The three-year, $48.2 million project is funded by the Government of Canada ($9.5 million) and Government of Saskatchewan ($9.5 million) through their New Building Canada Fund, with a $29.2 million investment by the City of Saskatoon.

“Investments in modernizing wastewater infrastructure address communities’ needs and help protect the environment. By partnering with Saskatchewan to upgrade Saskatoon’s WWTP, our government is supporting the local economy while ensuring residents benefit from improved water quality and healthier local ecosystems,” said the Honourable Dominic LeBlanc, Minister of Intergovernmental Affairs, Infrastructure and Communities.

“Reliable local water systems are important to position Saskatchewan communities for growth and attract new business,” Saskatoon Riversdale MLA Marv Friesen said on behalf of Don McMorris, Saskatchewan’s Minister of Government Relations. “The Government of Saskatchewan is proud to invest $9.5 million toward this important wastewater infrastructure project in Saskatoon, which will benefit the local economy, residents and environment.”

“As our city continues to grow, it’s important to maintain our high standards and stewardship in protecting people and property downstream from Saskatoon,” said Mayor Charlie Clark. “The investments in a new digester and heating upgrades at the WWTP will help us meet demand by improving capacity and sustainability, as well as maintaining our high-quality standards into the future. The expansion includes an exciting sustainable energy recovery process that will recycle biogas to be used as fuel in boilers and solid matter as nutrients for local and nearby crops.”

The new digester is the WWTP’s fourth and will improve capacity to allow the plant to maintain Water Security Agency processing standards whenever another digester is taken out of service for maintenance. The digesters are large circular tanks that hold the solids removed during the wastewater treatment process. The solids are deprived of oxygen to allow bacteria to form and break the solids down, and methane biogas is produced during the process. The methane biogas helps heat the WWTP, which in turn reduces reliance on the use of natural gas for heating. Boiler upgrades and the installation of a methane biogas treatment filter were also a part of the project.

To learn more about the digester and heating upgrades project, visit 
saskatoon.ca/digester.

Summary:

Construction on the fourth digester and Heating and Gas Scrubbing Building began in 2019 and was completed in 2021, ahead of schedule and under budget.

Construction of a fourth digester tank improves capacity and allows the city to maintain Water Security Agency processing standards when another digester is taken out of service for maintenance purposes.

Now that construction is complete, residents can no longer see an open flame at the WWTP as the flare has been replaced with two enclosed flares.

SaskPower Announces New President and CEO

In June, SaskPower announced that after a nationwide search, Rupen Pandya will be the company’s new president and CEO, effective July 1.

Pandya has developed extensive experience since beginning his professional career in 1997 with the provincial government. Pandya worked for the Saskatchewan Housing Corporation, Ministry of Social Services and Ministry of Advanced Education before taking on more senior roles. As an assistant deputy minister for Immigration Services, Pandya helped develop recruitment and retention plans for the province. He also held assistant deputy minister positions with both the Ministry of Advanced Education and with the Ministry of Economy before becoming the president and CEO of SaskBuilds for five years. At SaskBuilds, Pandya led the entity’s three-year strategic plan, operating plan, policies and procedures as well as oversaw the procurement and delivery of over $3 billion in alternative finance procurements involving transportation and social infrastructure projects across Saskatchewan.

In 2017, Pandya was appointed Deputy Minister of Finance where his responsibilities included oversight of government revenue, expense, assets and liabilities; leading fiscal policy and budget development; designing and administering competitive tax regimes; and more.

Pandya holds Bachelor and Master of Arts degrees from the University of Regina. He was raised in Regina where he resides with his wife, Terri, and their two daughters. Pandya is looking forward to working with SaskPower’s executive team and employees.

Mosaic Renews Commitment to STARS with $2.5 Million for Operations, New Fleet

The ambitious fundraising goal for STARS’ fleet renewal capital campaign in Saskatchewan was reached, thanks to a generous $2.5 million commitment from Mosaic, announced earlier this year at the STARS base in Regina.

The Keep the Fight in Flight campaign was launched in 2018 to renew STARS’ fleet of aging air ambulances with Airbus H145 helicopters, at a cost of $13 million each. Mosaic’s $2.5 million gift will support ongoing mission operations in Saskatchewan as well as help fund the three new H145 aircraft needed to serve patients across the province.

“Mosaic supports organizations that are making a difference in the communities where our employees live and work, and STARS continues to play a life-saving role in our province,” said Bruce Bodine, Mosaic’s senior vice president, North America. “Investing in STARS is critically important, and we want to show our commitment by ensuring they can operate in our province for years to come.”

As a charity, STARS relies on its donors to help achieve excellence and drive innovation in critical care. Mosaic has been a strong STARS supporter since the non-profit established operations in Saskatchewan in 2012, and the company’s total support of STARS to date is more than $10.5 million. In recognition of this milestone, STARS’ Regina hangar will officially be named the “Mosaic Hangar at STARS Regina.”

“STARS was built by the community for the community, and with support from long-time supporters like Mosaic, people working, travelling and playing across Saskatchewan continue to have access to critical care when they need it most,” said Andrea Robertson, STARS president and CEO.

STARS has flown hundreds of missions in the new helicopters since receiving its first H145 aircraft in 2019. Thanks to government, community and corporate support, the renewed fleet will be implemented at all six STARS bases across Western Canada later this year.

“These new aircraft are a generational investment in our ability to fight for the lives of Saskatchewanians for decades to come, and we’re incredibly grateful to Mosaic for their financial support to help us reach our goal,” said Robertson. 

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. 

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. 

Dealing with employees’ off-duty conduct

By Danny Alcom, Miller Thomson LLP

The rise of social media and access to the Internet has enabled people to connect and share information, opinions and beliefs with one another in an unprecedented manner. Individuals can document activities and post content virtually instantly. In many ways, this enhanced connectivity is positive; however, it can also create an uncomfortable situation for employers who may not always agree with their employees’ social media activity. Employers are increasingly faced with public scrutiny and pressure to act when their employees post offensive content or engage in offensive conduct that becomes public. Employers must deal with the unenviable task of balancing public scrutiny and pressure on the one hand, with their duties and obligations to their employees on the other. Determining what to do can be a difficult task.  

Off-duty conduct, including off-duty public comments, can warrant discipline up to and including termination under the right circumstances. The primary consideration is whether the employee’s off-duty conduct or comments had a negative effect on the company’s reputation or its ability to operate effectively. When relying on reputational harm to ground discipline, the employer must establish a real and material connection between the conduct and the workplace, and the harm caused must be substantial.

Importantly, it is not necessarily the risk of reputational harm or harm to business, but actual harm that is most relevant.

In wrongful dismissal disputes involving terminations for off-duty conduct, in addition to the key considerations of harm to reputation and business, adjudicators will also consider whether: 

1. The employee’s conduct renders them unable to perform their duties satisfactorily; 
2. The employee’s conduct results in a refusal, reluctance or inability of other employees to work with them; or 
3. Whether the employee has been found guilty of a serious breach of the Criminal Code such that the conduct is injurious to the general reputation of the employer and its employees.

Negative or offensive public comments by employees about co-workers, superiors and the employer have grounded just cause for termination under the right circumstances. These types of comments are more likely to have a sufficient connection to the workplace and are more likely to harm the employer’s reputation or business interests.

Comments or conduct that are offensive to some, but that are not otherwise tied to the workplace, are not necessarily sufficient to ground just cause for termination in the absence of extenuating circumstances, such as a history of progressive discipline, particularly when associated with similar conduct or proof of actual harm to the employer’s reputation or business interests.

An employer may establish a sufficient connection to the workplace if the employee makes a comment on a personal social media platform that references their employment with the employer, or where their conduct or comment draws substantial public attention. Of course, sufficient connection may not be enough on its own in the absence of actual harm to the employer. 

Further, labour and employment law favours progressive discipline. Employers should consider whether alternatives to termination exist that would adequately address the employee’s conduct. Labour and employment adjudicators will consider an employee’s disciplinary history in considering whether termination is justified. 

In every case, an employer must be able to show that the discipline engaged in is proportionate to the misconduct in question. Termination for cause is understood to be the “capital punishment” of employment law. An employer choosing to terminate an employee for cause for their off-duty conduct or comment must demonstrate a balance between the severity of the misconduct and the sanction imposed. 

In a non-unionized workplace, employers are generally entitled to terminate employees without cause, subject to the specific terms of the employment agreement. This is not the case in unionized workplaces, where the collective agreement generally requires cause for termination. The ability to terminate without cause provides more leeway to employers to terminate an employee for off-duty conduct or public comments because the employer is not required to justify the termination. Employers in the non-unionized environment who cannot establish just cause but fear that future harm may occur as a result of their employee’s off-duty conduct or comment may consider terminating the employee without cause.

Although the employer is not required to provide a reason for the termination, they are required to provide adequate notice of the termination, or pay in lieu of notice. Employers in the non-unionized context are well-advised to include a clause in their employment contracts limiting the employee’s notice to that offered in the relevant employment standards legislation. Failure to do so may result in liability to the employee for additional pay in lieu of notice, depending on the circumstances.

Employers concerned about an employee’s off-duty conduct would be wise to not act rashly. Even where an employee’s conduct or comment is highly publicized, the employer must consider whether there is actual damage to its business interests or significant damage to its reputation, and whether the conduct in question is sufficiently connected to the employment relationship. An employer seeking to terminate an employee for cause should conduct a thorough investigation to satisfy itself that the relevant criteria are met before proceeding with terminating for cause.

Employers must also consider whether the conduct resulting in discipline is related to a protected ground under relevant human rights legislation. Discipline for off-duty conduct that is associated with a protected ground may result in a finding that the employer has discriminated against the employee. 

In all circumstances, employers can help protect themselves by establishing clear policies outlining the type of conduct that is prohibited and the form of discipline employees will face if they breach the policy. Social media and other public comment policies have become commonplace. 

When in doubt, employers should contact a lawyer for advice on how to proceed and how to mitigate their risks. 

Miller Thomson has a reputation for providing practical, timely and responsible advice and services to its clients. For inquiries about the subject matter covered in this article, contact Danny Alcorn, an associate in the Saskatoon office at dalcorn@millerthomson.com.

Disclaimer: This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice.

A vital role in successful projects

By Ian Wilson Saskatchewan Research Projects

For companies operating in the construction, mining and energy sectors, community engagement is an important component of many projects and sites, from exploration through operation to remediation. A key to success is the integration of local knowledge into operational and closure plans. However, before this knowledge can be integrated, local trust and project understanding must be established. This can only be developed through a principle-centred approach to a shared project vision, two-way communication of knowledge, alignment of project goals, and understanding the local needs early in the project. Once community confidence is obtained, this local trust and project understanding must be maintained throughout the entirety of the project. 

An important principle of this approach is to co-generate plans and activities with communities and not just develop them on the communities’ behalf. During exploration and environmental assessment phases, integration of local knowledge can include: the development and implementation of land use surveys to determine realistic travel and occupancy needs, specific traditional knowledge and land use studies to develop a detailed working knowledge of local land use, resource utilization, country food intake and human history of the site(s). The local knowledge gained during the assessment process is invaluable as it provides the information required to support project planning, such as: valued ecosystem components, human trophic utilization, length of site occupancy, cultural value assessment and future land use considerations. This approach requires an open planning method that requires the proponent to not only communicate with local communities but be open and prepared to adjust the project planning to accommodate the direction provided through these processes. For meaningful dialogue to take place, a relationship of trust and joint understanding must be built. Building trust through community presence and open communication is very easy to say, but very hard to do and takes a lot of time and effort. Gaining trust means you have the social license needed to work in the region. Not only is it important to gain trust, but it also takes work to maintain it. 

The role SRC is playing

The Saskatchewan Research Council (SRC) is managing Project CLEANS (Cleanup of Abandoned Northern Sites) – a multi-year, multimilliondollar project aimed at assessing and reclaiming the Gunnar mine and mill site, Lorado mill and 35 satellite mine sites in northern Saskatchewan near Lake Athabasca. The project is funded by the Governments of Saskatchewan and Canada. Uranium from these sites was mined by private companies from the early 1950s to the mid-1960s. When the mines and mills were abandoned, there was very little decommissioning completed. Because of this, the sites pose potential risks to the surrounding communities and environment. SRC has been working since 2006 to safely reduce these risks through extensive decommissioning, remediation and monitoring work. Engagement of local communities has been key as SRC’s Project CLEANS team maintains working relationships with local residents and their leadership within the communities. SRC holds regular community meetings to provide updates and receive feedback from northern residents. Key concerns addressed through this engagement process include human and environmental health, employment and business opportunities, remediation options and potential site end-uses. SRC holds regular community meetings to provide updates and receive feedback from northern residents. 

The way forward

SRC developed an adaptive and open process to engage local communities that continues to evolve as community leadership changes, local expectations increase with project success, and the project parameters progress and change. Although SRC’s approach to the development of communications, trust, and traditional knowledge integration has been specifically applied to Project CLEANS, the approach and concept is applicable through the entirety of the mining cycle (exploration, assessment, construction, operations, remediation and divestment) in any geographic region.  

For more information on SRC’s community engagement work with Project CLEANS, go to www.src.sk.ca/project-cleans.

By Joanne Venderheyden, Federation of Canadian Municipalities

After everything Canadians have been through in the last few years, they deserve a recovery they can see and feel in their daily lives. Rural communities have a key role to play in that. With a strong and united municipal voice, the Federation of Canadian Municipalities (FCM) is advocating for the tools needed to strengthen communities.

Municipalities own 60 per cent of the core infrastructure in our country. Rural communities know that our infrastructure renewal needs often outstrip the 10 cents of Canada’s tax dollar that we receive. The Saskatchewan Association of Rural Municipalities (SARM) has done a great job raising awareness of the need for more support for rural roads and bridges, and beyond that many SARM members also have responsibilities related to infrastructure for wastewater, solid waste management, broadband connectivity and local facilities.

Investments in core infrastructure have long been recognized as a cornerstone of economic stimulus. Even after projects are built, they have an ongoing benefit to local industries and residents. Rural communities in Saskatchewan have been seeing a growing need for exporting key commodities from the agriculture, energy and manufacturing sectors. Meeting that need requires reliable infrastructure that benefits our local and national economies.

In 2019 and again in 2021, the FCM welcomed the federal government’s one-year doubling of the Canada Community-Building Fund (CCBF, formerly the federal Gas Tax Fund). These investments were in direct response to FCM’s relentless advocacy. They’ve meant an additional $62,571,380 for municipal infrastructure in Saskatchewan last year alone.

The fund name was changed to better reflect the program’s evolution over time (it has long been delinked from fuel taxes), but the objectives and administration remain the same. The CCBF is the permanent, predictable federal funding tool that empowers municipalities of all sizes to renew core infrastructure. It works because its flexibility leverages the expertise of local leaders – the ones closest to people’s daily lives. 

In Saskatchewan, the fund is heavily used for work on rural roads and bridges, but we’ve also seen communities make good use of the funding to expand and upgrade facilities like the Ormiston Community Hall kitchen (R.M. of Excel No. 71). The R.M. of Chesterfield No. 261 used it to install water pumping sites for rural residents to obtain clean drinking water. And the R.M. of Willowdale No. 153 put the fund to work retrofitting the municipal office to reduce annual energy usage.

As we look towards economic recovery from the COVID-19 pandemic, FCM, along with our provincial partners like SARM, is calling for the federal government to permanently grow this

tool, increasing the annual transfer in 2022–23 to $4.6 billion – and boosting its annual growth index from 2.0 to 3.5 percent to reflect construction inflation realities. This will directly empower local leaders to create jobs and build better lives.

We’re also calling for targeted new investments to water/wastewater infrastructure and rural and northern infrastructure, recognizing there are significant unmet needs in these areas. Small communities in particular are looking for predictability for infrastructure solutions that can’t be fully funded through other federal programs.

There are a couple of things you can do to support this advocacy ahead of the upcoming 2022 federal budget and to raise overall awareness of the importance of predictable funding for core infrastructure renewal. The first thing you can do is reach out to your local MP to let them know that you’re looking to see funding for rural infrastructure in future budgets. Let them know what you’d be able to do with a bit of extra support and how that work would benefit your mutual constituents. Second, I want to urge you to take time to promote the work you do with the CCBF. Something like resurfacing a stretch of road might seem unremarkable but it’s vitally important. Sharing your CCBF success stories with your residents and MPs goes a long way to helping us make the case for more funding in Ottawa.

Let me conclude by thanking the many Saskatchewan members who have already taken these steps. Your voice has real influence. 

Joanne Vanderheyden is the  president of the FCM and mayor of Strathroy-Caradoc, Ont. She’s also a councillor for Middlesex County, Ont. FCM is the national voice of Canada’s local governments, with more than 2,000 members representing 90 per cent of Canadians.

This article originally appeared in the Spring 2022 edition of Rural Councillor magazine, the official publication of the Saskatchewan Association of Rural Municipalities. It is reprinted with permission.