Recent Articles

A refresher on WCB claims as we head into a busy construction season

By Cliff Gerow, Injury Solutions Canada

Spring has sprung, the grass is green and we wonder where the construction is? It’s everywhere! Thank goodness it’s construction season again.

With construction season comes seasonal work and seasonal workers, so we thought it was time to do some quick reminders for employers about the pitfalls that face us during the short season as it pertains to workers and injuries.

We have gone over this topic before, but a quick refresher is never a bad thing.

Do you have a solid hiring plan? What? Yes, a hiring plan. Besides the obvious questions – are they qualified for the job, do they fit your organization, etc. – have you considered a fit for duty assessment for all new employees? This is a screening, usually by a physical therapist, that takes about an hour, costs approximately $100 and provides very objective findings about whether the applicants are physically able to fulfill the role you are asking them to do. It is amazing how much this small investment can save you in the long haul in lost time and downtime.

Have you considered a fit for duty assessment for all new employees? This is a screening, usually by a physical therapist, that takes about an hour, costs approximately $100 and provides very objective findings about whether the applicants are physically able to fulfill the role you are asking them to do. 

Do you have an established, documented return to work (RTW) program? It is required by the WCB Act and is vital for your company to react quickly in the event there is an injury in the workplace and to prevent unnecessary lost time incidents that could have been prevented. This plan, if you have one, is of no value if no one knows about it and it is collecting dust on a shelf somewhere. Every employee, no matter their level, must be made aware of it. That includes what the program involves, what each employee’s responsibilities are and what their individual expectations are, as well as the expectations of all other stakeholders within the program to make it operate properly. We suggest, in the strongest terms possible, that every employee be made aware of the program and that their participation in it is a condition of their employment. Do this during each employee’s onboarding event, document it and have the employee sign off. We also suggest that this be repeated on at least a semi-annual basis and mention the program regularly at toolbox meetings or other safety discussions.

Have a functioning safety program on site – again, not just on paper but as part of the culture of your company. This means that once everyone has been instructed on the safety of the site, ensure that all infractions, no matter how small, are documented and take the opportunity to educate. I know this can be a pain at times, but as we have always said, documentation will set you free! This is true if it comes to a WCB claim, a harassment claim or any other such dilemma you find yourself in. Photographs speak volumes and you can’t have enough, trust me, so take them from all angles and have something with a scale in them to prove size and shape, if necessary.

Ensure all equipment is safe. Employees must follow proper procedures for use and maintenance. Early Monday mornings or late Friday afternoons are always the “danger hours,” when it can be tempting to try get things done before deadlines or before the end of the day, but we all want to go home in one piece. Take the time to take the time.

An unseen injury is a difficult injury to work with. Discussing psychological injuries could be an article in and of itself, but for now, we’ll let you know that the WCB in Saskatchewan has assigned a single point of contact in dealing with these types of injuries. All stakeholders will have the same person to contact, so we are hoping that should streamline the process and make communication easier, although for employers, that has not yet been the experience to date, but we are hopeful.

The Saskatchewan WCB is also ending its COVID-19 cost relief in June and that will have direct impact on employers; you will have to deal with COVID-related claims as any other communicable disease, which will make them much more difficult to claim. This is just an FYI for all.

Now I know what you are all thinking, and we hear this all the time, “I am not in the business of doing all this kind of stuff, I am in the business of building things. How do I do all of this and do what I love to do?”

That is where we and other third-party operators come into play. Like you, we are good at preparing all these plans, presenting them to you and your staff and dealing with all the other headaches in your life. 

Making the effort to modify behaviour

By Ashton Butler, MLT Aikins LLP

Progressive discipline is a straightforward concept that is frequently underutilized or misapplied. Employers often run into problems where they plan to terminate an employee for just cause but realize that they have not properly engaged the progressive discipline process. Failing to engage in progressive discipline can have the further unintended consequence of giving an employee the expectation that the employer has condoned a particular type of behaviour. Accordingly, progressive discipline is an important tool that should remain front of mind for employers and be utilized where appropriate.

In a nutshell, progressive discipline requires that an employer engage in a series of increasingly severe disciplinary steps designed to modify an employee’s behaviour. The underlying principle is one of preventative and corrective action – the intention is that the employee will learn through experience and will face the threat of more serious discipline if their behaviour is not corrected.

Progressive discipline can be beneficial for employers in two regards. Generally speaking, progressive discipline allows an employer to:

Intervene and communicate to an employee that their behaviour or actions are unacceptable and to correct issues early; and

Create documentation to demonstrate that an employee was treated fairly and was appropriately warned of the consequences of their actions.

Where progressive discipline eventually leads to a termination for just cause, documentation confirming that an employee was made aware of the issues and was clearly warned of the consequences for failure to correct problematic actions or behaviour may provide the employer with a defensible argument for termination for cause.

Progressive discipline is more commonly used where a single incident of misconduct is not so egregious to justify termination for just cause.

Managing employees who continuously violate a workplace policy or fail to perform their job duties can undoubtedly be a frustrating process for employers. When progressing down the path of progressive discipline, employers should be mindful that if an employee repeatedly engages in the same type of misconduct, it may be appropriate for the employer to move through the progressive discipline process more quickly than if the employee engages in different, unrelated types of misconduct. Ultimately, each case of progressive discipline should be assessed individually, based on the specific circumstances of the case.

The law of progressive discipline

Courts are typically more likely to uphold a just cause termination where the employer had previously warned the employee that a particular type of conduct is unacceptable and clearly and unequivocally warned the employee of the consequences for repeated conduct, namely the potential termination of employment.

Written documentation of the progressive discipline steps is particularly important.

The underlying principle is one of preventative and corrective action – the intention is that the employee will learn through experience and will face the threat of more serious discipline if their behaviour is not corrected.

An example of a case where an employer’s termination of an employee for just cause for incompetence was upheld is the Saskatchewan case of Schutte v Radio CJVR Ltd., 2009 SKCA 92 (“Radio CJVR”). In that case, the Saskatchewan Court of Appeal overturned what it held to be an overly stringent test imposed by the trial judge, ultimately holding that the applicable standard for just cause termination for incompetence is not one of an employee being “incapable” of performing their job duties, but a question of whether the individual was “consistently failing to meet a reasonable standard of performance” (Radio CJVR at para 17).

A key takeaway from the Radio CJVR case is that the Court of Appeal noted that while the standard of deficiency necessary to constitute grounds for summary dismissal is stringent where there is no significant misconduct such as dishonesty or gross insubordination, the standard of incompetence to constitute grounds for summary dismissal for incompetence is less stringent where the employee has been provided repeated notice that their performance is deficient, considerable assistance has been given to help them improve and clear warning was provided that failure to improve will result in termination of employment.

The Court of Appeal ultimately held that the employer’s expectations regarding job performance were reasonable, the employee failed to meet the reasonable standard of performance, the employer provided clear and unequivocal warnings, and the warnings clearly indicated that the employee would be dismissed if the standard was not met. Given these factors, the test for just cause dismissal was met and the employer was entitled to terminate the employee for just cause.

Another case that is illustrative of the importance of progressive discipline is Parent v Spielo Manufacturing Incorporated, 2013 NBQB 394, where the court upheld a just cause termination on the basis of incompetence. In that case, the employee’s job performance was addressed on a regular basis and the employer communicated concerns and gave suitable instructions to the employee to meet its standards. The employee was also given warning that a failure to meet the employer’s standards would result in dismissal. The court stated, “[i]t seems clear that [the employee] was not listening to the constant message that she had to improve her performance to maintain her employment at [the employer], otherwise she would be dismissed.”

The two case law examples above arise in non-unionized settings. The principles of progressive discipline for non-unionized employers addressed in this article are similar in unionized environments, subject to the terms of the collective bargaining agreement between the employer and the union.

Creating a progressive discipline policy

A proper progressive discipline policy is one that allows an employer to track an employee’s progress by implementing a step system, or formalized set of stages. Common stages of progressive discipline that can be formalized into a progressive discipline policy can include:

• Verbal warning
• Written warning
• Suspension (with or without pay, depending on whether the employee’s employment agreement or the employer’s policy allows for suspension without pay, or potentially any applicable collective bargaining agreement terms)
• Final warning
• Discharge

It is typically recommended that an employer’s progressive discipline policy include a general clause that indicates that the employer retains the discretion to deviate from the discipline policy based on a review of the individual circumstances of each case.

It is recommended that employers obtain legal advice with respect to the appropriate approach to the progressive disciplinary process. The appropriate approach may depend on an organization’s progressive discipline policy. 

Ashton Butler is a management-side labour and employment lawyer with MLT Aikins LLP in Regina.

This article was originally published in the Spring/Summer 2022 edition of HR Saskatchewan magazine and is reprinted with permission from CPHR Saskatchewan and the author.

The B.C. Builders Code provides the right tools

By Deb Draper

The B.C. Builders Code, created in 2019 by the BC Construction Association (BCCA) and its partners, is a new and powerful tool helping the construction industry grow and prosper into the future.

The industry is facing an ominous deficit of construction workers in the coming years. Yet BuildForce Canada reports that of the one million tradespeople employed in the construction industry in 2021, only five per cent of the on-site construction workforce were women. It isn’t much better for Indigenous people and new Canadians.

Looking for solutions, BCCA applied to the provincial government to fund development of a project to improve retention of tradeswomen in the industry. In 2018, they received funding and expertise from the provincial and federal governments, stakeholders in the industry as well as project owner LNG Canada.

Building the Code

Lisa Stevens, chief strategy officer at BCCA took the lead on the project.

“In the course of speaking to hundreds of tradeswomen, we heard clearly that they did not want us to create a program that would further shine a spotlight on them or make it appear there was any preferential treatment,” said Stevens. “They just want to be able to do their work like everyone else. We were well aware of the lack of diversity in construction and overall skilled workforce shortage, along with high turnover of all workers in the first year. We soon realized the need to provide an effective tool for employers looking to attract and retain not just tradeswomen, but to build an overall diverse and inclusive workforce.”

This led to the idea of a Code of Conduct for everyone on a worksite.

“The approach we took was that we know safety is extremely important in the construction industry,” said Stevens. “We needed to work on cultural understanding and acceptance of the idea that if you allow negative behaviours on your worksite, you don’t have a safe worksite.

“This concept that safety is about psychological hazards, as well as physical, has generally been accepted in the industry, and a lot of employers and crews are there already. But what the Builders Code does is give them the language and ability to profile this priority in a way everybody understands. We’re used to working with building to code in our industry, so the idea that we have a code for behaviour fits the vernacular.”

One of the biggest issues in developing an inclusive culture is for individuals to become aware of their own behaviour, to realize that something they might be doing or saying is harmful to other people.

“A big part of adopting the Builders Code is about unlearning,” said Stevens. “Maybe I offer to carry something for someone because it’s heavy, but they don’t need me to make that offer. I feel like I’m being kind, but maybe it’s demeaning to that person. There’s so much behaviour that we do, and don’t understand how it might affect others.”

One of the biggest issues in developing an inclusive culture is for individuals to become aware of their own behaviour, to realize that something they might be doing or saying is harmful to other people.

An acceptable worksite

The Builders Code sets a standard code of conduct through defining an “Acceptable Worksite” for reducing risk and ensuring a safe and productive environment for all workers. At www.builderscode.ca/signthepledge, employers can download and sign a personalized pledge indicating their commitment to build a workforce where all employees are able to perform at their best and reach their full potential.

“We encourage employers to sign the pledge,” said Stevens. “It isn’t mandatory, but if they do, we’ll promote their company on our website. This is a powerful way to show potential employees and clients they support the Builders Code Acceptable Worksite standards. We’re finding that tradespeople seeking work are looking for a Builders Code company where they’ll be treated with respect and given opportunities.

“We have different-sized companies on board, but recently, Teck Resources, Ltd., a very large mining company, signed the Builders Code [Acceptable Worksite] Pledge. BC Hydro also signed and went further by having all their main contractors on their Site C Project sign the pledge.”

Benefits of adopting the Builders Code

“The construction industry is one of many industries that suffer from the impacts of mental health issues,” said Jaret Swanson, manager of Consultation & Education Services for Construction at WorkSafeBC. “We see that taking the Builders Code [Acceptable Worksite] Pledge and committing to building a more inclusive ‘construction community,’ will result in a psychologically safer and more accepting work environment with all the value-added benefits that brings.”

Chelle Wright, an occupational safety officer on WorkSafeBC’s construction team, has worked in construction for more than 20 years and recalls that when she started, positions for women were very limited.

“As time passed, the idea that women do not belong in construction began to change, and I was able to expand my knowledge and experience within a world that had previously been very gender-biased,” said Wright.

Wright credits the Builders Code, BCCA, WorkSafeBC and other partners with assisting in these changes and raising awareness of the need for them to continue.

“The best ideas don’t come from an individual, but from the collaboration of many. Promoting psychological health and safety in the workplace allows all workers to have a fulfilling and safe work environment regardless of gender, ethnic background or sexual identity,” she said.

It isn’t only workers who benefit from changing perceptions and actions. According to a 2018 article, “Delivering through Diversity,” by McKinsey & Company, “Companies have increasingly begun to regard inclusion and diversity as a source of competitive advantage and specifically as a key enabler of growth.” In “The Value of Diversity and Inclusion in the Canadian Construction Industry,” the Canadian Construction Industry (CCA) concludes that this advantage touches on many dimensions: productivity, revenue, market share, employee retention, innovation and more – resulting in an improved bottom line.

Acceptable worksite policies

The Builders Code team has developed two Worksite Policy models: one from smaller employers and those new to workplace culture, and another for larger employers or those interested in more developed policies. The policies are written in real language and can be changed in any way that works best for each company. These policies are free and have already been downloaded thousands of times.

“We needed to work on cultural understanding and acceptance of the idea that if you allow negative behaviours on your worksite, you don’t have a safe worksite.”

– Lisa Stevens, BC Construction Association

Further resources

Through BCCA, the Builders Code offers several two-hour training sessions and one full-day session covering topics of direct interest to construction employers looking to develop and strengthen their commitment to achieve acceptable worksites and increased employee retention.

Stevens says there is a fee for the training sessions, but the Crew Training app is free to download and covers the basics of unacceptable worksite behaviour.

“Workers onsite can download our app onto a phone, watch a quick ‘Cool or Tool’ real-life scenario each day, and answer a couple of questions about the video. We use animated tools in the videos instead of people and the use of humour makes it easier to talk about things,” said Stevens.

Builders Code Employers Advisors can help with the adoption of the Builders Code or navigating human resource situations on the worksite related to hazing, harassment and bullying with the goal to retain the tradesperson.

What’s next?

After coming off the pilot project just over a year ago, the Builders Code is self-sustaining and growing, managed fully by BCCA, and is in the process of hiring a full-time provincial manager.

“Both the Northwest Territories and Nunavut recently signed on, and we hope we can continue to grow and get more official B.C. licensees in other jurisdictions,” said Stevens. “There’s still a lot of work to be done, but we have received a very positive reception across the industry. When we went back to those companies that had been early signatories to see how the pilot worked, across the board, the experience in the crews has been very positive. Everybody gets it and are willing to make the changes. We’re just helping them along.” 

This article was originally published in Issue 3 2022 of Piling Canada magazine and is reprinted with permission.

How to identify and overcome bottlenecks

Submitted by the Association of Equipment Manufacturers

Jeani Ringkob founded StoryBuilt Growth Strategy & Marketing after nearly a decade in the asphalt paving business and has helped several businesses grow and develop in the construction world. In the presentation she gave during World of Asphalt 2022, “Overcoming the Bottleneck in Your Business: How to Identify It Fast and Fix It Right, Every Time,” she explained that businesses are a lot like airplanes.

Ringkob explained that both businesses and airplanes require constant attention, regular maintenance, periodic enhancement and dutiful repairs to keep themselves up in the air. Identifying bottlenecks in a business is just as important as identifying faults on an airplane – failing to do so could result in a crash.

Ringkob broke the anti-bottleneck process down to three stages:

• Identify
• Investigate
• Implement

When it comes to identifying bottlenecks, she said a lot of it comes down to examining decision-making. Are the business’s leaders making the right decision at the right time? If not, she explains that can lead to wasted resources, missed opportunities, mediocre employees, costly mistakes – bottlenecks.

The reason inefficient decision making can lead to bottlenecks is that it can take leadership’s focus off growth, confident decision making, investment, new products and more, and instead force leaders to focus on survival. Successful businesses focus on growth, stalled companies focus on keeping the lights on tomorrow.

The reason inefficient decision-making can lead to bottlenecks is that it can take leadership’s focus off growth, confident decision making investment, new products and more, and instead force leaders to focus on survival.

Once the problem is identified, Ringkob says the next step is to investigate what has been found. Was alignment found between company, product and customer? What was found about the company’s strengths and weaknesses, and those of the competition? What does the company’s pre-purchase, purchase and post-purchase strategy look like? What can be done to improve what has been found?

Whatever the investigation has found to be a potential solution to the identified bottleneck, that solution is going to need to be implemented strategically. Ringkob recommends the “O.M.E.N.” test:

• Objective: Set the result the business intends to achieve
• Measurement: How will progress be measured?
• Evaluation: The frequency at which measurement will be reviewed
• Nurture: How the business will tweak things as new data comes in

Ultimately, Ringkob emphasized that a lot hinges on communication. She says communication must be simple, and it must work, both internally and externally. 

For more from Jeani Ringkob, she will present on “Recruiting and Retaining Top Talent at Every Level” and “Strategic Decision Making for Increased Margins” at CONEXPO-CON/AGG, running March 14–18, 2023 at the Las Vegas Convention Center. CONEXPO-CON/AGG offers entire education tracks to help businesses “Attract, Engage & Retain Talent” and “Business Best Practices.” Visit conexpoconagg.com to learn more. The Saskatchewan Heavy Construction Association is a supporting organization to CONEXPO-CON/AGG.

Construction workers need good nutrition to stay strong and safe on the job

By Ligia Braidotti

A construction worker’s job can be demanding and physically taxing, especially on the body. With the nature of construction being what it is, workers perform physical labour in conditions that can put them at a higher risk for injury. While the employees’ long-term health is important, they must maintain a high level of performance while on the job. In addition, proper nutrition can prevent issues and improve recovery time when injuries occur.

A hungry construction worker can become tired and lightheaded, making them more prone to injury on site. A tired employee is more likely to be injured than one who has had adequate rest and eaten enough food throughout their shift.

However, it’s essential to understand that a healthy diet will differ for everyone. According to Brooke Bulloch, a registered dietitian and CEO at Food to Fit Nutrition, people should know that the complexities of their lives play a significant role in how, why and what they eat.

“There really isn’t a one-size-fits-all diet, and nutrition wellness involves so much more than ‘eat this, not that,’” said Bulloch. “We invite clients to dig into these aspects for a deeper understanding of how to best work with barriers that make it difficult to improve nutrition intake and wellbeing.”

Businesses can’t afford to have malnourished workers on construction sites. According to the International Labour Office (ILO), a poor diet on the job costs companies around the world 20 per cent in lost productivity. Bulloch adds that poorly hydrated, hungry workers can become inefficient, and it increases the risk for errors.

“Similar to sports performance, dehydration and under-fueling are major contributors to mental and physical fatigue causing reduced performance,” she said.

“Employers can help most by ensuring that employees have opportunities for hydration and meal breaks throughout the day. Certainly, the day can get busy, and I can imagine it’s tough to break up the day in the middle of an important project.”

– Brooke bulloch, Food to Fit Nutrition

A lack of quality nutrition can lead to many health problems – specifically weight-related issues. This can be especially true for manual labourers, who spend much of their workday on the move, physically exerting themselves. The ILO study found that one in six people worldwide is either malnourished or overweight. Although the food at the workplace is often not a priority, the ILO study states, “It is often a ‘missed opportunity’ to increase productivity and morale.

“Canteens, if they exist, routinely offer an unhealthy and unvaried selection. Vending machines are regularly stocked with unhealthy snacks. Local restaurants can be expensive or in short supply. Street foods can be bacteria-laden. Workers sometimes have no time or place to eat.”

The study asserts that food is essential for the employment of a productive workforce and the protection of workers. At the same time, the right to safe drinking water and freedom from hunger are fundamental human rights. Additionally, Bulloch says that employers should provide their workers with the nutrition they need to stay fit and healthy while working.

“Employers can help most by ensuring that employees have opportunities for hydration and meal breaks throughout the day. Certainly, the day can get busy, and I can imagine it’s tough to break up the day in the middle of an important project,” Bulloch said. “We encourage employers to add dietitian coverage to personal health benefits packages. This allows the employee to seek personalized care for unique health issues they may be running into – quick and easy meal and snack ideas; managing a health condition; struggling with physical symptoms that affect the quality of life, energy or focus. Everyone’s needs are unique. Therefore, one-on-one sessions seem to be most effective.” 

Tips for staying nourished on the job

Staying nourished on the job should be a priority for construction workers and employers.

Brooke Bulloch with Food to Fit Nutrition provides some simple tips on how you can ensure you’re taking care of yourself:

• Eat every three to four hours to maintain energy levels and prevent blood sugar dips
• Choose nutrient-dense meals that include carbohydrates and protein
  • Snack suggestions:
    • Protein bar and fruit
    • Fruit and nut trail mix
    • Peanut butter and jelly sandwich on whole-grain bread
    • Banana and hard-boiled eggs
    • Crackers, cheese and a few turkey-based meat sticks

• Limit fatty foods to keep your energy up: greasy meals can slow you down, cause fatigue and upset your digestive tract
  • Meal suggestions:
    • Wrap or pita with lean meat, tofu, beans or chickpeas
    • Burrito bowl with rice, veggies and meat or beans
    • Vegetable soup and sandwich combo

• Add veggies where you can: your body needs antioxidants to combat cell breakdown and keep you healthy. Don’t worry too much about portions but add extra veggies to your meals.
• On hot days, when you’re sweating and trying to stay hydrated with water, be sure to replenish sodium with an electrolyte beverage or mix, such as Hydrolyte tablets or a bottle of G2
  • Sodium is the most lost electrolyte in sweat and helps keep you hydrated
  • Sodium depletion causes nausea, dizziness and mental and physical fatigue
  • Sodium and water can help prevent or reduce the severity of muscle cramping
  • Add 1/8 tsp of salt to 500ml coconut water for sodium replacement

The Canadian Construction Association is helping to create a long-term plan for sustainable infrastructure investment

By Mary Van Buren, Canadian Construction Association

Every aspect of our modern lives is touched by the infrastructure designed, built and maintained by the construction industry.

It’s schools for our kids and the hospitals that care for us. It’s the reason we have clean water and that our homes and businesses are heated or air-conditioned and running with electricity. It’s the roads, bridges and trade corridors that connect our communities not only to each other but also to the global marketplace.

An investment in infrastructure is an investment in Canada’s growth economy and the health, safety and wellbeing of Canadians.

It’s time to invest in Canada.

Investing in infrastructure

As the industry’s national advocate, the Canadian Construction Association (CCA) has been working to help shape a long-term plan for sustainable infrastructure investment – one that is aligned with the current and future needs of provinces, municipalities and Indigenous communities. One size does not fit all. More consultation and early engagement need to happen.

With reports that Canada has fallen from 10th to 32nd in terms of global trade infrastructure, CCA has been working in partnership with the Western Canada Roadbuilders and Heavy Construction Association (WCR&HCA) to improve investment in the trade corridor. Scaling up our trade infrastructure will build supply chain capacity, support green innovation and emerging technologies, create transformational jobs and fuel our global competitiveness.

Our industry can be the path to green and the road to economic prosperity, but we need supportive policies and a national plan backed by a long-term investment strategy. More is needed if Canada wants to compete globally, expand into new and emerging markets, attract investors and boost employment.

Canada’s proposed first-ever National Infrastructure Assessment is an important step to creating a longer-term vision for Canada’s infrastructure planning – one that is expected to include establishing an independent advisory body that can provide balanced and expert-guided advice. We need to move from quick fixes to a strategy that focuses on long-term solutions and value for Canadians.

Building workforce capacity

Building workforce capacity and developing the workforce we need would go a long way in addressing both our immediate and future infrastructure needs. Skilled tradespeople cannot be created overnight. We need to build a pipeline of talent. More attention needs to be placed on attracting youth, women, Indigenous peoples, immigrants and foreign workers to address the shortage of skilled workers in construction.

CCA’s Talent Fits Here initiative is our industry’s united effort to build workforce capacity by shifting perceptions and showing the diversity of opportunities that exist in construction. We are also excited to be collaborating with the Canadian Apprenticeship Forum and other partners to promote the new Apprenticeship Service program. This program will provide financial support to employers across the country who hire new first-year apprentices in 39 Red Seal trades. These incentives will help small businesses hire more workers and give apprentices from under-represented groups more training and opportunity.

Important work is also being done by associations and employers to address diversity, equity and inclusion within the industry. Companies across Canada are recruiting more from underrepresented groups and developing HR policies and programs focused on organizational change. Associations have put in place programs to introduce students to the trades or help newcomers find good paying jobs in construction.

Modernizing procurement

The federal government must be prepared to lead the way by adapting procurement policies to support fair competition, innovation and shared risk. Engaging with contractors earlier and moving away from the lowest bid model will encourage the use of new processes, better practices, alternative energy and more sustainable materials. CCA’s annual Meech Lake meeting with government leaders resulted in a commitment to establish a working group on procurement modernization. We are eager to collaborate on ways to remove restrictive RFP requirements and increase participation.

Building for today’s communities and tomorrow’s Canada requires long-term planning, but the investment pays dividends in return by accelerating economic recovery, increasing jobs and the diversity of opportunities available in the sector, combatting climate change and supporting growth and innovation.

Stay in touch!

Canada will be counting on the construction industry to build back better. You can count on CCA to be a collaborative partner to the Saskatchewan Heavy Construction Association, providing helpful tools, sharing best practices across the country and being your voice with the federal government.

Stay in the loop by subscribing to CCA’s newsletter at bit.ly/ccasubscribe, by following @ConstructionCAN on Twitter or by looking up Canadian Construction Association on LinkedIn. 

Mary Van Buren is the president of the Canadian Construction Association.

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. 

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

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. 

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.

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