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 Increasing our market share—The ball is in our court (July 2007) By Gary Kroeker, Business Manager In May, open shop contractors and Christian Labour Association of Canada (CLAC) held a conference to review strategies. Over half of the 250 participants were from outside B.C. (mainly Alberta). Building trades reps attended and reported on a rapidly changing world. Five years ago, non-union and CLAC contractors did not have the capacity to take on mega-projects. Building trades employers were the only ones who could bid and complete jobs with a scope greater than $100 million. All that has changed. Employers certified to the CLAC and non-union employers have won the majority of the work on the multi-billion dollar Canadian Natural Resources Horizon project in the oil sands of Alberta. This is now the largest construction project in the world, with over 7,000 workers on the site this summer. While the building trades still play a significant role, our market share has dwindled to slightly more than 50% of the Tar Sands construction work. Why is our market share slipping away? It’s no surprise that open shop employers want the flexibility to have workers cross jurisdictional lines; pipeline welders are used for structural welding and then to do scaffolding. Employers also want shift flexibility. The open shop averages overtime for everyone. The results speak for themselves. Workers are happy and earning upwards of $100,000 per year. The work is steady and will continue for at least another five years. At $60 a barrel there’s more than enough work for CLAC, non-union and building trades unions alike in the oil patch. Foreign workers on temporary work permits are a growing phenomenon. Employers like Ledcor and Flint apply for up to 1,000 pre-approvals for Temporary Foreign Workers at a time. Human Resources departments have eight full-time people managing foreign worker recruitment and support services. With strong markets for oil, contractors can afford the loss in productivity it takes to train workers without experience on industrial work sites. Within a year and a half, their crews from the residential/ICI sector have become qualified industrial construction workers. Owners still rely on building trades workforces for shutdowns and maintenance. They can’t afford to train workers on those jobs. However, the open shop has an age advantage. The average age of the open shop workforce is 36 years old, compared to the building trades unions at 44 years. The open shops are using innovative recruitment strategies—targeted advertising to youth combined with perks for Generation X (gym memberships, cappuccino bars, NHL season tickets). They are reaching out to new pools of labour. Connecting with discharged military personnel has been another source of members. We are competing with them for potential sources of new workers. We need to think creatively and pre-emptively to ensure that new entrants to the construction industry are given an opportunity to work under a real collective agreement instead of being bought off with a yoga lesson. Building trades members who attended the open shop conference (see Pg. 3) report that all evidence suggests CLAC and open shop work sites are here to stay and we can’t afford to be complacent. The growth of Flint Energy, Ledcor and JV Driver, three of the big open shop contractors in Alberta, is nothing short of explosive. They are here for the long run. They will continue to expand and move into every facet of the construction industry. The ball is now in our court. It’s up to us to adapt in a way that keeps us competitive without sacrificing our principles. These aren’t easy challenges or choices, but doing nothing is not an option. I take this opportunity to say thank you for your ongoing support of the work the staff and I do on behalf of the membership. This is an election year and all positions were open for election. The position of business manager was not challenged. I have always taken the role seriously and remain committed to doing what is necessary to ensure that the membership is represented in a professional and responsible manner. We will continue to build our union, train and organize. We must also embark on additional promotion and marketing of the organization. We have much to be proud of. We will carry forward a legacy of helping those in need and providing for those who want security and representation. The future is bright and we will keep up the fight for workers’ rights. Again, thank you for your support as we look forward to tomorrow and beyond. |
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