ST. JOHN'S, N.L. — Construction trades organizations issued news releases this week, calling on candidates to explain how they’d maximize construction jobs on resource development projects if elected.
Trades NL, an umbrella labour organization that promotes the interests of 16 building and construction trades unions, focused on the Bay du Nord offshore project.
The group questioned how many construction jobs will be created in relation to the project.
The Bay du Nord framework agreement with Equinor was announced in July 2018 with reference to in-province fabrication of 5,000 metric tonnes, but there was no specific number of jobs provided in relation to that work.
Overall in-province employment figures for the total project were provided: 11,000 person years (equivalent to 11,000 people employed full-time), with Newfoundlanders and Labradorians making up 84 per cent of total project employment.
“Under the current agreement, there is no commitment to the number of in-province construction jobs, only committing to fabrication of 5,000 metric tonnes,” reads a Trades NL news release dated May 7.
“No one within government has been able to clarify what 5,000 metric means, whether there are any construction jobs being created in the province and, if so, how many?”
Unifor Local 20 – Marine Workers Federation and Marine, Office and Technical Employees also issued a news release asking similar questions on May 8.
“Our members are currently working on the Husky West White Rose Living Quarters Module with a very small workforce of between 100 and 120 workers at any given time. Meanwhile, other work is being performed outside of our country to the tune of +750 workers that could have been done right here in our province,” the news release states.
“This certainly begs the question, why is this happening, particularly in light of the Atlantic Accord and its aim, which was to make Newfoundland and Labrador the principle beneficiary of any resource development, which also includes the highest number of construction jobs?”
The Telegram asked the four party leaders how they would maximize resource-related construction work in the province if elected.
‘We always push’: Ball
Liberal Leader Dwight Ball responded to the organizations’ requests for details on the 5,000 tonnes by reiterating several times that 84 per cent of all Bay du Nord employment will consist of Newfoundlanders and Labradorians.
Ball did not provide the exact number of jobs specifically related to the 5,000 tonnes fabrication work.
Details about the type of work, however, can be found in the July 2018 Bay du Nord framework agreement announcement that states the 5,000 tonnes includes subsea, topsides and suction anchors for mooring, 4,600 tonnes of which is directly related to Bay du Nord, and 400 tonnes of which is conditional on subsea tiebacks to the nearby Baccalieu prospect.
As for work that’s not required to be done in the province – the July 2018 technical briefing says “fabrication of the hull, turret, flowlines, umbilicals and other components will be international” – Ball said businesses in the province have the option to compete for international work.
He pointed out other aspects of the Bay du Nord framework agreement that are favourable for the province, including related deepwater research that will be done here, and that integrated operations must be done locally.
“That could potentially be done anywhere in the world, but we have made it a condition of this project for it to be done right here.”
Asked whether he thinks the best possible job was done with the agreement, or whether his party would continue to push for more jobs with the Bay du Nord project, Ball said, “We always push where new opportunities unfold and new opportunities pop up for the work to be done in Newfoundland and Labrador.”
Coffin suggests retrofit of Bull Arm
To encourage more local resource-related construction jobs, New Democratic Party Leader Alison Coffin suggested a retrofit of the Bull Arm Fabrication site.
“So that it can accommodate more types of projects and a greater range of projects,” she said.
Coffin said she would also advocate for community benefits agreements that ensure procurement contracts and jobs would be received by local companies and local workers first.
“I would certainly ensure that new contracts include a reassurance, or include a caveat, that domestic or local workers are hired first,” she said.
Community benefits agreements required: Crosbie
Progressive Conservative Leader Ches Crosbie said offshore development comes with three choices: taking up equity, royalties or maximizing community benefits such as jobs for skilled workers.
“We listen to Trades NL,” said Crosbie.
“They have a large pool of skilled people who are very practiced and adept now at doing the kind of construction work around these offshore developments that is required.
“And so, we’ve adopted basically a policy that they wanted to see, adopted for maximizing community benefits and every offshore negotiation with a development.
“So, if you take Equinor, it appears that the provincial government – the Ball Liberals – have gone for the equity component and put very little to no emphasis on the local benefits.”
Crosbie said under his leadership, bidders would have to show what the community benefits would be, such as jobs, supply chain for local businesses and apprenticeship opportunities.
When asked if he thinks going for those local benefits would be better for the province than royalties, Crosbie said he’s “running on jobs and hope.”
“If you’re going to run on jobs and hope, that’s the choice you make.”
Newfoundlanders and Labradorians come first: Pelley
Newfoundland and Labrador Alliance Leader Graydon Pelley said any work done in the province should see Newfoundlanders and Labradorians “benefit first and benefit the most.”
“Number one, the workers that are on the job should come from Newfoundland and Labrador, and there should be some investment in the local economy and the local communities – that should be a part of any agreement that we negotiate with anyone outside the province,” said Pelley.
He said if there are aspects to offshore projects that require facilities that don’t currently exist here to do the work, “then we have to make investments in making sure that the top-quality work and the top-quality facilities are available here for Newfoundlanders and Labradorians to work.”
Pelley said he would sit down with all stakeholders to see what’s involved in ensuring the province has the facilities to provide local work opportunities.
[email protected]
Twitter: @juanitamercer_
Related
