BC Mineral Exploration and Mining i Industry

Transcription

1 BRITISH COLUMBIA MINERAL EXPLORATION AND MINING INDUSTRY HUMAN RESOURCES STRATEGY BC Mineral Exploration and Mining i Industry Lb Labour Shortage Task kforce June 2008

2 BRITISH COLUMBIA MINERAL EXPLORATION AND MINING INDUSTRY HUMAN RESOURCES STRATEGY Prepared by: THE BC MINERAL EXPLORATION AND MINING INDUSTRY LABOUR SHORTAGE TASK FORCE i

3 MESSAGE FROM THE CHAIR It is my pleasure to introduce the following Human Resource Plan for BC s exploration and mining industry which identifies various strategies that if implemented will substantially contribute to filling the estimated 15,000 job vacancies that could develop in the mining industry of BC over the next decade. Much has been said about the typical cyclical nature of commodity markets and the steep ups and downs that historically occur. Well, it would appear that the demand supply equations, coupled with demographic changes in our society will create a sustained demand going forward for natural resource commodities as well as for our people resources. Yes, there will be ups and downs in the Market place but in general the line will be much flatter and sustained at high levels of demand. In order to proactively prepare for the foregoing scenario, a task force of industry stakeholders was formed in May Its mission was to develop a business plan and strategies to address this human resource challenge and prevent what could otherwise be a serious bottleneck and impediment to significant economic growth in British Columbia s mining industry. I am pleased to report that we have now developed the comprehensive and detailed plan which our task force unanimously recommends to all stakeholders. It focuses on a variety of key areas including the branding and brandishing of the excellent mineral and mining industry, employment focus towards underutilized sectors including first nations and women, and a strong focus on education and training. The plan seeks to work collaboratively with all organizations devoted to the same objectives as the Task Force seeking to add value without duplication or redundancy. We will now move past the recommendation stage to direct engagement with stakeholders in order to transition Task Force efforts into implementation steps associated with the plan. I would like to acknowledge the hard work and commitment of all members of the Task Force and the organizations they represent; the in depth and substantial contribution from Roslyn Kunin & Associates; and Service Canada for its professional and financial support. I would like to single out Kerry Jothen who, with a lot of input and advice of course, is the author and writer of this report. I look forward to continued work with the Task Force as we move towards the engagement and implementation phases associated with the various strategies and deliverables presented. The mineral exploration and mining industry is a critically important economic engine for BC and Canada, now and into the future. Let s keep it that way. Respectfully submitted, David Bazowski Chair, Mineral Exploration and Mining Industry Labour Shortage Task Force ii

4 EXECUTIVE SUMMARY 1. THE IMPERATIVE The March 5, 2008 National Post headline warns, CRISIS IN MINING DEEPENS and goes on to state, Canada s booming mining sector, which is growing at twice the rate of the economy, expects a shortfall of 92,000 workers in the next decade as industry wages rise 66% more than the average increase for all other sectors according to new research. Over the last six years, British Columbia has experienced a strong resurgence of the mineral exploration and mining industry. Mineral exploration expenditures in BC have skyrocketed 1,300% from $29 million in 2001 to $416 million in BC represents an increasing proportion of Canadian mineral exploration, with the BC industry share nationally rising from 5.7% to 18.3% of total mineral exploration in Canada over the same seven-year period. This growth is expected to be sustained well into the future with world demand for commodities at unprecedented levels. The BC mineral exploration and mining industry impacts (directly and indirectly) over 100,000 jobs in the province or approximately 4.5% of total employment almost 1 in every 20 jobs. The perfect storm of economic expansion, declining birth, rates and aging of the workforce in many industries across BC means the labour shortage in mineral exploration and mining is no longer looming, and a lack of skilled human resources threatens to constrain or adversely affect economic contributions from the BC mineral exploration and mining industry. The broader context within which the BC mineral exploration and mining industry exists also includes the following developments: The BC Government expects over one million new job openings to occur during , driven by strong economic growth, lagging productivity, and declining birthrates and a smaller youth cohort. Almost every industry in BC is experiencing some degree of labour shortages, and most do not expect this to change in the coming years. BC companies in many industries have to compete aggressively with companies in other industries, other regions and provinces, and other countries. Continuing BC forestry sector transition and displacement of workers in parts of the province where mining operations are experiencing shortages. The high growth rate of Aboriginal youth, the under-utilization of women and persons with disabilities in the workforce, and the fact that immigrants to BC will constitute % of the net new labour supply in the next few decades means employers and industries must do things differently to attract and retain this potential talent. Under-represented labour force groups constitute 60% of Canada s labour force. Employers have to be increasingly sensitive to the needs and motivations of their multigenerational workforces in this job-seekers market. Employer of choice is the new mantra; and companies who ignore this, do so at their peril. It is clear without pre-emptive and concerted action on the labour shortage issue, the British Columbia mineral exploration and mining industry will suffer, and correspondingly so too will the BC economy and British Columbians. In response to this urgency, BC mineral exploration and mining industry leaders established a BC Mineral Exploration and Mining Industry Labour Shortage Task Force. The Task Force has brought together senior business leaders, employee representatives, Aboriginal representatives, industry associations, training and education providers, and government agencies. The Task iii

5 Force and industry gratefully acknowledge Service Canada s support of the Task Force and strategy development. The Task Force s mission is to research, plan, and develop a sector-wide human resources strategy that can be implemented by firms in the industry, by career information and employment service providers, and by educational institutions and other training providers. 2. RESEARCH AND DUE DILIGENCE The Task Force reviewed previous research by the Mining Industry Human Resources Council (MiHR) and others, and commissioned its own research conducted by Roslyn Kunin and Associates, Inc. (RKA) on labour market demand, supply and training, education and human resource practices in the BC mineral exploration and mining industry. RKA surveyed 24 companies and over 600 employees in the BC mineral exploration and mining industry and found significant recruitment and retention pressures in the following occupations: 1. Geologists 57% of companies 2. Mining Engineers 43% of companies 3. Heavy Duty Equipment Mechanics 39% of companies 4. Accountants 30% of companies 5. Electricians (surface) 26% of companies 6. Metallurgical Engineers 26% of companies 7. Millwrights 26% of companies 8. Maintenance Supervisors 26% of companies 9. Chiefs, Managers & Superintendents 17% of companies 10. Mechanical Engineers 17% of companies 11. Mining Supervisors 17% of companies RKA estimated industry-wide total employment in 2006 to be 16,500. RKA also estimated future job openings between 2006 and 2012 to be 1,480 per year. It projected a total of 7,400 new job openings in the mineral exploration and mining industry in BC over the period of this Human Resources Strategy ( ); or almost 15,000 openings in the ten-year period ending RKA also interviewed seventy-five stakeholders and identified gaps in several program areas and human resource practices. The findings from these interviews are provided in the main body of this report. The Task Force work also includes a solid understanding of existing industry, government, education and training, and other initiatives nationally and in BC, including: Taking care to avoid duplication and overlap with existing initiatives and to build on and utilize what exists and develop strategies to fill gaps. A review of key federal government, provincial government, post-secondary education, education, ITA, Aboriginal (i.e. Aboriginal Human Resource Development Agreements or AHRDAs), and other initiatives was undertaken for this strategy. This included a review of an inventory of approximately 140 BC Government programs and 62 actions in its WorkBC Action Plan. The new six-year, almost $400 million Canada-BC Labour Market Agreement, has been designed specifically to fill gaps in existing programs and add new programming. Based on MiHR and RKA research, Task Force discussions, and reports and information from government agencies, Aboriginal organizations and other groups, and earlier analysis by industry associations, the Task Force developed this long-term Human Resources Strategy to address the following gaps: iv

6 1. A lack of awareness, negative image, and stereotypes of the mineral exploration and mining industry held by job-seekers, existing employees, young people and others. 2. Perceived or real undesirable working conditions in parts of the industry. 3. A lack of a coordinated, comprehensive strategy to attract and recruit new workers, including members of the workforce under-represented in the industry. 4. The increase in worker attrition from the aging of existing workers. 5. Increasing competition for other industries and jurisdictions for potential and existing employees, and under-utilizing potential workers from other industries. 6. No widespread standard mineral exploration and mining industry programming and curriculum at the K-12 level. 7. Workers entering the industry without basic skills and job readiness. 8. A shortage of trained workers in the industry in key operator, trades, technical, and professional occupations. 9. Significant training costs as a financial barrier to mineral exploration and mining employers, and lack of incentives and assistance for formal and informal training. 10. The lack of a coordinated and cohesive provincial mineral exploration and mining training delivery system. 11. The need for flexible provincial and federal labour market and training programs, and regulatory requirements. 12. A lack of up-to-date, disaggregated labour market and human resources information on the BC mineral exploration and mining industry labour market. 3. VISION AND STRATEGIC DIRECTION In light of the urgency for pre-emptive action, after several months of research and consultation, the Task Force has developed The BC Mineral Exploration & Mining Industry Human Resources Strategy for the period The Vision of this Strategy is: A growing, vibrant and safe British Columbia mineral exploration and mining industry supported by a positive image, an engaged and highly skilled workforce, a responsive education and training system, and sustainable and anticipatory HR strategies and practices to match labour demand. The Strategy reflects the following principles: Industry and employer-driven practicality and accessibility Sustainability Building on existing strengths and mechanisms Capacity-building Broad communication and engagement Aboriginal and community-based partnerships Workplace-centered Flexibility and adaptability Industry commitment and leadership Government facilitation The Strategy has developed five long-term human resource goals in the following areas: 1. Image and career promotion 2. Attraction and recruitment 3. Retention and turnover 4. Education and training 5. Sustainability v

7 4. STRATEGY DELIVERABLES The value proposition of this Strategy and the resources it will require from the industry, governments, and other stakeholders is not only represented in the several deliverables identified in the outputs and outcomes for each strategy. It is also reflected in the on-going and increased contribution that the BC mineral exploration and mining industry will make to the BC economy, community, cultural and social health, and prosperity of the province during this five-year Strategy. As a result of this Strategy, the industry will contribute the following deliverables to British Columbians: Employment opportunities almost an estimated 7,500 jobs over the life of this five-year plan, including displaced forestry workers in some communities. Tax revenues from increased employment and business activity. Infrastructure development and economic development for communities in BC. Economic and employment partnerships with First Nations and Aboriginal peoples. Scarce raw and processed materials for BC manufacturing industries. More economic and social benefits to women, immigrants and other under-represented labour force participants. Indirect and induced economic benefits for many communities. The Task Force has identified ten priority strategy areas which form the basis for an Implementation Plan. This Strategy will lead to significant deliverables resulting from each of the ten strategy areas, a summary of which is provided below. The complete list is provided in the main body of this report. Note that employment, education and training programs are quantified based on standard program intake sizes (e.g. 16 seats per industry training program intake). i) Leadership structure and governance deliverables A sustainable Mineral/Mining HR Strategy and leadership organization. ii) Industry communication, image and branding deliverables Awareness of the HR Strategy and increased stakeholder participation. Increasing awareness and interest in mineral/mining-related careers. Improved image of employers and the industry as good places to work and live. iii) Increasing Aboriginal partnerships and participation deliverables Increased Aboriginal participation in employment in the industry. 400 job-ready Aboriginal people entering mineral/mining entry level jobs. Increased Aboriginal high school student interest in mineral/mining industry and careers. Increased Aboriginal entry level worker retention in mineral/mining jobs. Increased company awareness of and participation in tapping Aboriginal labour supply. 600 mineral/mining managers and employees with increased awareness of/sensitivity to Aboriginal/cultural diversity. iv) Increasing participation of and partnerships with women deliverables Increased women s participation and retention in employment in demonstration projects at two operations. Increased awareness and application of family-friendly practices. 256 job-ready women into entry level mineral/mining employment. Recruitment, mentorship and retention of 170 women in mineral/mining careers. 160 girls/young women with increased awareness and interest in mineral/mining careers. Increased publicity and awareness of women in mining success stories. vi

8 v) Increasing immigrant partnerships and participation deliverables Comprehensive immigrant recruitment and retention strategy. Increased company activity in recruiting and retention of existing immigrants, new immigrants, temporary foreign workers, and foreign students. 100 skilled immigrants hired that would not otherwise be recruited into the industry. An increased proportion of immigrants to BC who locate outside southwest BC. HR tools for mineral/mining small business owners and managers. 112 mineral/mining workers with increased functional workplace english. vi) Education strategy deliverables 1 A long-term plan of action for expanding and consolidating a comprehensive MREPBC. Expansion of MREPBC reach to thousands of teachers, counselors, students, parents. A BC Mineral/Mining Industry Career Map and increased awareness of these careers among young people, job-seekers, influencers, and others. 5,000 grade 6-9 students with increased awareness of the mineral/mining industry and careers (avg. of 1,000 per each of 5 regions). Approved Technology Education Integrated Resource Package for Grades Thousands of young people and job-seekers, whom otherwise would not, see first hand positive information on jobs and careers in the industry. Industry recognized standard entry level mineral/mining education program 330 job-ready individuals entering mineral/mining entry level jobs. 400 student space years in mineral/mining-related PSE programs in high-demand areas. Significant increase in the number of high school students and others wanting to enter and actually entering mineral/mining-related PSE programs. 400 student space years in mineral/mining-related engineering programs. 45 student space years in a practical mineral exploration post-graduate programs. Increased access to and participation in necessary continuing education courses by mineral/mining professionals and employees. vii) Industry training deliverables 2 3 new approved (by the ITA) occupational standards and industry training programs. Learning resources and assessment materials for 3 occupations. 2,176 apprentice technical training spaces in new and existing programs. Long-term plan for apprenticeship expansion for mineral/mining industry. Contribute to ITA s goal of doubling the Aboriginal participation in apprenticeship. Increased utilization of federal and provincial training tax credits and grants by companies, apprentices and tradespersons. 1 or 2 trades training mobile units and access to training in remote parts of BC by 500-1,000 participants. xiii) Human resource practice deliverables Increased awareness of the case for and tools available for reducing turnover. Industry-wide recruitment strategy. Increased number of interprovincial migrants recruited to BC operations. Increased awareness of and ability to promote employer of choice branding increased supply of job-ready, skilled workers from other industries for mineral/mining jobs. 1 It should be noted that for Strategies 7, 8 and 9 all which involve increasing student spaces for post-secondary education programs the Task Force and industry will request a combination of incremental student spaces and reallocation of existing Ministry of Advanced Education and individual institutions student spaces for mineral/mining programs. 2 Note this strategy would include requesting that the BC Government provide the ITA (and ITA provide the RTO) for incremental funding for new apprenticeships and expansion of existing mining-related apprenticeships. vii

9 ix) Labour market information deliverables Increased number of LMI tools used by industry, job-seekers, educators, and others. On-going capacity for identifying labour market priorities and making related decisions. x) Strategy performance monitoring and accountability deliverables Accountability framework and plan. Ongoing performance monitoring, reporting and accountability. Formative evaluation with which to update this HR Strategy. Summative evaluation and new long-term HR Strategy. 5. HUMAN RESOURCE STRATEGY BUDGET This HR Strategy and the above deliverables will cost an estimated $40.5 million over five years. Five-Year Budget by Strategy Area Strategy Area Total LEADERSHIP STRUCTURE & GOVERNANCE (up to this amount if success/needs warrant it) 2,250,000 COMMUNICATION, INDUSTRY IMAGE & BRANDING (excluding significant in-kind contributions) 50,000 INCREASING ABORIGINAL PARTNERSHIPS & PARTICIPATION 3,810,000 INCREASING PARTICIPATION OF & PARTNERSHIPS WITH WOMEN 2,255,000 INCREASING IMMIGRANT PARTNERSHIPS & PARTICIPATION 1,205,000 EDUCATION STRATEGIES & ACTIONS 23,125,000 INDUSTRY TRAINING STRATEGIES & ACTIONS 6,599,400 HUMAN RESOURCE PRACTICE STRATEGIES & ACTIONS 455,000 LABOUR MARKET INFORMATION STRATEGIES & ACTIONS 455,000 STRATEGY PERFORMANCE MONITORING & ACCOUNTABILITY 360,000 Total All Strategy Areas 40,489,400 In terms of the proportion of the five-year Strategy budget by each year, 29% of the total ($11.7 million) is in Year 1, while it levels off to 17% or just over $6.8 million in each of Years 4 and 5. The budget totals by Strategy Area are as follow: Education and Post-Secondary Education & Training $23.1M (57%) Total Cost by Strategy Area Leadership Structure $2.3M (6%) ($40.5 Million) Aboriginal Participation $3.8M (9%) Women's Participation $2.3M (6%) Other Strategy Areas $2.5M (6%) Industry Training $6.6M (16%) Leadership Structure Aboriginal Participation Women's Participation Other Strategy Areas Industry Training Education and Post- Secondary Education and Training In terms of type of expenditure, post-secondary education and training spaces including industry training spaces accounts for $12.9 million or 36% of the budget. The proposed matching viii

10 (government-industry) Education Endowment is $10 million or 24% of the total budget. Increasing the participation of Aboriginal people, immigrants and women represents $7.3 million or 18%. The Trades Mobile Units (capital and operating) is an estimated $4.2 million or 10% of the budget. The leadership structure costs and other costs are $2.3 million or 6% and $2.2 million (6%) respectively. Funding Sources The main sources of funding for this Strategy will be industry and government contributions. Potential Industry Contributions In addition to in-kind contributions of staff time and equipment, facilities, and other resources, it is recommended that the mineral exploration and mining industry directly contribute an estimated $9.4 million or at least $23% of the total Strategy budget. The areas for industry cash contributions are: Education endowment ($5 million matched with an equal government contribution). Purchase of two Trades Mobile Units ($3.8 million excluding operating costs of $0.4 million). Industry and company contributions to Aboriginal high school completion incentives, Girls Exploring Trades and Technologies camps, international and national recruiting missions, career promotion video, etc. (approximately $0.6 million). This cash figure excludes the contribution of on-the-job training during apprenticeships in new and expanded Industry training programs in the strategy. It is estimated that industry would contribute a further $6.6 million in-kind for new and expanded industry training spaces. Potential Government Contributions The most obvious sources of government contributions to this Human Resources Strategy will be: Ministry of Advanced Education for post-secondary education and training seats (either incremental or reallocated within base funding). Post-secondary institutions for post-secondary education and training seats (either incremental or reallocated within base funding). Ministry of Education for K-12 funding. Ministry of Economic Development for labour market program funding (e.g. HR strategies, immigrant strategies, etc.), especially under the new Labour Market Agreement, and for incremental industry training authority funding. Ministry of Energy, Mines and Petroleum Resources. Ministry of Aboriginal Relations and Reconciliation. Ministry of Community Services (i.e. Women s programs). Service Canada (various labour market programs nationally and regionally). Aboriginal Human Resource Development Agreement-holders and sub-agreement holders Other federal departments like Natural Resources Canada. Mining Industry Human Resource Council. Specific possible funding sources for each strategy and action have been identified in the detailed implementation plan addendum; and the approximately $31 million of the HR Strategy that would not be resourced by industry is expected to come from the following sources: $5 million or 50% of the Education Endowment will be sought from the Ministry of Education. ix

11 The approximate $2.4 million for other K-12 education funding will be sought from the Ministry of Education. The almost $12 million for post-secondary education spaces will be sought from the Ministry of Advanced Education, with support from post-secondary institutions. The approximate $2.5 million for industry training spaces will be sought from the Ministries of Advanced Education and Economic Development. Additional funds for development of new programs will also be sought from Service Canada. The approximately $7.3 million for Aboriginal, immigrant, and women s strategies will be sought from a combination of Service Canada, AHRDAs, the federal-provincial labour market development agreement budget, and provincial Ministries of Aboriginal Relations and Reconciliation and Community Services. The remaining amount of under $1 million needed for the HR Strategy will come from an array of other potential funders (e.g. Ministry of Energy, Mines and Petroleum Resources, other federal departments, etc.) For strategies that involve increasing student spaces for post-secondary education programs, the Task Force requests the BC Government provide incremental funding to post-secondary institutions for additional spaces in new and existing post-secondary education and training programs, or direct these institutions to reallocate their base funding to deliver such programs. For industry training strategies, the Task Force requests the BC Government provide the ITA (and ITA provide the RTO) incremental funding for new apprenticeships and expansion of existing mining-related apprenticeships. Approximately $14.5 million of the Strategy budget is for post-secondary education and training spaces. This is a very small portion of government advanced education and training funding over the five years, especially when one considers the mineral exploration and mining industry s contribution to the province in terms of employment, GDP, regional economic development, etc. Funding Recipients Of course, the most important recipients of the funding will be the thousands of individuals that will benefit from education, training, mentoring, retention, employment, and other positive experiences resulting from this Human Resources Strategy. The large majority of the necessary Strategy funding $30.5 million or 75.4% of the fiveyear budget would go to program and service deliverers, including: Aboriginal service providers Women s and immigrant service program Other employment and training service providers Schools or school districts Public post-secondary institutions (colleges, university colleges, institutes and universities) The Resource Training Organization The Industry Training Authority 6. LEADERSHIP STRUCTURE AND GOVERNANCE In building a comprehensive, long-term Human Resources Strategy, it became apparent to Task Force members that while the Task Force was an effective mechanism in developing the Strategy, something more permanent and operational is needed to lead and manage the implementation of the Strategy. x

12 Industry members of the Task Force agree that existing industry associations or other existing entities would not be good options for fulfilling this role. A new entity structured specifically for the purpose for leading the implementation of this Strategy is needed. It is also important that the new structure be industry-driven and governed by a majority of BC mineral exploration and mining industry representatives. In considering the leadership structure and governance, the Task Force examined a number of existing examples and models, including Geoscience BC, national sector councils, particularly MiHR, Industry Training Organizations (ITO) in BC (e.g. BC Resource Training Organization), Australia and New Zealand, provincial sector councils in Quebec, Nova Scotia and Prince Edward Island, and other sector-based HR bodies such as go2 in the BC tourism industry. go2 the resource for people in tourism is of interest because: It focuses on the whole spectrum of human resource needs (recruitment, retention, training, etc.) and covers all the business lines that a mineral exploration/mining leadership structure would It is sectoral, industry-based and industry-driven It is an incorporated society with its own board of directors go2 has been in existence for 5 years (i.e. it is tested) and is expanding and showing various signs of success and effectiveness The Task Force is also interested in the Industry Training Organization (ITO) model either a new Mining ITO or broadening the mandate of the Resource Training Organization (RTO). The mandate of an ITO, including the RTO mandate, involves defining training needs, developing training plans, coordinating training delivery, setting occupational and program standards, etc. This Mineral Exploration and Mining Industry Human Resources Strategy is much broader in scope than industry training; however, perhaps ITO mandates can be stretched to go beyond this. As the RTO serves a broader array of industries including oil and gas, solid wood, pulp and paper, if the ITO option was eventually pursued, the Task Force would prefer a new Mining ITO model, unless the RTO mandate could be readily broadened beyond industry training. After the Task Force, industry associations and supporting corporations secure seed funding and other resource commitments, the Task Force will create an interim board of directors and society constitution and bylaws, and a very small, lean organizational staff structure, with a Chief Executive Officer, administrative support person, and project manager. See the initial organizational chart on the next page. The interim board and this group will have a one-year mandate to implement the leadership structure and governance and key aspects of the first year of the Human Resources Strategy. This will include securing project-based funding. Before the end of Year 1 of the Strategy, the board and CEO will investigate two options for a permanent structure: a go2-like organization and mandate; and a Mining ITO with a mandate broader than industry training. In consultation with others, the interim board and CEO will make a decision on the permanent structure, proceed through a transition process to the new structure and full implementation of the rest of the Strategy. The Leadership Structure staff compliment, budget and structure will evolve based on successes of implementing the HR Strategy and the HR needs of the industry. The budget, staff or contractors will only grow as the structure has been proven to be effective and efficient and industry needs warrant such growth. xi

13 Operational Structure Stakeholder Relation Advisory Activities Board of Directors Chief Executive Officer Mining Association of BC appointees Association for Mineral Exploration BC appointees Aggregate Producers Association of BC appointee Labour appointees Aboriginal appointees Education and Training appointees MiHR, Government of BC, Government of Canada appointees Administrative Support Officer Project Manager Representatives of Aboriginal Communities, Women, Immigrants, Visible Minorities, Older Workers, etc. Project Activities Funding of the Leadership Structure will initially be resourced by industry and government seed funding and contributions from other stakeholder groups. As indicated earlier, it will start small with an interim CEO and two subordinates; and grow from there as necessary and as can be sustained. Other non-government revenue streams may be developed after Year 1. Governance The new leadership structure will be an incorporated society with its own constitution and bylaws, and an industry-appointed board with a majority of directors being from the mineral exploration and mining (including aggregate producers) industry, and other key stakeholders being represented. The initial composition of an interim board for the new structure will be: Mining Association of BC appointees Association for Mineral Exploration BC appointees Aggregate Producers Association of BC appointee Labour appointees Aboriginal appointees Education and Training appointees MiHR, Government of BC, Government of Canada appointees A stakeholder advisory mechanism will provide advice to the Board and CEO, and will be composed of representatives of education and training institutions, and of labour force groups such as Aboriginal communities, women, immigrants and visible minorities, older workers, etc. The interim Board will decide on the exact composition/nature of this. xii

14 7. TIMELINES AND NEXT STEPS The Task Force has developed a detailed Implementation Plan for 2008 through The timelines for each strategy and action are defined for years 1, 2 and 3. It is expected that this will be a rolling plan that will be updated each year. The approach taken is to plan, develop and execute most if not all programs and projects during the first three years; then expanding them and adding new strategies as necessary in years 4 and 5. The priority in the first year of the strategy will be to establish a leadership structure and to achieve momentum in initiating projects, programs and tools and to begin to achieve first year outputs and outcomes. The first strategies, actions and results that will establish momentum for this Human Resources Strategy and show early success include the following: Implementation of the Leadership and Governance Structure, starting small and gradual and expanding as necessary Development of an MOU with First Nations and Aboriginal leaders and new Aboriginal partnerships, building on strengths of existing programs and services with AHRDAs and others Development of and starting to implement an industry/career branding strategy to position the industry as an industry and employer of choice Mobilizing companies and government decision-makers to develop an agreement on an Education Endowment Fund Planning national and international recruiting on a partnership basis among mineral exploration and mining companies Development and piloting of new trades programs and expanding high-demand existing apprenticeships Working with the post-secondary education sector to develop a plan for expanding postsecondary education programs at the entry, technical, professional, and graduate levels Building on RKA and MiHR work to develop an on-going capacity for labour market forecasting and labour market intelligence-gathering xiii

15 TABLE OF CONTENTS Preface Executive Summary i ii Section 1: Introduction Impetus The BC Mineral Exploration and Mining Industry The BC Mineral Exploration and Mining Industry Labour Shortage Task Force A Long-Term Human Resources Strategy 5 Section 2: Situational Context The Big Picture Mining Industry Human Resources (MiHR) Research Council Task Force Research Existing Mining-Related Initiatives Human Resource Challenges and Gaps 28 Section 3: Strategic Direction ( ) Vision Mission and Principles Long-Term Goals Strategy Areas 33 Section 4: Implementation Plan Industry Deliverables to British Columbia Strategies, Actions and Deliverables Human Resources Strategy Budget Leadership Structure and Governance Human Resources Strategy Timelines and Next Steps 63 Appendices 65 Appendix 1: Task Force Membership 66 Appendix 2: Task Force Terms of Reference 67 Appendix 3: RKA Note on Calculation of Labour Growth and Replacement Needs 71 Appendix 4: RKA Recommended Strategies and Actions 73 xiv

16 SECTION 1: INTRODUCTION 1.1 The Imperative From a long-term perspective, the mining sector will probably see the fastest growth in terms of employment in the country 3 One of the challenges facing Teck Cominco is the pending labour shortage. Almost 50% of our labour force is eligible for retirement over the next 10 years." 4 The March 5, 2008 National Post headline warns, CRISIS IN MINING DEEPENS 5 and goes onto state, Canada s booming mining sector, which is growing at twice the rate of the economy, expects a shortfall of 92,000 workers in the next decade as industry wages rise 66% more than the average increase for all other sectors according to new research. The situation in British Columbia s mineral exploration and mining industry is even more acute, with an estimated 15,000 additional workers needed over the next 10 years in order to avoid skill shortfalls that threaten industry growth. 6 Mineral exploration expenditures in BC have sky-rocketed 1,300% from $29 million in 2001 to $416 million in BC represents an increasing proportion of Canadian mineral exploration, with the BC industry share nationally rising from 5.7% to 18.3 of total mineral exploration in Canada over the same seven-year period. 8 The BC mineral exploration and mining industry impacts (directly and indirectly) over 100,000 jobs in the province or approximately 4.5% of total employment almost 1 in every 20 jobs. 9 Over the last six years, British Columbia has experienced a strong resurgence of the mineral exploration and mining industry. This growth is expected to be sustained well into the future with world demand for commodities at unprecedented levels. Considerable effort has been expended by BC industry groups and the Mining Industry Human Resources Council (MiHR) in recent years to identify and address skill 3, Benjamin Tal, senior economist with CIBC World Markets Inc., National Post, March 5, 2008, p. WK5,7. 4 Donald Lindsay, President and CEO, Teck Cominco Limited 5 Derek Sankey, Crisis Deepens in Mining. National Post, page WK1, March 5, Roslyn Kunin & Associates. BC Mining Labour Force Study. Prepared for the BC Mineral Exploration and Mining Industry Labour Shortage Task Force. 7 Scott Simpson. Mineral exploration in BC hits a record. Vancouver Sun, January 23, 2008, p. D1. 8 Natural Resources Canada. 9 BC Ministry of Energy Mineral Statistics Sitemap plus assumption of multiplier of

17 requirements of the industry. However, as a result of the rapid growth, the necessary human capital required to grow this industry has not been developed and the industry must play catch-up in all occupational categories from operators to trades to technicians to engineers to managers and supervisors. The Perfect Storm of economic expansion, declining birth rates and aging of the workforce in many industries across BC means the labour shortage in mineral exploration and mining are no longer looming. Just as BC s mineral exploration and mining industry is looking at important growth opportunities during in particular, a lack of skilled human resources threatens to constrain or adversely affect economic contributions from the industry. It is clear without pre-emptive and concerted action on the labour shortage issue, the British Columbia mineral exploration and mining industry will suffer, and correspondingly so too will the BC economy and British Columbians. 1.2 The BC Mineral Exploration and Mining Industry British Columbia s mineral exploration and mining sector is experiencing record levels of investment in mineral exploration, mining revenues, and salaries and benefits for employees in BC communities. A favourable regulatory process, competitive taxation policies, and proactive engagement among industry, governments, educational institutions, and First Nations have made BC s mineral exploration and mining sector attractive to investors and beneficial to communities throughout the province. Vancouver and BC have become one of the most important mining/minerals centres in the world, with BC companies raising over 50% of global mineral exploration financing. According to the Mining Association of Canada s Fact and Figures 2007, the minerals sector employs 369,000 Canadians, contributes $40 billion to Canada s gross domestic product, and accounts for 17% of annual Canadian exports. 10 BC s Minister of State for Mining, the Honourable Kevin Krueger recently stated: By streamlining approval and regulatory processes, investing in training for youth to address labour needs, and building productive partnerships in our communities and with First Nations, BC is earning a world-wide reputation as a favourable jurisdiction for mining investment. In addition, our flow through share program, tax incentives, and motivated workforce provide the right tools for conducting business in BC. Table 1 provides additional facts on BC s minerals sector. 10 Mining Association of Canada News Release. Message to mines ministers: take action to sustain booming mining sector. September 24,

18 Table 1 Mineral Exploration and Mining Industry Key Facts Gross mining revenues in BC: 1999: $3.057 billion 2006: $8.076 billion 11 Average salary and benefits in the mining sector 1999: $74, : $99, Number of mines opened: : : 3 13 Number of projects under review: 2001: : Number employed in mineral exploration and mining sector: 28,000 plus spin-off jobs in all sectors in communities throughout BC 15 Other Facts: Mining accounts for 65% of regional bulk port traffic and 47% of rail freight Mining is the largest employer of Aboriginal people in Canada (>10%) Minerals and metals are in high demand in the new economy 1.3 The BC Mineral Exploration and Mining Industry Labour Shortage Task Force In this context of heightened urgency, BC mineral exploration and mining industry leaders established a BC Mineral Exploration and Mining Industry Labour Shortage Task Force with assistance from Service Canada. The Task Force (see Appendices 1 and 2 for Task Force Membership and Terms of Reference) has been formed to bring together senior business leaders, employee representatives, Aboriginal representatives, and industry associations, from the mineral exploration and mining industry (including aggregate producers) in BC, with ex-officio representation from training and education providers, and government agencies as needed. Figure 1 illustrates the comprehensive range of stakeholders who have participated in the Task Force to date. 11 PricewaterhouseCoopers 12 PricewaterhouseCoopers 13 Ministry of Energy, Mines and Petroleum Resources 14 Ministry of Energy, Mines and Petroleum Resources 15 Ministry of Energy, Mines and Petroleum Resources 3

19 Figure 1 BC Mineral Exploration & Mining Industry Labour Shortage Task Force ASSOCIATION FOR MINERAL EXPLORATION BC LABOUR REPRESENTATIVES MINING & MINERAL EXPLORATION COMPANIES PROVINCIAL TASK FORCE EX OFFICIO MIHR PROVINCIAL GOVERNMENT EDUCATION & TRAINING INSTITUTIONS FEDERAL GOVERNMENT RESOURCE TRAINING ORGANIZATION (RTO) MINING ASSOCIATION OF BRITISH COLUMBIA AGGREGATE PRODUCERS ASSOCIATION OF BC CANADIAN ABORIGINAL MINERALS ASSOCIATION The Task Force mission is to facilitate communication and develop the partnerships needed to research, plan, and develop a sector-wide human resource and labour force strategy that can be implemented by firms in the industry, by career information and employment service providers, and by educational institutions and other training providers. The two key objectives of this Task Force are: To create a broad sector partnership involving industry, career information and employment service providers, educators/training providers, and government agencies; for the purpose of creating and implementing a skills development strategy to meet the labour adjustment needs of the industry and the workforce. 4

20 To address main issues of career awareness and recruitment, industry and institutional training capacity, and on-going labour market intelligence gathering/ sharing. The Task Force has focused on the following priority areas: Labour market analysis (present and future) Training and education K to 12 Trades Entry-level/support Professional Aboriginal and women s participation Human resource practices New Canadians & immigration Mining industry workforce information network (MIWIN) 1.4 A Long-Term Human Resources Strategy As a result of several months of research, consultation, and discussions, the Task Force has developed this BC Mineral Exploration and Mining Industry Human Resources Strategy to work with other stakeholders to ensure the industry has the skilled workers it needs to grow and prosper, and to continue to make significant contributions to the BC and Canadian economies. The rest of this report is organized as follows: Section 2 outlines the strategic context for this strategy, including the findings of research undertaken by the Task Force and others on human resource requirements and gaps. It also includes recognition of many existing initiatives that are underway to address the industry s human resource needs, and ends with succinct statements of human resource challenges and gaps which must be addressed. Section 3 presents the strategic direction for the human resources strategy, including a vision and values, long-term goals, and priority strategy areas. Section 4 provides an Implementation Plan, including specific strategies and actions, outputs and outcomes, budget information, a leadership and governance structure, and timelines and other implementation considerations. This section is based on a more detailed implementation plan that can be made available as an addendum to this strategy. Section 5 briefly presents a conclusion and outlines next steps. Figure 2 provides a conceptual framework for this human resources strategy. 5

21 Figure 2 Human Resources Strategy Conceptual Framework 6

22 SECTION 2: SITUATIONAL CONTEXT 2.1 The Big Picture The BC Government expects over 1 million new job openings to occur during , driven by strong economic growth, lagging productivity, declining birthrates, and a smaller youth cohort. Almost every industry in BC is experiencing some degree of labour shortages, and most do not expect this to change in the coming years. BC companies in many industries have to compete aggressively with companies in other industries, other regions and provinces, and other countries. Skills shortages are no longer looming and the war for talent is no longer hyperbole. Many competing industries need the same skills, education, and training that BC mineral exploration and mining industry companies need, including managers and supervisors, geologists, engineers, technologists and technicians, trades, and equipment operators. The high growth rate of Aboriginal youth, the under-utilization of women and persons with disabilities in the workforce, and the fact that immigrants to BC will constitute % of the net new labour supply in the next few decades mean employers and industries must do things differently to attract and retain this potential talent. Underrepresented labour force groups constitute 60% of Canada s labour force. Employers have to be increasingly sensitive to the needs and motivations of their multigenerational workforces in this job-seekers market. Employer of choice is the new mantra; and companies who ignore this, do so at their peril. This is the bigger picture or context within which a BC Mineral Exploration and Mining Industry Human Resources Strategy is developed and will be implemented. Specific strategies and actions must reflect the fact the mineral sector companies and the industry as a whole face strong competition from other employers, industries and jurisdictions. The rest of this section highlights key research undertaken by the industry and the Task Force that identify the key human resource needs, challenges and gaps of the industry. 2.2 Mining Industry Human Resources Council (MiHR) Research The Mining Industry Human Resources Council (MiHR) is the human resources sector council for Canada s mining industry. The Council collaborates with all communities of interest (employers, educators, organized labour, Aboriginal groups, and others) to address human resources challenges facing the Canadian minerals and metals sector. In 2007, MiHR completed a comprehensive final report on its Mining Labour Market 7

23 Transition Project. As a result of this research and other work, MiHR updated its forecast of a potential shortfall of workers for mineral exploration and mining across Canada upward to 92,000. MiHR s Labour Market Transition Project identified and documented the mineral sector s human resources needs and research findings within the following themes: Global Competition Growing the Talent Pool (rather than industries all competing for the same labour) Productivity Challenge Skills and Knowledge Challenge (knowledge retention of retiring workers) The Right Training Balance (between current and future worker needs) Supply Challenge Engaging Youth Supply Challenge Education and Training Programs (all levels and types) Supply Challenge Retaining Existing Employees Supply Opportunity (displaced workers from forestry, agriculture and other industries) Training Opportunity (on-the-job training and retraining to move workers in declining industries into mining-related jobs) This MiHR report s recommendations are divided into two distinct objectives: Developing tools and services to help move workers from declining industries into the mining industry Growing the talent pool which the mining industry can draw on Developing Tools and Services Recommendation 1: Create a marketing campaign aimed at declining industries with the same type of workers Recommendation 2: Create a series of recruitment pilot projects aimed at workers from declining industries Recommendation 3: Ensure that the Mining Attraction, Recruitment and Retention Strategy (MARS) project solicits input and involvement from labour market adjustment committees and local training boards Recommendation 4: Create and distribute a catalogue of promising practices, lessons learned, and potential barriers for workers moving from declining industries into mining and other sectors Recommendation 5: Work with industry representatives to develop a set of nationally recognized occupational and training standards 8