Uniting ARCCAW members across Alberta and the Northwest Territories
Petro-Canada and Suncor Say “I Do�
Canadian Publications Mail Product Sales Agreement #40020055 Return undeliverable mail to Circulation Department 10259 105 St. Edmonton AB T5J 1E3
Summer 2009
Executive Secretary Treasurer’s
REPORT
Building on a Solid Foundation Martyn A. Piper
A
t the March Regional Council
meeting, delegates decided to invest in a new and improved HardHat. As always, we strive to generate interesting stories and provide an overview of the union’s activities so we can inspire members to actively participate. The quality of HardHat improved significantly with the assistance of Alex Macdonald. Now we’re taking it up a notch by working with a recognized publisher. Telling the UBC story in Alberta is an extension of our organizing and marketing program. We have played second fiddle in our facilities, training and publications for too long. Not anymore. We hope you enjoy the first edition of our new HardHat and we welcome your feedback and stories.
Work Availability
Availability of work has been surprisingly good as carpenters, scaffolders and millwrights have been exhausting the out-ofwork lists to meet demand. Some larger projects continue to expand their workforces and that, coupled with shutdown activity, has led to opportunities for the entire membership. However, I am not confident that this activity will sustain itself. To assist with demand in the interim, we’ve brought in members from Atlantic Canada, Sarnia and the U.S. I know many of you are frustrated to work with people who lack the expertise expected of Alberta members. With increasing use of tube and clamp, system scaffold and today’s complex builds, training in some jurisdictions requires greater intensity, content and duration. We’re working hard to standardize scaffold training across the UBC. 4
HARDHAT
SUMMER 2009
Project News
Word has it that Canadian Natural Resources Limited (CNRL) is going ahead with phase 2, as economy of scale and infrastructure investment requires doubling their capacity. Moving forward for them is not an option. We have begun exploratory discussions with labour relations at CNRL to see if we can increase our participation. Meanwhile, Imperial Oil’s Kearl Lake project is also a go, on a managed open-site basis, and we’re entering discussions with our signatory contractors about what opportunities will be available for the building trades. And commercial work in Calgary, particularly with EllisDon Corporation, appears to be ongoing and keeping a good number of our members working. If you’re working on one of those projects, review your most recent pension statements. The contributions paid on your behalf and the benefits we receive are unparalleled. Clocking In
Maintenance work is the latest headache, with owners squeezing our contractors to consolidate work schedules, blend wage rates and reduce overtime premiums. It is at the point where you need a math degree to calculate hours worked versus hours paid. We must continue to ensure that our members continue to receive compensation commensurate with a union job, while balancing our contractors needs to stay on the job and in the game.
Program. The focus is squarely on union pride and on outperforming our competition by being at work every day and always on time and keeping our breaks within the allotted time. This is a no-brainer to secure future work and, collectively, we can make this happen. A New Look for the Website
We are embarking on a project to make the ARCCAW website more sophisticated, and our consultant, Alex Macdonald, has held (or will be holding) sessions for member input. Hopefully you’ve put your two cents in. Bound for Vegas
Later this summer, newer delegates will attend union training at the International Training Centre (ITC) in Las Vegas. The challenging course lays out expectations of a delegate and prepares them for a participatory and enlightened role in our union. Other Issues on the Burner
Pride and Performance
We’re working with our industrial shops and their principals to keep work in their various facilities. I hope there will soon be a light at the end of the tunnel. For building trades, we are researching and studying the Alberta Government’s bitumen policy on mining, upgrading and secondary processing. Albertans must remain vigilant to ensure that, as Premier Ed Stelmach puts it, the topsoil is not stripped away in Alberta. Talk to your MLA about long-term viability.
Thank you to the stewards, foreman and general foreman at Shell Scotford for accepting our new Pride and Performance
That’s it for now. Have a great summer, and stay safe at home and at work.
Contents Summer 09
Undeliverable mail should be directed to 10259 105 St. Edmonton AB T5J 1E3 or emailed to circulation@venturepublishing.ca Canadian Publications Mail Product Sales Agreement # 40020055
PUBLISHED FOR:
Alberta Regional Council of Carpenters & Allied Workers 15210 – 123 Avenue Edmonton, Alberta T5V 0A3 Tel: (780) 474-8599 / Fax: (780) 474-8910 www.albertacarpenters.com PUBLISHED BY:
Venture Publishing Inc. 10259 – 105 Street Edmonton, Alberta T5J 1E3 Toll-free: 1-866-227-4276 Phone: (780) 990-0839 Fax: (780) 425-4921 www.venturepublishing.ca PUBLISHER
4 Note From the Executive Secretary Treasurer By Martyn Piper
6 Site Lines News and views from around the province FEATURES
10 Project Profile Shell Scotford Upgrader Expansion By Cait Wills
Ruth Kelly
ASSOCIATE PUBLISHER
Joyce Byrne
19 Reality Bites
ARCCAW EDITOR
Alberta’s construction industry weighs in the economic downturn By Tricia Radison
Martyn Piper EDITOR
Craille Maguire Gillies COPY CHIEF
9
24 Pop Goes the Boom
Kim Tannas
ART DIRECTOR
Charles Burke
ASSISTANT ART DIRECTOR
Rodrigo López Orozco
PRODUCTION MANAGER
Betty Smith
CONTRIBUTING WRITERS
Natasha Mekhail, Tricia Radison, Jim Veenbaas, Cait Wills CONTRIBUTING PHOTOGRAPHER
Amy Senecal
VICE-PRESIDENT, SALES
Anita McGillis
ADVERTISING REPRESENTATIVE
Stephen Tamayo
What the Suncor/Petro-Canada merger means for the industry By Jim Veenbaas COLUMNS
24
27 Millwrights
Local 1460 Report
By Bob Hugh
28 Trust Fund
Manager’s Report
By Maureen C. Gander
SALES ASSISTANT
Stefanie Jackson
Contents © 2009 by ARCCAW Inc. No part of this publication should be reproduced without written permission.
29 Training and
Apprenticeship Report
By Len J. Bryden
30 Training + Events Important Phone Numbers Edmonton Fort McMurray Calgary Carpenters Training Centre Carpenters Health and Welfare Carpenters Pension Industrial Workers Millwright Local 1460 Local Union 1325 and 2103 Dispatch
780-471-3200 780-743-1442 403-283-0747 780-455-6532 780-477-9131 780-477-9131 403-283-0747 780-430-1460 1-888-944-0818
31 Parting Shot ON THE COVER Trades at the Shell Scotford Upgrader Expansion strike a pose. Photographed by Amy Senecal
10 HARDHAT SUMMER 2009
5
Site Lines
A roundup of news and notes from around the region
Roll the Dice on This Third-year apprentices travel to Las Vegas What happens in Vegas stays in Vegas, right? But here’s a chance to leave the City of Sin with your head held high. Every year, the United Brotherhood of Carpenters hosts a conference to give third-year apprentices a better understanding of the union and the industry. The four-day event, held at the UBC’s International Training Centre, covers the basics of how contractors operate. Third years take part so that these soon-to-be journeymen can use what they learn to mentor co-workers back home.
Apprentices take seminars on everything from customer service to productivity to skills development, along with a session on laws to protect the industry. To be eligible, apprentices must be in good standing and have attended at least two local union meetings in the past 12 months. This year’s group of apprentices still had a few opportunities to relax by the pool, catch a show and take part in other activities, Vegas style. To find out more about next year’s conference, contact your local office.
Juvenile Diabetes Research Foundation Fundraiser From left: Local 2103 members Chris McAuley, Derrick Rayner, Jerome Grocholski, Chuck Wells and Dan Love, with Rayner’s two children
Five members of the Local 2103 hit the streets of Calgary this past June to raise $1,100 for juvenile diabetes research. The team has already made plans to take part in the fundraiser next year. Local 2103’s Chuck Wells says, “We would also like to issue a challenge to local 1325 members to also participate, and to not just donate but to try to raise more money than us.”
ARCCAW’s contingent of third-year apprentices raised the stakes in Las Vegas
Mail Bag The forwarding service from Canada Post ends July. After this, any mail addressed to old addresses will be returned to the sender, delaying dues payments, benefits remittances and other important docs. New mailing address: (see specific suite addresses above)
6
HARDHAT
SUMMER 2009
Millwrights Local 1460, Suite 177 Carpenters Local 1325, Suite 133 Alberta Carpenters Training Centre, Suite 176 Alberta Regional Council of Carpenters & Allied Workers, Suite 200 ACAW Health & Welfare Plan, Suite 201 ACAW Pension Plan, Suite 201
Alberta Regional Council of Carpenters & Allied Workers 200-15210 123 Ave. Edmonton, AB T5V 0A3
We Were There… Anton (Tony) Debeljak, a 34-year member of the Millwrights Local 1460, is currently working on Unit #3 at Keephills for Melloy Industrial Services. Once the project is finished, Debeljak plans to retire and pass on his knowledge by mentoring a younger crew.
Eight Strong Winds Aboriginal trainees find new direction in an innovative pre-apprenticeship program
Life Story A man who lives to see his 96th birthday definitely got there with a bit of luck. But Clarence McTavish put that luck to the test on an ill-fated Friday the 13th when he was almost buried alive on a job site. Born in 1913, McTavish was a farmer in Asquith, Sask. However, in his late 30s, he began a new career as a carpenter in Edmonton. McTavish had no formal training, but he did have the farmer’s knack for working with his hands. In Edmonton, McTavish quickly found a job and joined the union. Over the next decade, he completed dozens of projects across Alberta, even working on the Distant Early Warning (DEW) Line, which was designed to detect incoming Soviet bombers during the Cold War. Then, on Friday, Sept. 13, 1963, McTavish had a job on the construction site of Edmonton’s Labatt Brewery. He was at the bottom of a deep ditch
name: Clarence McTavish age: 96 affiliation: Carpenters’ Local 1325 when the earth above gave way, enveloping him in seconds. Ironically, he had been shoring the walls when they caved. Quick-thinking co-workers saved his life, but McTavish crushed his hip and faced a long, painful recovery. Doctors reconstructed McTavish’s hip with a 15pound steel ball held in place by a sixinch pin. The surgery left his leg locked from the waist down. Two years later, however, McTavish was back at work, this time as a sawyer. Only when faced with another close call did he consider retirement. While moving a 45-gallon drum of sawdust, it got away, clipping his shoulder. By then it was 1991 and he was 78. At his 96th birthday party in Cochrane this April, McTavish was honoured for a lifetime of service to his trade and to the union. It’s become a family tradition: McTavish’s son, Ken, and granddaughter, Holly, are both scaffolders and union members.
Alberta’s skilled labour shortage had one big upside: it challenged the trades to get creative in recruiting new talent. Exploring the options revealed an untapped labour pool among Alberta’s First Nations. It’s also led to a unique training program called Trade Winds to Success, a partnership between aboriginal groups, the Union Training Trust Fund and the federal and provincial governments. “It’s a partnership not only with funding, but with having the same common goal to help train clients to become selfsufficient,” says Trade Winds’ executive director Deborah Munroe. The 18-week pre-apprenticeship training begins with a trades-streaming process that gives participants a sampling of what different fields have to offer. In the first three weeks, recruits try on eight different careers: plumber, pipefitter, carpenter, millwright, electrician, boilermaker, ironworker and welder. To inform their choice, trainees tour the union and spend some valuable face time with employers and other tradespeople. “Once they settle on a trade, they go into four or five weeks of academic upgrading in preparation for the Apprenticeship and Industry Training exam,” says Munroe. Students write an exam, get their safety tickets and begin eight to 10 weeks of union shop training. The program provides participants with the clothing and tools they need to get their careers off the ground. Trade Winds to Success began in September 2005 and stays true to its name with a success rate of 70 per cent. Learn more at www.tradewindstosuccess.ca.
Tool courtesy of Bob Hugh, Millwrights Local 1460
Guess the Tool The name of this 19th century tool sounds more like an implement of geriatric dentistry than a tool of the carpentry trade. What is it?
Answer on page 8 HARDHAT SUMMER 2009
7
Site Lines Making the Cut Calgary welcomes WorldSkills The biannual WorldSkills Competition is often called the Olympics of the trades. Instead of elite athletes battling it out, however, competitors are the world’s top performers aged 17 to 22 in disciplines as varied as robotics and cooking. When the games kick off in Calgary on Sept. 1, it will be the biggest event Stampede Park has hosted. The Carpenters will be there as a sponsor. Carpentry has been part of the WorldSkills since its inception nearly 60 years ago. The challenge: build a scale model roof of a house. The tough part is that you have only four recuts or two new pieces of wood before you’re disqualified. Here’s a sampling of test projects from the last three WorldSkills competitions:
By the numbers
Shizuoka, Japan – 2007
30 2 1
team members who worked on the project days ahead of schedule the project was completed
valve overhaul completed on the main generation turbine
Helsinki, Finland – 2005
St. Gallen, Switzerland – 2003
Guess the Tool Answer: Old Woman’s Tooth Router 8
HARDHAT
SUMMER 2009
18 2 20
maximum inches in diameter of the valves on the turbine range
team members (Stan and Cliff Buller) worked on the project with their mom and KBiM owner, Ursula Buller years that KBiM has been Atco’s millwrighting supplier of choice
A Cut Above The scroll saw is to wood what the paintbrush is to canvas. For centuries, woodworkers have used its agile blade to create intricate displays of fretwork, marquetry and intarsia. Now a group of Edmonton scroll-saw buffs is keeping the tradition alive – along with the memories of some brave Canadians. The Wildrose Scrollers create portraits of fallen soldiers to present to the troops’ families. The group’s president, Stan Buller (Millwrights Local 1460), was part of a similar project in 2003 for loved ones of the seven astronauts who died in the Space Shuttle Columbia disaster. Later, when the Americans he worked with turned their attention to fallen U.S. soldiers in Iraq and Afghanistan, Buller decided it was time to bring the project home. “I wanted to say thank you in some small way for what their families have given up for our freedom,” says Buller. One portrait is of his neighbour, Corporal Andrew “Boomer” Eykelenboom, who was killed in Afghanistan in 2006. (His mother has created a charity, Boomer’s Legacy.) Using a favourite photograph, the 10-member Scrollers design and cut the portrait in a solid cherry finish. The gift is an original work of art that provides a lasting tribute.
Sheer Brilliance Millwrights are tops with Atco Not only did Local 1460 Millwrights bring in two large turnaround projects at Atco Electric’s Sheerness Generation Station, but they brought them in ahead of schedule and right on budget. The success was thanks to a partnership between the Local 1460 and its biggest millwright-only employer, Edmonton-based KB Industrial Mechanics Ltd. (KBiM).
www.buildingtradesalberta.ca
“You are not hiring labour; you are hiring skilled craftspeople with a proud tradition” Proud Sponsors
Corporal Andrew “Boomer” Eykelenboom was killed in 2006 HARDHAT SUMMER 2009 000.AB Trades_1-3V_nBL.indd 1
9
6/16/09 9:47:54 AM
Shell Scotford
10
HARDHAT SUMMER 2009
Project PROFILE
About 40 kilometres northeast of Edmonton, there’s a major expansion happening. HardHat visits the site for a behind-the-scenes look
Upgrader Expansion By CAIT WILLS
F
illed to the brim with tradespeople, the Shell Scotford Upgrader Expansion project is a cacophony of sound: the clang of metal on metal, the whir of circular saws. Director Steve Corbin wouldn’t have it any other way. That noise is the sound of progress and, for Corbin and Shell, it means the upgrader expansion is moving towards an increase of about 60 per cent in its production, from about 150,000 barrels of bitumen per day to almost a quarter-million. The upgrader is a crucial cog in the Shell refinery machinery, where hydrogen-addition technology is used to upgrade about 11 1/2 per cent of Alberta’s daily production of heavy crude oil, or bitumen, into synthetic crude oil. Despite the global economic downturn, Shell’s upgrader expansion project is the only one of seven still going forward in Upgrader Alley, the industrial area around Fort Saskatchewan. It is the biggest union job in the country and one that is 100 per cent union, according to the project labour agreement, says Ajay Bhardwaj, Shell’s communications representative. “They make up a good proportion of our [total] workforce,” says Corbin. “We insist on skilled and motivated workers, and that’s exactly what we’ve got.” Corbin says that, because of the expertise available to Shell from the wealth of qualified tradespeople on the project, “I expect we’ll reach our construction peak in the third quarter of 2009,” which brings the estimated operational date of late 2010 or early 2011. The site also has an impressive safety record, having just exceeded 20 million man-hours with no lost-time injuries. At its peak, Shell estimates that crews could reach 5,000 people and generate billions of dollars in investment for the Edmonton region. HARDHAT SUMMER 2009 11
Project PROFILE
ABOVE: Terry Rockford, GarďŹ eld MacDonald and Gary Landry work in concert to build the structure for the concrete forms at the Shell Scotford Upgrader Expansion site. The carpenters on site are only one of several trades there and are responsible for laying the forms for over 65,000 cubic metres of concrete. LEFT: GarďŹ eld MacDonald uses the circular saw to create the stakes that are used in building the concrete forms. The stakes help keep the form in place and make sure all is level. BELOW: Terry Rockford uses the planer to help build the concrete forms. The forming lumber helps determine the thickness of the concrete, so planing is one of several critical steps.
12
HARDHAT SUMMER 2009
RIGHT: Joseph Mire completes the ďŹ nal assembly of the scaff olding, which is raised to help enable electrical and piping installation. All told, there are over 8,000 tonnes of scaff olding on site. BELOW: The completed scaff olding will be used to help install the pipe racks, which are adjacent to the tank farm. After it’s erected, the union banner for the Allied Carpenters Local 1325 is hung. BOTTOM RIGHT: Jeremy Wallace is a millwright working at the metal planer in the utility building.
HARDHAT SUMMER 2009 13
Project PROFILE
ABOVE: Florin Jurca, left, and Tom Drew, site foreman, right, show they’ve got the “right stuff” to make the Shell Scotford Upgrader Expansion project the biggest union job in Canada. LEFT: Gene Hilman, carpenter, prepares to start work on the Residue Hydro Conversion Compressor Unit, making concrete pours. BELOW: Dennis Leu, millwright, works on the Residue Hydro Conversion Compressor Unit, levelling precision equipment.
14
HARDHAT SUMMER 2009
2009 CARPENTERS’ LOCAL 1325
BURSARY TRUST FUND APPLICATION
LOCAL 1325
EDMONTON Since 1902
2009 CARPENTERS’ LOCAL 1325 BURSARY TRUST FUND Please read and carefully complete parts 1, 2, 3 and 4. Submit to either of the addresses at the end of this application.
1
APPLICATION
MEMBER INFORMATION Name Address City Phone
Member UBC # Province
Postal code
DEPENDANT INFORMATION
! include a copy of birth certificate
Name Address City Phone Applicant’s relationship to member
SIN # Province Date of birth
HISTORY
HIGH SCHOOL INFORMATION
Have you received a Bursary Award from Local 1325 Bursary Trust Fund previously? YES NO
School of graduation Address City Graduation date
if yes please state date
YES
NO
Province Postal code Course of study applied for Date of acceptance Years completed to date additional information may be attached
terms contained in application are defined in schedule “a”
2
! include transcript
Postal code Grade 12 Diploma
/ / POST-SECONDARY INSTITUTION INFORMATION Institution name Address City Institution/registrar phone Commencement date Total length of study
Postal code
?
For more information, call Diana Stubbard at (780) 733-2160
RULES AND REQUIREMENTS
• Application shall be received at the office of Local 1325 no later than August 31 and must include: 1. current name, address and phone number of applicant and member 2. copy of birth certificate of applicant 3. copy of high school transcript 4. name, address and phone number of post-secondary institution and/or registrar 5. verification of the registration acceptance 6. signed applicant waiver application • If supporting documents are not available at the time of application, please call Diana Stubbard at (780) 733-2160 for a time extension. • Timely receipt of application and supporting documents at the offices of Local 1325 is solely the responsibility of the applicant • The formula for award shall be: 75% of Bursary Fund income (current fiscal year, ending June 30) = MAXIMUM $1,000 number of applicants • Applications for bursary award must be for a post-secondary program commencing within a 12-month period following August 31 of application year. • Maximum of 2 awards • Each bursary payment requires a separate application. (birth certificate & high school transcript not required on second application) • Bursary awards (dollar amount) shall be declared by Carpenters’ Local 1325 treasurer at the September general meeting • Bursary award payment shall be made November 1 in the year of the application or at verification of commencement of course (whichever is later)
3
SCHEDULE “A”
DEFINITIONS
applicant:
• A dependent child, of a member of UBC Local 1325 • A person who has not reached their 25th birthday as of August 31 of the year of application Dependency status is determined by the Bursary Fund Trustees. (Verification using Alberta Carpenters and Allied Workers Health & Welfare Trust Fund records)
member:
• A person in good standing of Local 1325 for 2 consecutive years at August 31 of the application year Good Standing status shall be verified by UBC Local 1325 Ultra System • The mother/father/legal guardian of applicant
post-secondary education:
4
• A post-secondary program requiring a high school diploma at a Post Secondary Educational Institution recognized by “Alberta Learning” • A post secondary program must be a minimum of two (2) years in duration. (Exceptions may be considered for condensed post secondary programs, requires a written appeal, by the applicant, to the Bursary Trust Fund Committee) • Only post secondary programs requiring full time attendance will be considered • Trade school attendance shall not be considered for the purposes of a bursary award Additional information relevant to your application may be attached For information, call Diana Stubbard at (780) 733-2160
APPLICANT WAIVER AUTHORIZATION
Applicant hereby authorizes Local 1325 Bursary Trust Fund Administration to: • Release social insurance number to the Canada Customs and Revenue Agency • Obtain dependent information from ACAW Health & Welfare Plan • Obtain enrollment and/or attendance information from: Educational institution: Address
Phone
Applicant name (print clearly) Applicant signature
Date
Witness signature
Date
Information obtained through this waiver shall be used expressly and solely for the purpose of administration of this application
ADMINISTRATION – APPLICANTS DO NOT FILL IN Member Local # Good standing 3 years Transcript (copy) attached Verification of Registration: Date called School administrator Notes
Date approved
Verified by
Dependant verified Birth certificate (copy) attached Initial
Administrator Robert Provencher, Treasurer, Local 1325
LOCAL 1325
EDMONTON Since 1902
Submit complete application to: Edmonton Office #133, 15210-123 Avenue Edmonton, AB T5V 0A3 Ph: (780) 733-2160 Fax: (780) 477-7143
Fort McMurray Office Bay 6, 266 MacKay Cres. Fort McMurray, AB T9H 5C6 Ph: (780) 743-1442
There might be talk of better economic times, but the construction industry hasn’t emerged unscathed. A report on what went right, what went wrong and what’s next By TRICIA RADISON
HARDHAT SUMMER 2009
19
Reality BITES
CONSTRUCTION ’09:
The Good, the Bad, and the Upgraders Industry leaders take the temperature
L
et’s start with the good news: the first quarter of 2009
wasn’t that bad. Really. Statistics Canada reported a 3.2 per cent increase in non-residential construction investment in Canada, from $10.4 billion in 2008 to $10.7 billion in 2009. In Alberta, investment rose 4.3 per cent, from $2.5 billion in 2008 to $2.6 billion. Unfortunately, these positive numbers don’t mean the construction industry will emerge from the recession unscathed. Yes, the Inventory of Major Alberta Projects shows $234 billion worth of projects valued at $5 million or more on the books, as of April 2009, 11 per cent less than March 2008. Here’s the catch: $87 billion worth of today’s projects are on hold and may never happen. Manufacturing has been hardest hit; Robert Maze, vice-president of PTI Group Inc. in Edmonton, reports that business is already down by about 50 per cent. Other trades are expected to follow suit. “A lot of people in engineering are unemployed, and that’s a bit of a bad sign for us because that means there aren’t that many jobs on the drawing board,” says Bob Hugh, millwright senior business representative, Millwrights Local 1460. 20
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SUMMER 2009
“As we speak today, we are at a very busy time again because we’ve got a lot of shutdowns going on along with construction that was ongoing,” says Martyn Piper, executive secretary treasurer of ARCCAW. When shutdowns finished at the end of June and into July, Piper predicted the sluggish rate of growth will continue, saying, “I think we’re into a slow growth period through the balance of the year and probably into 2010.” There are positive signs on the horizon. In late May, Imperial Oil announced that its $8-billion Kearl Lake oilsands mine will proceed. (See page 24 for more information on this project.) The Construction Owners Association of Alberta, meanwhile, predicted that heavy industrial investment will pick up somewhere between late 2010 and 2012. Industry leaders would like to see five of the six upgrader projects originally planned for the Heartland region of the province proceed. Worth $48.1 billion, all five are on hold, and their impact on the labour market in Alberta could stretch decades into the future. Upgraders attract value-added industries that also require facilities, providing a solid economic base for both the industry and the province. These kinds of projects “provide a pretty good economic base not only for our
Five of the six Heartland upgraders are on hold. Worth $48.1 billion, their impact on the labour market in Alberta could stretch decades into the future.
COSTING A RECESSION • There was a 3.2 per cent rise of non-residential construction investment in Canada in the first quarter of 2009 • Investment in Alberta in the same sector rose 4.3 per cent • $87 billion worth of projects are on hold • Five of the Heartland upgraders – worth $48.1 billion – are on hold • The industry may not bounce back until as late as 2012
members working in construction but in the ability to go in for the next 20, 30 or more years doing maintenance work, servicing them on shutdowns and building new extensions to the plants,” says Hugh.
Shortage of Solutions With huge numbers of the workforce predicted to retire in the next decade or so, retaining skilled labour is important but difficult when the work just isn’t there. We wondered how Alberta companies balance the lower labour needs of today with potential shortages tomorrow. The short answer is: they’re trying. “As other contractors probably have, we’ve taken the ball in our own hands when we believe there are going to be acute shortages,” says Gary Truhn, director of construction and labour relations at PCL Constructors Inc., explaining that the company has learned to take the time to visit areas with available labour to present the benefits of coming to Alberta. During the last boom, PCL created its own labour network and will use it again as work picks up. Right now, the company is securing labour for its work on the $5.6-billion Scotford Upgrader Expansion. (See the project profile on page 10.)
HOW TO GET BY IN A RECESSION Just because projects are on hold doesn’t mean the work stops. Lloyd Dick of the Construction Owners Association of Alberta talks about the biggest challenges facing the industry today While the price of oil and access to credit play major roles in whether projects move forward, Dick says cost reductions will also spur investment. The key: Everyone involved in industrial construction needs to analyze their operations to find ways to control and reduce costs, improve efficiency and develop their workforces. “The real challenging areas for Alberta in terms of costs are things like getting labour and materials and that sort of thing up to relatively remote sites,” says Dick, adding that this makes it hard to compete with the productivity of other jurisdictions such as the U.S. Gulf Coast. Collectively, the union is using this slower period to work with contractors to make productivity improvements.
HARDHAT SUMMER 2009
21
Reality BITES
BACK TO THE FUTURE Five industry insiders predict what construction will look like in 2010 Dave Toronchuk, Bird Construction: “Unfortunately, I think we’ll see a lot of unemployment. But I don’t think we’re going to see any type of panic because there’s a fair bit of optimism and a lot of infrastructure projects that should be coming online in roughly a year. As long as the oil price stays reasonable, a few of those projects will still continue.” Gary Truhn, PCL Constructors: “I foresee we’ll have to be less dependent on temporary foreign workers and permit travel cards. [We’ll just be] waiting for those big shutdowns in the spring.” Lloyd Dick, Construction Owners Association of Alberta: “If I knew, I’d probably be on a beach somewhere in Mexico sipping a pina colada on the riches I’d made figuring that out. I don’t know if we’ll be out of the tough times. A lot of the projects that we deal with – the heavy industrial construction projects – take a long time to turn off and turn on. I think between 2012 and 2015 we’ll see many of those projects coming back, but by January of next year I’m not sure whether a lot of that will filter through.” Robert Maze, PTI Group: “My guess is that we’re probably close to the bottom right now and that things will pick up again. My fear is, with everybody from the East going home and a lot of the foreign workers laid off leaving the province or going back to their countries of origin, that the next time we get a ramp up we’re going to get into another severe labour problem, and it’s probably going to be worse than it was last time.” Bob Hugh, Millwrights Local 1460: “I think it’s going to be quite a bit reduced from what it was a year or two years ago. I honestly hope that by January 2010 there are some positive announcements of projects that will proceed, particularly upgraders or mine sites.”
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SUMMER 2009
Cutting overtime is one possible solution, as is taking on work outside of the province. Some in the industry are focusing on getting what work is out there to keep employees on staff. Take PTI Group. “We’re working hard and trying to be extremely competitive with bids right now so that we can bring the labour back into our manufacturing plants before the rush starts again,” says vice president of manufacturing Robert Maze, who’s concerned that projects in eastern Canada will keep workers there even when projects in Alberta pick up again. “We think it’s easier to retain them than it’s going to be to attract them in the future.” This concern was echoed by most people we spoke with. As Dave Toronchuk, the vice-president of industrial at Bird Construction put it, “We have some really good crews and we’d like to hang onto all the labour that we can. Do we have the answer right now? No, we do not.”
Bird’s Eye View Founded over 88 years ago, Bird Construction is a national company with expertise in commercial, institutional and industrial construction. HardHat spoke with Dave Toronchuk, vice-president industrial in Bird’s Edmonton office, to find out what he thinks is in the cards for Alberta’s construction industry.
Q: What do you see happening in the commercial and industrial construction sectors right now? A: We’re seeing a smaller volume of work. I think at present contractors have a bit of backlog and everybody has a reasonable amount of work until probably this fall or this winter. After that, we’re expecting quite a bit of a slowdown in the work itself. The engineering firms aren’t doing a lot of design work. And if they aren’t doing design work, we aren’t going to be doing construction six months down the road. Q: What should industry be paying attention to right now? A: Being efficient and eliminating bureaucracy whenever we can. Megaprojects have [a high level] of bureaucracy. It’s hard to manage billions of dollars of construction, several contractors and a work-
force of 6,000 to 10,000 people without it. But as we get into smaller jobs, I think we’ve got to drop [some of that]. We have to kind of shift back to our old style, keeping it safe, simple and efficient. Giving our clients the best value we can for the money they have to spend will also go a long way to keeping our workforce employed.
Q: What did you learn from the latest boom? A: Don’t lose your head. I’m saying this to all three parties – contractors, unions and owners – because none of us can get better or solve this problem alone. My fear is that when the oil price jumps up again, if we’re not careful we can do the same thing we just did and overstress the market. They know you want it done and the pressure is on. I’m not sure how we can realistically expect different results the next time around if we do the same things we just did. All three parties have to stay calm and show leadership or the next downturn could be a lot worse. NON-RESIDENTIAL INVESTMENT IN ALBERTA (IN MILLIONS)
THE NUMBERS March 2008: Alberta had 1,076 projects over $5 million for a total of $254.9 billion April 2009: Alberta had 1,017 projects over $5 million for a total of $234 billion BUT 58 projects worth $87 billion on hold March 2008: 52 oilsands projects for a total of $162.6 billion April 2009: 41 oilsands projects for a total of $131.4 billion BUT 16 projects worth $77.7 billion on hold Commercial/retail and residential projects March 2008: $13.1 billion April 2009: $15.6 billion with $917 million on hold NON-RESIDENTIAL INVESTMENT IN N.W.T. (IN MILLIONS)
TYPE
1ST QUARTER 2008
1ST QUARTER 2009
% CHANGE
TYPE
1ST QUARTER 2008
1ST QUARTER 2009
% CHANGE
Industrial
$272.8
$293.6
7.6
Industrial
$2.1
$0
-99.7
Institutional
$428.7
$548.4
27.9
Institutional
$3.7
$3.2
-13.1
Commercial
$1,820.4
$1,787.6
-1.8
Commercial
$12.2
$13.5
10.4
PROJECTS TO WATCH WHERE
VALUE
STATUS
Retail, office and industrial development WAM Development Group/AIMCo
WHAT
OWNER
Calgary
$2.25 billion
Land servicing underway with completion slated for 2016
Calgary Airport’s new runway and concourse
Calgary Airport Authority
Calgary
$1.8 billion
Proposed to begin in 2011
Edmonton Regional Airport expansion
Edmonton Regional Airport Authority
Leduc County
$1.1 billion
Proposed
Scotford Upgrader Expansion
Albian Sands Energy Ltd.
Strathcona County
$5.6 billion
Scheduled for completion in 2010
Phases 2 and 3 of Project Horizon mining/drilling
Canadian Natural Resources Ltd.
Regional Municipality of Wood Buffalo
$3.1 billion
On hold
Fort Hills Oilsands mine
Fort Hills Energy Corp.
Regional Municipality of Wood Buffalo
$10 billion
On hold with decision to be made in 2009
Keephills 3 Power Project
TransAlta Corporation / EPCOR Utilities
Parkland County
$1.6 billion
Underway with completion scheduled for 2011
HARDHAT SUMMER 2009
23
pop
boom Goes the
By JIM VEENBAAS
When oil prices tanked, many oilsands projects were shelved – projects that Alberta’s construction industry depends on. In the middle of it all, Petro-Canada and Suncor Energy Inc. made plans to walk down the aisle of a business marriage made in oilpatch heaven. The highs and lows of an industry in flux
T
he boom and bust cycle is a fact of life in Alberta’s oilpatch, but the highs and lows of the last 12 months have been steep and deep enough to make anyone dizzy. Oil prices soared to record heights of $147 a barrel in July of 2008, sparking unprecedented investment in the oilsands and raising fears about supply shortages. Five months later, prices plunged to $35 a barrel and Alberta’s economy suddenly hit the skids, not long after the rest of the world slid into recession. By the start of 2009, many of the biggest projects were suddenly shelved. Investment in the oilsands plunged $46 billion in less than a year. According to projections from the Oil Sands Developers Group (OSDV), planned investment in the industry for the period of 2008-2012 dropped from $79 billion to only $33 billion. 24
HARDHAT SUMMER 2009
“With the price of oil going down and the liquidity crisis hitting the world’s financial markets, it was only a matter of time before we felt it here in Alberta,” says David McColl, research director with the Canadian Energy Research Institute (CERI). “Whether it was caused by the liquidity crisis or ongoing labour shortages, there was going to be a correction in the industry.” Some of the biggest players in the oilsands and some of the most important projects were delayed, including Suncor’s $25billion Firebag and Voyageur projects, Petro-Canada’s $24-billion Fort Hills project and Imperial Oil’s $8-billion Kearl project. The shrinking investment wasn’t a surprise to anyone in the industry, but the extent of the cuts was hard to take. “When you see all the economic indicators going in the wrong direction, like crude prices falling dramatically, construction costs increas-
ing substantially, it’s pretty clear that it foreshadows a reduction in investment. That’s just the way the world works,” says Don Thompson, president of the OSDV. “The slowdown was not a good thing and a lot of people were personally impacted. We estimated that something like 15,000 construction workers were impacted and no one likes to see the disruption of people and communities.” Petro-Canada laid off 200 people when it delayed its Fort Hills project north of Fort McMurray. Suncor not only mothballed its Firebag and Voyageur projects, it also slashed capital spending in 2009 from $10 billion to $6 billion and finally down to $3 billion. Then there were oil services contractors like Flint Energy Services and Lockerbie & Hole. Both took big hits from the downturn and were forced to lay off workers, but the spending
cuts were felt across the province and across the construction industry. Atco’s contract to design, build and install a 2,000-person workforce housing camp for the Fort Hills project was cancelled and threatened the jobs of 400 employees at its Calgary manufacturing centre. Everyone from carpenters and crane operations, to electricians and welders, were suddenly worried about their jobs. (To put in context, unemployment rate in the Wood Buffalo/Cold Lake region went from 3.1 per cent in May 2008 to 6.6 per cent in May 2009.) Just as quickly as the bottom fell out of the barrel, however, the market began to recover. Oil prices rose to $70 a barrel in June and all those delayed construction projects had the unintended consequence of reducing inflation and making construction costs look more feasible. Multibillion-dollar projects were HARDHAT SUMMER 2009 25
starting to look economically viable at $60 er, which is expected to close in the third globe,” McColl notes, “but no one wants a barrel rather than at $100. Analysts such quarter of 2009, Imperial Oil announced to see a return of the inflation that drove May 25 that it was moving forward with its up costs.” as William Lacey at FirstEnergy Capital, Kearl project. The first phase of the $8-bilin his report released in early June called This caution is matched by a glass-halflion project was expedited to create 1,000 full attitude of many in the industry. “We “Sixty Dollar Makes Bitumen Holler,” argued that costs were beginning to move construction jobs in the early stages, ramp are starting to see the light at the end of into a more normal range due to dropping up to 3,000 construction jobs at its peak the tunnel,” Thompson says. “In the last and create 1,300 permanent jobs. “There prices for both labour and raw materials. couple months we have seen some hopeis no longer a sense of impending doom As the price of oil started to rise, ful signs on the key economic factors with in the industry, but I think companies are respect to the oilsands. All the factors Suncor and Petro-Canada pulled off a merger that would create the second-larg- going to move a little bit slower, a little bit that drive the economics of new investest company in Canada, after Royal Bank, more strategically. Are we suddenly going ment in the oilsands have started to move to see rash of announcements of new and the largest oil company in Canada. in the right direction. There are still an projects in the next four to five months? I The two companies announced the deal awful of people in Alberta and across think companies will be a little more care- Canada who are enjoying the benefits of March 23 and it was approved by shareful,” says CERI’s McColl. holders on June 4, creating the largest oilsands employment.” The bigger concern for labour, some oil company in Canada (revenues exceed Even with the fresh sense of optimism, suggest, is that more upgrading facili$50 billion), not to mention a new sense oilsands producers and developers will of optimism in the industry. (The federal ties are moving from Alberta to refineries take a more measured, cautious approach on the U.S. Gulf Coast and Midwest. At Competition Bureau still must approve to development. According to research the merger.) produced for the With almost 13,000 Construction Owners There is no longer a sense of impending employees and assets Association of doom in the industry, but I think companies across the globe, Alberta, the oilsands including oilsands will continue to grow, are going to move a little bit slower, a little bit operations and conbut at a slower pace more strategically,” David McColl of the Canadian ventional producfor the next couple of Energy Research Institute says. tion in the North years. By the second Sea, Syria, Libya and quarter of 2011, the Trinidad and Tobago, the new company is least 10 major refinery projects are taking oilsands is projected to employ 24,000 place in the United States that will have expected to achieve an annual savings of construction workers, numbers similar to the capacity to upgrade three million bar- the peak of 2008. $1.3 billion. rels of bitumen a day, more than enough The merger was greeted with positive “Once the world begins looking for reviews by organizations like the Building to handle the entire projected production energy to fuel its recovery, Alberta will Trades of Alberta, and many analysts sug- of the Alberta oilsands through to 2020. be at the forefront to provide that. What’s That means that some of the best manugested the bigger company was better different now is that there are a number positioned to resume its delayed projects. facturing jobs could go south, too. of facilities up there that are operating. The oilsands are one of the largest “It’s definitely a big players’ game with There’s not just construction, but also sources of untapped, proven, politithe billions that are required. If there is a operations, shutdowns and maintenance,” cally stable oil resources on the planet. lesson to learn from the last three to five says Lloyd Dick, communications and With an estimated 173 billion barrels of years, it’s that you need a lot of financial research specialist for the Construction reserves, Alberta’s position is exceeded horsepower to develop the resources,” Owners Association of Alberta. says Peter Tertzakian, chief energy econo- only by Saudi Arabia as the largest in the The best, says Dick, is yet to come. mist for ARC Financial Corp. “It will make world. And with the recent experience in “Everything has basically been delayed Venezuela, with President Hugo Chavez the industry stronger and it’s the natural for a couple years. That’s the sour news, progression that happens in a lot of indus- forcing oil companies out of its heavy and but if we can look past that, things will conventional industry, Alberta’s polititries. You go through a phase where there begin to pick up in 2011 and 2012. Once are a lot of small and mid-size players and cal environment makes it look even more the demand starts to click in for that, we then they consolidate to take advantage of attractive. “The oilsands are an imporwill see another up cycle. By 2016, we are tant global resource and it will continue the economies of scale.” seeing a forecast in demand that goes to attract investment from across the Before the dust settled with the mergbeyond the 2008 numbers.” 26
HARDHAT SUMMER 2009
Local 1460 Millwrights
REPORT
Training Now for the Future
Giving you the tools to build a safe and healthy future...in family, work and play.
L
ast year at this time, we were focusing on
the ability to supply sufficient millwrights to work on construction projects both in the Fort McMurray region and the County of Sturgeon. The credit crunch and low-priced oil fuelled the collapse of Upgrader Alley in the Fort Saskatchewan region. The Government of Alberta has to intervene to stop the potential increase of bitumen export. If we export too much bitumen, we lose the petrochemical industry that is fed the byproducts of the upgrading process. We also lose the value-added jobs that come with servicing and maintaining these facilities. The proposed North West upgrader in the Fort Saskatchewan area is focused on a one-step conversion of bitumen into diesel fuel. We hope it moves forward. Bob Hugh, Senior Business With all the instability on the construction Representative - Millwrights horizon, we have geared our training centre to deliver world-class petrochemical-based training. The nine-day reciprocating compressor course is up and running while a centrifugal pump course is in the development stage. (The courses are happening in no small part thanks to the multimillion-dollar reciprocating hydrogen compressor donated by Petro-Canada.) “No other North American millwright training centre that we are aware of has such a wonderful piece of equipment,” Local 1460’s training co-ordinator Dave Knight told me. Phase 2 of our marketing strategy centres around the petrochemical industry; specifically pumps and compressors. The courses we offer are hands-on and task-oriented. When a member completes the full three intakes on the compressor course, he or she will have a full 10 days of hands-on training. The client community is embracing our efforts to provide the worldclass value-added training locally at the training centre.
SERVICES PROVIDED: > Assessments funded by WCB or Alberta Health Care > Fully equipped gym > Experienced Physical Therapists & personal trainers > Open before and after work w CONTACT INFO: www.remed.ca #217, 14925 111 Ave 780-451-2244 HARDHAT SUMMER 2009 27 000.ReMed_1-3V_nBL.indd 1
6/29/09 8:35:33 AM
Trust Fund Manager’s
REPORT
Getting With the Plan Maureen C. Gander, CEBS, CHRP Manager
I
am writing this as I fly to Fort McMurray
for our meeting tonight with members on the financial health of the pension plan. Over 9,000 copies of the 2007-08 Report to Members were mailed out at the beginning of June, along with an invitation to attend one of three meetings held in Edmonton, Fort McMurray and Calgary. Close to 100 members heard the message from our actuary on Saturday, June 13 in Edmonton. Tomorrow we’ll address members in Calgary. The goal is to keep members informed about the plan’s financial health. These meetings, along with a written summary, are a key means to get the message out to all active members of the plan. Watch for the 2009 Health & Welfare members’ Guide this summer.
Get Carded
It’s hard to believe a little piece of paper only 8.5 inches wide by 5.5 inches high can carry so much weight. What am I talking about? Your applications for membership for the Pension Plan and for the Health & Welfare Plan. It can be a “life and death” matter. We need you to take it seriously. First off, you must completely fill it out and sign it, and then file it with the Trust Funds office. The best process we have for this is to have new members who join the union in Edmonton sign up at that time. (The remote locations can be a little more complicated and we’re always working at 28
HARDHAT SUMMER 2009
ironing out the wrinkles.) The bottom line, however, is that without your card, your membership in the plans don’t take effect and none of your hours will be deposited into your health and welfare “hour bank,” or your pension record. (This applies not only to new members but also to members who haven’t completed new cards for both plans.) Without time in your hours bank, claims can’t be paid. For your pension, one card will apply unless you leave the union; then a new card is needed when you return. Keeping your membership up-to-date is also critical. The Health & Welfare Plan provides benefits for you and your dependents, including your spouse. Change cards are used to add or delete dependents. If you’ve had a baby, or if your marriage or common-law relationship ends, you will want to update your file at our office. The Health & Welfare Plan includes life insurance, so it is best to be sure the person you want to receive your life insurance benefits. If you’ve named a partner as a beneficiary and the relationship ends or your marriage ends in divorce, you may not want your ex to receive your life insurance benefits if you die. It’s equally important to name a beneficiary to avoid hassles to loved ones. Life insurance claims paid to an estate involve more legal documentation. The Health & Welfare Plan has rules about removing a legal wife when separated (not allowed for three years). The Pension Plan also has rules, based on pension legislation, saying a legal pension partner is entitled to their share of your pension. Your pension and health and welfare booklets provide more information on dependents and spouses, or you can call the Plan Office to check who’s on file for you. One way to remember is whenever you have a major life event in your family (birth, death, divorce), your benefits need to be updated. It’s also important to update your address with the union office as the Trust Funds share address updates with the union. Members who leave the union but retain a pension benefit need to keep the Pension Plan informed of address changes.
Training and Apprenticeship
REPORT
Skill Improvement Has Its Rewards Len J. Bryden, Director of Training and Apprenticeship
O
ne thing is for sure: when work
slows down in the field, training picks up. This year has been the busiest in the history of the Alberta Carpenters Training Centre, and it sees no signs of slowing down. Our first accredited period one carpenter program is being delivered in Edmonton this summer, and period two classes have begun to fill up for 2010. We’re still working with Trade Winds to Success in Edmonton and Calgary for its eight-week pre-employment carpentry program, scaffolder training has never been so popular and we’re adding some weekend insulating concrete form classes. See our training listing on page 30 for details or visit our website at www.abcarptc.ab.ca for the full training schedule; call our offices at 780-455-6532 for dates and registration. Always have your UBC identification number ready when you call. Our assorted safety training offerings are also at capacity on an ongoing basis, so be kind to your fellow members and make sure you cancel if you can’t make a class!
In other news:
WorldSkills Calgary 2009: The regional council is sponsoring a booth at the WorldSkills competition held this year in Calgary (see page 30 for details). This event is huge and gives our union exposure to hundreds of thousands of people from all over the world, so get out and support our booth. Regional Skills Competition 2009: The ACTC was proud to host the Regional Skills Competition for carpenters back in April. The winners went on to the annual provincial skills competition held by SkillsCanada. Competitors are generally high school students who are exploring the trades as a career. It is great to see young people being so interested in the trades. UBC Carpenter Apprenticeship contest: This was a fun and challenging event from early July. This year, I added a scaffolder games component. The winner (and guest) of the carpenter portion of this contest goes to Halifax for the Canadian National Apprenticeship Contest on August 20. Winners and runners-up in these contests often can’t carry home all their cash and prizes. If you’re interested for next year and have completed your period four carpenter course (or will finish by next spring), or have completed or will be completing your level three scaffolder within the next year, call me at 780-455-6532, ext. 4222 to register for next summer’s competition. Keep up the good work, and do what it takes to get the training and certificates you need to be safe, healthy and become our future leaders in the construction industry.
HARDHAT SUMMER 2009 29
UPCOMING
Training + Events
Alberta Carpenters Training Centre Events Some of these courses still have room but are filling up faster than we have ever seen before. Register now with the Alberta Carpenters Training Centre. Go to www.abcarptc.ab.ca for the full course listing and see highlights below. Period 1 and 2 Carpentry: All classes require government-registered apprentices. To register at the ACTC, you must have your blue book and be in good standing.
Edmonton Centre NEW! Blueprint Reading levels 1 and 2 from August 13 - 16. NEW! Apprenticeship and Industry Training (AIT) Carpentry (Period 1) from August 24 - October 16. Insulating Concrete Forms (ICF) from September 19 - 20. AIT Carpentry (Period 1) from October 26 - December 18. NEW! Hoisting and Rigging from December 11 - 13. Blueprint Reading levels 1 and 2 from December 17 - 20. NEW! AIT Carpentry (Period 2) from January 4 February 26, 2010. Pre-employment Carpentry (Trade Winds to Success) from March 1 - April 23, 2010. Hoisting and Rigging from April 9 - 11, 2010. AIT Carpentry (Period 2) May 10 - July 2, 2010.
Calgary Centre Pre-employment Carpentry (Trade Winds to Success) from November 30 - February 5, 2010. NEW! Hoisting and Rigging from April 9 - 11, 2010. Hoisting and Rigging from May 14 - 16, 2010.
General Events August 22 - 23: National Carpentry Apprenticeship Contest, Halifax. September 1 - 7: WorldSkills Calgary 2009, www.worldskills2009.com Look for ARCCAW’s booth! September 19: Millwrights Local 1460 Long Service and Awards Barbecue, Edmonton.
WAIT, there’s more! The full schedule of all our training classes is available at www.abcarptc.ab.ca.
Alberta Construction Safety Association ”Making Safety A Way Of Life”
National Construction Safety Officer Program Qualifying Program for Gold Seal Construction Safety Coordinator www.acsa-safety.org Edmonton 1-800-661-2272 • Calgary 1-800-661-0390 Ft. McMurray 780-715-2157 30
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6/16/09 9:04:43 AM
Parting Shot
Following the rule of law
The United Brotherhood of Carpenters & Joiners of America Council Charter for Alberta and the Northwest Territories hangs in the ARCCAW offices in Edmonton. The charter was signed, dated and sealed on July 16, 1997, but the artwork is of a different vintage – 1942.
HARDHAT SUMMER 2009
31
75,000 Albertans serving 3,000,000 more. With more than 75,000 members AUPE is Alberta’s largest — and strongest — union. Allowing us to give our members what they deserve — fair wages, safety and job security. In turn allowing them to give you what you deserve — quality service.
The Alberta Union of Provincial Employees Your Working People. www.aupe.org