They [the recruiters] are well aware of the challenge. Even in St. John's, where the unemployment rate, at about 15%, is the highest in the country and disposable income the lowest, the turnout is poor relative to what had been expected.The hollowing out of the local labour market is one result of both the Hebron failure and the pull of a booming economy in Alberta.
Only about 20 people trickle in for the Friday evening session. Another15 come for one on Saturday morning. Hundreds of expectant seats are empty. Organizers and others wonder if this market is tapped out. "Almost every week there is someone here," said Paul Barnes, Atlantic Canada manager for the Canadian Association of Petroleum Producers.
It's not just oil sands employers, he notes. Alberta's service sector, from Wal-Mart to Swiss Chalet, is also recruiting, offering transportation to Alberta and signing bonuses.
As the Post notes, many workers have become trans-continental commuters, leaving family in Newfoundland to work for weeks at a time and flying home for brief rest periods.
Skilled workers from Abitibi's Stephenville operation are doing that, for example. Many, though, are near retirement age and once they hit the magic age, they'll be shutting down and retiring in Stephenville. Many in the formerly bustling mill town on Newfoundland's west coast are contented for now. Others wonder what happens when the retirees come flooding home if there is no new employer to replace Abitibi.
The labour crunch was one of the major considerations in trying to move Hebron forward last year. Oil industry insiders were acutely aware of the challenges in finding workers for a major industrial project as Alberta continues to draw more and more from all parts of the country.
"If Hebron went ahead tomorrow, we'd have a hard time finding staff," said Tony Goobie, a former chairman of the Newfoundland Ocean Industries Association, and the general manager of Eastern Valve & Control Specialties.
A smelter/refinery complex being built by Inco at Long Harbour and the prospect of Lower Churchill construction beginning in 2009 will stretch the local labour market to the point where the province will have no choice but permit companies to import skilled trades workers from anywhere they can find them. Many may well be Newfoundlanders and Labradorians who have moved to Alberta but who will commute in the opposite direction for the sporadic work on major construction jobs likely to occur in Newfoundland and Labrador over the next decade and a half.
The provincial government is moving ahead with new programs designed to produce skilled workers. The province has already announced a reciprocal agreement with Alberta that would recognize work experience in Alberta for skills certification in Newfoundland and Labrador. The catch is that workers need to maintain permanent residence in this province.
But in the absence of local work on major projects, many may wind up heading to Alberta and elsewhere and staying there. Greg Locke is a Newfoundland photojournalist who recently left the province to take up a management position with a weekly newspaper chain in Alberta. Locke's already noted that among ex-pat Newfoundlanders and Labradorians he's met so far, he hasn't found one genuinely pining to return home. Once settled in Alberta, workers tend to stay.
Remittance work is nothing new in Newfoundland and Labrador. Offal News' Simon Lono discussed the idea in February of workers who ship cash back home from foreign countries. It's a well-established idea in the developing world and to some it may be shocking to appreciate that the idea thrives within Canada.
Locally, though, the remittance economy has been booming in recent years. The provincial government's work programs actually encourage the remittance economy in its commuting variety, especially since the migrant labourers taxes go to the provincial treasury and their heads count toward the federal government's Equalization income support program for provincial governments.
Remittances are inconvenient for this government because they represent a policy failure: people who have taken the initiative and have left the province for work rather than heed empty government assurances that something will be done for them and their communities.Before Confederation, remittances were a way of life. A 1931 book by Joe Smallwood, written to introduce Americans to the easternmost part of the continent - then an independent country - put it this way:
Back in the early part of this decade [Smallwood actually mean the 1920s], when the flow of emigration to the United States and Canada was at its height, somebody facetiously declared that our principal exports were "codfish and men". There was a tragic vein of truth in it. At all events, even away from Newfoundland, many of these natives sons are contributing importantly to-day [sic] to the upkeep of the country. The money orders paid within Newfoundland from the United States and Canada in the past three years for example, were as follows...Smallwood then listed a total of $2,081,232 from the United States between 1927 and 1929 and another $712, 054 from Canadian sources in the same period. [Source: J.R. Smallwood, The new Newfoundland, (New York: MacMillan, 1931), pp. 111-112].
Neither Statistics Canada nor the Government of Newfoundland and Labrador have investigated the scope of the remittance economy.
The labour market reality in Newfoundland and Labrador is garnering some attention from government. Programs may help generate workers, but in the absence of major industrial development, there is little to keep workers in the province any more than there may have been in the heady days of independence.
Workers will look outside Newfoundland and Labrador to earn a living. So too will an increasing number of companies in the oil and gas sector, among other sectors.
Promises of a rowdy revolution or of a return to independence, built on little more than myth and superheated rhetoric seem to be little more than a fatuous diversion from a meaningful discussion of public policy.
After all, is more income support for the provincial government any replacement for local economic development?
