Description
While there are common labour force pressures across industry sectors in Alberta, some industries are feeling certain pressures more acutely than others. Actions are needed to address the unique labour force issues and challenges of each industry sector. Industry stakeholders are working with the Alberta government to document existing initiatives and develop industry-specific workforce development strategies.
Forest Industry
A Workforce Strategy For Alberta’s
A Workforce Strategy for Alberta’s Forestry Sector
FOREWORD
A Workforce Strategy for Alberta’s Forest Industry was developed by stakeholders from the forest industry with
support from the Alberta government. Representatives from this industry participated in a series of discussions
that occurred between 2007 and early 2008 and the feedback from those meetings formed this strategy. Te
Alberta Forest Products Association and the Resource Industry Suppliers Association played key leadership
roles in bringing stakeholders together to participate in the discussions. Industry associations have identi?ed
actions they support and to which they will contribute with related projects/initiatives. Te following
organizations contributed to the development of this workforce strategy:
• Alberta Forest Products Association
• Alberta Paci?c Forest Industries Inc.
• Alberta Spruce Industries Ltd.
• Canadian Forest Products Ltd. (CANFOR)
• College of Alberta Professional Foresters
• College of Alberta Professional Forest Technologists
• Department of Renewable Resources, University of Alberta
• Manning Diversi?ed Forest Products Ltd.
• Millar Western Forest Products Ltd.
• Palliser Lumber Sales Ltd.
• Resource Industry Suppliers Association
(formerly Forest Industry Suppliers and Logging Association)
• United Steelworkers, Local 1-207
• Vanderwell Contractors Ltd.
• West Fraser Mills Ltd.
• Weyerhaeuser
• Woodland Operations Learning Foundation
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A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
BACKGROUND
Alberta is a leader in economic growth in Canada and the world. However, Alberta is faced with labour and
skill shortages which, if not addressed, will limit our province’s continued economic growth and prosperity.
Building and Educating Tomorrow’s Workforce (BETW) is Alberta’s 10-year labour force development strategy.
Tis strategy identi?es 17 government-led priority actions to ensure Alberta has more workers, better-trained
people and innovative workplaces. Tese government actions address labour force issues across several industry
sectors. Lead government ministries are identi?ed for each priority action.
Meeting Alberta’s labour force challenges over the next decade requires the participation and involvement of
all stakeholders. Strong collaboration and partnerships between government and stakeholder groups are key
to the successful implementation of this strategy. Stakeholders include industry, labour groups, professional
organizations, volunteer and community agencies, education and training providers, Aboriginal groups and
where appropriate, other orders of government. Each stakeholder has an important role to play. Industry
sectors will need their own actions and initiatives to address their unique economic pressures and challenges.
INDUSTRY WORKFORCE STRATEGIES
While there are common labour force pressures across industry sectors in Alberta, some industries are feeling
certain pressures more acutely than others. Actions are needed to address the unique labour force issues and
challenges of each industry sector.
Industry stakeholders are working with the Alberta government to document existing initiatives and develop
industry-speci?c workforce development strategies. Tese workforce strategies provide industry associations
and individual employers with a framework of sector-led actions to build the labour force needed to support
continued growth over the next 10 years. Te forest industry is currently experiencing an economic crisis
precipitated by the crash of the United States’ housing market and a subsequent crash in lumber prices, the
high Canadian dollar, the Softwood Lumber Tax, rising labour and energy costs in the Alberta boom and,
impacts of the mountain pine beetle infestation. Given the cyclical nature of the markets and the current
industry restructuring, conditions will eventually turn favourable. As circumstances and priorities shift,
the forest industry is expected to revisit this workforce strategy to ensure its relevancy.
Industry is leading the implementation of workforce strategy actions. High levels of co-operation and
collaboration within Alberta’s forest sector are required for successful implementation of the workforce strategy.
Creative solutions and a synergistic approach emerge when stakeholders come together in partnership to
implement initiatives. Government assists in bringing stakeholders together, including those from other
sectors, to work on common actions and initiatives.
Albertans are the long-term bene?ciaries of this important collaboration to build Alberta’s workforce during
the next decade.
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A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
PROFILE OF ALBERTA’S FOREST INDUSTRY
Industry De?nition
Te forest industry in Alberta consists of approximately 150 companies providing a variety of goods and
services to primary forest and wood product manufacturers.
1
In addition, Alberta’s forest industry includes
over 2,300 logging and log hauling contractors and forest supply and service providers.
2
Tere are ?ve general
sectors within Alberta’s forest industry:
• Primary sector – Companies that take a raw wood resource and produce a product through a primary
breakdown manufacturing process. Product examples include logs, cants, pulp, newsprint, lumber,
oriented strand board, plywood and ?breboard.
• Secondary/re-manufacturing sector – Companies that re-manufacture primary wood products into
secondary products. Product examples include door and window components, boards, decking, boxes,
crates, pallets, trusses, pressure treated lumbers and other engineered building components (I-beams,
?nger-jointed lumber, I-joists, archribs and laminated lumbers).
• Tertiary sector – Companies that manufacture architectural millwork and ?ne building products, which
entail wood and often other composite materials. Product examples include moulding, furniture, cabinetry
and specialty products.
• Harvest/reforestation sector – Companies that harvest (and perform log hauling) and reforest tracts of
forest or timberlands contracted and sustainably managed by the government or forest tenure holders,
guided by Forest Management Agreements and quotas.
• Supply and service sector – Companies that provide goods and services to all forest industry sectors.
Examples include welding, fabrication, geomatics, engineering, software, forestry consulting, heavy equipment,
processing equipment, chemicals, research and development, electrical, instrumentation, gears, bearings,
blades, generators and piping.
A Workforce Strategy for Alberta’s Forest Industry will address the primary, secondary and harvest/reforestation
sectors. Workforce challenges within the tertiary forest industry sector have already been identi?ed under A
Workforce Strategy for Alberta’s Manufacturing Industry. Workforce challenges with respect to the forest supply
and service sectors have been identi?ed under other workforce strategies as well as the Resource Industry
Suppliers Association Workforce Action Plan.
3
3
1
Canadian Forestry Business Directory, The Forest Industry Suppliers and Logging Association, 2007
2
Based on WCB 3100 code and RISA statistics
3
RISA Workforce Action Plan 2008-09, Resource Industry Suppliers Association, 2008
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
Importance to the Provincial Economy
Forestry has been a cornerstone of the provincial economy since the settlers used local trees to build shelters.
Te forest products industry is one of the four pillars of the Alberta economy, along with oil and gas,
agriculture and tourism. Tis industry generates approximately $8 billion in revenue and is the province’s
third largest manufacturing sector.
4
With shipments in the range of $5.1 billion in 2006, forestry is a primary industry in 50 Alberta communities
with 12 Alberta communities considered forest-dependent.
5
As such, forestry plays a vital role in rural Alberta’s
contribution to the provincial economy. It enables Albertans to build their futures in rural communities,
which is a key focus of Alberta’s Rural Development Strategy.
6
In 2004, the sector contributed $17.66 Real
Gross Domestic Product (GDP) per hour worked or $42,836 Real GDP per worker.
7
In 2006, the sector
contributed $11.2 billion to the province’s GDP through direct and indirect jobs.
8
Forestry features prominently in the provincial landscape, covering nearly 60 per cent of the provincial land
mass.
9
Alberta’s primary forest industry manages and contracts the harvest of approximately 24.5 million cubic
meters of provincial forest lands.
10
To a lesser degree, primary and secondary forest products are manufactured
from forestlands derived from First Nation lands, Métis settlements, municipal lands, public settlement lands
and private lands.
Forested lands are a renewable natural resource that are managed to provide an abundance of quality products
on a sustainable basis. Less than one per cent of forested lands available for harvest are harvested in any one
year. Te products from this harvest ?nd their way to markets in the United States, Europe and the Asia-
Paci?c region.
Beyond valuable commodities, the forest sector provides an essential service to the province and its people in
preserving and sustaining Alberta’s forests. As part of industry’s commitment to environmentally responsible
forest management, four trees are regenerated for every one harvested. Each year, 82 million spruce, pine and
?r seedlings are planted. Under Forest Management Agreements, forest companies are granted the rights to
grow, harvest and remove timber in a certain area over a 20-year period under set quotas and with options
for renewal. In return, the company takes on greater responsibility and accountability for forest management
planning. Tis is consistent with the Alberta government’s commitment to sustainable resource development.
4
4
Growing Alberta Fact Sheet, Alberta Forest Products Association, April 2005
5
Alberta Communities that Rely on the Forest Industry, Alberta Forest Products Association, KPMG and Canadian Forest Service, 1999
6
A Place to Grow – Alberta’s Rural Development Strategy, Alberta Agriculture, Food and Rural Development, February 2005
7
Forestry and Logging with Support Activities, Alberta Human Resources and Employment, revised 2006
8
Forest Industry Performance and Outlook, Presentation to the Economics Society of Northern Alberta, by Dan Wilkinson, Alberta
Sustainable Resource Development, December 7, 2007
9
Economic Impact of the Alberta Forest Industry, Alberta Forest Products Association and Alberta Sustainable Resource Development,
July 2005
10
Forest Industry Performance and Outlook, Presentation to the Economics Society of Northern Alberta by Dan Wilkinson, Alberta
Sustainable Resource Development, December 7, 2007
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
Employment
Using the industry de?nition that includes all ?ve sub-sectors, the forest industry employs almost 54,000
Albertans with an additional 15,000 individuals in supplier and service provider jobs indirectly related to
the forest product industry.
11
In contrast, Statistics Canada uses the American Industry Classi?cation system
which refers only to the primary and harvest/reforestation sub-sectors in de?ning the forest industry. Tis
represents approximately 0.2 per cent of working Albertans – equivalent to 4,100 people in 2007. However,
this categorization re?ects a small sub-set of the forest industry employment, and excludes signi?cant forest
employment in mills, government and emerging technology areas.
Te primary and harvest/reforestation sectors of the industry have occupations with varying educational and
skill requirements. Foresters, for example, require a four-year bachelor’s degree; technicians and technologists
must graduate from a one- to two-year certi?cate program while logging/forest equipment operators have less
formal educational requirements.
Tere is also a broad span of occupations and skilled trades in the industry where workers are employed as
labourers, heavy equipment operators, truck drivers, sawmill machine operators, pulpmill operators, shipper/
receivers, electricians, millwrights and power engineers, to name a few. Tese workers are employed in more
than 550 wood manufacturing companies located in 95 communities throughout Alberta.
12
Te majority of
companies are small independent operations, often family-run, located in northern, rural and often remote
parts of the province.
Demographic information is not available for the forest industry as a whole, so the following data is based
on the Statistics Canada primary and harvest/reforestation sub-sector de?nition (Forestry and Logging with
Support Activities) unless otherwise stated.
A large majority of workers in the industry are male (78 per cent) – considerably higher than the provincial
average of 55 per cent.
13
Eighty-two per cent of the workforce falls within the major working age category of
25 to 54 years, which is again considerably higher than the provincial average of 55 per cent. Te average age
of a logging contractor in Alberta, for example, is 53.
14
Concern exists that fewer young workers entering the
forest industry will mean limited opportunities for older workers to transfer their skills and knowledge to the
next generation of workers.
5
11
Growing Alberta Fact Sheet, Alberta Forest Products Association, April 2005
12
Alberta Forest Products Value Added Manufacturing Industry Benchmark Study, PricewaterhouseCoopers, December 2003
13
Labour Force Survey Historical Review, Statistics Canada, 2007
14
FISLA Membership Survey, The Forest Industry Suppliers and Logging Association, 2006
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
In 2005, labourers in forestry received an average hourly starting wage of $18.27, with an overall average
salary of $41,422. Supervisors in the industry started at an annual income in the range of $64,000, which
equates to an hourly rate of $26.12 for comparison across economic sectors.
15
While these wages are higher
than the average across all Alberta industries, they are lower than in the oil and gas sector, the industry’s chief
competitor for workers, especially in more isolated parts of the province.
Alberta’s mills are relatively modern and e?cient, with nearly all mills having been built or signi?cantly
upgraded since 1990. Roughly 90 per cent of total lumber output is produced by 19 mills.
16
In response
to competitive pressures, ?rms continue to streamline operations and some mills are being closed. Tis
consolidation in the industry impacts mill workers who are being deployed to other mills and contractors/
woodland jobs. Instability and insecurity of employment in these industry sub-sectors are expected until the
sector emerges from this period of consolidation and rationalization.
OUTLOOK
Alberta’s forest industry will continue to bene?t from expanding global markets. However, as the industry
is export-focused and based on a commodity market, it faces certain challenges in the wake of declining
commodity prices, such as the rising Canadian dollar, rising costs for labour, transportation and energy,
and increasing competition from o?shore markets. Currently, the industry is described as being in crisis
with several recent mill closures and commodity prices being lower than production costs. Also looming is
the mountain pine beetle infestation, which is described as a crisis of unprecedented proportions in the forest
industry. While Alberta’s forest industry has responded with amended harvest plans, increased planning
and manufacturing, this di?cult situation will be exacerbated with a glut of excess beetle-threatened wood.
Te industry is not predicted to grow in the near term, with the annual employment growth outlook for
2006-2011 set at -0.4 per cent.
17
Not surprisingly, Alberta’s Occupational Demand and Supply Outlook
forecasts that logging machinery operators and forest workers will be displaced for the 2007-2012 period.
18
When British Columbia can no longer salvage mountain pine beetle-killed wood, the amount of harvest in
British Columbia will drop, followed by another predicted drop when the Annual Allowable Cut is recalculated
for post mountain pine beetle wood ?ows. Te reduction in North American wood supply is likely to happen
just as the United States housing inventory clears up and the risk-averse mortgage industry starts to heal. It is
likely that within three years markets will be strong to very strong for solid wood and panel products.
6
15
2005 Alberta Wage and Salary Survey, Alberta Human Resources and Employment, 2006
16
Alberta Sustainable Resource Development and PricewaterhouseCoopers, 2005
17
Alberta Modified Canadian Occupational Projection System Outlook, 2006-2011, Alberta Employment and Immigration, 2007
18
Alberta Occupational Demand Outlook 2007, Alberta Employment and Immigration, 2008
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
Despite the low employment growth rate, there are speci?c skill shortages within the industry – chie?y truck
drivers, skilled trades, power engineers and, as the baby boomers start to retire, supervisors. Skills shortages are
also predicted in di?erent regions of the province where forestry competes with a thriving energy sector for a
limited local labour supply.
Growth opportunities within the industry’s labour force will likely be guided by growth opportunities for the
industry. Emerging technology in areas of information systems, harvesting, geographic information systems
(GIS) and computer modelling will mean more work for people with these areas of expertise. Research in bio-
products (including biomass technology, biopharmaceuticals and bio-fuels) and partnerships with sectors in
agriculture, chemicals and energy may yield promising new products and processes for the forest sector and
new jobs in operations, research and development. Te forest industry may be challenged to ?ll these high-
skilled jobs, since the level of workforce educational attainment and skill requirements will be signi?cantly
increased. Historically, innovation and capital investment have been the major drivers of productivity growth
in the forest industry. As the economy shifts towards being knowledge-based, human capital will increasingly
be a source of competitive advantage for the forest industry.
Te challenge will also be to develop educational programs for these emerging occupations. Due to perceived
uncertainty of occupational needs, post-secondary institutions have reported declining enrolments in forestry
programs. Terefore, it will be important for the forest industry to work with post-secondary institutions to
develop new programs for these emerging occupations, based on the limited information regarding future needs.
CHALLENGES AND ISSUES
Alberta’s forest industry is facing a number of challenges having direct or indirect implications for the labour
force, including:
• Shortage of skilled labourers and tradespeople. Alberta’s forest industry ?nds itself competing directly with
the oil and gas industry in many regions of the province for semi-skilled and skilled labourers and tradespeople
for jobs that range from entry-level labourers to highly-skilled machine operators and forest professionals.
Tis challenge will only increase with further development of the oil sands and heavy oil industry. Without
the pro?t margins to be able to compete with going rates in the energy industry, companies are seeing
increasing levels of turnover and many have to run shorthanded. Tis in turn results in increased overtime
and costs. Current production slowdowns and closures are creating an environment where skilled forest
workers are seeking other opportunities and threatening the ability of forest products mills to re-start.
• Shortage of available a?ordable housing. Te shortage of housing in several Alberta communities contributes
to the challenge of recruiting and retaining workers. In these communities, wages need to be higher in
order to meet housing costs and other basic living needs.
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A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
• Rising costs. In?ationary pressures due to the booming economy are not just limited to labour costs.
Companies in the forest industry are facing rising costs for fuel, transportation, electricity and energy.
Te 2006 settlement of the softwood lumber dispute, while providing more certainty regarding access
to the United States market, has introduced more costs for the industry in the form of an export tax for
shipments when markets are poor. Te export tax is set on a sliding scale ranging from zero to 22 per cent
depending on factors such as the level of Alberta exports and pro?tability.
19
Tese factors have a direct
impact on the bottom line, limiting a company’s ability to pay a competitive wage and remain pro?table.
• Price pressures. A sustained downturn in the North American housing market and a global surplus of
softwood lumber are exerting downward pressure on what forest companies can charge for their products.
At the same time, the Canadian dollar has hit a 35-year high. In an industry where more than 50 per cent
of its lumber shipments go to export markets, the rise in the Canadian dollar means Alberta wood products
have become more expensive and are therefore less competitive in a global market. Te percentage of pulp
and paper exports are signi?cantly higher and therefore more exposed to the currency risk. Tis increases
the likelihood of mill closures, limiting employment prospects and job security in the industry and making
it a real challenge to attract and retain workers.
• Increased global competition. Te global marketplace is both a good-news and a bad-news story for the
forest industry. Te good news focuses on expanding markets for forest products, while the bad news is
increased competition from o?shore markets. Tis is especially true in the southern hemisphere where
companies have signi?cant advantages such as short growing cycles and low wage costs. A 2006 survey
by PricewaterhouseCoopers rated Canada’s return on capital investment as the lowest among the world’s
forest industries, only a two per cent return on capital employed (ROCE). Tis is less than half of Canada’s
ROCE for 2005 and far behind the global leader (Latin America) at 9.3 per cent.
20
Te implication for
the labour force is the need to ramp up productivity; embrace new technologies and process e?ciencies in
order to remain competitive. Tis in turn raises the bar for skill requirements and training.
• Lower skill and educational levels. In comparison to other industries, the forest sector has a relatively
larger proportion of low-skilled jobs and workers with low levels of education. In 2001, 60 per cent of
workers in the national forest sector listed high school as their highest level of educational attainment,
compared to an average of 47 per cent across all industries.
21
In forestry, as in many sectors, the number
of low-skilled jobs is predicted to decrease while the demand for workers with post-secondary education,
skilled trades, computer skills or sales and marketing knowledge will increase. If this trend continues,
a labour market imbalance may result.
8
19
Softwood Lumber Agreement between the Government of Canada and the Government of the United States of America – 2006,
Foreign Affairs and International Trade Canada,http://www.international.gc.ca/eicb/softwood/SLA-main-en.asp#legal, 2006
20
Growth* Global Forest, Paper and Packaging Industry Survey, 2007 Edition – Survey of 2006 Results, PricewaterhouseCoopers, 2007
21
Skill Shortages in Canada’s Forest Sector, Farah Huq, Industry and Trade Division, Policy, Economics and Industry Branch,
Canadian Forest Service, Natural Resources Canada, January 2007
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
• Declining enrolments in forestry programs. Enrolments in Canadian forestry schools and colleges have
declined dramatically in recent years despite strong demand for graduates of these programs. Tis trend has
been linked to negative and unfounded perceptions of the industry as a low-technology sector with limited
career opportunities.
22
Te decline or closure of these programs threatens the human resource capacity of
the forest industry.
• Increased consolidation and rationalization. In a global marketplace many of the small and medium-
sized operations are increasingly vulnerable and lack the economies of scale to e?ectively compete with
“mega-mills” more common in British Columbia and the United States. Tere is evidence that an increasing
number of small independent operators, who play an important role in creating employment in smaller
Alberta communities, are losing the battle. Between 2002 and January 2006, ?ve lumber mills closed in
Alberta resulting in the loss of 450 jobs.
23
In 2007 and 2008, several Alberta forest operations announced
curtailments, production slowdowns and postponements of new facility construction and/or plant closures.
Consolidation of smaller contractors into single, larger operations is a concern especially for logging/?eld
service supply workers who may ?nd themselves displaced as a result. Tese workers may need assistance
and retraining to adapt to working in bigger companies.
• Increasing urbanization. More and more young people are leaving rural communities to live in urban
centres, often seeking more stable and secure employment. Many who may have initially gone to take post-
secondary education opt to stay in those centres following graduation. Te result is that rural communities,
long a source of labour for the forest industry, are being drained of their young workforce.
• Aging workforce. Like many other sectors, the forest sector is starting to see the e?ects of an aging
workforce, with 41 per cent of the Canadian forest sector workforce over the age of 45.
24
In the next
decade, many forest-speci?c occupations will experience signi?cantly higher than average retirement
rates. As older workers retire, their years of knowledge and expertise go with them, and the industry will
face a shortage of senior personnel and supervisors. Succession management and assisting high potential
employees to take on these positions of responsibility will be important.
• Seasonal work. Te forest industry has a seasonal cyclical employment pattern. Te need for workers
in the harvest sub-sector increases greatly between the months of October and November. Employment
continues strong until spring break-up when reforestation e?orts take over and continue to the end of
summer. Attracting and retaining good workers during these seasonal peaks and valleys is a challenge for
the industry. Competition for seasonal workers will only increase with planned development in the oil
sands and the heavy oil industry.
9
22
The Crisis in Post-Secondary Enrolments in Forestry Programs: A Call to Action for Canada’s Future Forestry Professional/Technical
Workforce., Canada’s Post-Secondary Forestry Schools and the Canadian Institute of Forestry; published in The Forestry
Chronicle - January/February 2006
23
Axe hangs over the forest industry, The Edmonton Journal, January 28, 2006
24
Skill Shortages in Canada’s Forest Sector, Farah Huq, Industry and Trade Division, Policy, Economics and Industry Branch,
Canadian Forest Service, Natural Resources Canada, January 2007
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
• Hard-to-recruit locations. Much of the work in the forest industry is found in northern and remote
communities of the province, where there is a limited labour force. Recruiting workers to these locations
can be di?cult because of limited urban amenities, limited options for spousal employment and/or a high
cost of living.
• Challenging working conditions. Te nature of work in this industry is often physically demanding and
seasonal with shift work and long hours, especially in cases where companies are short-sta?ed. Attracting and
retaining workers in these conditions, especially younger workers who place a high value on work-life balance,
can be challenging.
• Lack of awareness/understanding of the forest industry. In an age of increasing concern for the
environment, there are misconceptions and a lack of understanding about the forest industry. Tis may
deter young people and others entering the job market from considering a career in this industry. For
example, an urban perception is that forestry is a sunset industry, “low tech” and low paying. In reality,
the forest industry is a renewable one, environmentally conscious and heavily invested in sustainable
and e?ective forest management practices. Te industry is also increasingly high tech as more complex
equipment and information systems are implemented to remain competitive in global markets.
• Concentration of Aboriginal workers in lower-skill occupations. While the forest sector hires a
proportionately higher number of Aboriginal workers than other industries, the majority of these workers
are employed in low-skilled, part-time and seasonal positions. Without further education and skills
development, these workers may be displaced if the trend toward high-skill jobs continues.
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A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
INDUSTRY PRIORITY ACTIONS
Industry and labour groups are best positioned to implement priority actions to address the labour force issues
and challenges experienced by the forest industry. Industry over the next ten years will take lead responsibility
for implementing the strategy’s priority actions. Government will enable and support contributing
organizations with the implementation wherever appropriate.
A number of organizations within the forest industry have indicated their willingness to contribute to
implementing one or more priority actions with supporting projects and initiatives. Tese contributing
organizations working with their industry stakeholders will determine the order of implementing the individual
actions, based on importance, over the next ten years. Contributing organizations will periodically review and
revise this workforce strategy to ensure strategy actions are aligned and are relevant with changes occurring in
the forest sector and external environment.
Te contributing organizations which will undertake speci?c priority actions include:
• Alberta Forest Products Association (AFPA)
• College of Alberta Professional Foresters (CAPF)
• College of Alberta Professional Forest Technologists (CAPFT)
• Resource Industry Suppliers Association (RISA)
• Weyerhaeuser
• Woodland Operations Learning Foundation (WOLF)
INFORM
Information sharing will play a vital role in addressing labour force pressures in Alberta’s forest industry. Te
Inform theme focuses on increased access to information to support informed decision-making on the part of
employers, workers, youth entering the workforce and individuals considering employment in this industry.
________________________________________________________________________________
Support communication initiatives (e.g. www.yourforest.org forestry information website) to
improve awareness and understanding of the forest industry in terms of challenges, contributions to
society, career opportunities, achievements, competitive advantages, etc.
AFPA, RISA, Weyerhaeuser
_________________________________________________________________________________
Support a human resource recruitment campaign communicating the strengths of the forest
industry (e.g. high tech, green, community-based, sustainable industry) and creating a brand that
di?erentiates the industry from the energy sector. Tis will be designed as a recruitment tool/
package for employers in the industry.
AFPA, Weyerhaeuser
_________________________________________________________________________________
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1.1
1.2
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
_________________________________________________________________________________
Explore initiatives to encourage students to pursue employment opportunities within the industry.
Tis may include the following initiatives:
• Assess high school and post-secondary students’ interests and opinions on careers in the forest industry
to derive insight into career attraction approaches for the industry, utilizing tools such as surveys.
• Encourage participation of high school students in the forest industry by developing and
implementing targeted marketing campaigns and promoting existing educational tools aimed at
high school students, their parents, teachers and school counsellors. Examples of organizations
involved in these initiatives include Inside Education, Canadian Forest Services and Boreal
Forest Research Institute.
• Promote/encourage students and employers to participate in work experience programs and
registered apprenticeship programs in the forest industry to gain exposure and become familiar
with the nature of work in the industry and ultimately consider careers in the forest industry.
Examples include high school vocational training, post-secondary co-op placements, internships,
and summer junior forest warden and ranger programs.
CAPF, CAPFT, RISA, Weyerhaeuser
_________________________________________________________________________________
Promote and share industry best practices about worker attraction, development and retention
among ?rms within Alberta’s forest industry. Tis may include:
• Development of a one-stop inventory/repository of (links to) industry information.
• Forums to identify, communicate and leverage best practices and lessons learned in other
jurisdictions supporting workforce development.
AFPA, RISA, WOLF
_________________________________________________________________________________
Continue to explore, investigate and promote workforce attraction strategies such as recruitment/
retention incentives, student bursaries and student job guarantees to forest industry employers.
RISA, Weyerhaeuser
_________________________________________________________________________________
Advocate with government to expand resources and create a resource database available to forest
industry employers to support activities related to the attraction and retention of immigrants,
temporary foreign workers and inter-provincial migrants.
AFPA
_________________________________________________________________________________
Support recruitment strategies to promote employment targeted to speci?c employee groups and
strategies addressing the seasonal nature of the industry. Potential groups to target for seasonal work
are members of the farming community and multi-sector contractors.
AFPA
_________________________________________________________________________________
12
1.3
1.4
1.5
1.6
1.7
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
13
ATTRACT
Tis theme relates to attracting workers from within and outside Alberta and Canada to meet some of the
demand for labour in Alberta’s forest industry.
_________________________________________________________________________________
Advocate for standardization of trade certi?cates and improved processes to support credential and
competency recognition for out-of-province and out-of-country trade workers (e.g. millwrights and
welders) seeking employment in the forest industry.
AFPA, Weyerhaeuser
_________________________________________________________________________________
Support the promotion of Alberta as a ‘destination of choice’ for inter-provincial migrants for the
development of Alberta’s forest industry.
AFPA, RISA
_________________________________________________________________________________
Advocate for expansion of the Alberta Immigrant Nominee Program (formerly called the Provincial
Nominee Program) to increase the number of nominees in both the skilled and unskilled categories
(e.g. National Occupation Classi?cation Levels C and D and occupations that require at most a
high-school diploma or job-speci?c training) and facilitate conversion of existing temporary foreign
workers to landed immigrant status.
AFPA, RISA
_________________________________________________________________________________
Advocate for the streamlining of processes and changes to the Temporary Foreign Worker program
to better meet the needs of the forest industry (e.g. expansion of the two-year limit and improved
processing time).
AFPA, RISA
_________________________________________________________________________________
Advocate to government for a foreign credential assessment system to evaluate foreign professional
training and experience.
AFPA, CAPF, CAPFT, Weyerhaeuser
_________________________________________________________________________________
Contribute to changes in labour mobility policies and act on relevant committees (provincial,
national and international) to support inter-provincial and out-of-country migration
of skilled workers to work in the forest industry.
AFPA, CAPF, CAPFT, RISA, Weyerhaeuser
_________________________________________________________________________________
Support the attraction of potential workers from other provinces by speci?cally targeting out-
of-province friends/family of existing employees and parallel communities going through a mill
slowdown or closure.
AFPA
_________________________________________________________________________________
2.1
2.2
2.3
2.4
2.5
2.6
2.7
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
14
DEVELOP A HIGH PERFORMANCE WORKFORCE
Tis theme has two components. Te ?rst focuses on building the capacity of Alberta’s forest workforce to
support a transition to a more value-added and knowledge-based economy.
_________________________________________________________________________________
Encourage more vocational training opportunities in high schools and post-secondary/technical
institutions to promote and facilitate the development of skills for the existing and future forest
workforce.
AFPA, Weyerhaeuser
_________________________________________________________________________________
Support initiatives to upgrade the skills and knowledge of people employed in Alberta’s forest industry.
AFPA, CAPF, CAPFT, RISA, WOLF
_________________________________________________________________________________
Collaborate with post-secondary institutions to consider revisions to the forestry professional
programs to increase its attraction to students and better represent the future of the occupation.
Options might include changing the name or focus of the career from forester to “resource
expert” and revising the curriculum to focus on forest management and environmental issues.
AFPA, CAPF, CAPFT
_________________________________________________________________________________
Develop a Career and Technology Studies curriculum relevant to today’s forest industry.
WOLF
_________________________________________________________________________________
Support initiatives to survey and analyze training or re-training needs within the harvest
reforestation sector to ensure workers’ skills and education meet industry requirements.
AFPA, WOLF
_________________________________________________________________________________
Work with educational institutions to increase access to forest-related training programs in the
regions/ communities where forest employers are located to encourage local youth completing
these programs to stay in these communities. Tis may include distance education (e.g. NAIT’s Forest
Technology program).
AFPA, WOLF
_________________________________________________________________________________
3.1
3.2
3.3
3.4
3.5
3.6
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
15
_________________________________________________________________________________
Develop a strategy to strengthen human resource management practices throughout the forest
industry and strive to be an employer of choice:
• support initiatives that can assist companies to assess the e?ectiveness of their human resource
practices and take necessary steps to address de?ciencies;
• encourage and promote the importance of developing management supervisor skills (e.g. soft
skills needed to improve workforce attraction and retention); and
• promote e?ective practices for integrating mature workers, immigrants, persons with disabilities,
Aboriginals, etc. into workplaces.
AFPA, RISA
_________________________________________________________________________________
Encourage and equip companies to implement e?ective employee development programs aimed
at cross-training and development of transferable skills.
AFPA, RISA
_________________________________________________________________________________
Support regional approaches to addressing needs and goals shared by forest employers within
a speci?c geographic region.
AFPA
_________________________________________________________________________________
3.7
3.8
3.9
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
16
DEVELOP A HIGH PERFORMANCE WORK ENVIRONMENT
Te second component of the Develop theme relates to developing high performance work environments in
Alberta’s forest industry. Examples include improving workplaces and work arrangements, increasing adoption
of capital investment and technology and improving business processes.
_________________________________________________________________________________
Play a greater advocacy role to raise the pro?le and understanding of the forest industry and its
issues to government.
AFPA
_________________________________________________________________________________
Advocate to all levels of government (municipal, provincial and federal) for revision to the business
tax structure and other incentives for capital investment to support the adoption of productivity
enhancing technology in the forest industry (secondary wood products sector).
RISA
_________________________________________________________________________________
Continue to strengthen linkages between industry and research institutions by working with the
Alberta Forest Research Institute (AFRI) to support the identi?cation, development and application
of new technologies and research opportunities relating to Alberta’s forest industry.
AFPA
_________________________________________________________________________________
Promote the adoption of Lean enterprise principles and practices to improve e?ciency and enhance
the work environment.
RISA
_________________________________________________________________________________
3.10
3.11
3.12
3.13
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
17
RETAIN
Tis theme relates to enhancing the attractiveness of working in Alberta’s forest industry so that workers
– including mature workers, immigrants, Aboriginals and those who may experience di?culty maintaining
employment – continue to work in the industry.
_________________________________________________________________________________
Work with government to retain employees in the industry and community through programs
and activities, (e.g. access to short-term training, apprenticeship linkages, work sharing programs
and career and employment transition assistance). Tese actions are prompted by temporary layo?
situations which have resulted from short-term production shut-downs or shift curtailments.
AFPA
_________________________________________________________________________________
Encourage the application of e?ective practices to help employers improve the retention of a more
diverse labour force (e.g. mature workers, Aboriginals, immigrants, women and under-employed
Albertans).
AFPA, Weyerhaeuser
_________________________________________________________________________________
Promote employment in the forest industry to under-represented groups, including immigrants,
Aboriginals, persons with disabilities, semi-retired people, women with children at home and students.
AFPA, Weyerhaeuser
_________________________________________________________________________________
Support strategies to attract, enable and retain Aboriginals to work in the forest industry
(e.g. advanced training, targeted job shadowing, promotion of the First Nations Forestry Program
and the Aboriginal Junior Forest Ranger Program).
AFPA, RISA, Weyerhaeuser
_________________________________________________________________________________
Encourage employers to implement human resource practices encouraging mature workers to
maintain employment (e.g. o?er part-time or ?exible work arrangements, involve mature workers
in mentoring and training, etc.) to ensure retention of technical and corporate knowledge in
Alberta’s forest industry.
AFPA
_________________________________________________________________________________
4.1
4.2
4.3
4.4
4.5
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
MOVING FORWARD
Industry contributors will work with their members to validate the actions found in this strategy. Based on
feedback, they will select the concrete actions with the greatest and most immediate impact. Te Alberta
government will work with the industry contributors in a facilitating and enabling role. Tis includes
identifying situations where it is more e?ective and e?cient to collaborate – within and across sector
industries – on similar projects. Government will facilitate these opportunities, keep abreast of emerging issues
and take further action as required.
In implementing the workforce strategy, the industry contributors will:
• obtain the active involvement of industry members and other stakeholders;
• work with stakeholders (i.e. associations and labour groups) within and across industries;
• eliminate fragmentation and duplication of initiatives within and across industries;
• select the actions and initiatives with the greatest immediate impact;
• identify gaps in the priority actions in order to address both current and evolving needs; and
• ensure sustainability of the strategy over the long term.
Industry will work with government to monitor the success of this strategy over the next ten years. Industry
contributors are asked to report on their progress by sharing achievements and best practices. By working
together, industry and government can continue to build a strong and prosperous Alberta where all industries
will bene?t.
18
978-0-7785-7472-9
doc_680066708.pdf
While there are common labour force pressures across industry sectors in Alberta, some industries are feeling certain pressures more acutely than others. Actions are needed to address the unique labour force issues and challenges of each industry sector. Industry stakeholders are working with the Alberta government to document existing initiatives and develop industry-specific workforce development strategies.
Forest Industry
A Workforce Strategy For Alberta’s
A Workforce Strategy for Alberta’s Forestry Sector
FOREWORD
A Workforce Strategy for Alberta’s Forest Industry was developed by stakeholders from the forest industry with
support from the Alberta government. Representatives from this industry participated in a series of discussions
that occurred between 2007 and early 2008 and the feedback from those meetings formed this strategy. Te
Alberta Forest Products Association and the Resource Industry Suppliers Association played key leadership
roles in bringing stakeholders together to participate in the discussions. Industry associations have identi?ed
actions they support and to which they will contribute with related projects/initiatives. Te following
organizations contributed to the development of this workforce strategy:
• Alberta Forest Products Association
• Alberta Paci?c Forest Industries Inc.
• Alberta Spruce Industries Ltd.
• Canadian Forest Products Ltd. (CANFOR)
• College of Alberta Professional Foresters
• College of Alberta Professional Forest Technologists
• Department of Renewable Resources, University of Alberta
• Manning Diversi?ed Forest Products Ltd.
• Millar Western Forest Products Ltd.
• Palliser Lumber Sales Ltd.
• Resource Industry Suppliers Association
(formerly Forest Industry Suppliers and Logging Association)
• United Steelworkers, Local 1-207
• Vanderwell Contractors Ltd.
• West Fraser Mills Ltd.
• Weyerhaeuser
• Woodland Operations Learning Foundation
1
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
BACKGROUND
Alberta is a leader in economic growth in Canada and the world. However, Alberta is faced with labour and
skill shortages which, if not addressed, will limit our province’s continued economic growth and prosperity.
Building and Educating Tomorrow’s Workforce (BETW) is Alberta’s 10-year labour force development strategy.
Tis strategy identi?es 17 government-led priority actions to ensure Alberta has more workers, better-trained
people and innovative workplaces. Tese government actions address labour force issues across several industry
sectors. Lead government ministries are identi?ed for each priority action.
Meeting Alberta’s labour force challenges over the next decade requires the participation and involvement of
all stakeholders. Strong collaboration and partnerships between government and stakeholder groups are key
to the successful implementation of this strategy. Stakeholders include industry, labour groups, professional
organizations, volunteer and community agencies, education and training providers, Aboriginal groups and
where appropriate, other orders of government. Each stakeholder has an important role to play. Industry
sectors will need their own actions and initiatives to address their unique economic pressures and challenges.
INDUSTRY WORKFORCE STRATEGIES
While there are common labour force pressures across industry sectors in Alberta, some industries are feeling
certain pressures more acutely than others. Actions are needed to address the unique labour force issues and
challenges of each industry sector.
Industry stakeholders are working with the Alberta government to document existing initiatives and develop
industry-speci?c workforce development strategies. Tese workforce strategies provide industry associations
and individual employers with a framework of sector-led actions to build the labour force needed to support
continued growth over the next 10 years. Te forest industry is currently experiencing an economic crisis
precipitated by the crash of the United States’ housing market and a subsequent crash in lumber prices, the
high Canadian dollar, the Softwood Lumber Tax, rising labour and energy costs in the Alberta boom and,
impacts of the mountain pine beetle infestation. Given the cyclical nature of the markets and the current
industry restructuring, conditions will eventually turn favourable. As circumstances and priorities shift,
the forest industry is expected to revisit this workforce strategy to ensure its relevancy.
Industry is leading the implementation of workforce strategy actions. High levels of co-operation and
collaboration within Alberta’s forest sector are required for successful implementation of the workforce strategy.
Creative solutions and a synergistic approach emerge when stakeholders come together in partnership to
implement initiatives. Government assists in bringing stakeholders together, including those from other
sectors, to work on common actions and initiatives.
Albertans are the long-term bene?ciaries of this important collaboration to build Alberta’s workforce during
the next decade.
2
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
PROFILE OF ALBERTA’S FOREST INDUSTRY
Industry De?nition
Te forest industry in Alberta consists of approximately 150 companies providing a variety of goods and
services to primary forest and wood product manufacturers.
1
In addition, Alberta’s forest industry includes
over 2,300 logging and log hauling contractors and forest supply and service providers.
2
Tere are ?ve general
sectors within Alberta’s forest industry:
• Primary sector – Companies that take a raw wood resource and produce a product through a primary
breakdown manufacturing process. Product examples include logs, cants, pulp, newsprint, lumber,
oriented strand board, plywood and ?breboard.
• Secondary/re-manufacturing sector – Companies that re-manufacture primary wood products into
secondary products. Product examples include door and window components, boards, decking, boxes,
crates, pallets, trusses, pressure treated lumbers and other engineered building components (I-beams,
?nger-jointed lumber, I-joists, archribs and laminated lumbers).
• Tertiary sector – Companies that manufacture architectural millwork and ?ne building products, which
entail wood and often other composite materials. Product examples include moulding, furniture, cabinetry
and specialty products.
• Harvest/reforestation sector – Companies that harvest (and perform log hauling) and reforest tracts of
forest or timberlands contracted and sustainably managed by the government or forest tenure holders,
guided by Forest Management Agreements and quotas.
• Supply and service sector – Companies that provide goods and services to all forest industry sectors.
Examples include welding, fabrication, geomatics, engineering, software, forestry consulting, heavy equipment,
processing equipment, chemicals, research and development, electrical, instrumentation, gears, bearings,
blades, generators and piping.
A Workforce Strategy for Alberta’s Forest Industry will address the primary, secondary and harvest/reforestation
sectors. Workforce challenges within the tertiary forest industry sector have already been identi?ed under A
Workforce Strategy for Alberta’s Manufacturing Industry. Workforce challenges with respect to the forest supply
and service sectors have been identi?ed under other workforce strategies as well as the Resource Industry
Suppliers Association Workforce Action Plan.
3
3
1
Canadian Forestry Business Directory, The Forest Industry Suppliers and Logging Association, 2007
2
Based on WCB 3100 code and RISA statistics
3
RISA Workforce Action Plan 2008-09, Resource Industry Suppliers Association, 2008
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
Importance to the Provincial Economy
Forestry has been a cornerstone of the provincial economy since the settlers used local trees to build shelters.
Te forest products industry is one of the four pillars of the Alberta economy, along with oil and gas,
agriculture and tourism. Tis industry generates approximately $8 billion in revenue and is the province’s
third largest manufacturing sector.
4
With shipments in the range of $5.1 billion in 2006, forestry is a primary industry in 50 Alberta communities
with 12 Alberta communities considered forest-dependent.
5
As such, forestry plays a vital role in rural Alberta’s
contribution to the provincial economy. It enables Albertans to build their futures in rural communities,
which is a key focus of Alberta’s Rural Development Strategy.
6
In 2004, the sector contributed $17.66 Real
Gross Domestic Product (GDP) per hour worked or $42,836 Real GDP per worker.
7
In 2006, the sector
contributed $11.2 billion to the province’s GDP through direct and indirect jobs.
8
Forestry features prominently in the provincial landscape, covering nearly 60 per cent of the provincial land
mass.
9
Alberta’s primary forest industry manages and contracts the harvest of approximately 24.5 million cubic
meters of provincial forest lands.
10
To a lesser degree, primary and secondary forest products are manufactured
from forestlands derived from First Nation lands, Métis settlements, municipal lands, public settlement lands
and private lands.
Forested lands are a renewable natural resource that are managed to provide an abundance of quality products
on a sustainable basis. Less than one per cent of forested lands available for harvest are harvested in any one
year. Te products from this harvest ?nd their way to markets in the United States, Europe and the Asia-
Paci?c region.
Beyond valuable commodities, the forest sector provides an essential service to the province and its people in
preserving and sustaining Alberta’s forests. As part of industry’s commitment to environmentally responsible
forest management, four trees are regenerated for every one harvested. Each year, 82 million spruce, pine and
?r seedlings are planted. Under Forest Management Agreements, forest companies are granted the rights to
grow, harvest and remove timber in a certain area over a 20-year period under set quotas and with options
for renewal. In return, the company takes on greater responsibility and accountability for forest management
planning. Tis is consistent with the Alberta government’s commitment to sustainable resource development.
4
4
Growing Alberta Fact Sheet, Alberta Forest Products Association, April 2005
5
Alberta Communities that Rely on the Forest Industry, Alberta Forest Products Association, KPMG and Canadian Forest Service, 1999
6
A Place to Grow – Alberta’s Rural Development Strategy, Alberta Agriculture, Food and Rural Development, February 2005
7
Forestry and Logging with Support Activities, Alberta Human Resources and Employment, revised 2006
8
Forest Industry Performance and Outlook, Presentation to the Economics Society of Northern Alberta, by Dan Wilkinson, Alberta
Sustainable Resource Development, December 7, 2007
9
Economic Impact of the Alberta Forest Industry, Alberta Forest Products Association and Alberta Sustainable Resource Development,
July 2005
10
Forest Industry Performance and Outlook, Presentation to the Economics Society of Northern Alberta by Dan Wilkinson, Alberta
Sustainable Resource Development, December 7, 2007
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
Employment
Using the industry de?nition that includes all ?ve sub-sectors, the forest industry employs almost 54,000
Albertans with an additional 15,000 individuals in supplier and service provider jobs indirectly related to
the forest product industry.
11
In contrast, Statistics Canada uses the American Industry Classi?cation system
which refers only to the primary and harvest/reforestation sub-sectors in de?ning the forest industry. Tis
represents approximately 0.2 per cent of working Albertans – equivalent to 4,100 people in 2007. However,
this categorization re?ects a small sub-set of the forest industry employment, and excludes signi?cant forest
employment in mills, government and emerging technology areas.
Te primary and harvest/reforestation sectors of the industry have occupations with varying educational and
skill requirements. Foresters, for example, require a four-year bachelor’s degree; technicians and technologists
must graduate from a one- to two-year certi?cate program while logging/forest equipment operators have less
formal educational requirements.
Tere is also a broad span of occupations and skilled trades in the industry where workers are employed as
labourers, heavy equipment operators, truck drivers, sawmill machine operators, pulpmill operators, shipper/
receivers, electricians, millwrights and power engineers, to name a few. Tese workers are employed in more
than 550 wood manufacturing companies located in 95 communities throughout Alberta.
12
Te majority of
companies are small independent operations, often family-run, located in northern, rural and often remote
parts of the province.
Demographic information is not available for the forest industry as a whole, so the following data is based
on the Statistics Canada primary and harvest/reforestation sub-sector de?nition (Forestry and Logging with
Support Activities) unless otherwise stated.
A large majority of workers in the industry are male (78 per cent) – considerably higher than the provincial
average of 55 per cent.
13
Eighty-two per cent of the workforce falls within the major working age category of
25 to 54 years, which is again considerably higher than the provincial average of 55 per cent. Te average age
of a logging contractor in Alberta, for example, is 53.
14
Concern exists that fewer young workers entering the
forest industry will mean limited opportunities for older workers to transfer their skills and knowledge to the
next generation of workers.
5
11
Growing Alberta Fact Sheet, Alberta Forest Products Association, April 2005
12
Alberta Forest Products Value Added Manufacturing Industry Benchmark Study, PricewaterhouseCoopers, December 2003
13
Labour Force Survey Historical Review, Statistics Canada, 2007
14
FISLA Membership Survey, The Forest Industry Suppliers and Logging Association, 2006
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
In 2005, labourers in forestry received an average hourly starting wage of $18.27, with an overall average
salary of $41,422. Supervisors in the industry started at an annual income in the range of $64,000, which
equates to an hourly rate of $26.12 for comparison across economic sectors.
15
While these wages are higher
than the average across all Alberta industries, they are lower than in the oil and gas sector, the industry’s chief
competitor for workers, especially in more isolated parts of the province.
Alberta’s mills are relatively modern and e?cient, with nearly all mills having been built or signi?cantly
upgraded since 1990. Roughly 90 per cent of total lumber output is produced by 19 mills.
16
In response
to competitive pressures, ?rms continue to streamline operations and some mills are being closed. Tis
consolidation in the industry impacts mill workers who are being deployed to other mills and contractors/
woodland jobs. Instability and insecurity of employment in these industry sub-sectors are expected until the
sector emerges from this period of consolidation and rationalization.
OUTLOOK
Alberta’s forest industry will continue to bene?t from expanding global markets. However, as the industry
is export-focused and based on a commodity market, it faces certain challenges in the wake of declining
commodity prices, such as the rising Canadian dollar, rising costs for labour, transportation and energy,
and increasing competition from o?shore markets. Currently, the industry is described as being in crisis
with several recent mill closures and commodity prices being lower than production costs. Also looming is
the mountain pine beetle infestation, which is described as a crisis of unprecedented proportions in the forest
industry. While Alberta’s forest industry has responded with amended harvest plans, increased planning
and manufacturing, this di?cult situation will be exacerbated with a glut of excess beetle-threatened wood.
Te industry is not predicted to grow in the near term, with the annual employment growth outlook for
2006-2011 set at -0.4 per cent.
17
Not surprisingly, Alberta’s Occupational Demand and Supply Outlook
forecasts that logging machinery operators and forest workers will be displaced for the 2007-2012 period.
18
When British Columbia can no longer salvage mountain pine beetle-killed wood, the amount of harvest in
British Columbia will drop, followed by another predicted drop when the Annual Allowable Cut is recalculated
for post mountain pine beetle wood ?ows. Te reduction in North American wood supply is likely to happen
just as the United States housing inventory clears up and the risk-averse mortgage industry starts to heal. It is
likely that within three years markets will be strong to very strong for solid wood and panel products.
6
15
2005 Alberta Wage and Salary Survey, Alberta Human Resources and Employment, 2006
16
Alberta Sustainable Resource Development and PricewaterhouseCoopers, 2005
17
Alberta Modified Canadian Occupational Projection System Outlook, 2006-2011, Alberta Employment and Immigration, 2007
18
Alberta Occupational Demand Outlook 2007, Alberta Employment and Immigration, 2008
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
Despite the low employment growth rate, there are speci?c skill shortages within the industry – chie?y truck
drivers, skilled trades, power engineers and, as the baby boomers start to retire, supervisors. Skills shortages are
also predicted in di?erent regions of the province where forestry competes with a thriving energy sector for a
limited local labour supply.
Growth opportunities within the industry’s labour force will likely be guided by growth opportunities for the
industry. Emerging technology in areas of information systems, harvesting, geographic information systems
(GIS) and computer modelling will mean more work for people with these areas of expertise. Research in bio-
products (including biomass technology, biopharmaceuticals and bio-fuels) and partnerships with sectors in
agriculture, chemicals and energy may yield promising new products and processes for the forest sector and
new jobs in operations, research and development. Te forest industry may be challenged to ?ll these high-
skilled jobs, since the level of workforce educational attainment and skill requirements will be signi?cantly
increased. Historically, innovation and capital investment have been the major drivers of productivity growth
in the forest industry. As the economy shifts towards being knowledge-based, human capital will increasingly
be a source of competitive advantage for the forest industry.
Te challenge will also be to develop educational programs for these emerging occupations. Due to perceived
uncertainty of occupational needs, post-secondary institutions have reported declining enrolments in forestry
programs. Terefore, it will be important for the forest industry to work with post-secondary institutions to
develop new programs for these emerging occupations, based on the limited information regarding future needs.
CHALLENGES AND ISSUES
Alberta’s forest industry is facing a number of challenges having direct or indirect implications for the labour
force, including:
• Shortage of skilled labourers and tradespeople. Alberta’s forest industry ?nds itself competing directly with
the oil and gas industry in many regions of the province for semi-skilled and skilled labourers and tradespeople
for jobs that range from entry-level labourers to highly-skilled machine operators and forest professionals.
Tis challenge will only increase with further development of the oil sands and heavy oil industry. Without
the pro?t margins to be able to compete with going rates in the energy industry, companies are seeing
increasing levels of turnover and many have to run shorthanded. Tis in turn results in increased overtime
and costs. Current production slowdowns and closures are creating an environment where skilled forest
workers are seeking other opportunities and threatening the ability of forest products mills to re-start.
• Shortage of available a?ordable housing. Te shortage of housing in several Alberta communities contributes
to the challenge of recruiting and retaining workers. In these communities, wages need to be higher in
order to meet housing costs and other basic living needs.
7
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
• Rising costs. In?ationary pressures due to the booming economy are not just limited to labour costs.
Companies in the forest industry are facing rising costs for fuel, transportation, electricity and energy.
Te 2006 settlement of the softwood lumber dispute, while providing more certainty regarding access
to the United States market, has introduced more costs for the industry in the form of an export tax for
shipments when markets are poor. Te export tax is set on a sliding scale ranging from zero to 22 per cent
depending on factors such as the level of Alberta exports and pro?tability.
19
Tese factors have a direct
impact on the bottom line, limiting a company’s ability to pay a competitive wage and remain pro?table.
• Price pressures. A sustained downturn in the North American housing market and a global surplus of
softwood lumber are exerting downward pressure on what forest companies can charge for their products.
At the same time, the Canadian dollar has hit a 35-year high. In an industry where more than 50 per cent
of its lumber shipments go to export markets, the rise in the Canadian dollar means Alberta wood products
have become more expensive and are therefore less competitive in a global market. Te percentage of pulp
and paper exports are signi?cantly higher and therefore more exposed to the currency risk. Tis increases
the likelihood of mill closures, limiting employment prospects and job security in the industry and making
it a real challenge to attract and retain workers.
• Increased global competition. Te global marketplace is both a good-news and a bad-news story for the
forest industry. Te good news focuses on expanding markets for forest products, while the bad news is
increased competition from o?shore markets. Tis is especially true in the southern hemisphere where
companies have signi?cant advantages such as short growing cycles and low wage costs. A 2006 survey
by PricewaterhouseCoopers rated Canada’s return on capital investment as the lowest among the world’s
forest industries, only a two per cent return on capital employed (ROCE). Tis is less than half of Canada’s
ROCE for 2005 and far behind the global leader (Latin America) at 9.3 per cent.
20
Te implication for
the labour force is the need to ramp up productivity; embrace new technologies and process e?ciencies in
order to remain competitive. Tis in turn raises the bar for skill requirements and training.
• Lower skill and educational levels. In comparison to other industries, the forest sector has a relatively
larger proportion of low-skilled jobs and workers with low levels of education. In 2001, 60 per cent of
workers in the national forest sector listed high school as their highest level of educational attainment,
compared to an average of 47 per cent across all industries.
21
In forestry, as in many sectors, the number
of low-skilled jobs is predicted to decrease while the demand for workers with post-secondary education,
skilled trades, computer skills or sales and marketing knowledge will increase. If this trend continues,
a labour market imbalance may result.
8
19
Softwood Lumber Agreement between the Government of Canada and the Government of the United States of America – 2006,
Foreign Affairs and International Trade Canada,http://www.international.gc.ca/eicb/softwood/SLA-main-en.asp#legal, 2006
20
Growth* Global Forest, Paper and Packaging Industry Survey, 2007 Edition – Survey of 2006 Results, PricewaterhouseCoopers, 2007
21
Skill Shortages in Canada’s Forest Sector, Farah Huq, Industry and Trade Division, Policy, Economics and Industry Branch,
Canadian Forest Service, Natural Resources Canada, January 2007
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
• Declining enrolments in forestry programs. Enrolments in Canadian forestry schools and colleges have
declined dramatically in recent years despite strong demand for graduates of these programs. Tis trend has
been linked to negative and unfounded perceptions of the industry as a low-technology sector with limited
career opportunities.
22
Te decline or closure of these programs threatens the human resource capacity of
the forest industry.
• Increased consolidation and rationalization. In a global marketplace many of the small and medium-
sized operations are increasingly vulnerable and lack the economies of scale to e?ectively compete with
“mega-mills” more common in British Columbia and the United States. Tere is evidence that an increasing
number of small independent operators, who play an important role in creating employment in smaller
Alberta communities, are losing the battle. Between 2002 and January 2006, ?ve lumber mills closed in
Alberta resulting in the loss of 450 jobs.
23
In 2007 and 2008, several Alberta forest operations announced
curtailments, production slowdowns and postponements of new facility construction and/or plant closures.
Consolidation of smaller contractors into single, larger operations is a concern especially for logging/?eld
service supply workers who may ?nd themselves displaced as a result. Tese workers may need assistance
and retraining to adapt to working in bigger companies.
• Increasing urbanization. More and more young people are leaving rural communities to live in urban
centres, often seeking more stable and secure employment. Many who may have initially gone to take post-
secondary education opt to stay in those centres following graduation. Te result is that rural communities,
long a source of labour for the forest industry, are being drained of their young workforce.
• Aging workforce. Like many other sectors, the forest sector is starting to see the e?ects of an aging
workforce, with 41 per cent of the Canadian forest sector workforce over the age of 45.
24
In the next
decade, many forest-speci?c occupations will experience signi?cantly higher than average retirement
rates. As older workers retire, their years of knowledge and expertise go with them, and the industry will
face a shortage of senior personnel and supervisors. Succession management and assisting high potential
employees to take on these positions of responsibility will be important.
• Seasonal work. Te forest industry has a seasonal cyclical employment pattern. Te need for workers
in the harvest sub-sector increases greatly between the months of October and November. Employment
continues strong until spring break-up when reforestation e?orts take over and continue to the end of
summer. Attracting and retaining good workers during these seasonal peaks and valleys is a challenge for
the industry. Competition for seasonal workers will only increase with planned development in the oil
sands and the heavy oil industry.
9
22
The Crisis in Post-Secondary Enrolments in Forestry Programs: A Call to Action for Canada’s Future Forestry Professional/Technical
Workforce., Canada’s Post-Secondary Forestry Schools and the Canadian Institute of Forestry; published in The Forestry
Chronicle - January/February 2006
23
Axe hangs over the forest industry, The Edmonton Journal, January 28, 2006
24
Skill Shortages in Canada’s Forest Sector, Farah Huq, Industry and Trade Division, Policy, Economics and Industry Branch,
Canadian Forest Service, Natural Resources Canada, January 2007
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
• Hard-to-recruit locations. Much of the work in the forest industry is found in northern and remote
communities of the province, where there is a limited labour force. Recruiting workers to these locations
can be di?cult because of limited urban amenities, limited options for spousal employment and/or a high
cost of living.
• Challenging working conditions. Te nature of work in this industry is often physically demanding and
seasonal with shift work and long hours, especially in cases where companies are short-sta?ed. Attracting and
retaining workers in these conditions, especially younger workers who place a high value on work-life balance,
can be challenging.
• Lack of awareness/understanding of the forest industry. In an age of increasing concern for the
environment, there are misconceptions and a lack of understanding about the forest industry. Tis may
deter young people and others entering the job market from considering a career in this industry. For
example, an urban perception is that forestry is a sunset industry, “low tech” and low paying. In reality,
the forest industry is a renewable one, environmentally conscious and heavily invested in sustainable
and e?ective forest management practices. Te industry is also increasingly high tech as more complex
equipment and information systems are implemented to remain competitive in global markets.
• Concentration of Aboriginal workers in lower-skill occupations. While the forest sector hires a
proportionately higher number of Aboriginal workers than other industries, the majority of these workers
are employed in low-skilled, part-time and seasonal positions. Without further education and skills
development, these workers may be displaced if the trend toward high-skill jobs continues.
10
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
INDUSTRY PRIORITY ACTIONS
Industry and labour groups are best positioned to implement priority actions to address the labour force issues
and challenges experienced by the forest industry. Industry over the next ten years will take lead responsibility
for implementing the strategy’s priority actions. Government will enable and support contributing
organizations with the implementation wherever appropriate.
A number of organizations within the forest industry have indicated their willingness to contribute to
implementing one or more priority actions with supporting projects and initiatives. Tese contributing
organizations working with their industry stakeholders will determine the order of implementing the individual
actions, based on importance, over the next ten years. Contributing organizations will periodically review and
revise this workforce strategy to ensure strategy actions are aligned and are relevant with changes occurring in
the forest sector and external environment.
Te contributing organizations which will undertake speci?c priority actions include:
• Alberta Forest Products Association (AFPA)
• College of Alberta Professional Foresters (CAPF)
• College of Alberta Professional Forest Technologists (CAPFT)
• Resource Industry Suppliers Association (RISA)
• Weyerhaeuser
• Woodland Operations Learning Foundation (WOLF)
INFORM
Information sharing will play a vital role in addressing labour force pressures in Alberta’s forest industry. Te
Inform theme focuses on increased access to information to support informed decision-making on the part of
employers, workers, youth entering the workforce and individuals considering employment in this industry.
________________________________________________________________________________
Support communication initiatives (e.g. www.yourforest.org forestry information website) to
improve awareness and understanding of the forest industry in terms of challenges, contributions to
society, career opportunities, achievements, competitive advantages, etc.
AFPA, RISA, Weyerhaeuser
_________________________________________________________________________________
Support a human resource recruitment campaign communicating the strengths of the forest
industry (e.g. high tech, green, community-based, sustainable industry) and creating a brand that
di?erentiates the industry from the energy sector. Tis will be designed as a recruitment tool/
package for employers in the industry.
AFPA, Weyerhaeuser
_________________________________________________________________________________
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1.1
1.2
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
_________________________________________________________________________________
Explore initiatives to encourage students to pursue employment opportunities within the industry.
Tis may include the following initiatives:
• Assess high school and post-secondary students’ interests and opinions on careers in the forest industry
to derive insight into career attraction approaches for the industry, utilizing tools such as surveys.
• Encourage participation of high school students in the forest industry by developing and
implementing targeted marketing campaigns and promoting existing educational tools aimed at
high school students, their parents, teachers and school counsellors. Examples of organizations
involved in these initiatives include Inside Education, Canadian Forest Services and Boreal
Forest Research Institute.
• Promote/encourage students and employers to participate in work experience programs and
registered apprenticeship programs in the forest industry to gain exposure and become familiar
with the nature of work in the industry and ultimately consider careers in the forest industry.
Examples include high school vocational training, post-secondary co-op placements, internships,
and summer junior forest warden and ranger programs.
CAPF, CAPFT, RISA, Weyerhaeuser
_________________________________________________________________________________
Promote and share industry best practices about worker attraction, development and retention
among ?rms within Alberta’s forest industry. Tis may include:
• Development of a one-stop inventory/repository of (links to) industry information.
• Forums to identify, communicate and leverage best practices and lessons learned in other
jurisdictions supporting workforce development.
AFPA, RISA, WOLF
_________________________________________________________________________________
Continue to explore, investigate and promote workforce attraction strategies such as recruitment/
retention incentives, student bursaries and student job guarantees to forest industry employers.
RISA, Weyerhaeuser
_________________________________________________________________________________
Advocate with government to expand resources and create a resource database available to forest
industry employers to support activities related to the attraction and retention of immigrants,
temporary foreign workers and inter-provincial migrants.
AFPA
_________________________________________________________________________________
Support recruitment strategies to promote employment targeted to speci?c employee groups and
strategies addressing the seasonal nature of the industry. Potential groups to target for seasonal work
are members of the farming community and multi-sector contractors.
AFPA
_________________________________________________________________________________
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1.3
1.4
1.5
1.6
1.7
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
13
ATTRACT
Tis theme relates to attracting workers from within and outside Alberta and Canada to meet some of the
demand for labour in Alberta’s forest industry.
_________________________________________________________________________________
Advocate for standardization of trade certi?cates and improved processes to support credential and
competency recognition for out-of-province and out-of-country trade workers (e.g. millwrights and
welders) seeking employment in the forest industry.
AFPA, Weyerhaeuser
_________________________________________________________________________________
Support the promotion of Alberta as a ‘destination of choice’ for inter-provincial migrants for the
development of Alberta’s forest industry.
AFPA, RISA
_________________________________________________________________________________
Advocate for expansion of the Alberta Immigrant Nominee Program (formerly called the Provincial
Nominee Program) to increase the number of nominees in both the skilled and unskilled categories
(e.g. National Occupation Classi?cation Levels C and D and occupations that require at most a
high-school diploma or job-speci?c training) and facilitate conversion of existing temporary foreign
workers to landed immigrant status.
AFPA, RISA
_________________________________________________________________________________
Advocate for the streamlining of processes and changes to the Temporary Foreign Worker program
to better meet the needs of the forest industry (e.g. expansion of the two-year limit and improved
processing time).
AFPA, RISA
_________________________________________________________________________________
Advocate to government for a foreign credential assessment system to evaluate foreign professional
training and experience.
AFPA, CAPF, CAPFT, Weyerhaeuser
_________________________________________________________________________________
Contribute to changes in labour mobility policies and act on relevant committees (provincial,
national and international) to support inter-provincial and out-of-country migration
of skilled workers to work in the forest industry.
AFPA, CAPF, CAPFT, RISA, Weyerhaeuser
_________________________________________________________________________________
Support the attraction of potential workers from other provinces by speci?cally targeting out-
of-province friends/family of existing employees and parallel communities going through a mill
slowdown or closure.
AFPA
_________________________________________________________________________________
2.1
2.2
2.3
2.4
2.5
2.6
2.7
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
14
DEVELOP A HIGH PERFORMANCE WORKFORCE
Tis theme has two components. Te ?rst focuses on building the capacity of Alberta’s forest workforce to
support a transition to a more value-added and knowledge-based economy.
_________________________________________________________________________________
Encourage more vocational training opportunities in high schools and post-secondary/technical
institutions to promote and facilitate the development of skills for the existing and future forest
workforce.
AFPA, Weyerhaeuser
_________________________________________________________________________________
Support initiatives to upgrade the skills and knowledge of people employed in Alberta’s forest industry.
AFPA, CAPF, CAPFT, RISA, WOLF
_________________________________________________________________________________
Collaborate with post-secondary institutions to consider revisions to the forestry professional
programs to increase its attraction to students and better represent the future of the occupation.
Options might include changing the name or focus of the career from forester to “resource
expert” and revising the curriculum to focus on forest management and environmental issues.
AFPA, CAPF, CAPFT
_________________________________________________________________________________
Develop a Career and Technology Studies curriculum relevant to today’s forest industry.
WOLF
_________________________________________________________________________________
Support initiatives to survey and analyze training or re-training needs within the harvest
reforestation sector to ensure workers’ skills and education meet industry requirements.
AFPA, WOLF
_________________________________________________________________________________
Work with educational institutions to increase access to forest-related training programs in the
regions/ communities where forest employers are located to encourage local youth completing
these programs to stay in these communities. Tis may include distance education (e.g. NAIT’s Forest
Technology program).
AFPA, WOLF
_________________________________________________________________________________
3.1
3.2
3.3
3.4
3.5
3.6
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
15
_________________________________________________________________________________
Develop a strategy to strengthen human resource management practices throughout the forest
industry and strive to be an employer of choice:
• support initiatives that can assist companies to assess the e?ectiveness of their human resource
practices and take necessary steps to address de?ciencies;
• encourage and promote the importance of developing management supervisor skills (e.g. soft
skills needed to improve workforce attraction and retention); and
• promote e?ective practices for integrating mature workers, immigrants, persons with disabilities,
Aboriginals, etc. into workplaces.
AFPA, RISA
_________________________________________________________________________________
Encourage and equip companies to implement e?ective employee development programs aimed
at cross-training and development of transferable skills.
AFPA, RISA
_________________________________________________________________________________
Support regional approaches to addressing needs and goals shared by forest employers within
a speci?c geographic region.
AFPA
_________________________________________________________________________________
3.7
3.8
3.9
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
16
DEVELOP A HIGH PERFORMANCE WORK ENVIRONMENT
Te second component of the Develop theme relates to developing high performance work environments in
Alberta’s forest industry. Examples include improving workplaces and work arrangements, increasing adoption
of capital investment and technology and improving business processes.
_________________________________________________________________________________
Play a greater advocacy role to raise the pro?le and understanding of the forest industry and its
issues to government.
AFPA
_________________________________________________________________________________
Advocate to all levels of government (municipal, provincial and federal) for revision to the business
tax structure and other incentives for capital investment to support the adoption of productivity
enhancing technology in the forest industry (secondary wood products sector).
RISA
_________________________________________________________________________________
Continue to strengthen linkages between industry and research institutions by working with the
Alberta Forest Research Institute (AFRI) to support the identi?cation, development and application
of new technologies and research opportunities relating to Alberta’s forest industry.
AFPA
_________________________________________________________________________________
Promote the adoption of Lean enterprise principles and practices to improve e?ciency and enhance
the work environment.
RISA
_________________________________________________________________________________
3.10
3.11
3.12
3.13
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
17
RETAIN
Tis theme relates to enhancing the attractiveness of working in Alberta’s forest industry so that workers
– including mature workers, immigrants, Aboriginals and those who may experience di?culty maintaining
employment – continue to work in the industry.
_________________________________________________________________________________
Work with government to retain employees in the industry and community through programs
and activities, (e.g. access to short-term training, apprenticeship linkages, work sharing programs
and career and employment transition assistance). Tese actions are prompted by temporary layo?
situations which have resulted from short-term production shut-downs or shift curtailments.
AFPA
_________________________________________________________________________________
Encourage the application of e?ective practices to help employers improve the retention of a more
diverse labour force (e.g. mature workers, Aboriginals, immigrants, women and under-employed
Albertans).
AFPA, Weyerhaeuser
_________________________________________________________________________________
Promote employment in the forest industry to under-represented groups, including immigrants,
Aboriginals, persons with disabilities, semi-retired people, women with children at home and students.
AFPA, Weyerhaeuser
_________________________________________________________________________________
Support strategies to attract, enable and retain Aboriginals to work in the forest industry
(e.g. advanced training, targeted job shadowing, promotion of the First Nations Forestry Program
and the Aboriginal Junior Forest Ranger Program).
AFPA, RISA, Weyerhaeuser
_________________________________________________________________________________
Encourage employers to implement human resource practices encouraging mature workers to
maintain employment (e.g. o?er part-time or ?exible work arrangements, involve mature workers
in mentoring and training, etc.) to ensure retention of technical and corporate knowledge in
Alberta’s forest industry.
AFPA
_________________________________________________________________________________
4.1
4.2
4.3
4.4
4.5
A Workforce Strategy for Alberta’s Forestry Sector A Workforce Strategy for Alberta’s Forestry Sector
MOVING FORWARD
Industry contributors will work with their members to validate the actions found in this strategy. Based on
feedback, they will select the concrete actions with the greatest and most immediate impact. Te Alberta
government will work with the industry contributors in a facilitating and enabling role. Tis includes
identifying situations where it is more e?ective and e?cient to collaborate – within and across sector
industries – on similar projects. Government will facilitate these opportunities, keep abreast of emerging issues
and take further action as required.
In implementing the workforce strategy, the industry contributors will:
• obtain the active involvement of industry members and other stakeholders;
• work with stakeholders (i.e. associations and labour groups) within and across industries;
• eliminate fragmentation and duplication of initiatives within and across industries;
• select the actions and initiatives with the greatest immediate impact;
• identify gaps in the priority actions in order to address both current and evolving needs; and
• ensure sustainability of the strategy over the long term.
Industry will work with government to monitor the success of this strategy over the next ten years. Industry
contributors are asked to report on their progress by sharing achievements and best practices. By working
together, industry and government can continue to build a strong and prosperous Alberta where all industries
will bene?t.
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