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Strategic Capability N/W May 2008

Strategic Capability N/W May 2008. Dealing with the Electricity Skilled Labour Shortage. Canada-A world leader in electricity production. Third largest electricity producer in the world on a per capita basis Production increased 10% in last 10 years

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Strategic Capability N/W May 2008

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  1. Strategic Capability N/W May 2008 Dealing with the Electricity Skilled Labour Shortage

  2. Canada-A world leader in electricity production • Third largest electricity producer in the world on a per capita basis • Production increased 10% in last 10 years • Most diversified generation in the world • Major exporter of electricity • Second lowest prices in the world • Demand for electricity outpacing population growth • Electricity sales to US form nearly 3% of GDP Strategic Capability Network 2008

  3. Canada-Increasing Electricity Demand Change in Canadian Population and Electricity Demand From 1993 to 2003 (Index- 1993 = 100) Strategic Capability Network 2008

  4. 2004 HR Study • Conducted by the Canadian Electricity Association with funding support from HRSDC • Ultimately resulted in the creation of a workforce development corporation, the Sector Council • 95% participation rate for our major firms • 10,000 employee surveys sent, 35% participation rate • Results have been used by every major utility in Canada and most provincial governments • Can directly attribute the start of new programs for PLT apprenticeship • Invited to present the data to our industry regulators annual general meeting, the executive and leadership of their community. Strategic Capability Network 2008

  5. 2004 Study – Age Profile of the Industry Strategic Capability Network 2008

  6. 2004 Study – Age Profile of the Industry Strategic Capability Network 2008

  7. Understanding Supply Data • Lack of consistent university/college data, they don’t agree on data protocols or collection • Hard to predict future graduate rates, what we can do is infer from trending • Apprenticeships in the ‘pipe’ with allowance for completion statistics • How will you allow for and integrate diversity channels? • Tracking internal talent movement is a challenge Strategic Capability Network 2008

  8. 2004 Study Supply Demand Gap Strategic Capability Network 2008

  9. Employee Survey Data Strategic Capability Network 2008

  10. Workforce by key occupation Strategic Capability Network 2008

  11. The Future Labour Force For every 2 employees retiring in Canada in the next 10 years Only 1 will take their place Strategic Capability Network 2008

  12. Increasing Urbanization • By 2031,94% of the Canadian population will live in urban areas • Most of the population growth will be in three major metros • By 2031 the population of these metros will grow: • Toronto up 73% • Vancouver up 64% • Montreal up 27% Strategic Capability Network 2008

  13. Trades Intake Through Immigration Low • Landings by province in 2005 for electricity sector trades-related occupations were very low • Power systems and power station operators (9) • Electrical power line workers (55) • Power system electricians (27) • Utilities managers (10) Strategic Capability Network 2008

  14. What will the future look like? • Scarce talent at every level of the business • Continuing push to minimize profit margin • Restructuring operational management and organizational design to cope with scarce talent • Increasing population urbanization……harder and harder to find talent for rural or northern communities • Rapid technical change, new equipment, new standards, new technologies Strategic Capability Network 2008

  15. 2008 Budget • Does not predict a recession • EI surplus moving to an agency for control • Changes to the immigration system • Incentives to older workers staying on job • Focus on post secondary through research support, scholarships • Aboriginal employment focus Strategic Capability Network 2008

  16. Lessons from the Tech Labour Shortages • Increased employee base compensation due to competitive market forces • Employees develop a ‘free agent’ mentality, turnover increases • Productivity declines due to turnover, employee satisfaction declines due to heavier workload from turnover and the increased time to fill openings • Sharply increased recruitment costs, it takes more time and effort to staff Strategic Capability Network 2008

  17. Understand & Plan for Gen X and Gen Y • 80-90% of workforce you need is Gen X • Yes they are different…… • Want variety • Seek growth and development • Less hierarchical.. matrix work environments • Informal in work relationships • Work/life balance is important • Boomers are not “fun”, they’re parent like…. Strategic Capability Network 2008

  18. Messaging The Cost of Talent • How long did it take you to be effective in your role? • A year? Two? • What’s the average salary at your company? • If you have 300 people and each of them took a year to become effective and your average wage is $40,000 your firm has $12 million invested in talent today MINIMUM! • Look at every hire in the same way, you are about to invest in the future, in a significant amount of money, what’s important? • People are infrastructure, support your infrastructure investment Strategic Capability Network 2008

  19. The Action Toolkit • Workforce planning • Accelerated development programs to enable junior workers to ‘step up’ in a shorter time frame • Succession planning • Performance management • Knowledge management • Enhanced recruitment process, collective action for recruitment • People development programs: training, mentorship, apprenticeship, secondments, lateral transfers to achieve breadth in development • Collective action through industry associations Strategic Capability Network 2008

  20. The Electricity Sector Council • Federal program supporting workforce development, • Non profit corporation • Have to apply, must demonstrate stakeholder partnership • Must engage industry, labour and education • Used the same communication pathway, started with executive commitment of interest, pushed to operational level • Leveraged personal connections eg CUPE came to the table because a key HR leader was a former union leader • Worked with key champions, they brought others to the table Strategic Capability Network 2008

  21. Projects Update Advanced Career and Workforce Training • Occupational Standards Labour Market Transition • Foreign Trained Worker PLT situational analysis • Succession Planning Renewable Energy Occupational Stds. • Knowledge Management Youth and Education • Trade UP for Success Wind Energy Curriculum • Aboriginal workforce participationElectricity First Work New Technology & Industry Directions • Labour Market Information • Ontario Labour Market Information Partnerships and Outreach • Building Connectivity Improving Access to Under-represented • Stakeholder Engagement Strategic Capability Network 2008

  22. Labour Market Information • Repeating the 2004 study in short form • All major utilities but 1 participated • Updated data available later this year • Apprenticeship data and key statistics for 18 top occupations Strategic Capability Network 2008

  23. Trade UP • National License to take the Ontario program to the rest of Canada • BC first province to be engaged has provided a $25,000 grant to start work • Tag line will be ‘Bright futures BC’ • Manitoba also interested • www.tradeup.ca Strategic Capability Network 2008

  24. Ontario Agency Review Panel - Arnett • Our report was based on new material collected for this project and, the 2004 Sector Study Agency panel recommended that: • Ontario establish an “Ontario Electricity Sector Council” • Ensure better support for laid off workers • Raise sector profile and appeal to potential applicants • Develop a strategy to expand labour pool by increasing under-represented • Seek better data: apprenticeship completions, university college • Monitor capacity of construction labour force • Ensure expenses for labour deemed prudent in OEB hearings Strategic Capability Network 2008

  25. Foreign Trained Worker • Exploring issues in industry uptake of internationally trained workers • Draft report and research findings presented at the‘Bright Futures in Canada’- Conference Nov 7/8 in Ottawa • Conference highly successful, all participants had input into recommendations • Validation of results underway and final report currently in press • General consensus we could improve process for uptake of internationally trained workers, very few trades immigrants make this community of limited value for recruitment, primarily supporting engineering talent intake Strategic Capability Network 2008

  26. Labour Transition Project • To assist employers to integrate experienced workers from sectors of declining workforce need • Preliminary data indicates we have limited opportunity given the high level of training needed for workers in our industry – 76% of our workers positions require postsecondary • Some possibilities but only in key regions and largely in the apprentice-able trades, very geographic specific • Recommended: a database of available workers such as that maintained by Comm/paperworkers union, youth awareness initiatives, mentorship for youth and internal workers Strategic Capability Network 2008

  27. Labour Market Transition • Based on recommendations of our reports we have created a matrix of all 18 key occupations in our industry and their requirements for the position • Matrix will be posted on our web site • Reports are in final layout using our new templates & should be available soon • Recommendations do not suggest workers from industries downsizing are likely to be a strong labour force supply channel • Challenges with time to train and long lead time to develop mid level positions in our industry make it harder for us to transition workers into our industry mid career Strategic Capability Network 2008

  28. First Work • Wage subsidy to new grad tech/technologist or engineer • Small/medium enterprises < 2500 employees • Application process must be completed prior to hire • Can have graduated in the last 2 years • Call Leigh Anne at 613-235-5540 or email: donovan@brightfutures.ca Strategic Capability Network 2008

  29. Proposed Project – Improving Access to the Trades • Industry has begun to increase apprenticeships and candidate uptake in preparation for pending retirements • Diversity profile for the industry still reflective of the Canadian workforce of 30 years ago, the retirements offer a unique opportunity to improve diversity • Most of the business does not have strong programs or systems in place to support disadvantaged communities • Target a specific group or groups/year from the following: women, youth at risk, visible minorities • Aboriginal community targeted separately, Canadian Apprenticeship Forum undertaking a project regarding ‘persons with disabilities’ Strategic Capability Network 2008

  30. In Development – Aboriginal WF • Seeking to build on the best practices identified in the 2004 sector study • A youth camp based on the Manitoba Hydro model • Additional best practice model to be determined by research • Exploration of employer toolkits for aboriginal workforce development Strategic Capability Network 2008

  31. Occupational Standards • Occupational standards are competency profiles that support our understanding of what a person needs to do their job • Currently developing 5 standards for Operator (systems & power plant), Electrical technician & technologist, Project manager, Protection & Control Technologist and Wind Turbine Technician • A standard is the key template for development of curriculum for post secondary education • Can use it to build job descriptions, measure candidates in the recruiting process or undertake performance management for existing talent • Includes essential skills profiles for all 5 occupations Strategic Capability Network 2008

  32. In Development-Renewable Occupational Stds • NRCAN funded project • Funding to work in tandem with the ESC’s existing occupational standards project to fund a minimum two occupational standards, one for geoexchange and one for solar • We will work to also seek funding for essential skills profiles for these roles to ensure effective applicant screening and support to under-represented communities Strategic Capability Network 2008

  33. Wind Turbine Technician Curriculum • Funded by NRCAN to translate this curriculum • Curriculum developed by CGEP de Gaspesie • English translation available to any Canadian training organization free provided ESC and Government of Canada contributions referenced • Workbooks and other materials remain the property of CGEP • Participating organizations must sign a memorandum of Understanding with ESC to use this Strategic Capability Network 2008

  34. Power Line Worker • Our most popular project ever! • Consultant engaged to undertake diagnostic review of training and licensure across Canada, committee reviewed scope and narrowed • Significant committee interest in pan Canadian standards and curriculum development • Members have provided candidates for the red seal review but there is consensus across the committee table that red seal is insufficient Strategic Capability Network 2008

  35. Succession planning • Building a toolkit of supports to enable businesses to undertake succession planning • Survey of industry practice & highlights of best practices • Templates that allow you to build HR review into the operational line roles • Still in early stages, expect this information in the beginning of 2009 Strategic Capability Network 2008

  36. In Development – Knowledge Management • Within 2 years, the industry will begin to experience the first major impacts of pending retirements, many of those leaving are senior trades or supervisory talent • The volume of retirees will increase sharply and informal methods of knowledge transfer cannot handle the large amount of critical information transfer • Employers lack skills and understanding of formalized systems and processes to transition worker knowledge • Given the role of the industry as part of Canada’s critical infrastructure, essential that a broad based knowledge transfer occur to ensure system reliability and support the safety gains made by the industry, • LMT project recommends the industry undertake initiatives in this area Strategic Capability Network 2008

  37. Connectivity • Ultimate focus is to build a national HR Strategy for the industry with a strong consultative process engaging our provincial working groups and a national senior stakeholder meeting • Former BC ADM Energy Peter Oostergaard has agreed to chair this committee • Seeking provincial/regional champions to be committee members • Goal is to develop the ‘business plan’ to inform the next 3 to 5 years of ESC work Strategic Capability Network 2008

  38. 2 Years of Success We are very pleased with the work of the Electricity Sector Council Phil Flemming, International Vice President, IBEW District 1 representing all Canada Strategic Capability Network 2008

  39. 2 Years of Success • 150 volunteers active on committees and Board • Project funding trending over $7million in next 3 years • In Kind/In Cash Contributions near $3.5 million • Directly mentioned in the Energy Labour Force Strategies of BC and Alberta • Contracts with FCR, NRCAN and Government of Ontario broaden revenue base • Licensure of ‘Trade UP’ Career awareness program • Provincial Working Groups for 6 provinces • Direct linkage of 2004 Sector Study data to re-start of apprenticeship and power engineering programs Strategic Capability Network 2008

  40. 2 Years of Success • Dialogue with industry regulators produces commitment to consider apprenticeship development as key to industry success • Inventory of key industry occupations & training programs • MOU with ACCC and affinity group established which includes renewable energy • Partnership with the Centre for Energy Information to provide base information about our industry at no cost to stakeholders • Wind Turbine Technician Curriculum translated • Labour Market Transition project reports challenge for transfer of talent from declining industries Strategic Capability Network 2008

  41. The Best Way to Predict the Future is to Create the Future Strategic Capability Network 2008

  42. Thank you! Merci! Safe Journey! Bon Vol! Catherine Cottingham Executive Director & CEO Electricity Sector Council cottingham@brightfutures.ca 613-235-5540

  43. Tom Goldie, Hydro One, Chair Jerry Wilson, IBEW, Vice Chair Deb Carey, PWU Ani Gole, PhD, U of M Leslie Forge, Soc. Of Energy Professionals BC Line Ass’n (invited) Steve Mauri, Canlyte Gary Rodford, BC Hydro Hydro Quebec Distribution (invited) Doug Topping, EPCOR Catherine Cottingham, ESC (ex-officio) Hany Micheal, Wardrop Deborah Wolfe, Engineers Canada Norm Fraser, Hydro Ottawa Sam Giandomenico, OACETT Joyce MacLean, Toronto Hydro Dale Watts, Red River College Carmen Dybwd, Energy Council (ex officio) Permanent Observers: Jeff Vachon, HRSDC Al Clark, NRCAN Brigitte Hebert, CEA Peter Woods, CCDA Carole Proulx, CUPE ESC Board of Directors Strategic Capability Network 2008

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