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Amidst layoffs, industry warns about staffing shortfall

Downturns in the global economy may have put a damper on the mining sector, but the industry remains in dire need of 60,000 fresh faces to replace the exodus of retirees over the next 10 years.
Hebert HS
The Federated School of Mines' Paul Hébert is looking to steer more Aboriginal people toward mining careers.

 
Downturns in the global economy may have put a damper on the mining sector, but the industry remains in dire need of 60,000 fresh faces to replace the exodus of retirees over the next 10 years.

Companies are fighting not only the faltering economy but the perception that the industry no longer needs scores of well-trained workers, according to officials.

"When everyone is shedding workers, it can be hard for people to understand that there's still a need for people in the industry," says Ryan Montpellier, a former Sudburian now serving as executive director of the Ottawa-based Mining Industry Human Resources Council (MiHR).

"Regardless of where the economy sits, the demographics don't change, and the reality is that the industry is aging."

Even if commodity prices remain low, the industry will still require approximately 60,000 new workers by 2019 to replace the aging workforce.

With Ontario making up roughly 25 per cent of Canada's mining industry, a rough breakdown means 15,000 jobs will be needed in the province over the 10-year period.

The need for new workers is an immediate one. By 2010, the industry will require at least 3,300 new workers, at least 800 of which will be needed in Ontario.

Should the market rebound in 2010, however, the need will return to pre-recession estimates of 95,000 new workers. Montpellier expects the number could even rise beyond 100,000 if commodities see another strong market bounce in the next year or two.

Though unsure as to the impact the faltering economy will have on general student interest in mining-related programs in the coming year, Montpellier points out there has traditionally been a direct correlation between commodity prices and enrolment levels.

This is backed up by Paul Hébert, executive director of the Sudbury-based Federated School of Mines, an organization bringing together the expertise of seven Northern Ontario post-secondary institutions.

There are definite problems in coordinating industry demand with student supply, thanks to the time lapse between enrolment and graduation, Hébert says.

As commodity prices drop, so too does enrolment numbers in mining-related programs. However, as prices begin to peak, the smaller number of enrolled students begin to graduate, leaving the industry short-handed.

Concerns abound that this will occur once the current cycle begins to recover. Hébert says he's heard of some schools turning away applicants to mining-related programs last year, only to expect enrolment to drop in those same programs this year by 10 to 50 per cent.

"This is why it's so important to maintain balanced enrolment in tougher times, and we're working to make that happen."

One solution being pursued by both MiHR and the Federated School of Mines involves placing a much stronger emphasis on bringing more Aboriginals into the workforce.

With a population growing six times faster than the Canadian population as a whole, Aboriginals represent a strong element of the mining industry's future, Hébert says.

The move to greater Aboriginal inclusion has a strong business case as well. More than 1,200 Aboriginal communities are located within 200 kilometres of a mine site or project, with many mining companies operating in or near traditional lands.

Training and employing members of these communities is seen as an attractive option for many; outside workers must be flown in and often are uncomfortable with spending large amounts of time in isolated locations before long, says Montpellier.

With the help of the Assembly of First Nations, the Métis National Council and various industry partners, MiHR has developed a pair of instructional guides to help educate mining CEOs and managers on the importance of Aboriginal inclusion and cultural sensitivity. Separate guides have also been developed to educate Aboriginal communities on the breadth of mining opportunties which extend beyond the traditional "pick-and-shovel" job.

Similarly, the Federated School of Mines is developing an outreach program specific to First Nations communities. Though this project is still in the early stages, it's being moved forward through a partnership with MiHR as well as the academic partners, many of whom have existing links with outlying Aboriginal communities.

Such efforts are key for the industry, says Montpellier, who cautions against any knee-jerk reaction to begin trimming staff as a way of weathering the financial storm.

"Now is not the time to be taking your foot off the gas in terms of developing a skilled workforce. I know a lot of small companies are just trying to survive, but you don't want to mortgage your future, either."


www.mihr.ca
www.fsom.ca