Sudbury Labour Market Information Newsletter - May 1997

Prepared By Marilyn Prus,
LMIA Sudbury HRC

Previous Issues

Labour Force Statistics

Sudbury's labour market weakly improved. The unemployment rate declined slightly from 9.3 percent to 9.1. No effects from the INCO strike are in these statistics. Employment levels are the same as last year.

SPECIAL NOTE: Striking INCO workers are counted as still employed. All others on layoff are counted as unemployed. These layoff unemployed numbers will show up in the June figures released on 11 July unless the strike is settled within the two weeks.

The number of people in receipt of Employment Insurance benefits in the region as a whole, is on the decline. As of May 25, 1997, there were a total of 7,460 active regular claims. (Regular claims are those claims that were established as a result of work shortages or where the claimant left employment for justifiable reasons). The total number of regular claims as of May 25, 1996, was 7,828 ( a decrease of 368 claims. Included in the above figures are the number of regular claims in the Espanola area which has experienced a slight increase in the number of claims. On May 25, 1997 there were 1,217 active regular claims in Espanola, while the figures for May 25, 1996 stood at 1,209. Espanola experienced an increase of 8 active regular claims. In total, the number of Employment Insurance claims dropped by approximately 900. (Established Claims Analysis)

Bits and Pieces:

Laptops to "transform" learning - College Boreal has become the first institution of it’s kind in Ontario to make computer technology part of it’s learning system. As of September, laptop computers will be a mandatory piece of equipment for students. It is expected that by the year 2000, 95% of the school’s student population will be on-line with laptops.

Bard sees solid growth but few jobs - The Conference Board of Canada estimates that economic growth across the country should hit 2.9%, double that of last year. At the same time the board is forecasting only marginal improvements in the unemployment rate.

Retail sales to rise, forecasters say - Randall Powley, senior economist at Scotiabank is predicting a 9% increase in 1997 retail sales based on early results. Sales in early 1997 are already running 7.7% ahead of last year and he predicts that there is still some room for acceleration.

Economists say rise in overtime hours "powerful indicator" of hiring - In recent months, the number of overtime hours worked has been running about 40% higher than a year earlier says a report by Statistics Canada. Royal Bank economists John McCallum and John Anania predict that big increases in employment are ahead as increases usually come on the heels of increased overtime. I noticed that both economists used the word "usually". However as one examines the latest economic trends, there does not appear to be anything "usual" happening in the economy at all. We have big corporations making huge profits, CEO’s receiving incredible bonuses and salary increases while workers are experiencing little more in their pay envelopes and ,in some cases cuts, to their present salaries while the threat of job loss hangs over their heads. These situations are not "usual". Perhaps the difficulty is the high unemployment rate and with that high unemployment rate comes the attitude, both by the employer and the employee, that workers can be easily replaced. Overtime hours may continue to rise ( in Ontario the increase has been over 50%) as it is still cheaper to pay overtime hours than hire additional staff. It appears that a basic management technique may be going by the wayside... and that is that employees are valuable. When an employee feels valued, they are productive. When they feel devalued they do not produce. Perhaps economists should be studying production levels in conjunction with overtime hours. In the sixties, people were valued. In the nineties, huge profits are valued. In conclusion, economists have been predicting a surge in employment growth based on all kinds of data from demographics to growth in the GDP (Gross Domestic Product) and non of this growth in jobs has materialized. Could they be wrong again?

Canadian economy gains recognition - A survey by the Economist intelligence Unit ranked Canada third in having the best business environment over the next five years. This was only one of several surveys in with Canada experienced significant recognition globally. Factors such as a low dollar, a strong US economy which has created a healthy demand for goods and services, deficit reduction, strategic planning and high productivity have contributed to it’s high standings.

Communication services mean jobs - Jobs in communications services are growing seven times faster than the national average. This sector of the economy which includes computers as well as telecommunications accounts for about 5% of the gross domestic product and is growing at four times the rate of the economy as a whole.

Mining:

Sudbury businesses waiting with bated breath - As the month of May progressed, the entire community waited to hear the results of negotiations between Inco and the Steelworker’s. On Friday May 30th, things were looking up as a tentative agreement was reached with the bargaining unit. However the workers voted down the contract on Monday, June 2, 1997 and the picket lines went up. Economists are estimating that between $500,000 and $1 million a day are being lost to the community as a result of the strike. The Sudbury Human Resource Centre set up a special office to handle the taking of Employment Insurance applications for those people in a lay-off situation as a result of the strike. Local MPP’s are calling for the provincial government to order Inco back to negotiations. As if the Inco strike hasn’t dealt a big enough blow to the local economy, there is also a potential that Falconbridge could follow suit in August. They say history repeats itself. Remember the early 80’s?

Chretien praises mining industry - Prime Minister John Chretien toured Falconbridge Limited’s new world-class metallurgy and exploration complex in early May. The $25 million Falconbridge Technology Centre has been opening in stages since February with the grand opening scheduled for the fall. His visit helped raise the awareness that mining is no longer a pick and shovel operation , but rather a high technologically based industry in which Canadians are world renowned.

Argentia open for business - Industrial lots next to the site of Inco’s smelter and refinery complex in Voisey’s Bay are finally up for sale. Companies from across North America and Canada , including Northern Ontario have been waiting for the government to release the property to Argentia Management Authority Inc. so that lots can be purchased.

Construction:

Building Permits Issued Region of Sudbury:

Arend Van Vierzen, a Dutch developer and owner of Earth Clean 2000, has purchased 6,600 acres at Carter Bay on Manitoulin Island and has plans to build 1,100 luxury homes for affluent European vacationers. Also envisioned for the property are a golf curse, fishing marina, a motel/restaurant, and 16 hunting cabins to be situated on 100 acre lots.

Regional municipalities eligible to spend $2.9 million on infrastructure projects - The extension of the Canada/Ontario Infrastructure Program will see $459 million spent on construction projects in the province, with $134 million of that being contributed to by the municipalities. The regions share is $2.9 million and must be spent on municipal road, water and sewer system projects. It must also be earmarked for improving or rehabilitating existing infrastructure.

Construction industry expects better times ahead - Some of the major construction building projects under way or planned for the Sudbury region this year are as follows:

• A new trunk watermain along Baker , Tanguay and Brebeuf Avenues , Sudbury (estimated cost $700,000)

• A new trunk watermain along Wembly Drive, McNaughton Street and Hyland drive, Sudbury ($1.5 million)

• Repairs to Leslie Street bridge, Sudbury [in progress] ($200,000)

• Repairs to Ellis Reservoir [in progress] ($1 million)

• An addition and renovations to the Sudbury Public Library’s , main branch on MacKenzie Street ($1.3 million)

• A 14,000 sq. foot addition to police headquarters in the West Tower at Civic Square ($2.2 million)

• Completion of work at College Boreal main campus on the Lasalle Extension, Sudbury [in progress] (A permit for $15 million worth of work was issued in May.)

• The Sudbury YMCA Centre for Life/Senior’s Centre off Durham street, Sudbury ($11 million)

• A 22,000 square foot addition to house the Northern Ontario Regional Centre for Advanced Technology (NORCAT) at Cambrian College, Barrydowne campus, Sudbury ( $3 million)

• A 30,000 sq. foot addition to Ecole secondaire catholique l’Horizon in Val Caron ($4 million)

• A 125,000 sq. foot Price Costco Canada Inc. building on the Kingsway ($7 million).

• A two year project that will see a passing lane added to Hwy 144 north of Godfrey Drive, Copper Cliff ($1.7 million)
  

Housing development proposed for waterfront in Gore Bay - Timberstone Homes has submitted a proposal to construct 8 to 10 single and semi-detached pre-made homes designed for retirees on one of the last undeveloped waterfront properties in Gore Bay. The owners would have a choice of designs and the average price of each unit would be $150,000 .

Lay-Offs and Re-engineering:

Loeb’s warehouse is expected to cut approximately 21 staff from their payroll in June.

Ontario Hydro will be laying off several employees in the next few months. The numbers have yet to be determined.

More cuts are anticipated with the Ontario Public Service. Again, exact numbers or the timing of the lay-offs are not yet determined.

Eight employees of the Manitoulin Health Centre and Mindemoya Hospital are slated to lose their jobs in the next six months as beds are closed. due to operating costs increase and funding diminishes. Five nursing positions were axed at the health centre in Little Current., while 3 staff members (1 f/t employee and 2 p/t students who worked in the kitchen) are losing their jobs at the Mindemoya Hospital.

Fifteen people will lose their jobs when CP Rail leases out the operation of it’s railroad between Sudbury and Sault Ste. Marie to the Huron Central Railroad. The Huron Central Railroad takes over the operation and maintenance of the track in mid-July. CP now employs 50 people to operate that section of track. It is expected that some of the people may be hired by the contractor but exact numbers are not known.

On the Down Side:

E.B. Eddy looks to cut costs - E.B. Eddy needs to trim it’s pulp and paper production costs by $20 per ton in order to remain competitive. The company is presently looking at voluntary early retirement, a reduction in absenteeism and overtime hours before considering a workforce reduction. Company officials remain hopeful that their targets can be achieved without any significant workforce disruption.

Youth left out of jobs - Canada’s economic recovery has left youth behind. The Canadian Imperial Bank of Commerce and the Canadian Youth Federation have produced a report stating that youth unemployment costs all Canadians money and jeopardizes the country’s huge investment in education because too many people are unable to fully utilize their skills and must rely on others for support.

A. J. Bus ending service - By mid-summer A. J. Bus will terminate service after 40 years of service connecting Manitoulin with Espanola due to lack of customers. The school bus and Canada Post contracts will continue but one employee will be laid off with the cut.

On the Bright Side:

Theatre receives $150,000 boost - The provincial government is providing $150,000 to help build a francophone theatre centre in Sudbury. The funding is in the form of an interest free, re-payable loan under the Northern Ontario Heritage Fund and is to be used to help finance the construction of a $1.8 million theatre facility planned as a joint venture by College Boreal and Theatre du Nouvel-Ontario. This project will create new jobs in the local theatre community, attract tourists to the area ,as well as create construction jobs, which will give a boost to the local economy.

Local employment prospects better than national average- According to the latest employment survey conducted by the Sudbury office of Manpower Temporary Services 40% of local employers indicated that they would be hiring between July and September, while only 13% are planning cuts. The additional 47% had no plans to change the size of their work force. Job prospects appear to be best in the construction, wholesale/retail trade and durable/non-durable goods manufacturing. Nationally the company’s surveys indicated 27% of companies plan to hire, 7% planning on cuts to staff and 64% had no plans to change.

AMS Group in bigger office - The Sudbury-based AMS Group, the only computer systems company in Northern Ontario to receive an A+ rating certified service centre by the Computing Technology Industry Association , has opened two new offices in the north; one in Timmins and one in Kirkland Lake. The goal is to better service their customers in the north.

Good news for local company - The Sudbury and north bay offices of drake International were recently selected by Public Works and Government services of Canada as it’s only supplier of temporary staffing services in 1997.

Shop local drive gets underway - In 1995 the city of Sudbury did $1.15 billion in sales. It is estimated that 10% of that or $115 million a year leaves Sudbury and this revenue, if it remained in the area, could potentially create 2,300 jobs. The shop Local campaign is aimed at promoting local businesses over their out-of-town counterparts.

Ferry starts on Friday - The Chicheemaun has started it’s seasonal crossings from Tobermory to South Baymouth.

Fish Farm wins - Wabuno Fish Farms in Sucker Creek was chosen as one of the first businesses to receive a 1997 Community Futures Award from the Ontario Association of Development Corporations. Two awards were handed over to the firm - one for outstanding entrepreneur of the year and the other for demonstrating measurable, positive economic impacts on the community.

Talks continue on fate of city’s Eaton’s store - The fate of Sudbury’s Eaton’s store is still in limbo. Eaton’s announced plan to close 18 stores across Canada but the final decision on the local outlet has not been made as yet.

New Businesses:

Opening weekend at the market - The Sudbury Farmers’ Market is again open for business with a greater array of merchandise than ever before. Not only produce is being sold this year but smoked meats, breads, nuts and even plants ready for your garden are being offered for sale.

New terminal should give downtown new image - On May 12, the city’s new bus terminal opened for business. Visitors will be able to buy bus passes , enjoy a snack at Zio’s Cafe, buy lottery tickets or just relax in the waiting area. The terminal will be open from 6:15 am to 12:30 am, seven days a week.

Raglan units now sold here - Rigz North Limited opened in Onaping and is the distributor and servicing agent for Raglan box units which are used with vehicles such as garbage and dump trucks. The company employs six people.

New Little Current hair salon opens - Island Girl Style has opened in Little Current offering a full range of hairstyling for both sexes as well as facial waxing.

Websites Worth Visiting:

Interactive Training Inventory: www.trainingiti.com

Highlights From HRC C Sudbury:

Centre to hire 15 youths - N’Swakamok Native Friendship Centre will hire 15 native youths through a $150,000 Youth Services Canada Project grant funded by the Sudbury Human resource Centre. The students will co-ordinate activities such as nutritional cooking classes, career development, cultural and traditional teachings and the Ojibway language.

Program for youth starts - Funded by the Human Resource Centre and sponsored by the Grassroots Economic Opportunity Development and Evaluation (G.E.O.D.E.) , Enterprising Youth will employ 1 co-ordinator and 15 youth under the youth under the Youth Service Canada program. The youth aged 15 to 24 will work towards developing a barter-exchange system in Sudbury to cope with the problems of unemployment and low incomes.

Entrepreneurship program offered - The Sudbury Vocational Resource Centre, YMCA Employment Services and the Human Resources Centre have teamed up to create an Entrepreneurship Program for Young Women. The program targets women between the ages of 17 and 30. The program which will run for 48 weeks is aimed at helping young women interested in starting their own business, gain entrepreneurial skills and receive support during their first year of operation. The program is being offered at the Sudbury Vocational Resource Centre at 124 Cedar Street starting July 9.

Summer job opportunities looking good - As of mid-May, job postings for students were up over last year. The Student Employment Centre opened it’s doors early in the month at the Federal Building located at 19 Lisgar Street in Sudbury. Computerized job banks and a resource centre housing computers with resume programs are part of the services offered this summer

Editor’s Notes

The above excerpts have been taken from the following newspapers:

The Sudbury Star
The Manitoulin Recorder
The Manitoulin Expositor
Northern Business
The Mid-North Monitor
The Northern Life
The Toronto Star
The Globe and Mail

Your comments and suggestions are always welcome! The Labour Market Information Unit is only one source of labour market information in our community. Any labour market information that you would like to share with your community partners would be a welcome addition to our news bulletin. I am planning on running a section called "The Community Corner". Any newsworthy information would be welcome. I can be reached at: (705) 670-6674 ( phone ) or (705) 670-6727 (fax).

Yours in Partnership,

Marilyn Prus

Copyright © 1998 Human Resources Development Canada
Last Updated - 23 February 98
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