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       Sudbury Labour Market Information Newsletter - October 1997 Prepared By Marilyn Prus, Northern Ontario Labour Market for October 1997 Highlights:
Northern Ontario Labour Market Northern Ontario's labour market shows continuing signs of weakening. 8,000 people withdrew from the labour force, dropping the participation rate to 59.3% from 60.5% last month. Employment fell by 9,000 jobs, with the biggest job losses recorded in Manufacturing, Construction, Transportation, Communication and Other Utilities, and Community, Business and Personal Service. The number of unemployed rose by 1,000, bringing Northern Ontario's unemployment rate up to 9.4% from 9.1% last month. Northeastern Ontario Northern Ontario's job losses were almost exclusively registered in the Northeast. Employment dropped by 7,000, led by losses in Public Administration and Manufacturing. At the same time, 6,000 people withdrew from the labour force, bringing the region's participation rate to 58.1%. Unemployment rose by 1,000, resulting in an increase in the unemployment rate to 9.5% from 9.1% in September. Sudbury Labour Market The labour market in Sudbury continues to be immune to the labour market conditions surrounding the CMA. In fact, job seekers were not discouraged by the employment declines in the region, as the number of people looking for work actually increased marginally, causing the labour force participation rate to increase to 62.0%, and the unemployment rate to rise to 9.4%. The other major indicators remained stable. There were some industrial shifts in employment, with the job losses recorded in Public Administration and Construction offset by gains in Community, Business and Personal Service. Northwestern Ontario Northwestern Ontario's labour market continues to deteriorate, albeit not as dramatically as in the Northeast. Labour force participation continues its decline, down to 62.3% from 63.4% in September. This decline was prompted by another drop in employment, down 2,000 to 108,000. While employment actually increased in Agriculture and Manufacturing, this job creation could not keep pace with the losses recorded in the service-producing sector. Community, Business and Personal Service led the way, though employment was down across all industries in this part of the economy. Because labour force withdrawals kept pace with these employment losses, the unemployment rate remained stable at 9.1%. Industrial Changes Across Northern Ontario, employment losses were registered in each major industrial sector, with the highest number of jobs disappearing from Public Administration, Transportation, Communication and Other Utilities and Community, Business and Personal Service. Carrie Vescio Employment Insurance Claims
(Figures are from the Established Claims Analysis Report and represent regular claims only. Regular claims are those claims that were established as a result of work shortages or where the claimant left employment for justifiable reasons). Analysis of Above Data
Bits and Pieces A helpful hint from Reader Digest: Never hire or promote in your own image. It is foolish to replicate your strength and idiotic to replicate your weakness. It is essential to employ, trust and reward those whose ability, judgment and perspective are radically different from yours. It is also rare, for it requires uncommon humility, tolerance and wisdom. (Dee W. Hock) More than 3/4 of the total job growth between 1989 and 1996 was in self-employment. While the number of business owners grew by 460,000 to 2.3 million (a 25% increase), the number of employees increased 133,000 ( a gain of 1%). As a result, the self employed make up about 17% of all workers, up from 14% in 1989. Recent figures show that Ontario’s gross domestic product - the value of all goods and services produced- grew by an annual rate f 7.2% between April and June. That is way ahead of the 4..9% national rate and may be an indicator that the province is nearing the peak of it’s year long economic boom. Quebec Premier Lucien Bouchard says he will attend the first ministers conference in December to demand major changes to the federal employment insurance system. He states that it is unacceptable for Ottawa to reduce benefits to the unemployed when an expected $5 billion budget surplus in 1998-99 is likely to be used to reduce the deficit rather than unemployment. Canada’s high- tech sector is launching a major overseas recruiting drive, hoping to hire 3,000 foreign software workers in the next nine months to ease the shortage in this area. The goal is to recruit highly-skilled underpaid, programmers from 11 cities in Europe, Asia, Africa and South America by July 1998. The first wave of five companies is to head overseas in mid-November. There are 15,000 vacant programming positions presently and it is expected that the shortfall will rise to 20,000 by the year 2000. The Canadian Advanced Technology Association is backing the recruiting drive while it examines how to increase the number of software programmers produced by Canadian post-secondary institutions. In other words, this is only a stop-gap measure to meet some of the immediate needs of the industry. Good and bad news on Sudbury’s resale home front. The average price of the 167 homes sold in the Sudbury region in September was $108,377, an increase of 6% a year ago. However, the sale of the 167 homes represents a 5.1% drop from September, 1996. Finance Minister Paul Martin announced that the federal government posted a $8.9 billion deficit last year, the lowest in 20 years. Jay Myers, chief economist at the Alliance of Manufacturers and Exporters Canada feels there are some positive signs in the economy. September’s employment figures indicate that there was an increase of 72,000 full-time jobs at the same time as 56,000 part-time positions were eliminated. He stated that this is good news if part-time jobs are being converted into full-time jobs. However, he does add that there is no way of knowing if this is the case. If the part-time jobs are simply disappearing, then it’s a bad sign , particularly for areas that use part-time help, such as the service industry. The number of self-employed people decreased by 27,000 in September but jobs in the private sector rose by 44,000- which likely means that people are switching from being their own boss to getting a new boss. Alberta has the lowest unemployment rate in the country. Jobs are a plenty but only if you are skilled. Labour Minister Murray Smith announced that Alberta is experiencing a shortage of workers in the plumbing and pipefitting fields. He also stressed that skilled people in high-tech industries with computer kills might not experience difficulty finding work in the Alberta job market. The Minister also advised that anyone considering relocating to Alberta should research the labour market prior to traveling to the province. Housing is also in short supply. Graduates of Northern College’s welding engineering technology program are among the most sought after post-secondary graduates in Ontario. The head of the program stated that 95% of last year’s graduating class found employment in the welding industry. However, many of those jobs were in Southern Ontario. A casino update: As reported in previous newsletters, the provincial government awarded the casino operation to an American firm, CHC International. The company is in the process of contacting community leaders in the area in an effort to establish the facilities. Sites have not as yet been negotiated. The government has stipulate that the casino must be located within 40 kilometers of Sudbury. Sudbury city council has voted against having the facility located in the city limits, while Rayside-Balfour welcomes the casino. Don Ohlgren, owner of the Klondike casino is negotiating with the new casino operators to hire his 200 staff as the awarding of the contract to the American company effectively puts him out of business. The new casino is expected to be operational by April 1, 1998. E.B. Eddy is up for sale. Presently the company is owned by George Weston Ltd. It is anticipated that shares in the company will be up for grabs by November. As the company reported $900 million in sales for 1996, and financially they are doing well, it appears to be a good time to sell the company. Regional politicians are asking the province for $79 million to pay for the construction of a new water treatment plant on the south shore of Lake Wanapitei . Mining The immediate crisis for Inco in the development of Voisey’s Bay involves the construction of a road to the Labrador deposit and an airport. The long standing issue is native land claims. It now appears that there is some movement on the native land claim issue as the Inuit and the federal and provincial governments have reached an agreement on the outline of a land claim settlement. The Innu were disappointed that the Inuit negotiated without their participation. In effect, the governments were successful in breaking the alliance between the two groups of aboriginal peoples. Another aspect of the tentative agreement worked out in Ottawa is that Newfoundland will reap some wealth from Voisey’s Bay. Inco announced that exploration in the vicinity of the Copper Cliff South Mine has located new areas of mineral deposits. The company reported that significant ore reserves including platinum, gold, nickel and copper were found near existing mines at it’s Sudbury operations. Drilling will continue at these sites for some time before the company makes plans for further development. Inco is planning to build an open pit mine in Wismer Township, 10m kilometers north of Val Therese. Cottagers are worried that the operation will have damaging effects on the environment. Much of the wooded area near Joe Lake, a recreational area for Valley East residents, has been cleared by Inco and part of the surrounding wetlands have already been filled. The strike this summer at Falconbridge Mines cost the company $18 million, according to the company’s third quarter financial report. The company, however, still reported earnings of $23.5 million during this period. For the same period last year, the company reported earnings of $88.7 million. Not only was production in Sudbury affected by the strike, but the company’s refinery in Norway suffered as well. Lack of feed from the Sudbury operation meant that the refinery was operating well below capacity. Falconbridge expects to increase nickel production in Canada by 50%. They are planning to achieve this goal by bringing it’s Northern Quebec production facilities, Raglan , to full production by the end of the year and continue to develop it’s Lockerby Mine to full capacity by next year. A new initiative has been undertaken in the Sudbury area in the hope of making the Sudbury region a world centre for mining innovation. The Mining Innovation, Rehabilitation and Applied Research Corporation is looking to marry research facilities such as Laurentian University, and Cambrian College with the practical expertise and application from industry and the marketing ability of business. The Sudbury Regional Development Corporation hopes to locate the facility at the Willet Green Miller Centre on the Laurentian University campus. Among the benefits of the establishment of this operation are the retention of mineral exploration expertise in the area, increased employment for the local population and subsequent spin-off, increased enrollment for Laurentian University and providing the mining industry with access to improved research infrastructure. The production of nickel and copper by Inco and Falconbridge still dominate the mining activities in the Sudbury area, according to resident geologist Wilf Meyer of Ontario Geological Survey. In 1996, both mining companies operated 17 underground mines and 1 open pit mine. Trends in mining are rapidly changing. With the arrival of technology in the mining industry, a career in engineering becomes a practical choice for those with talents in math and science. This year, enrollment in Laurentian University’s School of Engineering saw a20% increase and there was a 25% increase in the number of women enrolling in the first year program. Prerequisites for engineering include OAC credits in chemistry and physics, and three OAC math credits: calculus, algebra and finite mathematics. Construction The sod was turned on the West Bay Seniors Home in West Bay recently. Plans for the structure began over a year ago. In September, the Ministry of Health gave $430,000 in support while the additional $1.1 million required was contributed by West Bay First Nations itself. Don Scott, president of Pioneer Retirement Village Association, announced that he expects construction to begin on the downtown complex within the next three weeks. The complex is an ambitious plan that would eventually see the development of a non-profit, self-contained complex with 380 housing units for seniors. The first stage of the project will be 20 semi-detached homes on Lourdes Street, property supplied by the City of Sudbury. Subsequent stages will realize the completion of apartments and nursing-home level beds. A $91,701 project to reconstruct Claire Street in Rayside-Balfour is ready to start. Funding for the project is coming from the town of Rayside-Balfour and Ontario Infrastructure Works program. In an effort to revitalize the downtown core, a local businessman, an architect, and a building contractor have teamed up to renovate two nearly vacant office towers in the downtown area into residential buildings. Renovations to the buildings at 127 Cedar Street and 128 Larch Street are expected to begin in January. Construction has begun on the 30,000 square foot Future Shop, one of the country’s largest electronic retail chains, in the New Sudbury Shopping Centre. It is expected to open in the spring of 1998. Lay-Offs and Re-engineering In November, E.B. Eddy Forest Products Limited in Nairn Centre will cut one shift at its small log mill and will also cut some staff on another shift at the planer mill. The downsizing is a cost cutting exercise that will affect approximately 40 employees. Tele-Direct (Publications) Inc.’s Sudbury office will be downsized from a 20 person workforce to 1 clerk, a manager and 5 representatives who will remain in Sudbury but will work from their homes. Four of the eight telephone representatives are relocating to Tele-Direct’s Etobicoke’s office, one retired, one was promoted to the Peterborough operation while one has not as yet made a decision and one employee still under probation, was laid off. Two clerks opted for relocation and three managers retired. On the Down Side In light of a study undertaken by the Canadian Council on Social Development, Canada’s public sector workers have issued a call for action. Most of the new jobs being created are in small and medium-sized businesses that pay lower wages, have no pensions, fewer benefits and are often only part-time, according to the study. The study confirms what people believe to be true - and that is that the impact of the downsizing of governments has been devastating, for families, for communities and for local economies. Between 1992 and 1996, 121,000 jobs were lost in the public sector in Canada while 694,000 were created in the private sector and 266,000 more people became self-employed. But the jobs were far from equal. the study indicated that public sector workers earned an average of $19.38 an hour compared to $13.85 in the private sector. Before policy makers laud the savings realized by cut-backs in jobs, closer attention should be paid to the long term effects of some of the other costs, such as the cost of mental and physical health problems as a result of long term unemployment. According to a study which used figures from Statistics Canada, women and youth have been dealt the most severe blows by public sector cuts. While many women formerly employed in the public sector are now earning less than $10 an hour, more than 200,000 youth have been cut from the public service payroll in recent years. Interest rates are on the rise. The Bank of Canada increased prime lending rates early in October in an effort to control inflation. As the rate increase was only 1/4%, the Bank of Canada does not expect that this will have any impact on the consumer’s purchasing power. Labour Disputes and Unrest Seventeen unionized employees at CHNO, CJMX, and CHYC ( Pelmorex Radio Inc. ) are on strike and the main issue is job security. Since the company came to Sudbury in 1990, staff at the broadcasting centres have been reduced to 17 from 58. In an effort to put pressure on Palmorex, the union representing 17 striking workers launched a letter campaign encouraging businesses that advertise with the broadcasting company to pull their business until the strike is settled. Management is running the operation during the dispute. Teachers in the area hit the streets in an illegal strike to protest Bill 160 which, among other things, is expected to cut millions from the education budget. Many working parents were left scrambling for day care when the teacher’s announced they putting up pickets. The provincial government announced that up to $40 per day would be available to assist parents in need of child care. An injunction is being sought by the province to get the teachers back into the classroom. The judge in the case ordered teachers and the government to talk again before deciding on the issue. the strike may not be as short-lived as initially thought. Based on teachers’ salaries alone, it is estimated that more than $1 million a week is being taken out of the local economy. Bus drivers, school crossing guards and teaching assistants have been laid off as a result of the strike. Strike pay and employment insurance benefits do not replace the lost wages to the community. On the Bright Side General Motors Corporation has awarded a multi-million contract to Metex Manufacturing of Sudbury to produce engine components for it’s line of diesel locomotives to be assembled at GM plants in Chicago and southern Ontario. Metex Manufacturing Ltd. specializes in the fabrication of steel and specialty metal products. It is best known as one of the contractors helping to construct the Sudbury Neutrino Observatory. Primarily the company has relied heavily on the mining industry but this contract will help offset the cyclical demands of the mining industry. The contract will result in the creation of 10 new jobs. A study done by KPMG Canada Ltd. ranks the Regional Municipality of Sudbury in 13 place overall as a good place to do business. Sudbury was rated in third spot in Ontario. Among 20 Canadian cities, Sudbury’s labour costs were the lowest and labour costs account for 55% of business costs. Several areas of competitiveness were examined including initial investment cost, labour, transportation, electricity, transportation, telecommunications and corporate taxes. City council has adopted a telecommunications policy to take advantage of the 50 kilometers of high-speed fibre-optic cables and advanced switching installed by Sudbury Hydro Electric Commission. The Telecommunications Policy will see the city:
The Sudbury network is linked to the global network operated by AT and T. Bearskin Airlines is expanding service in the north. New connections in Sudbury will offer morning and evening service in either direction between North Bay and Sault Ste Marie, and Ottawa and Sault Ste Marie. There will also be four non-stop flights per day, instead of three, from Thunder Bay to the Sault and three flights instead of two, from Sudbury to Timmins. A Sudbury company, El-Equip, has won a contract to upgrade communications and management information for the state-owned Chinese coal mining industry. The Sudbury Chamber of Commerce’s Shop Local campaign kicked off with a bus tour to 10 unique businesses in the area to encourage people to shop in areas other than where they live. The 430 tour price for 9 hours of shopping included coffee, donuts, lunch , free samples and discount coupons. Local welfare numbers continue to decline. In September, the caseload was at 5,947 which was 345 fewer than the previous month and 25% lower than January 1995 when the numbers peaked at 8,000. Local welfare officials credit an improving economy in the Sudbury area for the decline. The 1997 Northern Lights Festival Boreal was the most successful financially in it’s 26 year history. The festival’s bank account is near the break-even point after many years in the red. New Businesses and Expansions Moose Mountain Fisheries, a new fish farm is currently raising 110,000 Arctic charr for fish lovers in Europe and Japan. The fish farm is located at the old Moose Mountain Mine site in Hutton Township. Twenty full-time jobs are expected to be created when the hatchery is in full operation. Country Quilter, a retail outlet offering supplies for the quilt maker opened last month on Falconbridge Road. No time or talent to produce your own heirloom? The Country Quilter will have it made for you once you decide on a pattern you like. CLN Industries of Capreol has been awarded a $500,000 contract which is renewable every two years, to fuel, repair, service and maintain VIA Rail’s Budd Car in Northern Ontario. This will result in the creation of 3 new full-time positions, bringing to 53 the number of employees at the shop. The Wool Basket, a retail outlet for knitters, opened in Garson in September. Knitting classes are also available at the store. A $1.5 million Shell petroleum plant, Wally Hyytiainen Fuels, opened in Walden with 16 employees. The Val Caron Walk-In Clinic opened in mid-September on Hwy. 69N, near the Dairy Queen. The Clinic will be open from 6:00 p.m. to 8:00 p.m. Monday to Thursday. Breadwinners, a deli-style sandwich operation opened on Notre Dame next to a Laundromat. Breadwinners also offers a take-out service. Great Earth Vitamins, a vitamin franchise, opened in the New Sudbury Centre. Threddz, a clothing retail outlet for people who want to dress like people in Beverly Hills 90210 or Melrose Place, opened in the City Centre Mall. Highlights From HRCC Sudbury Our 1997 Wage Book is now available in either hard copy or electronic format. Please contact the Labour Market Information Unit (fax and phone numbers below) if you would like a copy. A Youth Service Canada program got underway in October in West Bay. The 25 week program for 10 participants is designed for out of school, out of work youth to attempt to assist them to "get on their feet’. A total of 11 students graduated from the Youth Service Canada program at N’Swakamok Native Friendship Centre this month. The 26 week program ended on October 31, 1997. Another 11 Youth Service Canada participants graduated from the Community Regreening and Rehabilitation project sponsored by Better Beginnings Better Futures. The main focus of the project was to work on the regreening and rehabilitation of the Flour Mill /Donovan area of Sudbury. Fifteen young people originally started the program, however 4 found employment during the course of the project. C-Tech Specialty Systems will create 20 permanent new jobs as a result of $200,000 worth of funding from Human Resourses Development Canada’s Transitional Jobs Fund program. The industrial equipment operator, based in Rayside-Balfour, will also add two part-time jobs and at least 10 seasonal jobs. Great Earth Vitamins, franchise spécialisée dans la vente de vitamines, a ouvert ses portes dans le New Sudbury Centre. Editor’s Notes The above excerpts have been taken from the following newspapers:
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. Contributions to the "Community Corner" are always welcome. I can be reached at: (705) 670-6674 (phone) or (705) 670-6727 (fax). Yours in Partnership, Marilyn Prus Copyright © 1998
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