BAFFINLAND IRON MINES CORPORATION MARY RIVER PROJECT
Transcription
BAFFINLAND IRON MINES CORPORATION MARY RIVER PROJECT
BAFFINLAND IRON MINES CORPORATION MARY RIVER PROJECT 2014 SOCIO-ECONOMIC MONITORING REPORT March, 2015 Baffinland Iron Mines Corporation – Mary River Project BAFFINLAND IRON MINES CORPORATION MARY RIVER PROJECT SOCIO-ECONOMIC MONITORING REPORT TABLE OF CONTENTS SECTION 1.0 - INTRODUCTION ..................................................................................................... 1 SECTION 2.0 - POPULATION DEMOGRAPHICS .......................................................................... 4 2.1 PROJECT DATA .............................................................................................................. 5 2.1.1 Indicator: Employee Change-Of-Address ......................................................... 5 2.2 COMMUNITY & REGIONAL DATA .................................................................................. 6 2.2.1 Nunavut Population Estimates ......................................................................... 6 2.3 COLLABORATIVE DATA ................................................................................................. 7 2.3.1 Migration in a broader context .......................................................................... 7 2.3.2 Residency and Housing Survey ....................................................................... 7 SECTION 3.0 - EDUCATION AND SKILLS ..................................................................................... 8 3.1 PROJECT DATA .............................................................................................................. 9 3.1.1 Job Skills Training Delivered ............................................................................ 9 3.1.2 Transferable Training Certificates & Licenses .................................................. 9 3.1.3 Apprenticeship Contracts ............................................................................... 11 3.1.4 Literacy and Adult Education Upgrading ........................................................11 3.2 COMMUNITY & REGIONAL DATA ................................................................................ 11 3.2.1 Early Childhood Education ............................................................................. 11 3.2.2 School Attendance.......................................................................................... 11 3.2.3 Apprenticeships and Trades ........................................................................... 12 3.3 COLLABORATIVE DATA ............................................................................................... 12 SECTION 4.0 - LIVELIHOOD AND EMPLOYMENT ...................................................................... 13 4.1 PROJECT DATA ............................................................................................................ 14 4.1.1 Project Labour Demand and Supply of Labour ..............................................15 4.1.2 Labour Demand By Occupation ..................................................................... 16 4.1.3 Supply of Labour By Gender .......................................................................... 25 4.1.4 On-the-Job Social Context Experienced By Inuit Women ..............................26 4.1.5 Origin of Mary River Project Employees.........................................................27 4.1.6 Employment Status Prior to Project Engagement ..........................................27 4.1.7 Employment Continuity, 2013 to 2014............................................................ 28 4.1.8 Hours Worked Per Employee ......................................................................... 32 4.1.9 Termination of Employment and Turnover Rates ...........................................35 4.1.10 Gender Analysis of Baffinland Employee Departures....................................37 4.1.11 Reasons For Termination .............................................................................. 38 4.1.12 Absenteeism .................................................................................................. 38 4.1.13 No-Shows ....................................................................................................... 38 4.1.14 Career Path Progression ............................................................................... 38 4.1.15 Location of Work in Nunavut .......................................................................... 38 i Baffinland Iron Mines Corporation – Mary River Project 4.2 4.3 4.1.16 Outlook for Inuit Employment......................................................................... 39 COMMUNITY & REGIONAL DATA ................................................................................ 40 COLLABORATIVE DATA ............................................................................................... 40 SECTION 5.0 - TOPICS OF GENERAL RELEVANCE .................................................................. 41 5.1 REGIONAL DISTRIBUTION AND CUMULATIVE EFFECTS SUMMARY.....................41 5.2 UNANTICIPATED INTERACTIONS AND EFFECTS .....................................................41 5.3 IMPACT ASSESSMENT UPDATES .............................................................................. 42 5.4 ADAPTIVE MANAGEMENT ACTIVITIES AND GOVERNMENT INITIATIVES .............42 SECTION 6.0 - NEXT STEPS ........................................................................................................ 43 6.1 QUANTITATIVE MONITORING ..................................................................................... 43 6.2 QUALITATIVE AND “OUTCOME” MONITORING .........................................................44 6.3 SUPPORT FOR ASSESSMENT OF PROPOSED PHASE 2 ........................................44 ii Baffinland Iron Mines Corporation – Mary River Project LIST OF TABLES Monitoring Framework Summary ..................................................................................... 1 Tentative coverage of socio-economic reports ................................................................ 3 Population Demographics FEIS Summary ...................................................................... 4 Population Demographics ERP Amendment Summary .................................................. 5 Education and Training FEIS Summary........................................................................... 8 Education and Training ERP Amendment Summary ....................................................... 8 Training Delivered - 2013 & 2014 .................................................................................. 10 Livelihood and Employment FEIS Summary ................................................................. 13 Livelihood and Employment ERP Amendment Summary .............................................14 Major Mary River job categories classified by their major NOC grouping ...................18 Labour Demand And Supply Profile, By Occupational Group And Skill Level ............21 Mary River Project Labour Force Profile - Beneficiary Status & Gender, 2014 & 2013 ............................................................................................................................ 26 Table 13 Origin of Mary River Project Employees, 2014 ............................................................ 27 Table 14 Hires and Departures in the Baffinland Inuit workforce, 2014 .....................................36 Table 15 Location of Work Carried Out by Mary River Project Personnel ..................................39 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 iii Baffinland Iron Mines Corporation – Mary River Project LIST OF FIGURES Known Migration of Mary River Employees, 2013 through 2014 ................................... 6 Inuit Training Intensity, 2014 ......................................................................................... 11 Monthly Hours of On-Site Labour Demand and Supply, 2013 & 2014 ........................16 Monthly Demand and Supply, 2013 & 2014 ................................................................. 17 Continuity of Employment by Hours Worked All Inuit, 2013 to 2014 ............................29 Continuity of Employment by Hours Worked By Gender Inuit, 2013 to 2014 ...............30 Continuity of Employment by Hours Worked In Three Job Categories NOC 67, NOC 75, and NOC 76, 2013 to 2014 .......................................................................... 31 Figure 8 Duration of Employment By Beneficiary Status and Gender, 2014 and 2013 ..............33 Figure 9 Hours of Labour Supplied Per Employee, By Skill Level and Beneficiary Status, 2014 and 2013 ............................................................................................................ 34 Figure 10 Hours Worked Per North Baffin Inuit and Southern Non-Inuit Employees In Several Common Jobs, 2014 ...................................................................................... 35 Figure 11 Inuit Departures From BIMC Employment, By Seniority Of Employment (2014) ......37 Figure 12 Approach To Evaluating FEIS Predictions .................................................................. 45 Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 iv Baffinland Iron Mines Corporation – Mary River Project INTRODUCTION SECTION 1.0 - INTRODUCTION The focus of the Mary River Project in 2014 was on construction of infrastructure required to support year-round activities. Following receipt mid-year of the amended Project Certificate, activities encompassed construction of facilities needed to operate the Early Revenue Phase. This is the second annual monitoring report on socio-economic effects of the Mary River mining project, prepared by Baffinland Iron Mines Corporation (BIMC, or “Baffinland”) in collaboration with the Mary River Socio-Economic Monitoring Working Group (MRSEMWG, or the “Working Group”), as set out in the terms of reference prepared in 2012 by the Working Group. As with the first report, these terms of reference are once again attached as Appendix A to this report. This report is presented to the Nunavut Impact Review Board for review and is a public report. As established in its terms of reference, the Working Group partners agreed that understanding the complex interactions between the human environment and the Mary River Project requires collaboration. Baffinland is best able to collect and provide data on direct outputs such as employment and contracting. Government of Nunavut and Government of Canada are best able to report on the broad range of socio-economic indicators describing outcomes of the Project in the broader context of factors affecting households, communities, and the territory as a whole. Qikiqtani Inuit Association is best able to provide information related to Inuit land use and culture at the community and regional level. Contribution of the Socio-economic Report to FEIS Monitoring Framework FEIS Section 15, Volume 4 set out a framework for socio-economic monitoring that encompasses all of the areas considered during the environmental assessment process. This framework identified six monitoring functions (numbers 1 to 6 in Table 1, below). To these have been added two additional functions—surveillance to identify interactions not anticipated during the EIA process, and updates to the FEIS should data arise through the monitoring program that warrants reconsideration of FEIS impact assessment determinations. The socio-economic report will be the forum where five of these eight functions will be addressed as appropriate. Table 1 Monitoring Framework Summary Monitoring Function Where This Function Is Addressed 1. Monitor Inuit participation and IIBA implementation IIBA Report 2. Provide data on indicators that affect Project performance Socio-economic Monitoring Report 3. Support community, regional and territorial monitoring initiatives Socio-economic Monitoring Report 4. Contribute to understanding of socio-economic processes Socio-economic Monitoring Report 5. Support planning of government initiatives and Baffinland adaptive management activities Socio-Economic Working Group Meetings 6. Support compliance monitoring Archaeology Report 7. Surveillance to identify interactions not anticipated during EIA Socio-economic Monitoring Report 8. Update the FEIS as new data arises through monitoring Socio-economic Monitoring Report Brubacher Development Strategies Inc. 1 Baffinland Iron Mines Corporation – Mary River Project INTRODUCTION Focus of the 2014 Mary River socio-economic monitoring report The focus of this second report follows the structure and content of the first report. Emphasis is again on the “direct outputs” of the Project—numbers of people hired, training provided, and employees who have relocated. With two years of data now available, this report introduces a comparative dimension, particularly in relation to employment. Several tables from 2013 are reproduced here to support comparison. A new section on “continuity of employment” has been added. The aim in considering 2014 data in relation to 2013 is to identify any “below-the-surface” developments in the Project labour force that may express later as changes in the “headline” indicators. For example, as will be seen in the headline employment indicators, the Inuit labour force contributed 20% of the hours worked in both 2013 and 2014. This may not, however, mean that labour force characteristics are the same in 2014 as they were in 2013. The exploration of data from both years presented in these sections is intended to draw some insight into the labour force dynamics going on below the surface. In this context we are seeking to determine whether the Inuit labour force is moving toward a stable or volatile state with respect to provision of labour to the Project. Future reports It is expected that outcomes from direct project outputs such as training and employment will soon begin to emerge. For example, has the employment of 300 individuals from North Baffin communities had any tangible effects on individual well-being, on families, on community life, or on the local economy of these communities? Planning to initiate outcome monitoring is addressed in the “Next Steps” section toward the end of the report. The earliest integrated effects / outcome data is anticipated be incorporated into the 2015 report. Subsequent report topics will be identified as needed. Table 2, sets out the expectation for the focus of future socio-economic reporting, as proposed in the 2013 report. This scheduling will evolve as the Working Group considers each report as it is delivered. The tentative schedule, nonetheless, illustrates how BIMC’s reporting of direct project effects on five valued socio-economic components (VSECs) will be supplemented with collaborative data from Working Group partners in order to address the more complex VSECs. Organisation of this report This report is organised into six sections. Following this Section 1 Introduction, Sections 2, 3, and 4 present data related to three VSECs—Population Demographics; Education and Skills; and, Livelihood and Employment. The indicators presented within these sections encompass, respectively: migration of employees; training; and, employment. Each of these “VSEC sections” is structured to accommodate data from three sources. The first sub-section presents project-generated data related specifically to the Mary River Project. This is followed by a “community and regional data” sub-section where data from government partners can be presented to provide context to the project-specific data. As noted earlier, for these first reports there is little of this contextual data available. Nonetheless, the structure is introduced here in order to support future reporting. Should such data not be considered necessary by Working Group partners, this section may be omitted from future reports. Brubacher Development Strategies Inc. 2 Baffinland Iron Mines Corporation – Mary River Project INTRODUCTION Table 2 Tentative coverage of socio-economic reports VSEC 2013 Report 2014 Report 2015 to 2017 Reports 2018+ Reports (primary source of data) Population Demographics BIMC BIMC Collaborative as needed Education and Skills BIMC BIMC Collaborative as needed Livelihood and Employment BIMC BIMC Collaborative as needed Economic Development and Self-Reliance -- -- Collaborative as needed Human Health and Well-Being -- -- Collaborative as needed Community Infrastructure and Public Services -- -- Collaborative as needed Contracting and Business Opportunities -- -- BIMC as needed Cultural Resources 1 BIMC BIMC BIMC BIMC Resources and Land-Use -- -- Collaborative as needed Cultural Well-Being -- -- Collaborative as needed Benefits, Royalty, and Taxation -- -- Collaborative as needed Government and Leadership -- -- Collaborative as needed Source: As proposed in the 2013 Monitoring Report. A third sub-section, “collaborative data” is also included, again mostly for future use. Where appropriate, reference is made in these sub-sections to indicators and data that may be particularly useful in understanding the relevance and meaning of the project-specific data. These commentaries are intended not only to alert readers to the shortcomings of the picture generated by project-specific data but also, and more importantly, to provide guidance as to where data available from Working Group partners such as the territorial government might be most useful. Section 5, presents a discussion of several topics that are relevant to any or all of the VSECfocused monitoring initiatives. These topics include how effects are distributed and accumulated socially, spatially, and temporally; a reporting of any interactions that were not anticipated in the FEIS or ERP Amendment; any updates to the impact assessment findings that new data may require; and, finally, any examples of how management responses have adapted to the effects highlighted in the monitoring program. A final section, Section 6, presents suggestions to the Working Group related to data collection and focus for the next monitoring report. 1 Cultural Resources are reported through Baffinland’s archaeology reports, not in the Socio-Economic Report. Brubacher Development Strategies Inc. 3 Baffinland Iron Mines Corporation – Mary River Project POPULATION DEMOGRAPHICS SECTION 2.0 - POPULATION DEMOGRAPHICS Headline: Numbers of movement and migration events remain low and in-line with assessment predictions. Early in the project, movement and migration direction is “out from” rather than “in to” North Baffin. Iqaluit experienced modest in-migration from North Baffin and modest outmigration to, and in-migration from the south. The main focus of the impact assessment with regard to Project effects on demographics was to address the question, “Will demographic changes brought about by the Project be large enough to affect the fabric of LSA communities?” 2 Anticipated effects on North Baffin communities were assessed, with further discussion of effects on Iqaluit and implications for housing considered as Subjects Of Note. The following tables summarise the assessment conclusions from the FEIS and ERP Amendment. For the purpose of this report, data is presented for movements of employees engaged at Mary River. Overall migration trends between North Baffin, Iqaluit, and other parts of Canada require collaborative data from sources outside Baffinland Iron Mines Corporation are not addressed for 2014. Table 3 Population Demographics FEIS Summary VSEC Key Indicator(s) Potential Effect(s) In-migration of a small number of workers from south will have effect on the demographic makeup of communities Population demographics Demographic stability Migration of non-Inuit Project employees into the North Baffin LSA Migration of non-Inuit into North Baffin for indirect jobs Inter-community Inuit migration Mitigation Measures Designation of North Baffin communities as “Point of Hire” (Arctic Bay, Clyde River, Hall Beach, Igloolik, and Pond Inlet) Iqaluit and a southern hub are also designated “Point of Hire” Free transportation from “Point of Hire” to Mine Site Residual Effect(s) Significance Rating In-migration of a small number of workers from south or other Nunavut communities will have effect on the demographic makeup of communities Not significant Out-migration from the North Baffin 2 Section 2.3, Volume 4, FEIS. “LSA” refers to the Local Study Area—in this context the LSA encompasses the five North Baffin communities of Hall Beach, Igloolik, Arctic Bay, Pond Inlet and Clyde River plus Iqaluit. Brubacher Development Strategies Inc. 4 Baffinland Iron Mines Corporation – Mary River Project POPULATION DEMOGRAPHICS Table 4 Population Demographics ERP Amendment Summary Valued SocioEconomic Component Population demographics Key Indicator(s) Demographic stability Changes to Project Interaction(s) Changes to Residual Effect(s) In-migration effects may be modestly increased with increased scale of operations employment. No change Change in Environmental Assessment No change Significance Rating (bold if changed from FEIS) Not significant Out-migration from the LSA is not expected to change since the level of local employment is unchanged. 2.1 PROJECT DATA 2.1.1 Indicator: Employee Change-Of-Address The FEIS predicted that “the magnitude of out-migration from the North Baffin is expected to be of moderate magnitude, occurring at intermittent frequency throughout the life of the Project.” For outmigration from North Baffin, 5% of a community’s population was suggested as the threshold between “medium magnitude” and “high magnitude” effects. This would equate to between 35 and 70 individuals depending on the size of the community. Movement of more than 300 individuals across the North Baffin would be required to reach this threshold. For a small community the 5% threshold might be achieved by as few as five (5) individuals moving away if they had larger families. Potential movers were identified by looking at changes of “final destination” from the Baffinland travel management system 3, combined with anecdotal data provided by Baffinland sources. This data is presented in Figure 1 and includes the cumulative movements of employees from Project initiation in 2013 to the end of 2014. During the first two years, more than five and fewer than ten individuals engaged in the Mary River Project moved from North Baffin communities to Iqaluit. A smaller number moved from Iqaluit to North Baffin communities. Moves between Iqaluit and Ottawa and Iqaluit and other Canadian communities did occur but were inconsequential in terms of demographic effect—fewer than five in each instances. In addition to the inter-regional movements identified below, a small number of intra-regional moves also occurred. Movements from community-to-community within the North Baffin region are of potential interest, given the constraints that housing has on labour force mobility. To date however, these movements have been limited—involving fewer than five individuals. 3 The travel management system (TMS) is used to coordinate travel and accommodation for all individuals coming and going from the site. As such it encompasses everyone passing through at any time during the year. Brubacher Development Strategies Inc. 5 Baffinland Iron Mines Corporation – Mary River Project POPULATION DEMOGRAPHICS Figure 1 Known Migration of Mary River Employees, 2013 through 2014 Source: Baffinland administrative data and key person sources compiled by Doug Brubacher, January 2015. Numbers indicate employee moves. Other family members moving with the employee would add to the total migrants. Note the levels of “<5” is set to provide confidentiality while maintaining adequate sensitivity to provide insight into demographic effects. 2.2 COMMUNITY & REGIONAL DATA 2.2.1 Nunavut Population Estimates Population numbers presented by the Government of Nunavut (GN) during the May 2014 QiSEMC meeting show a five-year population growth rate (2007 to 2012) across the Baffin Region that is similar to growth rates of other regions of the territory. Growth in the non-Inuit population over this period was highest in the Kitikmeot Region, with Baffin Region non-Inuit population growth being similar to the territorial level. 4 4 Population data is available from the Nunavut Bureau of Statistics web page and also in the QiSEMC report Appendix C, at http://ftp.nirb.ca/03-MONITORING/REGIONAL%20SEMC/QIKIQTANI/140526-Qikitaaluk%20Fall%20Stats-IA1E.pdf Brubacher Development Strategies Inc. 6 Baffinland Iron Mines Corporation – Mary River Project 2.3 COLLABORATIVE DATA 2.3.1 Migration in a broader context POPULATION DEMOGRAPHICS As noted in the first socio-economic monitoring report, project-specific migration data in isolation from the broader migration picture does not provide for understanding how the Project is influencing migration in the region. It is not known if the small numbers of out-migrants noted are higher than they would be without the Project or if, in fact, they are lower than they would be without the project. Plausible explanations could account for either scenario. Contextual data on out-migration and inmigration between North Baffin, Iqaluit, and the rest of Canada would be needed to support interpretation. Broader insight into migration flows can be derived by government from administrative data such as annual tax files, should the need to better understand migration arise. While such analysis has not been presented to the Working Group, it would support understanding of the Project migration data in the broader context of demographic changes taking place across the Baffin Region. 2.3.2 Residency and Housing Survey It is noted once more that Baffinland has designed an on-line “residency and housing” survey, presented to the Working Group in the spring of 2013. This survey has not been implemented by the collaborative monitoring partners. It would require a broad sample of respondents from multiple employment situations in order to generate meaningful results. Brubacher Development Strategies Inc. 7 Baffinland Iron Mines Corporation – Mary River Project EDUCATION AND SKILLS SECTION 3.0 - EDUCATION AND SKILLS Headline: Following the early 2013 focus on work-readiness training across the North Baffin labour force, training in the later part of 2013 and throughout 2014 focused on job-specific requirements, general induction, certification, and assessment components. The impact assessment focused on Project effects on two key indicators: lifeskills; and, education and skills. The assessment questions were, respectively, Will the Project lead to a noticeable change in the life skills of a substantial number of individuals?, and, Will the Project substantially increase or decrease education and skill levels of residents of the LSA? The following tables summarize the assessment conclusions from the FEIS and ERP Amendment. Table 5 VSEC Education and Training FEIS Summary Key Indicator(s) Potential Effect(s) Mitigation Measures Residual Effect(s) Significance Rating Work readiness training Life skills Improved life skills amongst young adults Supportive work environment Employee and family assistance program Improved life skills amongst many LSA residents Significant positive “No drug, no alcohol” policy Minimum age of 18 yrs for Project employment Education and training Education and Skills Incentives related to school attendance and success Opportunities to gain skills Career planning Priority hiring for Inuit Upgrading opportunities Summer experience Incentives related to school attendance and success Significant positive Opportunities to gain skills Career counselling Training Table 6 Valued SocioEconomic Component Education and Training ERP Amendment Summary Key Indicator(s) Life skills Changes to Project Interaction(s) No change Education and training Education and Skills Brubacher Development Strategies Inc. No change Changes to Residual Effect(s) Negligible change to effects since the level of local employment (the source of interactions with life skills) is unchanged. Effects on education will be the same. Training program will be similar, with likely addition of haul truck training. Change in Environmental Assessment Significance Rating (bold if changed from FEIS) No change Significant - positive No change Significant – positive 8 Baffinland Iron Mines Corporation – Mary River Project EDUCATION AND SKILLS The assessment questions imply effects that will become evident over time and that are complex by their nature. At this point, only “output” data can be presented—types of training provided, numbers of people trained, and so forth. Data collected through community & regional monitoring and through collaborative monitoring efforts will eventually be needed in order to address the outcomes of these initiatives and the broader effects of the Project on lifeskills, education, and skills across the LSA population. 3.1 PROJECT DATA 3.1.1 Job Skills Training Delivered Job skills training was initiated during the fourth quarter, 2013 and was delivered on-site at the Mary River Project. A summary of these training activities is provided in Table 7, below. In addition to cultural awareness training, a two-hour orientation and induction program was mandatory for all employees working on site. Other training was job-specific, as described in the tables. In order to provide some sense of the focus of the training program, the various training activities have been grouped into several broad categories and the average hours per trainee calculated. These are presented as the “pie chart” in Figure 2, following the table of raw data. Since different positions call for different training packages, the presentation is not representative of the training that any particular individual will have received. For example, only one individual received the 24-hour Supervisory Training program, while everyone on site received Induction / Compliance training. The presentation may, though, be helpful in visualising the relative importance of various components of the training program. It is apparent from this chart that an emphasis has been placed on Health & Safety training and adherence to various Operational Procedures. Not every individual receives all the programs within these categories, so the average “hours-per-trainee” here are notional only. For the seven individuals involved, Spill Response also received substantial training investment of time, at 24 hours per trainee. Training to enhance job-specific skills in comparatively modest. An average of three hours of training in the operation of mobile equipment was provided for 36 Inuit. Another 135 Inuit experienced equipment operators and tractor-trailer drivers received an average of 6.5 hours of assessment and training. 3.1.2 Transferable Training Certificates & Licenses Standard First Aid with CPR Level “C” certificates, valid for three years, were issued to participants who successfully completed the sixteen (16) hour standard first aid / CPR course. A total of 28 Inuit were amongst those receiving this training in 2014. Combined with 2013 training this program will have provided a total of 45 Inuit with this certification. Brubacher Development Strategies Inc. 9 Baffinland Iron Mines Corporation – Mary River Project Table 7 EDUCATION AND SKILLS Training Delivered - 2013 & 2014 Source: Data provided by Baffinland (Robert Barnett), February 2, 2015. Note: Addresses Project Certificate T&C 132. Brubacher Development Strategies Inc. 10 Baffinland Iron Mines Corporation – Mary River Project EDUCATION AND SKILLS Figure 2 Inuit Training Intensity, 2014 Source: Derived from training data presented above. 3.1.3 Apprenticeship Contracts Steps to set up an apprenticeship program have been taken in 2014. No apprenticeship contracts with Nunavut residents were initiated by the end of 2014, however. 3.1.4 Literacy and Adult Education Upgrading Adult education upgrading / literacy was not initiated in 2013 or 2014. 3.2 COMMUNITY & REGIONAL DATA 3.2.1 Early Childhood Education The socio-economic baseline prepared to support assessment of the Mary River project included data showing early childhood education programs across North Baffin communities. This indicator has not been adopted by the GN in its presentations to the Working Group or to the QiSEMC. 3.2.2 School Attendance During the most recent meeting of the QiSEMC in May 2014, the GN presented a ten-year timeline showing high school attendance rates and numbers of graduates for each community across Nunavut. Attendance rates indicate the proportion of all enrolled individuals who actually go to school. The indicator is a ratio of those who are “present” plus those who are “late” or who “leave early” divided by the total number of students enrolled in school. Brubacher Development Strategies Inc. 11 Baffinland Iron Mines Corporation – Mary River Project EDUCATION AND SKILLS Attendance in Baffin Region schools appears to have declined somewhat over this ten-year period—from nearly 75% over the 2001/02 school year to 69% in 2010/11 school year. There is, however, considerable variation across communities and from year-to-year. 5 School attendance across the North Baffin appears to be slightly lower than the territory overall. Expected trend: The FEIS predicted that the Mary River Project will increase the “opportunity cost” of dropping out of school, thereby creating an incentive for youth to complete high school. It is a reasonable expectation that an increased valuing of education generally would be reflected in higher attendance rates. This effect would be expected to emerge over a medium time frame. Future socio-economic reports may detect trends to support or refute this expectation. 3.2.3 Apprenticeships and Trades As presented in the following chapter, one-third (36%) of all work performed at Mary River in 2014 fell into the construction and maintenance trades areas. Only 2% of this work was performed by Nunavummiut. Several indicators related to development of trades capacity will be of value in understanding how Nunavut residents may be positioning themselves to access jobs at Mary River: 3.3 • Number writing and number passing trades entrance exams, by trade; • Number of individuals registered in construction / industrial trades apprenticeship positions; • Number of qualified tradespeople registered in communities. COLLABORATIVE DATA Understanding the contribution of job-readiness training, on-the-job skills training, literacy and adult education to development of labour force capacity across North Baffin communities will benefit from reporting of similar indicators by other major employers such as the Government of Nunavut. 5 Education data is available from the Nunavut Bureau of Statistics web page and also in the QiSEMC report Appendix C, at http://ftp.nirb.ca/03-MONITORING/REGIONAL%20SEMC/QIKIQTANI/140526-Qikitaaluk%20Fall%20Stats-IA1E.pdf The GN notes that these rates are estimates and should be “used with caution.” Brubacher Development Strategies Inc. 12 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT SECTION 4.0 - LIVELIHOOD AND EMPLOYMENT Headline: As labour demand at the Project doubled in 2014, Nunavummiut stepped up to double their hours of labour. Once again this component accounted for 20% of total work performed over the year. A year-over-year turnover rate of 37% was experienced within the Inuit component of the Mary River Project workforce. Turnover was much lower amongst equipment operators than amongst those engaged in lower-skilled positions. Hours worked per employee fall well short of full-year employment for most employees. For at least the lower one-quarter of these workers this short fall seems to be independent of Project labour demand. For these employees work availability appears not to be the critical factor limiting employment. The 2014 monitoring program continues the 2013 focus on descriptive employment characteristics: “How much work was done at the project and who did it?;” “What sorts of occupations were drawn upon and what occupations did Inuit fill?;” and, “How consistently are Inuit employees maintaining their engagement with the Project?” In addition, the 2014 report begins to touch on the issue of Inuit labour force capacity and capacity development by looking at early data related to career progression. This monitoring focus relates to the impact assessment considerations of the three key indicators of job creation; local employment; and career path (see tables below). Table 8 Livelihood and Employment FEIS Summary VSEC Key Indicator(s) Wage Employment Potential Effect(s) Mitigation Measures Residual Effect(s) Significance Rating Creation of jobs in the LSA Employment of LSA residents LSA points of hire Recruitment strategy Inuit hiring policy Management commitment Creation of jobs in the LSA Employment of LSA residents Significant positive New career paths Individual career support Inuit hiring / promotions policy Management commitment Expanded employment and career development options Significant, positive Livelihood and Employment Job Progression and Career Advancement Brubacher Development Strategies Inc. 13 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Table 9 Livelihood and Employment ERP Amendment Summary Valued SocioEconomic Component Livelihood and Employment Key Indicator(s) Changes to Residual Effect(s) Change in Environmental Assessment Significance Rating (bold if changed from FEIS) Job creation Addition of ore haulage and Milne Port operations positions More jobs will be created but the level of job creation will still be of high magnitude relative to the LSA labour market baseline No change Significant - positive Local employment No change since there will still be more demand than the local labour force can supply No change since available jobs are expected to exceed local supply capacity No change Significant – positive Addition of ore haulage as an option and a step in career path A slight increase in the diversity of career paths will occur with addition of road haul jobs. However, this is only a minor increase in what was already a major expansion in career paths introduced to the local labour market. No change Significant – positive Career path 4.1 Changes to Project Interaction(s) PROJECT DATA Employment Data Summary (2013 to 2014) 2013 • • • • • 863,177 hours of labour performed by 1,593 individuals. 291 Inuit supplied 174,365 hours. Peak of 452 employees on-site. Peak Inuit fly-in/fly-out labour of 31,500 hours per month performed by a peak of 99 Inuit. More than half of all work carried out in 2013 involved Skill Level B occupations, largely in the construction trades, maintenance trades, and technical & professional areas. Skill Level C occupations, particularly equipment operation, accounted for one-quarter of all work. Only 12% of work involved Skill Level D labour. Inuit provided 82% of Skill Level D labour and one-third of Skill Level C. Less than 10% of project demand for Level B and higher skills was filled by Inuit. • • 2014 • • • • • 1,867,882 hours of labour performed by 2,432 individuals. 414 Inuit supplied 379,606 hours. Peak of 605 employees on-site. Peak Inuit fly-in/fly-out labour of 38,360 hours per month performed by a peak of 112 Inuit. Allocation of Project labour in 2014 was very similar to that of 2013, though a slightly higher proportion of total labour fell into Skill Level C (29%, up from 25% in 2013) and a slightly lower proportion was allocated Level B positions. Skill Level A and D positions continued to account for roughly 10% each of total jobs. Inuit supplied 87% of Skill Level D labour and one-third of Skill Level C. Less than 10% of Project demand for Level B and higher skill positions was met by the Inuit labour force. 522 Inuit have worked at the Project since 2013, with 186 working during both years. 228 Inuit recruited in 2014 had not worked at the Project in 2013. Substantial differences in continuity of Inuit employment can be seen between different occupational categories. Brubacher Development Strategies Inc. 14 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Source: Labour force data for BIMC and Contractors was derived by Doug Brubacher from daily site roster “Actual Master” file provided by Site Administration on September 10, 2014 and January 5, 2015. Numbers in this summary were extracted from a working version of the data set on March 7th, 2015. The following data provides a description of the amount of work performed, types of occupations involved and, at a very high level, the skill levels typically associated with these occupations. In the absence of the broader picture that economy-wide data provides, Project specific data does not provide insight into the scale of project employment in relation to the local economy. FEIS predictions of labour market effects used baseline data from the FEIS Appendix 4A SocioEconomic Baseline Report, 2010. 4.1.1 Project Labour Demand and Supply of Labour • • • The Inuit labour force demonstrated a capacity to double its supply of labour to the Project in response to increased demand. Most of this increased supply is attributable to improved consistency in demand month-over-month—i.e. although annual supply doubled, the peak hours supplied by Inuit increased by only 22%. Actual demonstrated annual labour supply by Inuit was 379,606 hours, of which 281,679 hours was provided by Inuit residents of North Baffin. The FEIS supply potential, based on earlier bulk sample peak Inuit employment, was estimated to be 342,000 hours, with 230,000 hours from North Baffin. If the 2014 demonstrated peak monthly supply of labour were to be sustained over a full year, the Inuit labour force would be capable of delivering 460,000 hours to the Project—surpassing the FEIS estimate by one-third. With its first full year of construction activity Project demand for labour in Nunavut doubled from 0.86 million hours in 2013 to 1.87 million hours this year. Over the year, Inuit provided a total of 379,606 hours of labour, roughly double the 174,365 hours supplied by Inuit in 2013. Most of this labour was performed on-site, with only 15,933 hours located in Nunavut communities. This section focuses on the fly-in/fly-out component of Project labour requirements, or “on-site labour.” Project demand for on-site, fly-in/fly-out labour in 2014 was more consistent month-over-month than in the previous year (see Figure 3 below). During 2013, monthly labour demand on-site ranged from a low of 4,296 hours to a high of 155,940 hours. Labour demand in 2014 ranged from 118,885 to 196,021 hours. This pattern is also reflected in fly-in/fly-out labour supplied by Inuit. During 2013, Inuit on-site labour ranged from zero hours to 31,500 hours. The range in 2014 was between 14,892 and 38,360 hours. The theoretical maximum Inuit labour supply level of 378,000 6 hours calculated from 2013 labour force performance data is based on demonstrated peak labour supply levels during that year. In 2014, the total on-site labour provided by Inuit from Baffin communities—346,698 hours—was within this estimated upper range. 6 A maximum supply level of 410,000 hours was used in the 2013 monitoring report. That number used segregated peak values for North Baffin and Iqaluit and also included Inuit labour provided in Nunavut communities. For the purpose of estimating maximum labour contributions, the 2014 report does not segregate peak values for different regions and includes on-site labour supply and demand only. Other 2013 “peak labour” data have also been re-estimated. Brubacher Development Strategies Inc. 15 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT This year, a peak demand of 196,021 hours of on-site labour was reached in September 2014. This is 26% higher than the November 2013 peak on-site demand of 155,940 hours. A peak level of 38,360 hours of on-site labour supplied by Inuit was achieved in August 2014. This represents a 22% increase from 2013 peak Inuit labour force contributions to Project labour needs on-site. The maximum labour contribution from North Baffin Inuit of 28,880 hours was also achieved in August. This is an increase of 22% from the 2013 peak North Baffin Inuit supply of 23,712 hours. Revised Inuit Labour Force Capacity Estimate If the 2014 peak supply levels were sustained over a full year, the Inuit labour force would be capable of supplying 460,320 hours of labour on-site, 27% higher than the 363,673 hours actually provided on-site during the year. The maximum contribution from the North Baffin Inuit labour force would reach nearly 346,560 hours if its peak contribution were to be sustained over a full year. Figure 3 Monthly Hours of On-Site Labour Demand and Supply, 2013 & 2014 Source: Labour force data including both Baffinland and Contractor employees was derived by Doug Brubacher from daily site roster “Actual Master” file. Data for 2014 was accessed in January, 2015 and integrated with data for 2013 that had previously been accessed to support 2013 monitoring. Analysis was performed in February and March 2015. 4.1.2 Labour Demand By Occupation This section makes reference to skill level categories that make up part of the National Occupational Classification System (NOCs). Under this system, Skill Level A refers to occupations that typically require university degrees; Skill Level B positions usually require apprenticeship training or college education. Skill Level C occupations usually require secondary school and/or occupation-specific training, while Skill Level D jobs are those where on-the-job training is usually provided. Labour performed at site and in Nunavut communities was classified into one of the thirty-one major groups of the 2011 National Occupational Classification (NOC) system. 7 This provides a basis to 7 A total of 1,767,777 hours of labour, including 378,081 hours supplied by Inuit, was able to be classified based on job title and other information accessed from the site roster and from BIMC HR records. There was insufficient detail to support classification of the remaining 5.4% of hours. Some job title classifications may be revised in future reports. Brubacher Development Strategies Inc. 16 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT understanding the overall “labour demand profile” of the project, and how Inuit are engaged in helping to meet this demand. Figure 4 below illustrates hours demanded and supplied for three categories that engaged a substantial component of the Project workforce. These are NOC 67 (dishwashers, housekeepers, janitors), NOC 75 (truck and heavy equipment operators), and NOC 72 (industrial, electrical, and construction trades). These charts illustrate reasonable consistency in demand for categories of labour of importance to Inuit workers at the site once the Project was geared up midway through 2013. A slight dip in NOC 67 demand seems to occur over the winter months. Demand for trades also shows some seasonal variability, with peak activities appearing to occur during September through November—possibly related to sealift delivery of material needed for construction. Figure 4 Monthly Demand and Supply, 2013 & 2014 NOC 67 Occupations: Dishwashers, housekeepers, janitors NOC 75 Occupations: Haul truck and heavy equipment operation Brubacher Development Strategies Inc. 17 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT NOC 72 Occupations: Industrial, electrical, and construction trades Source: see Figure 3, above. Table 10, below, shows how the most common jobs at the project in 2014 are represented in the NOC coding system. While the project engaged employees in a wide diversity of occupations, these “typical jobs” account for a large majority of the overall project labour force, as well as most of the Inuit component of the labour force. Table 10 Major Mary River job categories classified by their major NOC grouping NOC 2-Digit Code Typical Jobs At Mary River 01, 02, 06, 07, 08, 09: Middle management occupations (Skill Level A) Superintendents 21: Professional occupations in natural and applied sciences (Skill Level A) Engineers 22: Technical occupations related to natural and applied sciences (Skill Level B) Health & Safety / Environmental Officers Managers Geologists Air Crew - pilots and officers Surveyors Electronics technicians Computers and IT technicians 63: Service supervisors and specialized service occupations (Skill Level B) 65: Service representatives and other customer and personal services occupations (Skill Level C) Kitchen and camp supervisors Cooks, Bakers Travel coordinators Security guards Bear monitors 67: Service Support and other service occupations (Skill Level D) Dishwashers Housekeepers Janitors 72: Industrial, electrical and construction trades (Skill Level B) Supervisors, Foremen Assemblers & installers Boiler maker Welders Electricians Pipefitters, plumbers Carpenters 73: Maintenance and equipment operation trades (Skill Level B) Brubacher Development Strategies Inc. Maintenance supervisors Mechanics - mobile equipment, drills, crusher 18 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Maintenance technicians Crane operators & riggers Drillers Blasters 75: Transport and heavy equipment operation and related maintenance occupations (Skill Level C) Heavy Equipment Operators Tire technicians Haul truck operator Wench truck driver Water / Vac truck drivers Fuel / lube services 76: Trades helpers, construction labourers and related occupations (Skill Level D) General labourers Trades helpers Source: A NOC job “quick search” utility can be found at the Employment and Skills Development Canada website: http://www5.hrsdc.gc.ca/NOC/English/NOC/2011/Welcome.aspx. Table 11 presents the full range of work performed by all employees and by Inuit employees, respectively, presented by major occupational grouping. Data from 2013 is presented following the 2014 data, for comparative purposes. These tables include work done both by direct Baffinland employees as well as for the various contractors. In 2014, three major occupational categories—NOC groups 72, 73, and 75—account for 1,011,135 hours, or 57%, of the total classified labour demand of the project. These categories, with the demand hours, are: • 72 – Industrial, electrical and construction trades, accounting for 393,549 hours (22%) of total labour demand. Project labour demand in this area more than doubled (up 140%) from the previous year. • 73 - Maintenance and equipment operation trades, accounting for 227,092 hours (13%) of labour demand. This represents a 124% increase in demand from 2013. • 75 - Transport and heavy equipment operation and related maintenance occupations, accounting for 390,494 hours, or 22%, of total labour demand. Demand in this area was 159% higher than in 2013, increasing by 239,438 hours. Other occupations of particular relevance to participation by Nunavummiut include NOC categories 67 and 76. Project demand for labour in these areas also expanded substantially between 2013 and 2014, with increases of 115% and 125% respectively. Supply of labour by Inuit As the Project expanded, so too did Inuit involvement in on-site employment. Most of this labour was carried out in just a few occupational categories. Three quarters of all Inuit labour falls within three major occupational categories: • Nearly one-third (31%) of all Inuit labour, a total of 116,275 hours, was performed in the area of service support and other service occupations (NOC 67). This includes dish washers and housekeepers as major job titles. This level of labour supply accounts for nearly all (97%) of Project demand in this occupational category. Project needs in this area increased by 63,954 hours (115% higher than 2013). The Inuit labour force was almost able to meet this increased demand, with Inuit workers supplying an additional 60,847 hours over the level provided in 2013 (110% more Inuit hours than in 2013). Brubacher Development Strategies Inc. 19 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT • One-third (32%) of all Inuit labour involved jobs in transport and heavy equipment operation… (NOC 75). Project demand in this category more than doubled (159% increase) from the 151,056 hours needed in 2013. Inuit provided 119,900 hours of the 390,494 hours required in 2014. This represents an increase in Inuit supply in this category from 21% to 31% of total need. • The category of trades helpers, construction labourers and related occupations (76) accounted for 13% of Inuit labour, or 49,575 hours, a 89% increase from the 2013 level of 26,292 hours. This level of supply was enough to meet 70% of the total project requirement of 70,645 hours for this type of work (refer to Table 11). Brubacher Development Strategies Inc. 20 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Table 11 Labour Demand And Supply Profile, By Occupational Group And Skill Level 2014 – Total Labour Demand (Hours Worked In Nunavut) Skill Level National Occupational Classification A Major Groups B C D % of total labour demand Administrative Services Managers 011 5,772 <1% Managers in financial and business services 012 4,196 <1% Managers in engineering, architecture, science and information systems 021 7,107 <1% Managers in food service and accommodation 063 11,843 1% Managers in construction and facility operations and maintenance 071 35,211 2% Managers in transportation 073 15,379 1% Managers in natural resources production and fishing 081 2,940 <1% 22,540 1% Professional occupations in business and finance 11 Administrative and financial supervisors and administrative occupations 12 Office support occupations 14 40,316 2% Distribution, tracking and scheduling co-ordination occupations 15 27,630 2% Professional occupations in natural and applied sciences 21 Technical occupations related to natural and applied sciences 22 126,716 7% Technical occupations in health 32 15,920 1% Professional occupations in education services 40 14,809 1% Professional occupations in law and social, community and government services 41 7,152 <1% Retail sales supervisors and specialized sales occupations 62 6,960 Service supervisors and specialized service occupations 63 92,458 Service representatives and other customer and personal services occupations 65 Service Support and other service occupations 1% 17,445 2% 43,228 <1% 5% 3% 46,801 67 119,526 7% Industrial, electrical and construction trades 72 393,549 22% Maintenance and equipment operation trades 73 227,092 13% Other installers, repairers and servicers and material handlers 74 2,432 <1% Transport and heavy equipment operation and related maintenance occupations 75 390,494 22% Trades helpers, construction labourers and related occupations 76 Supervisors and technical occupations in natural resources... and related production 82 10,111 5,161 Processing, manufacturing and utilities supervisors and central control operators 92 Processing and manufacturing machine operators and related production workers 94 Labourers in processing, manufacturing and utilities 96 Total Hours Coded by Sk ill Level Sk ill Level As A Percentage of Total Project Labour Demand 70,645 4% 1% <1% <1% 3,168 1,176 <1% 1,767,777 170,178 895,411 510,841 191,347 10% 51% 29% 11% Source: Labour force data for Baffinland and Contractors was derived by Doug Brubacher from the daily site roster compiled Mar 4th, 2015. Hours worked in Nunavut communities were obtained from additional Baffinland HR records. NOC Codes are assigned based on job titles as indicated in site roster and other sources. Note: A total of 100,105 hours of labour are spread across numerous other NOC codes or had insufficient information related to occupation to enable classification into this matrix. When added to coded hours, this brings the “total hours worked in Nunavut” to 1,867,882 hours. Brubacher Development Strategies Inc. 21 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT 2014 – Supply Of Labour By Inuit Skill Level National Occupational Classification A Major Groups Administrative Services Managers 011 Managers in financial and business services 012 Managers in engineering, architecture, science and information systems 021 Managers in food service and accommodation 063 Managers in construction and facility operations and maintenance 071 Managers in transportation 073 Managers in natural resources production and fishing 081 B C D % of NOC group supplied by Inuit 4,160 99% 1,619 7% Professional occupations in business and finance 11 Administrative and financial supervisors and administrative occupations 12 Office support occupations 14 18,916 47% Distribution, tracking and scheduling co-ordination occupations 15 10,704 39% Professional occupations in natural and applied sciences 21 Technical occupations related to natural and applied sciences 22 Professional occupations in health (except nursing) 31 Technical occupations in health 32 Professional occupations in education services 40 Professional occupations in law and social, community and government services 41 Retail sales supervisors and specialized sales occupations 62 Service supervisors and specialized service occupations 63 Service representatives and other customer and personal services occupations 65 Service Support and other service occupations Industrial, electrical and construction trades 8,019 6% 3,813 53% 11,750 13% 23,010 67 49% 116,275 8,184 2% 2,142 1% Maintenance and equipment operation trades 73 74 Transport and heavy equipment operation and related maintenance occupations 75 Trades helpers, construction labourers and related occupations 76 Supervisors and technical occupations in natural resources,... and related production 82 Processing, manufacturing and utilities supervisors and central control operators 92 Processing and manufacturing machine operators and related production workers 94 Labourers in processing, manufacturing and utilities 96 119,900 31% 49,575 9,605 30,095 172,530 Percentage of Total Inuit Hours Falling in this Sk ill Level 3% 8% 46% 44% 6% 3% 34% 87% 160,573 865,316 338,311 70% 165,850 Percentage of Coded Project Hours Supplied by Inuit, by Sk ill Level Category Hours in this Sk ill Level Not Work ed By Inuit 97% 72 Other installers, repairers and servicers and material handlers Total Inuit Hours Coded By Sk ill Level 13 378,081 25,497 Source: See above Table. Note: A total of 1,525 hours of labour had insufficient information related to occupation to enable classification into this matrix. When added to coded hours, this brings the “total hours worked by Inuit” to 379,606 hours. Brubacher Development Strategies Inc. 22 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT 2013 – Total Labour Demand (Nunavut) Skill Level National Occupational Classification A Major Groups B C % of total labour demand D Administrative Services Managers 011 5,772 1% Managers in financial and business services 012 2,691 <1% Managers in engineering, architecture, science and information systems 021 10,920 1% Managers in food service and accommodation 063 11,700 1% Managers in construction and facility operations and maintenance 071 14,700 2% Managers in transportation 073 6,120 1% Managers in natural resources production and fishing 081 732 <1% Managers in manfacturing and utilities 091 3,648 <1% Professional occupations in business and finance 11 8,580 1% Administrative and financial supervisors and administrative occupations 12 Office support occupations 14 21,452 3% Distribution, tracking and scheduling co-ordination occupations 15 14,028 2% Professional occupations in natural and applied sciences 21 Technical occupations related to natural and applied sciences 22 Professional occupations in health (except nursing) 31 Technical occupations in health 32 Professional occupations in education services 40 Professional occupations in law and social, community and government services 41 Retail sales supervisors and specialized sales occupations 62 3,180 <1% Service supervisors and specialized service occupations 63 53,820 6% Service representatives and other customer and personal services occupations 65 Service Support and other service occupations 1% 9,912 2% 20,580 12% 100,452 <1% 2,712 1% 11,412 8,484 1% <1% 2,592 3% 25,344 67 55,572 7% Industrial, electrical and construction trades 72 163,680 19% Maintenance and equipment operation trades 73 101,292 12% Other installers, repairers and servicers and material handlers 74 60 <1% Transport and heavy equipment operation and related maintenance occupations 75 151,056 18% Trades helpers, construction labourers and related occupations 76 Supervisors and technical occupations in natural resources... and related production 82 2,316 <1% Processing, manufacturing and utilities supervisors and central control operators 92 4,944 1% Processing and manufacturing machine operators and related production workers 94 Labourers in processing, manufacturing and utilities 96 Total Hours Percentage of Total Project Labour Demand 31,440 <1% 1,512 3,828 90,747 451,008 213,452 99,324 11% 53% 25% 12% Source: Labour force data for BIMC and Contractors was derived by Doug Brubacher from daily site roster “Actual Master” file provided by Site Administration on September 10, 2014. NOC Codes assigned based on supplied job titles by Brubacher and Michelle Goddard. Numbers in this summary were extracted by Doug Brubacher from a working version of the data set on October 2, 2014. Brubacher Development Strategies Inc. 4% 23 <1% 854,531 100% Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT 2013 – Supply Of Labour By Inuit % of NOC group supplied by Inuit Skill Level National Occupational Classification A Major Groups Administrative Services Managers 011 Managers in financial and business services 012 Managers in engineering, architecture, science and information systems 021 Managers in food service and accommodation 063 Managers in construction and facility operations and maintenance 071 Managers in transportation 073 Managers in natural resources production and fishing 081 Managers in manfacturing and utilities 091 B C D 100.0% 2,691 1% Professional occupations in business and finance 11 Administrative and financial supervisors and administrative occupations 12 Office support occupations 14 14,504 68% Distribution, tracking and scheduling co-ordination occupations 15 3,288 23% Professional occupations in natural and applied sciences 21 Technical occupations related to natural and applied sciences 22 Professional occupations in health (except nursing) 31 Technical occupations in health 32 Professional occupations in education services 40 Professional occupations in law and social, community and government services 41 Retail sales supervisors and specialized sales occupations 62 Service supervisors and specialized service occupations 63 Service representatives and other customer and personal services occupations 65 Service Support and other service occupations 96 5,052 5% 10,212 19% 54% 13,680 67 55,428 99.7% Industrial, electrical and construction trades 72 4,344 3% Maintenance and equipment operation trades 73 1,008 1% Other installers, repairers and servicers and material handlers 74 Transport and heavy equipment operation and related maintenance occupations 75 Trades helpers, construction labourers and related occupations 76 Supervisors and technical occupations in natural resources,... and related production 82 Processing, manufacturing and utilities supervisors and central control operators 92 Processing and manufacturing machine operators and related production workers 94 Labourers in processing, manufacturing and utilities 96 Total Hours Percentage of Total Inuit Hours Falling in this Sk ill Level Percentage of Total Project Hours Supplied by Inuit, by Sk ill Level Category Hours in this Sk ill Level Not Work ed By Inuit 24% 37,008 26,292 2,787 20,616 68,480 81,720 2% 12% 39% 47% 100% 32% 82% 20% 3% 87,960 5% 430,392 144,972 17,604 Source: See above Table. Brubacher Development Strategies Inc. 84% 24 173,603 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Most Inuit labour (90%) in 2014 fell into Skill Levels D and C occupations, up from 86% in 2013. Expansion of Inuit involvement was greatest in Level C—accounting for 46% of all Inuit labour in 2014, up seven percentage points from the 2013 level of 39%. The relative importance of Skill Level D work for Inuit declined by three percentage points, accounting for 44% of all Inuit labour on-site in 2014, compared with 47% in the previous year. The relative contribution of Level A and Level B jobs to overall Inuit involvement also declined, from 14% of all Inuit labour in 2013 to 11% in 2014. The considerable growth of Inuit engagement in the Project generally arose from expansion of labour demand in all categories more than through substitution of southern with northern labour. For example, while Inuit involvement in Level D occupations increased by 84,130 hours (a 103% increase) from the previous year, the proportion of Level D labour performed by Inuit increased only slightly, from 82% to 87%. Since Inuit already supply most Level D labour, there will be little opportunity for expansion of Inuit involvement in these types of jobs once Project demand stabilizes. In contrast, Inuit continue to provide only one-third of the labour needed by the Project in Level C occupations. Therefore, in addition to opportunity presented by any future expansion of Project demand in these areas, substantial opportunity exists for increased Inuit employment by growth in the proportion of these jobs performed by Inuit. For example, with no further growth in Project demand, an increase in Inuit contribution in Level C occupations from the current level of 34% to, say, half of the total Project demand of 510,841 hours would entail an increase in Inuit labour supply of some 82,890 hours. 8 Most of this opportunity lies in group 75, transportation, heavy equipment operation and maintenance. However, several other occupational categories—14, 15, and 65— within this skill level also experienced expansion and may present further opportunity for Inuit labour force development. In the higher skill trades, technical and managerial occupations classified under Level A and Level B, the Inuit labour force is currently contributing minimally to Project needs. In the construction and maintenance trades areas (NOC 72 and 73), the Inuit labour force has provided only 10,326 hours of the 620,641 hours needed by the Project in 2014. Future growth of Inuit labour force engagement in these areas will require capacity development. 4.1.3 Supply of Labour By Gender Of the 414 Inuit individuals who worked for any period of time at the Mary River Project in 2014, 129—roughly one-third (31%)—, were women. These women carried out 30% of all hours worked by Inuit (Table 12). This is a slight increase from the previous year. There were an additional 120 Non-Inuit women who worked at the Project in 2013, accounting for 6% of the Non-Inuit labour force. Combined, Inuit and Non-Inuit women accounted for 11% of all hours worked. 8 Half of demand in Skill Level C would be 255,420 hours, i.e. up by 82,890 hours from the current supply of 172,530 hours. This is not to say that 50% is or is not a reasonable expectation or objective. Rather it is simply to illustrate the point that there is substantial room for increased labour supply by Nunavummiut within these Level C positions—positions that have been demonstrated to be accessible to Inuit within the North Baffin and Iqaluit labour force. Brubacher Development Strategies Inc. 25 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Table 12 Mary River Project Labour Force Profile - Beneficiary Status & Gender, 2014 & 2013 Beneficiary Status & Gender Inuit - Women - Men - Percentage Women Non-Inuit - Women - Men - Percentage Women Total Number Engaged In Project Hours Worked (at any point in the year) (in Nunavut) Full Time Equivalents (2080 hrs / FTE) 2013 291 87 203 30% 2014 414 129 285 31% 2013 174,365 49,611 124,754 28% 2014 379,606 112,437 267,169 30% 2013 84 24 60 2014 183 54 128 1,302 94 1,201 7% 2,018 120 1,898 6% 688,812 49,200 639,468 7% 1,488,276 94,072 1,394,204 6% 331 24 307 716 45 670 1,593 2,432 863,177 1,867,882 415 898 Source: Labour force data for BIMC and Contractors was derived on March 5th, 2015 by Doug Brubacher from daily site roster “Actual Master” file and other supporting HR data, provided by Baffinland Site Administration on January 5, 2015. Notes: 1) The site roster was a key source. It provides a list of who is on-site each day. This was converted to “hours of labour” making an assumption that everyone worked 12 hours each day they were on site, as is the standard. These “hours worked” data do not include vacation time or other authorised and paid time off-site. The FTE calculations therefore probably underestimate the comparable impact of this work on the local labour market. 2) The data includes positions located in communities as well as at the Project site. For community-based positions, an assumption of 40 hours worked per week of active employment was made. 3) Beneficiary status indicated in the source data sets was verified against NTI’s beneficiary list. 4.1.4 On-the-Job Social Context Experienced By Inuit Women 9 Inuit women performed just over half of all labour performed by women at the Project. However Inuit women are not working side-by-side non-Inuit women by and large. Most Inuit women at the Project are employed in occupations where few if any non-Inuit women work. For example, 71% of the 129 Inuit women engaged in the Project in 2014 (92 women) work in NOC 67 positions where there were no non-Inuit female employees. Inuit women engaged in office support occupations (NOC 14) and travel coordination / security services (NOC 65) do on the other hand work side-byside non-Inuit women in these occupations. They make up 44% of the female workforce within these categories. Only a small number of Inuit women (19 of the 129 total) are involved in these positions however. Similarly, the small group of Inuit women working in the male-dominated NOC 75 occupations find themselves working alongside an equally small group of non-Inuit women also in these jobs. The 92 Inuit women engaged in NOC 67 occupations may work side-by-side the 52 Inuit men also engaged in this category. However, there may be a distinction between those involved as kitchen helpers and those involved as housekeepers and cleaners. 9 The data presented in this section is derived from the “Actual Master” site roster data set. This includes hours spent in a job category for any period of time during the year. These values vary slightly from the “Employment Continuity” data set which assigns a single NOC code per year based on which position accounts for the most hours worked in a year. Brubacher Development Strategies Inc. 26 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT The specific characteristics of the social setting within which Inuit women work that are most important in establishing a conducive work environment are not evident from the quantitative data available to date. Rather, these considerations may emerge through qualitative data generation— specifically interviews with workers and supervisors—if deemed to be important. 4.1.5 Origin of Mary River Project Employees Table 13 shows the origin of labour for the Project. In 2014 there were a total of some 2,432 individuals who worked for a period of time at site, performing a total of 1.87 million hours of work. Eighty per cent of these people came from outside of Nunavut. This group performed 79% of all labour required by the Project in 2014. A total of 414 Inuit had some involvement with the Project, supplying 20% of all Project labour. The 379,606 hours of work performed by this group is the equivalent of 183 full-time jobs. North Baffin communities supplied most of the Inuit labour, accounting for nearly three-quarters (74%) of all hours of Inuit labour. A total of 100 individuals from Pond Inlet supplied one-quarter of this Inuit labour, or some 93,683 hours—the equivalent of 45 full-time jobs. Fourteen Inuit beneficiaries of the Nunavut Land Claims Agreement residing outside of the territory were employed at the Project, performing 4.5% of Inuit hours of work provided to the Project. Table 13 Origin of Mary River Project Employees, 2014 Beneficiary Status & Residence Number Engaged In Project Hours Worked (at any point in the year) (in Nunavut) Inuit - North Baffin Hall Beach Igloolik Arctic Bay Pond Inlet Clyde River - Iqaluit - Other Non-Inuit - Nunavut - Other Canada - Outside Canada - Unknown Total 2013 291 214 43 33 28 80 30 63 14 1,302 11 1,289 2 1,593 2014 414 307 62 52 50 100 43 93 14 2,018 27 1,633 54 305 2,432 2013 174,365 125,870 23,896 18,760 14,070 52,502 16,642 38,799 9,696 688,812 7,056 680,616 1,140 863,177 2014 379,606 281,679 53,548 42,988 58,407 93,683 33,053 80,796 17,131 1,488,276 16,239 1,330,671 14,855 126,511 1,867,882 Full Time Equivalents (2080 hrs / FTE) 2013 84 61 11 9 7 25 8 19 5 331 3 327 1 415 2014 183 135 26 21 28 45 16 39 8 716 8 640 7 61 898 Source: see above table. Notes: see above table. 4.1.6 Employment Status Prior to Project Engagement Previous employment status data was available for roughly one-third of the Inuit engaged at the Project in 2013. At that time, as indicated in the 2013 monitoring report, one-half were not employed, one-quarter had full-time employment, and one-quarter were engaged in part-time, casual, or self-employment. Brubacher Development Strategies Inc. 27 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT During 2014, an additional 228 Inuit were inducted into work at the Mary River Project. Baffinland hired 79 of these new recruits, while the remainder were engaged by various contractors. Data for the previous employment status of these individuals was not accessed. 4.1.7 Employment Continuity, 2013 to 2014 • • • 63% of Inuit working in 2013 returned to work again in 2014, implying a year-over-year turnover of 37%. Turnover amongst those working less than two full two-week rotation in 2013 was 60%, while only one-quarter (23%) of those working four rotations or more in 2013 did not work again the following year. Turnover amongst NOC 75 truck drivers / heavy equipment operators was much lower than amongst other Inuit employed at Mary River. Only 14 of 69 Inuit engaged in these jobs in 2013 did not return in 2014—a 20% year-over-year turnover rate for the category. Slightly more than half of the 55 returning NOC 75 operators approached fulltime employment, working eight or more rotations. Turnover in NOC 67 positions was much higher, at 47%—45 of the 95 Inuit working these jobs in 2013 did not return in 2014, in spite of a 115% increase in Project demand in this category. Over the course of the first two years of the Project, some 522 Inuit have been engaged in supplying a total of 553,971 hours of labour. This volume of work is equivalent to an average of between 130 and 140 full-time jobs over a period of two years. 10 A total of some 294 Inuit were engaged in the Mary River Project to some degree in 2013. Of these, a total of 186 individuals were also engaged at the Project in 2014, while 108 did not work during that subsequent year. This provides an average year-over-year turnover rate of 37% across the 2013 Inuit workforce. It should be noted, however, that there is tremendous variability in the duration of work carried out by individual employees at the Project during both years. This is the case both for the Inuit and Non-Inuit components of the Project labour force. Further insight into employment continuity can be gained by considering the hours worked by a person in 2014 in relation to the hours worked by that same individual in the previous year. This analysis is based on site roster data for the two years to date and is presented here for all Inuit employment. Data for all Inuit engaged in the Project so far is presented in Figure 5. In this chart, the total number of individuals who worked in 2013 is indicated in brackets in the upper right cell—294. 11 The number of people within this cohort who did not continue in 2014 is indicated in bold in the cell below (108 individuals). The number of Inuit working in 2014 is indicated brackets in the lower left 10 One full-time job is calculated as 2080 hours per year, so 130 jobs is equivalent to 270,400 hours per year, or 540,800 hours over two years. This may underestimate the FTEs, however, as the recorded hours are all on-site hours and don’t take into account vacation or other authorised paid leave. For this reason a range is provided. The figure is used simply to illustrate the relative magnitude of the Project. 11 Note the slight discrepancy in total number of Inuit identified in 2013. Minor adjustments to the data set post-2013 report have led to a revised number of 294 compared to the previous 291. Brubacher Development Strategies Inc. 28 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT hand cell (414 individuals). The number within this 2014 cohort who were newly recruited that year is indicated in bold to the right (228 individuals). Categories of “hours worked” relate to the typical 84-hour work week at site. A typical two-week rotation consists of 168 hours, two rotations would encompass 336 hours, four rotations 672 hours and eight rotations 1344 hours. Reading down the far right-hand column shows how the 2013 cohort performed in 2014 in terms of these categories (which are indicated in the far left-hand column). Reading down through the middle columns provides insight into the outcome of specific “hours-worked” components of the 2013 cohort. In a similar fashion, the bottom row shows the origin of 2014 employees in terms of the hours they worked the previous year. Reading across the rows in the body of the chart shows the past experience of specific components of the 2014 cohort. Finally, the number in the lower right-hand cell indicates the total number of Inuit engaged in the Project over the combined two-year period. Figure 5 Continuity of Employment by Hours Worked All Inuit, 2013 to 2014 Hours worked in 2013 672 1343 1344+ 43 16 2 108 1 - - - 3 1 1 3 - - 5 168 335 32 - - 3 5 5 3 16 336 671 60 1 - 5 14 5 2 27 672 1343 74 2 1 4 25 11 1 44 1344+ All Inuit Performance of 2013 Cohort (294 people) 19 1 2 8 38 24 18 91 228 5 5 22 85 45 24 1 - 83 84 - 167 168 - 335 336 - 671 - 10 12 25 25 1 1 18 - 84 167 Hours worked in 2014 1 - 83 0 0 Experience of 2014 Cohort (414 people) 522 Source: Data for these charts was derived by Doug Brubacher from the Site Roster “master file” March 7, 2015. As illustrated in Figure 5, there were 108 individuals who worked in 2013 but did not continue any employment relationship with the Project in 2014. Of the 186 individuals who did work again in 2014 the largest group (comprising 91 individuals) worked at least 1344 hours, or eight rotations. Amongst those who worked between two and four rotations in 2013, one-third (43) did not work again at the Project in 2014. Most of the remaining 85 Inuit within this experience cohort went on to work as many or more hours in 2014—38 went on to Brubacher Development Strategies Inc. 29 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT work 1344 hours or more, 25 worked between 672 and 1343 hours and 14 worked between 336 and 671 hours. Few of the 79 individuals who worked less than two rotations in 2013 fared well in 2014. Nearly two-thirds (47 individuals) of this group did no work at all at the Project the following year — a year-over-year turnover rate of 60%. Turnover amongst the “top performers” in terms of hours worked during 2013 is much lower. Only 23% of those who worked four rotations or more in 2013 did not work again in 2014. Amongst the 26 individuals who worked eight or more rotations in 2013, only two (2), did not work again in 2014, for a year-over-year turnover rate of 8%. Most of this cohort (18 individuals) worked eight or more rotations again in 2014. 84 167 672 - 336 - 168 1343 671 335 1344+ Hours worked in 2014 1 - 83 0 Figure 6 Continuity of Employment by Hours Worked By Gender Inuit, 2013 to 2014 Figure 6 shows the employment record separately for Inuit women and Inuit men. Amongst both Performance women and men, there appears Hours worked in 2013 of 2013 Inuit W omen 672 Cohort 1344+ 84 - 167 168 - 335 336 - 671 0 1 - 83 to be a decision-point between 1343 (88 people) 336 to 671 hours worked, or 10 13 6 1 39 5 4 roughly two to four months into 1 3 12 1 1 a regular two-in / two-out work 1 1 6 rotation. Experience of 2014 Cohort (129 people) 9 - - - 3 2 - 5 18 - - - 1 2 1 4 28 1 1 1 8 - 1 12 7 - - 4 9 6 5 24 80 2 2 6 22 10 7 168 Hours worked in 2013 Inuit Men Performance of 2013 Cohort (206 people) 672 1343 1344+ 30 10 1 69 - - - - 0 1 1 2 - - 4 - - 3 2 3 3 11 42 1 - 5 13 3 1 23 46 1 - 3 17 11 - 32 12 1 2 4 29 18 13 67 148 3 3 16 63 35 17 1 - 83 84 - 167 168 - 335 336 - 671 - 5 8 15 13 - - 12 - 23 84 167 672 - 336 - 168 1343 671 335 1344+ Hours worked in 2014 1 - 83 0 0 Experience of 2014 Cohort (285 people) Brubacher Development Strategies Inc. 354 Only one-third of women and less than one-half of men working less than 336 hours in 2013 continued at all in 2014. Of those who worked more than this amount in 2013, two-thirds of women and three-quarters of men worked again in 2014. Of these veteran employees, most worked more hours in 2014 than they did in 2013. There are substantial differences in employment duration depending on the category of job being undertaken. The following charts (refer to Figure 7 below) present data for the three major occupational groups where Inuit have been engaged—NOC 67, 75, and 76. 30 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Figure 7 Continuity of Employment by Hours Worked In Three Job Categories NOC 67, NOC 75, and NOC 76, 2013 to 2014 672 1343 1344+ 16 8 1 45 1 - - - 2 - - 1 - - 1 168 335 10 - - - 4 2 1 7 336 671 Performance of 2013 Cohort (95 people) 24 1 - - 1 3 - 5 672 1343 Hours worked in 2013 29 1 - 1 8 1 - 11 1344+ Inuit NOC 67 7 - - 2 8 7 7 24 93 2 1 4 22 13 8 168 - 335 336 - 671 1 - 83 84 - 167 - 6 5 9 13 - 1 10 - 84 167 Hours worked in 2014 1 - 83 0 0 Experience of 2014 Cohort (143 people) 672 1343 1344+ 8 - - 14 - - - - 0 - 1 1 - - 2 168 335 6 - - - 1 - - 1 336 671 7 - - - 4 - - 4 672 1343 Hours worked in 2013 Performance of 2013 Cohort (69 people) 17 1 - 1 5 5 - 12 1344+ Inuit NOC 75 188 7 1 1 3 21 8 2 36 39 2 1 5 32 13 2 1 - 83 84 - 167 168 - 335 336 - 671 - - 1 5 1 - - 1 - 84 167 Hours worked in 2014 1 - 83 0 0 Experience of 2014 Cohort (94 people) 672 1343 1344+ 5 4 - 16 - - - - 0 - - - - - 0 168 335 6 - - 3 - - - 3 336 671 Performance of 2013 Cohort (52 people) 13 - - 3 7 2 - 12 672 1343 Hours worked in 2013 8 - - 1 6 2 - 9 1344+ Inuit NOC 76 108 - - - 1 3 5 3 12 32 0 0 8 16 9 3 1 - 83 84 - 167 168 - 335 336 - 671 - 1 1 5 - - - 5 - 84 167 Hours worked in 2014 1 - 83 0 0 Experience of 2014 Cohort (68 people) Brubacher Development Strategies Inc. 84 Attrition amongst cleaners and kitchen helpers (NOC 67) appears to be quite high between 2013 and 2014, with nearly half (47%) of those working in 2013 not working again in 2014. Even amongst those who worked between two and four rotations in 2013, nearly half (42%) did no work in the following year. Amongst those working four to eight rotations in 2013, more than one-third did not proceed to work at all in 2013. This said, there does appear to be a small group of NOC 67 employees that is moving toward more stable employment. Onehalf of the 50 veteran workers in this category went on to work more than eight rotations in 2014. Amongst new recruits to NOC 67 positions, the most frequent hours worked were between two and eight rotations. However a relatively large number also appear to have terminated employment after only short periods of engagement. Nearly one-quarter of this group worked fewer than 167 hours—less than one rotation. The picture for NOC 75 employment is very different. Only 20% of the 69 individuals employed in these positions in 2013 did not proceed to work again in 2014. Two-thirds of this continuing worker group proceeded to work eight or more rotations (1344 hours or more) in 2014. 31 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Year-to-year continuity amongst NOC 76 labourers falls between the previous two categories, with nearly one-third (31%) of those who worked in 2013 not showing up on the 2014 roster. Amongst the veteran employees in this category, one-third worked eight or more rotations and another onequarter worked six to eight rotations in 2014. Slightly more than half of these returning employees worked more hours in 2014 than they had the previous year. 12 In order for the Inuit labour force to progressively build capacity to meet Project labour needs, and for individuals to gain the experience and training required to progress into higher positions improved continuity of employment will be desirable. This will be indicated by a shift in density of these heat plots toward the bottom right corner of the charts. 4.1.8 Hours Worked Per Employee Further perspective on the dynamics of employment at the Project can be gained by considering the duration of employment experienced by Inuit and other employees. In 2014 the median hours worked by all employees, including short-term technical advisors as well as long-term employees was roughly 500 hours. Inuit tended to be employed in longer term positions and show somewhat higher median hours-worked profiles. 13 As previously noted, demand for labour was more consistent in 2014 than it had been during the ramp-up in 2013. Therefore the median (50th percentile) and upper quartiles (75th percentile) are substantially higher in 2014 than during the previous year (Figure 8). For example, one quarter of Inuit women engaged in the Project worked more than 1297 hours (the 75th percentile) in 2014, compared with 759 hours in 2013. Half of Inuit women engaged at Mary River Project in 2014 worked 720 hours or more, while in 2013 the median level was 390 hours. Amongst Inuit men, the top quarter worked more than 1537 hours in 2014 and only 795 hours in 2013. The median hours worked for Inuit men was 779 and 474 hours in 2014 and 2013, respectively. 12 Presenting occupation-specific continuity data raises the issue of how to treat instances where an employee has moved from one position to another or has shifted between two or more positions over time. For this presentation, the most recent position that accounts for the majority of hours worked in a year is the position used to assign the employee to the NOC category. 13 These plots are developed by ranking hours of work from lowest to highest. The rectangular box contains the middle half of the values (i.e. values between the 25th and 75th percentile). The horizontal bar inside the box is the middle value or 50th percentile. Brubacher Development Strategies Inc. 32 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Figure 8 Duration of Employment By Beneficiary Status and Gender, 2014 and 2013 2014 Hours of employment 2013 Hours of employment Source: Data includes both Baffinland and Contractor employees extracted on February 16 by Doug Brubacher from daily site roster “Actual Master” file provided by Site Administration. The distributions are based on days on site, assuming 12 hours worked per day, for each employee who worked at some point during the year presented. Work by Baffinland employees whose jobs are located in a Baffin community is included, based on an assumption of 40 hours worked per week employed. Interestingly, the lower quartile does not seem to be much different between 2013 and 2014, in spite of the dramatically higher demand for labour in the second year. Amongst Inuit the 25th percentile for men was, respectively, 372 hours in 2014 and 348 in 2013. For Inuit women the comparable numbers are 300 hours and 192 hours for 2014 and 2013 respectively. This suggests that for these employees the factors limiting duration of work are likely to be other than work availability. The charts presented in Figure 9, below, show how hours-worked distributions vary across occupations of different skill level requirements. Here again, expansion of Project labour needs affects the amount of work performed by employees in the upper quartile much more than in the lower quartile of the workforce. This is most striking in Level C occupations, where hours worked Brubacher Development Strategies Inc. 33 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT by the top 25% of Inuit workers (in terms of hours of labour delivered) increased 142%, from 720 hours in 2013 to 1,745 hours in 2014. During the same period the lower quartile also increased, but at a modest 50%, from 360 hours to 540 hours. Project demand for Level C increased by 139% over this period (refer back to Table 11). Amongst Skill Level D workers, the lower quartile seemed to be largely unaffected by growing project demand, increasing modestly from 246 hours in 2013 to 300 hours in 2014. The upper quarter of Skill Level D Inuit workers (in terms of hours worked) did, on the other hand, increase from 753 hours in 2013 to 1,148 in 2014—a 52% expansion. Recall that Project demand for Level D labour increased by 93% during this period. Figure 9 Hours of Labour Supplied Per Employee, By Skill Level and Beneficiary Status, 2014 and 2013 2014 Hours of employment 2013 Hours of employment Source: See above. Brubacher Development Strategies Inc. 34 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Figure 10 illustrates a substantial divergence between different occupations in terms of hours worked per employee. Only one-quarter of Inuit truck drivers (NOC 751) worked fewer than 576 hours in 2014, while the top 25% worked at least 1299 hours. The top quartile of Inuit heavy equipment operators worked more hours than did truck drivers—1833 hours or more—however the bottom 25% worked 540 or fewer hours. Most of the heavy equipment operators are men. Amongst the half-dozen women in this group, however, hours of work are high—with only one-quarter working fewer than 900 hours over the year. In contrast to the Skill Level C drivers and equipment operators, Inuit engaged in Skill Level D labourer (NOC 76) and housekeeping / dishwashing positions (NOC 67) tended to work fewer hours over the year. One-quarter of Inuit female NOC 67 employees worked fewer than 243 hours. Women appear to be holding onto their positions a bit longer than men in NOC 67 jobs—with half of the women working more than 696 hours. Amongst men in this group, half worked more than 552 hours. Median hours worked by Inuit men in NOC 76 was slightly higher than those in NOC 67, at 617 hours in 2014. Figure 10 Hours Worked Per North Baffin Inuit and Southern Non-Inuit Employees In Several Common Jobs, 2014 2014 Hours of employment Source: See above. 4.1.9 Termination of Employment and Turnover Rates Termination of employment results in “employee turnover” as new people are hired on to replace those departing. While the “employment continuity” and “hours-worked” data presented in the sections above provide indirect insight into employee turnover, the best source for determining turnover rates are the hiring and termination records for the workforce that is hired on an indeterminate basis. As in 2013, this data was only available for BIMC employees, not for employees of the various Contractors. A total of 155 Inuit were employed in 2014 by Baffinland, 79 of whom were newly hired that year. Forty-five of these 155 individuals, or 29% of Baffinland’s Inuit workforce, departed their employment relationship with the company that year (Table 14). The median duration of Brubacher Development Strategies Inc. 35 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT employment amongst these departing employees was 22 weeks. Nineteen of these departing employees were amongst the 79 Inuit hired by the company in 2014, a turnover rate of 24% amongst new hires. The median duration of employment amongst this group was 12 weeks. The 26 employees who had been hired prior to 2014 and terminated their employment relationship that year had a median employment duration of 34 weeks. Table 14 Hires and Departures in the Baffinland Inuit workforce, 2014 number employed by BIMC in 2014 number departing BIMC employment in 2014 low value 25th percentile median 75th percentile high value employed by BIMC in 2014 2014 hires departing BIMC in 2014 low value 25th percentile median 75th percentile high value employed by BIMC in 2014 departing BIMC employment in 2014 low value 25th percentile median 75th percentile high value Inuit Employed with BIMC in 2014 Men All Inuit Women 27 128 155 9 36 45 Weeks of Employment with BIMC Prior to Departure 6 2 2 13 10 10 21 23 22 32 37 37 132 244 244 Inuit Hired By BIMC in 2014 Women Men All Inuit 12 67 79 12 15 19 Weeks of Employment with BIMC Prior to Departure 6 2 2 11 9 9 17 10 12 22 14 17 26 35 35 Inuit Hired By BIMC Before 2014 Women Men All Inuit 15 61 76 5 21 26 Weeks of Employment with BIMC Prior to Departure 12 10 10 14 23 22 32 34 34 38 41 41 132 244 244 Source: Data was extracted by Doug Brubacher on February 12, 2015 from HR data maintained in Oakville for direct Baffinland employees. It does not include contractor employees. By way of comparison, in 2013 there had been nine (9) departures of Baffinland Inuit employees amongst 92 individuals employed directly by Baffinland at some point during that year—a 10% rate of turnover. While the 29% rate of turnover in 2014 is considerably higher than the previous year, further experience will be required before insight into turnover trends can be confidently gained. Figure 11 shows the distribution of seniority of employment amongst Inuit who departed employment with Baffinland in 2014. A distinct cluster of departures occurs around the 12 week point, followed by a much weaker cluster between 34 to 38 weeks. The first cluster coincides with the end of a first probationary period established for all Baffinland employees at 90 days. A second Brubacher Development Strategies Inc. 36 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT probationary period which ends at the 180 day point (roughly 26 weeks) does not show a similar peak in departures, suggesting that reasons for termination following the first probationary period vary widely. Figure 11 Inuit Departures From BIMC Employment, By Seniority Of Employment (2014) Source: Data was extracted by Doug Brubacher on February 12, 2015 from HR data maintained in Oakville for direct Baffinland employees. It does not include contractor employees. 4.1.10 Gender Analysis of Baffinland Employee Departures In the socio-economic monitoring report for 2013, preliminary data suggested that turnover amongst Inuit women working for Baffinland may be higher than amongst Inuit men. While the low Brubacher Development Strategies Inc. 37 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT number of women engaged with the company prevents confident conclusions, the data from 2014 does not support this assessment. One-third of the 27 women employed by Baffinland in 2014 terminated their employment after a median of 21 weeks on the job. Turnover amongst men was only slightly lower, at 28%, and seniority at termination only slightly higher, at 23 weeks. It is cautioned that the low numbers involved means that values can be easily affected by only a few hiring / termination events. It should also be noted that only 27 of the 129 women involved at the Project were hired as employees of Baffinland. Most of the rest of the women worked for the site services contractor. 4.1.11 Reasons For Termination Data for the reasons for termination of employment was not available for 2014. 4.1.12 Absenteeism Data for authorised and unauthorised absenteeism was not available for 2014. 4.1.13 No-Shows Data for the number of employees who did not show up for their scheduled flight to site was not available for 2014. 4.1.14 Career Path Progression At this early stage of the Project opportunity for career progression has been limited. The “primary position” identified in 2014 was different from the first position identified in 2013 for only eight Inuit individuals. It is not possible to draw any insight at this point into career paths at this point. 4.1.15 Location of Work in Nunavut Most of the work in Nunavut took place at site. In 2014, there were Baffinland Community Liaison Officers in the five North Baffin communities (the BCLOs) and, by the end of the year, three Baffinland employees in the Iqaluit office. The remainder of work was carried out at site. Brubacher Development Strategies Inc. 38 Baffinland Iron Mines Corporation – Mary River Project LIVELIHOOD AND EMPLOYMENT Table 15 Location of Work Carried Out by Mary River Project Personnel 2014 Beneficiary Status & Location of Work Inuit North Baffin Community Iqaluit Number Employed Hours Worked 414 379,606 10 15,933 5 On-Site 399 363,673 Non-Inuit 2,018 1,488,276 On-Site 2,018 1,488,276 2,432 1,867,882 Number Employed Hours Worked 291 174,365 Total 2013 Beneficiary Status & Location of Work Inuit North Baffin Community 10 -- 2 -- On-Site 284 -- Non-Inuit 1302 688,812 On-Site 1,302 688,812 1,593 863,177 Iqaluit Total Source: Baffinland data was extracted on October 1 from Baffinland HR by Doug Brubacher. Notes: 1) The site roster was a key source. It provides a list of who is on-site each day. This was converted to “hours of labour” making an assumption that everyone worked 12 hours each day they were on site. 2) For community-based positions, an assumption of 40 hours worked per week of active employment was made. 3) Given the small numbers of work in the communities, hours are not presented in order to preserve confidentiality. 4.1.16 Outlook for Inuit Employment The outlook for growth in Inuit employment at the Mary River Project will be dependent on two key factors. These are expansion (or contraction) in demand for labour within areas where the Inuit labour force is qualified and competitive, and replacement of southern labour with Inuit labour (or visa versa) as project turnover creates job openings. Additional factors that will influence how these play out include Inuit versus southern labour force turnover rates and growth in the ability of the Inuit labour force to take on employment in occupations across the project labour demand spectrum. Brubacher Development Strategies Inc. 39 Baffinland Iron Mines Corporation – Mary River Project 4.2 LIVELIHOOD AND EMPLOYMENT COMMUNITY & REGIONAL DATA Administrative data sources such as the T1 Family File are available to provide context to the Project-specific data presented here. Such data has not been generated through the collaborative monitoring group. 4.3 COLLABORATIVE DATA Turnover rates, reasons for termination, absenteeism rates from other major employers would be helpful in order to place the Project-specific data in the broader context of the North Baffin / Nunavut labour force. Brubacher Development Strategies Inc. 40 Baffinland Iron Mines Corporation – Mary River Project TOPICS OF GENERAL RELEVANCE SECTION 5.0 - TOPICS OF GENERAL RELEVANCE 5.1 REGIONAL DISTRIBUTION AND CUMULATIVE EFFECTS SUMMARY In 2014, hiring of Nunavummiut continued to focus clearly on the North Baffin. Three-quarters (74%) of all Inuit engaged in the Project reside in these communities, accounting for 72% of all labour performed by Inuit and 15% of total labour carried out in Nunavut. Inuit residents of Iqaluit performed most of the remaining labour within the Nunavummiut cohort—accounting for 4% of total Project demand. Supporting data related to this North Baffin weighting was not available. For example, is the North Baffin – Iqaluit distribution of labour mostly based on policy or on inherent labour force characteristics? Could the Iqaluit labour force supply additional labour to the Project? 5.2 UNANTICIPATED INTERACTIONS AND EFFECTS So far at least, the effects that have been documented in the first two monitoring reports are well in-line with the interactions anticipated in the FEIS and the ERP Amendment. In addition to collection of quantitative data from BIMC, perceptions and observations from community, government, and company sources serve as “surveillance” to identify potential interactions or effects. A particularly useful source was the May 2014 report of the QiSEMC group that met in Iqaluit. 14 The following comments, noted also in the 2013 Socio-Economic Monitoring Report, are highlighted along with an indication in italics of the monitoring implication: - “Sub-contractors may lure students away from high school with promise of jobs.” [The impact assessment addressed Project effects on education. Qualitative data— interviews with key individuals having perspective on hiring experiences—would be needed in order to assess whether this apparent concern is grounded in isolated or prevalent occurrences. Collaborative monitoring related to factors most critical to school completion – non-completion outcomes would be needed to place such data in a meaningful context.] - A comment was made that “community population needs to monitored—very important issue.” Comments about social housing wait lists are also raised in the context of inmigration. [The data presented in this report does not support the notion that Project-related inmigration to Baffin communities has been substantial. Monitoring will continue in this area. Nonetheless, it may be worthwhile for Working Group partners to look into the area of community demographics to see if in-migration is arising from other sources.] - A comment was made that employees who move to larger centres might run into problems with open access to substances and end up losing their job. 14 Government of Nunavut, EDT. 2014. “Qikiqtaaluk Socio-Economic Monitoring Committee – Spring 2014 Report on the Eighth Qikiqtaaluk SEMC Meeting.” Iqaluit, May 5 – 7, 2014. http://www.nunavutsemc.com/qikiqtaaluk Brubacher Development Strategies Inc. 41 Baffinland Iron Mines Corporation – Mary River Project TOPICS OF GENERAL RELEVANCE [While migration to Iqaluit and south has been low, it is worth keeping this potential interaction “on the radar,” particularly with regard to housing and social housing wait list implications.] - “Cautious of ‘boom – bust’ cycle.” [Much of the employment during 2013 and 2014 has been with contractors who had specific jobs to complete. Of the Inuit employed during 2013, 179 went on to work again in 2014, while 115 did not. Reasons for termination of these 115 employment relationships were not accessed for this report. The specific role of layoffs and time to transition into positions with new employers is, therefore, not known. However as illustrated in Figure 7 above, 80 of these terminations occurred within three occupational categories (NOC 67, NOC 75, and NOC 76) where a total of 162 new hires took place. It is reasonable to conclude that “bust” is not responsible for the terminations at this point in the Project, however the reasons for these terminations are not explicitly known. On-going monitoring to detect characteristics of the Nunavut labour force that may make it vulnerable or resilient in the face of future changes in Project labour needs is recommended. Generating profiles of leaving workers will be a key part of the work that is needed in this area. The data presented in this report goes only part way in this direction, and would benefit from supplementary qualitative data such as interviews with current / former workers and their supervisors.] These perceptions and observations are not considered to be hard evidence of actual effects. Rather they are presented simply to assist in calibrating future monitoring efforts so that appropriate data may be sought to determine whether or not the possible interactions are important. 5.3 IMPACT ASSESSMENT UPDATES No data arose during the 2013 or 2014 monitoring program that would call for re-assessment of impact predictions. 5.4 ADAPTIVE MANAGEMENT ACTIVITIES AND GOVERNMENT INITIATIVES No information has been offered regarding how the data presented in the previous monitoring report has influenced Baffinland or government initiatives and activities. Given that the 2013 report has only recently been completed, this is not unexpected. Brubacher Development Strategies Inc. 42 Baffinland Iron Mines Corporation – Mary River Project NEXT STEPS SECTION 6.0 - NEXT STEPS At this early phase of the Project, understanding the magnitude of interactions with communities has continued to be the main focus of monitoring. This report has presented some insight into both point-in-time magnitude of Inuit participation as well as into the dynamics of Inuit involvement as some drop out and others move into the Project labour force. 6.1 QUANTITATIVE MONITORING Future quantitative monitoring should continue advancing insight into the dynamics of Nunavummiut involvement in the Project. In particular, indicators related to the following characteristics and effects of the Project should be monitored: Depth and resilience of the Inuit labour force — is it being tapped out? Continuation of the descriptive data presented here in order to generate profiles of performance of veteran employees and new recruits, and past performance of terminating employees. Are those recently recruited to the Project performing similarly as those recruited earlier? Was the performance of employees who subsequently terminate distinctly different from those who continue their engagement with the Project? Can Inuit participation in the Project be sustained in the face of the experienced turnover rates or will a decline begin to emerge? Is the North Baffin labour force (and other components of the Nunavut labour force) getting “tapped out” in terms of its capacity to supply labour to the Project. Absenteeism So far, labour force performance has been limited to tracking how well individuals succeed in showing up to work at site. Adding indicator/s related to authorised and unauthorised absenteeism may be helpful in refining this picture. Career progression Insight into success in progression of employees from lower skill toward higher skill positions will be gained through descriptive data related to career progression. Training and education Combined with monitoring of Inuit labour force performance and career progression in particular, monitoring of the training and education program will provide insight into success of efforts to build capacity. This is particularly critical as Inuit contribution to Skill Level D positions is already meeting most of Project demand in that area. Future progress depends on Inuit moving into occupations demanding higher skill levels. Demographic movements and migration While Project-related demographic effects have been limited so far, tracking of migration and movements should probably be maintained for at least a few more years in the same “surveillance” mode that has been used for these first two reports. Brubacher Development Strategies Inc. 43 Baffinland Iron Mines Corporation – Mary River Project 6.2 NEXT STEPS QUALITATIVE AND “OUTCOME” MONITORING Qualitative combined with existing quantitative research is desirable in order to understand why North Baffin residents depart employment and to identify what, if any, barriers to success are amenable to management either by company or public sector responses. More generally, insight into how employment at the Project is interacting with community economic and social life, as well as with household well-being should be addressed. This will require collaboration amongst Working Group partners. It is anticipated that some outcome-focused monitoring will be incorporated into the 2015 – 2017 reports. 6.3 SUPPORT FOR ASSESSMENT OF PROPOSED PHASE 2 One function that will drive decisions related to the focus of socio-economic monitoring is the need to evaluate and possibly revise predictions made in the FEIS. This will be relevant in 2015 in relation to assessment of the proposed Phase 2 amendment to the Project. Figure 12, below, was introduced in the previous report and illustrates how monitoring data can be used to influence adaptive management measures and to validate or refute FEIS predictions. Brubacher Development Strategies Inc. 44 Baffinland Iron Mines Corporation – Mary River Project NEXT STEPS Figure 12 Approach To Evaluating FEIS Predictions Brubacher Development Strategies Inc. 45 Appendix A Terms of Reference of the Mary River Socio-Economic Monitoring Working Group M ARY RIVER SOCIO-ECONOMIC MONITORING WORKING GROUP TERMS OF REFERENCE 1. PURPOSE 1.1 This document sets the Terms of Reference for the Mary River Socio-Economic Monitoring Working Group (the “Working Group”). The Working Group will support the Qikiqtaaluk SocioEconomic Monitoring Committee’s (QiSEMC) regional monitoring initiatives through projectspecific socio-economic monitoring. It is intended to provide a forum for Working Group members to engage in the work of the QiSEMC through identification of areas of mutual interest and socioeconomic monitoring priorities related to the Mary River project, communities, and the Baffin region as a whole. 1.2 The Working Group will support the fulfillment of Terms and Conditions set out in the Mary River Project Certificate that relate to socio-economic monitoring. 2. WORKING GROUP MEMBERSHIP AND MEMBER ROLES AND RESPONSIBILITIES 2.1 The Working Group will include as members: a. Baffinland Iron Mines Corporation (BIMC) or the successor owner/operator of the Mary River project; b. Government of Nunavut; c. Government of Canada; and d. Qikiqtani Inuit Association. 2.2 Each organization is responsible for their own costs of participating in activities of the Working Group. 2.3 Role of BIMC or the successor owner/operator of the Mary River project: a. Identify indicators and share project-specific data that can contribute to priorities identified by QiSEMC, where appropriate; b. Participate in the analysis of data arising from collaborative monitoring; c. Review the effectiveness of socio-economic mitigation measures; d. Participate and prepare presentations of project-related data/issues for the QiSEMC. APPENDIX A 2.4 Role of the Government of Nunavut: a. Identify indicators and share data that can contribute to priorities identified by the QiSEMC, where appropriate; b. Participate in the analysis of data arising from collaborative monitoring; c. Participate in the analysis of effectiveness of socio-economic mitigation measures. 2.5 Role of the Government of Canada: a. Work with the Working Group to identify and align indicators and share relevant data from the Nunavut General Monitoring Plan (NGMP); b. Participate in the analysis of data arising from collaborative monitoring; c. Participate in the analysis of effectiveness of socio-economic mitigation measures. 2.6 Role of the Qikiqtani Inuit Association: a. Identify indicators and share data that can contribute to priorities identified by QiSEMC, where appropriate; b. Participate in the analysis of data arising from collaborative monitoring; c. Participate in the analysis of effectiveness of socio-economic mitigation measures. 2.7 Protection of Personal Information It is recognized that, in collecting and sharing of any information and data under these Terms of Reference, each of the members of the Working Group is required to comply with any rules governing the collection, use, and disclosure of personal information, applicable to each member respectively, in accordance with the provisions of privacy legislation. 2.8 Information The members acknowledge that: a. BIMC is best able to collect and provide data concerning employment and training in relation to the Project; b. the Government of Nunavut and the Government of Canada are best able to report public statistics on general health and well-being, food security, demographics and other socioeconomic indicators at the community and territorial level; and c. the Qikiqtani Inuit Association is best able to provide information and data relating to Inuit land use and culture at the community and regional level. 3. OBJECTIVES 3.1 The Working Group has the overall goal of contributing to the ongoing expansion of knowledge related to interactions between communities in Nunavut and the Mary River Project. The priority is on knowledge that will ultimately assist in directing socio-economic benefit from the Project, enhance the accuracy of subsequent predictions related to socio-economic impact assessment, and improve the focus and efficiency of socio-economic monitoring. APPENDIX A 3.2 The Working Group aims to undertake collaborative monitoring in order to identify and access priority data that will be useful in improving the socio-economic performance of the Mary River Project. This will involve combining Project-specific performance data with data generated by other member agencies. The resulting insight will be useful in supporting adaptive management measures implemented by member agencies to minimize adverse effects and maximize benefits from the project. The goal will be to analyze the monitoring data in order to assess the effectiveness of current practices; obtain early warning should mitigation measures not be achieving their intended outcome; and provide timely detection of unanticipated outcomes. 3.3 The Working Group aims to improve understanding of priority socio-economic issues in order to increase confidence in socio-economic assessment predictions. The Working Group will identify priority predictions contained in the Mary River Final Environmental Impact Statement (FEIS) and will then work to address how these predictions can be validated or how unanticipated trends/observations can be described. 3.4 The Working Group will provide monitoring data and objective analysis in a manner that is focused, efficient and cost-effective. 3.5 The Working Group will ensure that project-specific monitoring aligns, where appropriate, with QiSEMC priorities, such as, but not limited to: a. b. c. d. e. f. Health and well-being; Education, life skills, and training; Employment and career progression; Demographics; Land use, culture, food security; and Other priorities that may be identified by the QiSEMC. 4. REPORTING AND COMMUNICATION 4.1 BIMC or the successor owner/operator of the Mary River project will prepare an annual socioeconomic report, presenting performance data, to the Nunavut Impact Review Board for review. These annual reports will be due on 30 June of each year, containing data on the indicators selected by the Working Group for the previous calendar year (January to December). These reports will further describe the Company’s participation in the QiSEMC, other collaborative monitoring processes and any activities related to better understanding of socio-economic processes. 4.2 Following Project Certificate issuance and BIMC’s decision to proceed with the construction of the Mary River project, annual reporting will commence following the start of site activities. 4.3 As appropriate, the Working Group may communicate with, and request data from, other issuespecific working groups that may arise throughout the life of the project. APPENDIX A 5. MEETINGS 5.1 The first official meeting will be held within six (6) months of Certificate issuance or at the next QiSEMC following issuance, whichever is first. 5.2 The Working Group is to initially meet twice a year, preferably immediately prior to or immediately after the QiSEMC meetings. This meeting schedule may be changed at a later date if agreed to by all members. 5.3 BIMC will designate a Chair and optionally a Secretary for these meetings. BIMC’s appointment of the Chair (which could include itself) recognises the significance of the weight of responsibility for reporting by the Company. Hamlets, GN, GC, QIA, Qikiqtaaluk Socio- Proponents Economic Monitoring C i Regional monitoring Regional Monitoring Project-specific monitoring Mary River SocioBIMC, GN, GC, QIA, Economic Monitoring Working Group Mary River monitoring 6. RELATION TO IIBA OBLIGATIONS 6.1 The parties recognize that this ToR is separate from any obligations under the Inuit Impact and Benefit Agreement (IIBA) between the proponent and the Qikiqtani Inuit Association and that the mandate of the Working Group shall not include monitoring of the IIBA. APPENDIX A 6.2 Any sharing of information with the Working Group related to the IIBA will be solely at the discretion of the Qikiqtani Inuit Association and Baffinland Iron Mines Corporation or successor. 7. REVIEW OF TORS 7.1 These Terms of Reference may be reviewed by Working Group members periodically for any required changes that may be applicable as the Project evolves from construction, through operations and closure. APPENDIX A [INSERT: Dec 3_2012_MRSEMP_ToR_Final (clean).pdf] link to PDF file on Doug's Mac computer APPENDIX A
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