Labor Shortage in British Columbia's Construction Industry:
Does it really exist, and are Immigrants the Solution?

Rohail Masood
BSc., University ofPhoenix, 2006

UNIVERSrrY OF ORTHE~N
B9!T!SH cOlU~ 81
UBRARV

Prince George, BC

Project Submitted In Partial Fulfillment Of
The Requirements For The Degree Of
Master Of Business Administration

The University OfNorthem British Columbia
December 2008

© Rohail Masood, 2008

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Table of Contents
Table of Figures .......... .. ............. ............ ............................................................. .... .................. 4
Table of Tables .............. ....... .................................................................................................... 5
Abstract .................. ... ............ ................. ..................... ..... ........ ...... ................................ ........... 6
1. Introduction: Nature of the Problem ........ ............................................................................. 8

1.1 Questions that Guide the Investigation .......... ............................ ............ .......... ........... 8
1.2 Definition ofTerms .. ............. ..................................... ...... ............. ..... ....................... 10
1. 3 Order ofPresentation .................... .... ....................................................................... 10
1.4 Chapter Summary .. ....................... .................. ... .................................. ........ ............. 11
2. Background and Significance of the Problem ........ .......... ............................ .......... ............ 12

2.1 Significance .............................................. ............. ..... .......... .......................... ........... 12
2.2 Background ................ ............. .................................................................................. 13
2.3 Chapter Summary .................... ................ .......... ........ ................................ ............... 15
3. Literature Review .............................. ........ ........ ......... ............ ...................... ....................... 16

3.1 Is there a Construction Labor Shortage, and if so, Why? ............ ............................ 16
3.2 Utilization ofAboriginal Populations in Construction .... ......................................... 24
3.3 Developing Youthful Labor Force .............. .............................................................. 29
3.4 Using Immigrant Labor ......... ...................... ....................... .... .................................. 32
3.5 Labor Unions and the Construction Industry ........................ .............. ........ ............. 35
3.6 Income of the Construction Worker ...... .......................................................... .......... 39
3. 7 Chapter Summary ......... ..................... ........................................................... .. .......... 44
4. Methodology ....................................................................................................................... 45

4.1 Qualitative Research ......................................... ... ............................................ ........ . 45
4.2 Archival Research ...... ......................... ......................................................... ............. 46
4.3 Analytic Induction ... .................. ..................................................................... ........... 47
5. Analysis ...... .............. ............................................................................................... ............ 50

5.1 Application and Analysis of Data .............................. ...................... ...... ................... 51
5.1.11s there a Shortage ofLabor in the Construction Industry in British Columbia?. 51
5.1.2 Can Shortage be Reduced by More Skilled Immigrants or Are There Other
Alternatives? .................. ...... .......................................................................... ................. 53
5.1.3 Utilization ofAboriginal Populations in Construction .............................. ............ 53
5.1.4 Youthful Labor Force ................ .................. ... ......... ............................................... 53
5.1.5 Immigrant Labor .... .............. ..................... ........ ...... ....... ............................ ............ 54
5.1.6 Labor Unions ........ ................. .................... .... ......... ....... ...... ... ................. .............. 55

3

5.1. 7 Other Workforce Possibilities ................................................................................ 55
5.2 Discussion and Analysis of Findings ......................................... ............................... 56
5.2.1 Weighted Grid Analysis ..................................................... .................................... 56
5.2.3 Other Possible Solutions ........ ........ ............... .......... ................ ............................... 61
5.3 Rejection ofthe Null Hypothesis ........... ......... .................................... ........ .... ........... 61
5.4 Weaknesses of the Study ..................................... ........ ................ ............................... 62
5.5 Chapter Summary ....................... ................... .. .... ........ .......... .................................. . 62

6. Conclusions and Recommendations ............ ............. ...... ................................. ..... ........ ...... 63

6.1 Conclusions ................ ..... ........... ........ ........ .. ........... ................ ........... ..... ................ .. 63
6.2 Recommendations ........... ..... .. ... ............................ ..... ................. ............. ................. 65
6.2.1 Provide Fundingfor Aboriginal Housing ............... ................................. .............. 66
6.2.2 Provide Fundingfor Adult Basic Education within the Context of Construction
Education ........... ....... .... .... ............................................... ............ .... .................... ........... 66
6.2.3 Assist in Developing Programs to Allow Older Workers to Re-Enter the Workforce
····················
····································
·····················································
···········
·················67
6.2.4 Require Panel Oversight of all Corporate Visa Sponsorship Requests .. ............... 67
6.2. 5 Provide Economic Stimulus to Canadian Workers ............... ............. ................. ... 68
6.2.6 Develop special training or incentive programs aimed at each of the three
categories targeted: youth, women, Aboriginal workers ...... ... ....... .. ...... ....... .... .. ... ...68
6.3 Project Summary .. ............ .......... ................................. ................................. .............. 69
7. References ......................... .................. ................... ............................. ................................ 71

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Table of Figures
Figure 1. Canadian Occupational Projection System forecast 2014. Source: Statistics Canada
2004 ................................ ... ......................... ........................... ...................................... ............ 17
Figure 2. Analytic Induction Methodology ... ................. .......................................... .............. 50
Figure 3. Construction Worker Demand Cycle .......... ............. ..................... .. ........... .... .... .... . 52

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Table of Tables

Table I. Retirees Would Return to Work "if' ............................................... .......... ................ 24
Table 2. Data from Table 1 in Graphic Representation .......................................................... 24
Table 3. Employment Rates of Aborigines and non-Aborigines, 2001-2005 ...... ......... .......... 26
Table 4. Unemployment Rates of Aborigines and non-Aborigines, 2001-2005. , .......... ........ 26
Table 5. Occupations, average salary, unemployment rate, retirement rate, expansion rate.
From BC Work Futures . ...................................................... .... ...... ......................................... 44
Table 6. Grid or Matrix Analysis ................................................................................. ........... 57
Table 7. Weighted Grid or Matrix Analysis ...................... ...... ................ ............ .................. . 57

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Abstract

British Columbia appears to be faced with a pressing labor shortage in its thriving
construction industry. Most of the projections made by analysts point out that the nation's
population are aging and that the numbers of individuals leaving the construction industry
(through the combination of retirement and attrition) is on the rise. The next effect, that is
feared, is that there will be a huge shortfall between supply and demand in the construction
industry.
What appears to be a clear issue (not enough people to wield a hammer) quickly
becomes complicated as the issue is investigated. According to the literature, there is quite a
difference in the increasingly more high tech construction industry between a laborer, and a
skilled or experienced laborer. There is also no disagreement that British Columbia will need
construction workers through 2010. However, what will happen once the Olympics ceases
construction is only a matter of conjecture.
The literature quickly brings us to the conclusion that there is little need for laborers
from other nations and that the anticipated shortfall of skilled laborers, of all general
construction categories, should be filled internally.
A number of recommendations are made to solve the shortage of trained workers by
training Aboriginal populations, youth, and women, and by providing programs that will
allow retirees to return to work part time without facing loss of benefits. Such solutions may
increase productivity of the population of British Columbia without increasing the level of
current governmental spending.
This project, while ostensibly about the construction industry in British Columbia,
Canada, has global implications. British Columbia, far from being the only area with ' issues' ,

7
is one of many areas that are crying for skilled labor and facing an aging work population. As
the world globalizes and ' third world nations' become a thing of the past, the construction
industry in British Columbia reflects the same issues as those being experienced in other
industrialized nations in terms oflack of availability of skilled construction workers.

8
1. Introduction: Nature of the Problem

British Columbia is facing a pressing labor shortage in its thriving construction
industry 1• A number of large construction project are underway, including construction for
the 2010 Winter Olympics, and as a result, there is a need for almost all construction
specialties. Unfortunately, even as construction demands are increasing, so is the age of the
Canadian construction worker. It appears that many of the construction workers who might
otherwise have retired have continued to work simply because of the high demand for their
skills, but they will not be able to work indefinitely. Utilizing immigrant labor has been
proposed as one possible solution to the labor shortage, and, indeed, much of the information
in the population media relates to the pros and cons of using immigrant labor. This project
investigates the perceived shortage of construction labor in British Columbia.
1.1 Questions that Guide the Investigation

Two preliminary questions are asked:
•

Is there truly a shortage of labor in the construction industry in British
Columbia, and if so, why?

•

Can any labor shortage in British Columbia's construction industry be reduced
if we hire more skilled immigrants, or are there other, more viable solutions to
the problem of construction labor shortage?

These questions are addressed in the overall context of the construction industry in
British Columbia, placed in the global frameworks of education and immigration. As
investigation into the labor shortage in the construction industry in British Columbia
progressed, additional questions were proposed, asked, and answered in the overall
1

Canadavisa.com . "British Columbia construction industry fast-tracks skilled trades workers from Europe."
Campbell-Cohen Canada Immigration Attorneys. Canadavisa.com. http://http: //www.canadavisa.com/BritishColumbia-construction-industry-fast-tracks-skilled-trades-workers-from-Europe.html

9

progression of analytic induction. Areas for investigation included possible methods of
addressing any labor shortage either without, or in addition to, encouraging immigrant
utilization. During the course of the investigation, training issues were reviewed, retention
concerns investigated, the aging of the construction worker population was discussed,
knowledge management and information technology utilization were studied, and factors that
contribute to a perceived shortage were addressed. In addition, some troubling concerns
regarding race and nationalism surfaced and were investigated in the context of worker
shortages.
The original project began with a null hypothesis :
H: Hiring more immigrants will solve the labor shortage in BC.
It was quickly determined, however, that in order to determine whether the use of

immigrant labor is a possible solution to the professed lack of personnel in the construction
industry, an examination must be conducted into whether or not a shortage genuinely exists,
and if so how it developed to begin with. Thus, as part of this examination, it was necessary
to look at the overall economy of British Columbia (BC) and the demographics of the
population of the area. Once that was completed, an analysis of the collected data was
performed and conclusions drawn. The question of whether or not hiring immigrant labor
will solve any real (or perceived) shortage of construction labor in British Columbia was
investigated. As the investigation was performed, the hypothesis and related questions
developed and changed. The hypothesis was honed and sharpened, and a final hypothesis
was developed and tested.
A number of possible solutions to present and future labor issues and shortages in the
construction industry in British Columbia were presented in the recommendations.

10

1.2 Definition of Terms

As the process of investigation began, it quickly became clear that a number of terms
would need to be clarified and defined. Though much of the information in the media utilizes
these terms, and indeed the Canadian government utilizes these terms in discussion, it
became evident that the terms did not necessarily mean the same thing to the construction
industry representatives, governmental representatives from British Columbia and the
Canadian government as a whole, to labor unions, and to the media and the general public.
Thus, some definition of terms and consensus on their meaning is necessary for the reader to
understand the materials that are being presented in this investigation.
The first question that arose when considering the subject was to address what an
immigrant is, and what a shortage really is. The next term that needed to be defined is what
exactly is meant by skilled labor.
1.3 Order ofPresentation

This investigation is divided into seven sections. The first, the introduction, sets the
general tone of the investigation, defines terms, and provides an overview of later chapters.
The second part of the investigation defines the background of the investigations and
explains the significance of the problem. The third section, the literature review, provides a
wide variety of information relating to the topics of labor in British Columbia, with emphasis
on real or perceived shortage oflabor in the construction industry. An in-depth investigation
and review of construction labor issues is presented, especially as relates to an aging
population. Issues relating to the upcoming youthful workers and their seeming lack of
interest in the construction industry are reviewed. Canada's labor unions will be investigated
for any complicity in the current construction labor difficulties, as will governmental policies

11
that may be contributing. Finally, issues relating to proposed immigration policies for
construction workers will be reviewed.
In the fourth section, on methodology, an in-depth discussion of the methodology of
analytic induction, or taking many facts and developing conclusions from them, will be
reviewed. An analysis of how the literature base is analysed is presented. The fifth chapter or
section provides a step-by-step application and analysis of the data, along with a discussion
and analysis of the findings . The sixth section provides the conclusions of the investigation
and recommendations for solutions to labor issues in the Canadian construction industry in
British Columbia. One last section provides the bibliography and notes of information
utilised in the investigation.
1.4 Chapter Summary

This chapter has provided background information on the study and its applicability
to an increasingly globalized world, as well as defining the areas of investigation and
providing a general map of the organization of the document. In the next chapter, a more
detailed examination of the background and significance of British Columbia labor shortages
in the construction industry are addressed.

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2. Background and Significance of the Problem
According to the Youth and Labor Market Services Ministry of Advanced Education
of British Columbia 2 (200 1), there are expected to be significant shortfalls in the numbers of
trained construction workers in the future British Columbia market. In the knowledge-based
economy, when employees leave a company, a large part of the company's knowledge base,
or human capital goes with them. While we might not initially think of construction work as
being important in a knowledge base, the reality is that a company cannot function without
knowledge, and experience is applied knowledge. Thus, experienced workers represent a
significant part of a company's human capital and knowledge base. When there is a short fall
of trained employees, the company is fails to live up to its potential and cannot reach its
strategic objectives. Individual companies, therefore, have as much at stake in developing
and keeping trained construction employees as do the organizations which expect to have the
buildings constructed, or the government organizations which expect to see the economy
grow as the housing and construction base expands.
2.1 Significance

In order to address possible solutions for a labor shortage in the construction industry,
we must first question why any shortage is occurring. In theY outh and Labor Market Study 3
(200 1), a number of explanations for a labor shortage in the construction industry are
proposed. The Ministry suggests that some of the reasons for the shortage are natural and
cyclic, and are not necessarily a bad thing. Some of the reasons, on the other hand, are
negative; according to the Ministry, the industry itself is not necessarily expanding, but the
2

Youth and Labor Market Services Branch. "An Overview of Labor Market and Skills Shortage Issues in
British Columbia and Canada." Labor Market and Skills Shortage Issues. Minist1y of Advanced Education
British Columbia. June 200 I.
3
ibid.

13
construction industry is loosing trained workers and younger workers are not interested in
entering the industry 4 .
Other sources, however, disagree with the Ministry. Todd Hirsch (2006) states that
the industry is actually expanding a great deal, and many jobs are presently going unfilled.
Hirsch (2006) reports that baby boomers are retiring, and young people are not filling
available spots for several reasons. The first reason may be the lack of trade school slots; the
second reason relates to the state of technology and perception of parents of the young. Most
young people today want to have a "high tech" job, which dovetails with parents' pressure on
the young to get a university education. The reality, states Hirsch (2006), is that many
construction jobs today are very high tech. As a result, it is rarely unskilled labor jobs that are
going unfilled; it is high tech, high skilled construction jobs that are left open as experienced
workers retire, or migrate to other companies 5 (2006).
2.2 Background

It is important to place this shortage in context of retirement. Statistics (Statistics

Canada, 2006) 6 show that British Columbia's construction workforce is aging rapidly.
Construction is an industry that requires physical labor, and age becomes a limitation for
many people. Workers tend to leave the construction industry at an earlier age than they
would in a more sedentary occupation. As trained, experienced workers age or retire, a
plethora of related problems occurs. The number of injuries goes up, and the amount of days
off increase. Illness increases as an aging population is exposed to outdoor work in inclement

4

ibid
Hirsch, T. "Coming Up: The transfom1ation ofWestem Canada's Economy." Canada West Foundation
February, 2006. Publications. Canada West Foundation.
http: //www.cwf.ca/V2/files/Coming%20Up%20Next.pdf
6
Statistics Canada. "Canadian workforce aging rapidly."
http://www.nipissingu.ca/faculty/davidp/dphome/class%20 12%20Canadian%20workforce%20aging%20rapidly
%202008.doc.
5

14

weather. Planning and costing becomes more difficult with older workers since management
cannot be certain that any given older worker will be available to work on any given day. In
addition, British Columbia had a mandatory retirement age of age 65; individuals who are
forced to retire at this age had no recourse under discrimination laws. Thus, a company's
most experienced workers may have been forced to leave the industry, and there is no
evidence that retired construction workers returned to work when mandatory retirement laws
in British Columbia ended on January 1, 2008.
In the Literature section, modification of the traditional workweek to more adequately
accommodate aging workers will be investigated as one potential way to partially remedy the
shortage of skilled construction workers. Other accommodations that may be made to allow
older, more experienced workers to successfully continue to work in this taxing industry will
be discussed.
As we will see in the Literature section, there are a number of issues, which relate to
the hiring and maintenance of employees in the construction field in British Columbia. One
example of a concern that has surfaced is that the British Columbia Federation ofLabor has
charged that companies which intend to bring in immigrants to fill the widening breach
between demand (openings) and supply (potential construction employees) are turning down
fully qualified and experienced Canadian construction workers in order to hire cheaper
foreign labor 7 (Sanborn, 2006). This possibility is investigated in the Literature Review.
Other topics that have been investigated include issues relating to the Aboriginal
population and their ability and availability to work in the construction industry in British
Columbia. Because of the timeliness of the topic and the fact that the nature of the

7

Sanbom, T. "Canadian ironworkers shut out of big bridge job, say unions, contractors." The Tyee, September
1, 2006. http :/!http://thetyee.ca/News/2006/09/0I /Ironworkers/

15
information available on the topics to be studied changes nearly daily, both traditional
scholarly sources of information and less traditional sources have been investigated and
considered. Thus, the literature investigation will reflect a combination of media, government
sources, popular media (websites and web postings), and scholarly sources. When
synthesized, these varying types and levels of information are expected to reflect a wide
variety of perceptions on the issue of labor shortages in British Columbia and throughout
Canada. These perceptions will become invaluable as we investigate how labor shortages
occurred (if they did) and why there is a perception of shortage if a shortage has not
occurred. These perceptions and their origins are just as valuable when generalizing to other
nations and discussing globalization of the issues as the facts are, for it is perception that
guides public concerns, rather than reality.
2.3 Chapter Summary

In this chapter, the background and significance of the study was established. In the
next chapter, the literature that will form the basis of the study is reviewed and presented.

16

3. Literature Review
A literature review of pertinent literature was conducted to explore the overall
environment relating to the construction industry in British Columbia. This review was
initially of an exploratory nature and was conducted as a preliminary step to beginning the
process of analytic induction. During the process of exploring the literature for the formal
investigation, some clear areas of concern evolved and those areas were explored in greater
depth during the investigation. The general nature of the review has already been described
in previous sections, but the review will address five general areas: Is there a construction
labor shortage, and if so what is the reason, including aging of the population as a whole and
construction workers specifically; utilization of Aboriginal populations in construction work;
lack of youthful construction workers; use of immigrants in construction; and finally, how
the labor unions may be contributing to construction labor issues, particularly shortages.
It is not always possible to separate one issue from another, as the issues overlap, but

they will be presented in separate sections to the extent feasible.
3.1/s there a Construction Labor Shortage, and if so, Why?

Not everyone agrees that there is a labor shortage, and tempers run quite high over the
issue. In Alberta, the Alberta Labor Federation (2008) states that reports of shortages are
greatly exaggerated 8 . The Federation points out that the Canadian government believes that a
labor shortage does not really occur until unemployment is below 3.5%. Until that point,
markets are considered 'tight', not 'short' . With unemployment in British Columbia hovering
at 4.1 %, there is technically no labor shortage. The Government of British Columbia points
out that during the last 15 years, the rate of unemployment among construction workers has
8

A lberta Federation of Labor. "The truth about labor sh011ages in the oi l patch." 2008. Alberta Federation of
Labor. April 4, 2008 <http: //www.afl.org/campaigns-issues/fortmcm urray/shortage.cfm>.

17
averaged higher than for other occupations, at an average of 11 .3%, compared to a province
average of 8.4% unemployment 9 (Province of British Columbia, 2007). The province
government also points out that much of the current boom is based on Olympic construction,
which will be completed by 2010. After that, the province expects the demand for
construction workers to level off, and even fall. Employment is not expected to grow as fast
in actual numbers as it is in other industries, and may even fall.

8

%of total economJ

a GOP
• Employment

7

7

6

6

5
4
3
2

0 -+--_....____

2004

2014

Figure 1. Canadian Occupational Projection System Forecast 2014. Source: Statistics Canada
2004 10

WorkPermit.com 11 (2007), a private company that makes its money providing
immigration advice to potential immigrants from various nations, provides information on a
number of issues facing the economy of British Columbia as it seeks to fill job positions that
9

Province of British Columbia. "Construction." British Columbia: A guide to the BC Economy and Labor
Market. 2007. Government of British Columbia. April4, 2008
<http://www.guidetobceconomy.org/major_industries/construction.htm>.
10
ibid
11
WorkPermit.com (2007). WorkPermit.com. "Canada- record low unemployment, 350,000 workers needed in
British Columbia." The world's most popular immigration advice site. WorkPermit.com.
http://http ://www.workpermit.com/news/2007_03_22/canada/british_columbia_needs_350000_workers.htm

18

are expected to occur in the next few years. The company reports that one million jobs will
be available within the next 12 years, with a shortfall of over 350,000 jobs that are termed
"key sector"(WorkPermit.com, 2007). WorkPermit.com (2007) discusses economic causes
that have led to the shortage, and discusses the implications to the economy should the
positions not be filled. Problems in filling the jobs due to shortage of skilled and experienced
workers are discussed at length, along with efforts that Canada is taking to get the jobs filled.
Problems of an aging workforce are discussed, including the fact that older workers have
more physical needs and health care needs than younger workers (WorkPermit.com, 2007).
Of particular interest is the notation that Canada is finding that there is a shortage of
skilled and experienced workers. As a result, WorkForce.com reports (2007), many
companies are now hiring unskilled or uneducated workers who would have been considered
unemployable in the past. In response, the search for skilled workers has been accelerated,
but competition from around the world is high as nations that were considered third world in
the past are entering a more industrialized cycle, thus spreading the educated and experienced
work pool even more thinly. According to WorkPermit.com (2007), the problem is
complicated by the fact that uneducated or unskilled workers has "undermined the quality of
work" in the province. The article also points out that most companies have not matched the
skills they do have in their work force to the individual job requirements, resulting in poor
utilization of the workers and skills that are available 12 (WorkPermit.com, 2007).
Hirsh (2006) presents a comprehensive study conducted by Canada West, a charitable
foundation devoted to "non-partisan, accessible research and active citizen engagement".
Hirsch is the chief economist for the organization, which states that a strong western Canada
is good for the entire nation. The article points out that construction worker in Canada oppose
12

ibid

19

using immigrant labor, a theme that appeared throughout the research conducted for this
paper. This article points out that there is a shortage of 'qualified' workers in the construction
industry, but that there is also a shortage of unskilled labor. The preface to the document
takes care to point out that the study's predictions are based on current information, and
predictions can be very wrong. Nevertheless, the document provides a great deal of factual
information on the state of the industry in British Columbia, combined with reasonable
predictions for the future (based on current information and conditions).
Hirsch (2006) attempts to convince the reader that there is a shortage, reveal how the
shortage developed, under what conditions it will or will not continue, and give the reader a
basis for understanding the possibilities for remedying the shortage 13 (Hirsch, 2006).
Penner (2008) 14 presents a completely different perspective. According to Penner, the
British Columbia construction industry was able to put 4,600 additional construction workers
to work in March 2008, making a total of28,000 new workers since March of2007. Despite
large numbers of layoffs in the finance, insurance, and real estate industries, British
Columbia' s unemployment rate fell from 4.3% to 4.1% in February 2008, a trick that
Smelser, of Service Canada, attributes to people who were unemployed reentering the job
market

15

•

Essentially, the construction market was able to absorb not only all of the laid off

workers in British Columbia, but some workers who were unemployed and wished to return
to work. While these figures could be used to make the argument that there is a shortage of
construction workers in Canada, it is just as possible to use them to make the argument that

13

Hirsch, 2006.
Pe1mer, D. "Construction leads way to strong B.C. job growth." The Vancouver Sun. 05 April 2008. April 12,
2008. <http://www.canada.com/vancouversun/news/business/story .htm l?id=d 19528b6-7f7d-4e4 7-b05cce6e9edc2d7f&k=827 14>.
15
ibid
14

20
there is not. After all, the jobs were filled somehow: the point is that they were, indeed, filled,
and filled with Canadians.
The Alberta Federation of Labor (2008) states that some of the Canadian provinces
have higher unemployment rates than others, and that companies should turn first to
construction workers in other regions as they search for trained employees. The union also
points out that there is a high rate of unemployment among First Nations peoples, and that
they represent a large untapped working population. The Federation states that one of the
non-traditional labor unions, the Christian Labor Association of Canada (CLAC), undercuts
unions that are more traditional and then ends up trying to import workers to fill jobs that
they have promised to fill. By accepting lower working rates for their members, the CLAC
acquires more contracts, which it then cannot fill because Canadian workers do not want to
work for the bargain-basement wages. When the jobs go unfilled, CLAC turns to the
government for permission to import temporary workers from other nations. This, the Alberta
Federation of Labor believes, undermines not only the traditional unions but also
independent workers who want a living wage. They point out that CLAC's constant requests
to bring in foreign workers also gives Immigration and the government the impression that
there are no workers, when in fact there are no cut-rate workers 16 (Alberta Federation of
Labor, 2008).
Sandborn (2006) 17 provides a similar perspective. He points out that most of the
concern that British Columbia had "construction shortages" began when Olympic buildings
began to experience cost overruns, largely due to high labor costs. Both the Union and nonUnion sectors of the market have stated that salaries for workers are rising, which increases
16

Alberta Federation of Labor, 2008
Sandborn, T. "Does BC really need 20,000 global temps?" The Tyee. February 24, 2006. Aprill2, 2008.
<http://thetyee.ca!N ews/2006/02/24/BCG lobal Temps/>.
17

21
base costs. In addition, increasing materials costs, inspection fees, land, and especially rising
fuel costs are driving up expenses. The issue is not, they say, a lack of workers; it is workers
who need to be paid a reasonable wage. As early as 2005, market analysts were warning
Olympic officials that failure to properly cost, combined with "fast track" construction,
would leave budgets off balance. That point has come, and now the non-traditional unions
and many of the non-union shops do not have the skilled labor to fill the needed openings.
Just as the Alberta Federation of Labor (2008) believes that the real issue is the desire
to acquire lower-paid employees, so do most of the local unions. In addition, they point out
that the Unions have strong training and apprenticeship programs, so they have trained and
skilled workers. The non-traditional union and non-union shops are working their employees
for less, so they do not have money to put into training. When they need additional trained
and cheap labor, they feel there is no alternative but to look for foreign labor. Sandborn
(2006) points out that while the non-traditional unions search for foreign labor, the large
unions have always been willing to compromise and accept a blanket bargaining arrangement
such as the types that had done during the Olympics in Sydney. Such an agreement would
keep costs steady low and ensure that there would not be cost overruns, although the cost of
labor would be higher than a non-union shop's cost. The net effect would be to keep costs
lower than either non-traditional unions or independent shops could guarantee. It is not likely
to happen since the mind-set is strictly free-market. As a result, British Columbia faces the
possibility of a huge debt on the Olympic Village once it has closed its doors, and no one is
certain what will happen at that point

18

(Sanborn, 2006).

Others argue that since the population as a whole is aging but the economy growing,
there must be a labor shortage. One thing is clear: no one denies that baby boomers are aging,
18

Sandborn, 2006.

22
and are less interested in doing construction work than they once were. Even boomers who
stay on the job are 'slowing down'; they need more time off, more sick leave, need more
medical care, and are more likely to not show up to work for a plethora of other reasons 19
(Mala test, 2003). In 2001, the median age of the Canadian worker hit 41.3 years of age, and
is expected to hit nearly age 44 by the year 2011. By 2011, nearly half of the workforce will
be between the ages of 45 and 64, which represents a 29% increase since the early 1990s. At
the same time, Canadian workers are retiring significantly earlier than they did two decades
ago, meaning that the average work-years of a Canadian worker are decreasing.
In 2001, 35% of the construction workers were age 45 or over. 12% of the
construction workers were aged 55 or over. To put this in perspective, only 16% of the
population was aged 15-24. This means that only 37% of the construction workers in Canada
were both trained and skilled and likely to keep working. Younger workers are less well
trained; older workers are approaching retirement 20 (Malatest, 2003).
Earlier in this report, it was stated that older workers have difficulty keeping the
fulltime schedules of younger employees. Malatest (2003) reports that there are varieties of
reasons for this phenomenon. Older workers may simply want more time off, or they may
need more time for doctor's appointments, family care, or personal needs. The issue of
family care becomes critical as we realize that people are living longer, so older employees
(who are tiring themselves) may also be caring for aging and elderly parents, frequently in
their own homes rather than in nursing centers. In order to accommodate the needs of these
older employees, construction companies may need to consider alternative scheduling.
Shared-jobs, intermittent work, part time work, flextime, and phasing into retirement should
19

Malatest, R. The aging workforce and human resources development implication for sector councils. Ottawa:
Self, 2003 .
~ Malatest, 2003.

23
all be considered. Another option that would be of benefit both to the company and the
employee is the idea of job sharing to shadow or mentor younger employees; utilizing the
elder employees' knowledge to train and mentor younger employees, and relying on older
workers to assist with administrative details and job supervision whenever possible. Active
construction workers can serve as code enforcement officers or trainers with a minimum of
additional education (Alberta Employment, Immigration and Industry, 2008) .. 2 1 All of these
options allow older workers to be productive while increasing their value to the company,
albeit in a different direction than anyone may have expected 22 .
How successful would these efforts be? The Alberta Employment, Immigration, and
Industry Council (2008) conducted a survey of recent retirees, and determined that there
were a number of reasons that the retirees had ceased to work. The reasons offer insight into
options that might entice older workers to return. 23 , 24

11

Alberta Employment, Immigration and Industry. "Mature workers in Alberta and British Columbia:
Understanding the issues and opportunities." Employment Alberta. Govemment of Alberta, Canada. 2008.
http://http://www .csc-ca.org/pdf/ Aborigina !_report_ e.pdf.
22
Malatest, 2003
23
Alberta Employment, Immigration, and Industry, pg. I3, 2008
24
The reader should note that mandatory retirement laws have been repealed according to Alberta Employment,
Immigration, and Industry, 2008 .

24
% of retirees polled

Reasons given that they might return
Could work fewer days and receive pension

28

Could work part time

28

Could work shorter days without affecting

26

pensiOn
If their health was better

26

If they got a better salary

21

If they could take more vacation leave

19

without it affecting the pension
If mandatory retirement did not exist

12

If they could find suitable care-giving

6

arrangements (spouse or parent)
Table 1. Retirees Would Return to Work "ir'. 25 (Alberta Employment, Immigration, and Industry)

•fewer days
• part time
D shorter days
D better health
38

• better$
[C more leave
• no mand. Ret.
D care-giving

Table 2. Data from Table 1 in Graphic Representation

3.2 Utilization ofAboriginal Populations in Construction

Canada has a high Aboriginal population, representing a total of3.3% ofthe
population (Aboriginal Human Resource Development Council of Canada, 2007) 26 with an
increasing number of the population being based in Canada' s large cities. Employment rates
for Aboriginal populations vary widely from area to area and region to region, and even from
15

Alberta Employment, Immigration, and Industry, pg. 13, 2008
Aboriginal Human Resource Development Council of Canada. "A study of Aboriginal participation in the
construction industry." Construction Sector Council. Construction Sector Council, Canada 2007.
http://http://www .csc-ca.org/pdf/ Aborigina !_report_ e. pdf.

16

25
identity group to identity group. The three primary identity groups of Aboriginal populations
in Canada are North American Indian, Metis, and Inuit (Lamontagne, 2004). 27 In the past,
there has been a marked disparity in both education and employment between Aboriginal and
non-Aboriginal populations, but that has been steadily changing over the last decade. While
large gaps remain in some areas, the past decade has seen an interesting change, with rates of
Aboriginal women who hold a university degree employed at a much higher rate than any
other demographic category (see Table 3).
The large disparity in employment and unemployment rates of Aboriginal women
who have either do not have a high school diploma or only a high school diploma, and the
rate of Aboriginal women who have a University degree may be explained by the cultural
concept that Aboriginal women tend to have their families while they are younger and thus
not be as concerned about employment as some other demographics. This may explain why
only 30% of the Aboriginal women without a high school diploma are employed, but the
unemployment rate is calculated at 22.1% -- they simply are not looking for work (Table 4).
In the two charts below, the yellow highlighted areas draw the reader's attention to
the highest percentages in each educational category. In Table 4, when the unemployment
rates of Aboriginal and non-Aboriginal workers are compared, it is clear that they represent a
large manpower segment for the nation. Since the unemployment rate represents persons
actively looking for work, who will accept work if offered, we can conclude that there is a
large portion of the Aboriginal population who would like to be working. One potential
solution to the construction labor shortage in British Columbia is to put these willing workers

27

Lamontagne, F. "The Aboriginal workforce: What lies ahead, a CLBC commentary." Canadian Labor and
Business Center. 2004 Canada. http ://http: //www.clbc.ca/fi les/ Reports/ Aboriginal_ Commentary_piece.pdf.

26

into jobs, but there are hurdles that must be solved, including basic educational and
vocational skills for this population.

~

Less than
High
School

High
School
Diploma

50.1

176.0

PostSome
postsecondary
secondary certificate,
Diploma
178.7
69.5

Males, Aboriginal

43.2

75.4

63.8

80.7

82.3

Females, non-Aboriginal

32.4

61.3

62.6

68 .5

74.4

Females, Aboriginal

30.0

65.5

52.1

72.4

85 .. 2

Combined non-Aboriginal

41.4

68.4

66 .0

73.6

76.5

Combined, Aboriginal

36.3

70.2

57.5

76.0

84.1

>ry
Males, non-Aboriginal

..

University
degree
78.5

..

Table 3. Employment Rates of Abongmes and non-Abongmes, 2001-2005. lH Adapted from Luffman and
Sussman, 2007.

Less
than
High
School

High
School
Diploma

8.0

5.0

PostSome
University
postsecondary degree
secondary certificate
or
Diploma
5.5
3.4
3.5

Males, Aboriginal

20.4

9.7

10.7

9.5

-

Females, non-Aboriginal

9.4

4.6

4.7

3.7

3.5

Females, Aboriginal

22.1

9.0

16.4

7.1

-

Combined non-Aboriginal

8.6

4.8

5.2

3.5

3.5

Combined, Aboriginal

Q1.2

9.3

13.6

8.2

3.9

Level of Education

Category
Males, non-Aboriginal

..

..

Table 4. Unemployment Rates of Abongmes and non-Abongmes, 2001-2005. 29 , Adapted from Luffman
and Sussman, 2007.

28

Adapted from Luffman, J. and Sussman, D., "The Aboriginal labor force in Western Canada," Statistics
Canada 75-001 XJE, no .January (2007): 13-27. http://sc.gc.calenglish/freepub/75-00 1-XIE/ 10 I 07/art-2.pdf, pg.
17.
29
Adapted from Luffman and Sussman (2007).

27

As of 2007, 19% of the Aboriginal men who were between the ages of 25 and 64 are
certified in building and construction technology and building trades. A high proportion of
the Aboriginal population reports that they would like to work in these industries. Thus,
governmental and private sector efforts to increase their employment in building and
construction trades and to train younger Aboriginal workers, including females, in these
trades would undoubtedly help solve the construction shortage. One complication of this
desire to work, however, is the fact that no one is certain what the literacy level of many
Aboriginal workers is. There is a relatively high rate of Aboriginals who do not have a high
school diploma, having a high school diploma does not necessarily guarantee literacy. Thus,
ability to read may be a hurdle that needs to be overcome; the construction industry itself is
changing and it is not longer merely manual labor. Construction workers are facing
increasingly higher levels of technology and this can represent a challenge.
National Resources Canada (2007) has also reported that the Aboriginal population
may represent relief to the construction industry. Not only are Aboriginal workers younger
than the average population, but they tend to stay in the rural areas when jobs are available.
Other young people go off to college, but in this case, failure to do so may be an advantage to
the construction industry. National Resources (2007) states, "In an aging society, Aboriginal
people are the niche market, the treasure trove of youthfulness." They also recommend that
companies invest in technology to lessen the physical strain of the work, and train workers in
how to utilize the new equipment (National Resources Canada, 2007). 30
The attitude that is reflected by the Aboriginal Human Resource Development
Council of Canada (2007), which suggests that an emphasis on technology is essential in any

30
"An Aboriginal "treasure trove" and older workers could alleviate a skilled labor shortage in rural areas."
National Resources Canada. Viewpoint Newsletter, Fall2007. http:/!http ://cfs.nrcan.gc.ca/news/552.

28
program that assists Aboriginals in preparing to enter the construction industry. British
Columbia is in the process of developing a Coordinated Aboriginal Apprenticeship Strategy
to address the issue of technology in construction employment, in order to develop enough
Aboriginal workers to lessen the construction worker shortage prior to the 2010 Olympic
Games (Aboriginal Human Resource Development Council of Canada , 2007)

31
• The

program focuses on young Aborigines and is intended to address the issue of under-education
in the Aboriginal population.
The number of Aborigines registering for construction education programs increased
from 35,390 in 1995, to 43,960 in 2001 , which represents a 24.2% increase. However, the
number of individuals actually completing the course and reaching certification decreased; in
1995, 2,510 trainees finished apprenticeships but by 2001 , only 2,100 trainees were able to
complete the program and certify that year. Trainees who were able to reach certification in
other trades were nearly double that of the construction industry. The connection appears to
be education; with a fair level of math skills required to be a carpenter or other construction
technician and to operate higher tech equipment, the education must be adequate to the task,
and Aboriginals have typically acquired less education. This deficit has led the nation of
Canada to develop a plan to fund a number of capital improvement programs for First
Nations. This effort will provide better housing and support to Aboriginals in order to
encourage them to stay in school, and provide additional money for their education. In
British Columbia, the government authorized $148,257 million in capital improvements, and
$85,642.5 million in Aboriginal education, to extend from 2002-2007 (Aboriginal Human
Resource Development Council of Canada, 2007). Nationwide, Aboriginal capital
improvements were authorized at $1,251 ,380.5 million, with an additional $605,040.4
31

Aboriginal lluman Resource Development Counci l of Canada, pg. 15 2007.

29
million authorized for education and career training (Aboriginal Human Resource
Development Council of Canada, 2007).32
Given that, the Aboriginal population is young, with a median age of 27 and half of
the population at age 24 or younger, and that the population of Aborigines has grown 45%
since 1996 33 , their potential should not be overlooked as a resource, especially as many of
them are mobile, or ready to relocate to find work. According to Versace (2008), it is
possible that many people, including human resources managers and project managers,
simply do not know that Aboriginal workers are available. To that end, the First Nations
should be encouraged to mount an information campaign to industry leaders, similar to what
they are already doing within the First Nations (Versace, 2008).
3.3 Developing Youthful Labor Force

Thus far, it has become clear that one of the largest problems facing the construction
industry in Canada is that of aging. Given that, the population of baby boomer constructionworkers is aging and less able to complete daily activities required in the construction
industry, as well as being more prone to injury and illness, attention must be given to
developing a youthful labor force to replenish the ranks. Regardless of whether new workers
come from immigrant ranks, First Nations Aboriginals or other venues, consideration must
be given to developing a more youthful work force.
The Government of British Columbia has developed new certification programs that
can cut the amount of time students spend in class, while maintaining a high quality work
force. Part of the education money discussed in previous sections was utilized to refine the
apprenticeship and certification programs so that highly qualified candidates can challenge
32

Aboriginal !Iuman Resource Development Counci l of Canada, pg. 18.2007
Versace, Y. "Labor crunch: Canadian construction industry turns to Aboriginal workers to so lve labor
shortage." Journal of Commerce, January 28, 2008. http ://http: //www.jocon l.com/article/id26151.
33

30
the education program and, if successful, receive certification. This means that young people
who have worked construction for summer jobs, learned to do the work in assisting with
family projects, or worked in volunteer capacities can ask to take the certification exams.
Apprentices can challenge all of the formal training, and if they pass exams with a 70%,
move on to the next level without ever having taken a class.34 This allows apprentices to
complete their programs at significantly less cost and increase their earnings at the same
time.
How likely are young people to enter the trades?
" ....... while 6 out of 10 parents said they would recommend a career in the trades to
their kids, 59 per cent of youth said their parents have not pushed them towards the
trades. In addition, nearly half of parents and 41 per cent of youth polled thought
trades involve hard, physical labor. Finally, over seven out of 10 youth polled said
their school counselors have not encouraged them to enter the trades (Greer, 2005)." 35
Youth, their parents, and school counselors do not seem to have gotten the message
that the construction industry is changing and entering the age of technology. While
construction certainly takes a solid constitution, pneumatic hammers, electric drills, and other
power tools make the work significantly less physically stressful than it was even a
generation ago.
The issue is not only one of perception, however. Just as there is an education gap
with the Aboriginal tribes, businesses report that younger applicants overall are less able to
meet the academic challenges of working in construction. New job applicants have a poor
work ethic, especially among youth. The applicants as a whole lack "life skills" or the
34

Greer, D. "BC's looming skilled labor shortage." Th e Tyee, May 13 , 2005.
http ://h ttp ://thetyee.ca/ ews/2005/05/ 13/BCsLoomingSk illedLaborShortage/.
35
ibid .

31

capacity to show up for work on time, with a good attitude, and with basic work skills. All
across British Columbia, small businesses report that applicants fresh from the educational
system lack practical skills, making skills and job training of paramount importance once the
youth have graduated and are entering the workforce. 36
Small businesses as whole report that existing training programs can seem very far
removed from 'real life' jobs. The programs as a whole do not seem to have many applied
construction skills and seem very far removed from the business community. While
businesses are advocating more emphasis on the trades and more education on the trades
throughout students' high school careers, the schools themselves do not appear to support
these links. Thus, even though the business community is offering to provide on-the-job
work experience, apprenticeship programs, and mentoring to youth, the current educational
system appears to discourage such interactions to a large degree. Businesses report that it is
time to consider online training and career training in a variety of venues and at differing
times of the day, providing more flexibility to students and businesses alike. Small
businesses have recommended that the government automatically tie available educational
spaces to forecasting procedures, which predict labor shortages, so that the spaces are
available in fields that will fulfill the need, rather than having too many individuals training
in positions that are not needed (Coalition of British Columbia Businesses, 2007). 37
At the present time, youth who choose to apprentice rather than go to University can
expect to finish 'school' with money in the bank, a job, no school-related debt, and earning
an above average income. Students who choose the University frequently graduate with as

36

Coalition of British Columbia Businesses. "Labor supply strategy for small businesses in British Columbia."
Welcome to ASTTBC. Applied Science Technologists and Technicians of British Columbia.2007
http://http://www.asttbc.com/seJvices/docs/LaborSupplyRepoi1_Jun07.pdf.
37
ibid

32

much as $40,000 in debt, heavy competition for lower paying jobs, and several years of
attempting to build a living wage.38 Yet students still choose the University; apprenticeship
programs seem to be "underappreciated (Dunn, 2004)."
3.4 Using Immigrant Labor

The possibility of utilizing immigrant labor has been suggested throughout the
popular media as the solution to British Columbia's construction labor shortage, but how
realistic is this possibility? The Internet is full of sites advertising construction work for
laborers willing to immigrate to Canada. A recent Google search on the string "construction
jobs" Canada' netted over half a million hits, and a quick look down the list leads to the
inescapable conclusion that Canadian companies are advertising virtually in every nation for
construction workers willing to move to Canada.
How successful is the search? In February 2008, British Columbia announced that it
had signed a deal with the Philippines to provide hotel, restaurant, and construction workers
as a priority to British Columbia. 39 The Philippine Islands are already providing over a
million workers to other nations and the country boasts that it is "one of the biggest exporters
of skilled and unskilled labor in the world." British Columbian government (2008) has stated
that the economy simply cannot grow without additional workers and that several important
projects, including a major university project, have already been delayed due to lack of
workers. The Philippine government is preparing to establish an overseas labor office in

38

Dunn, A. "Canada faces a sh011age of people who make things work." Capital News Online, a publication of
Carleton University, April 2, 2004. http ://http: /h rww.carleton.ca/jmc/cnews/02042004/n3.shtml.
39
"BC seals labor deal with Philippines." The Asian Pacific Post, February 6, 2008.
http ://http ://www.asianpacificpost.com/portal2/c I ee8c4417efb 1780 I I 7f0 I fad8a0035

33
Canada to help Philippine workers evaluate companies, submit applications, and to expedite
social services (Lee-Young, 2008).40
As a result, Canadian lawmakers are pushing the idea of loosening immigration laws.
They report (2008) that the government is already spending more money on internal training
than any Canadian government has ever spent, yet there are still thousands of jobs going
unfilled. The solution, according to these lawmakers, is to bring in immigrant workers, and
their families, to fill the jobs. They are proposing law changes that will allow tax breaks to
companies that either must bring in foreign workers, or must import workers from other
Canadian regions. Opponents, on the other hand, insist that by better utilizing the aging
workforce and by increasing productivity of the existing workforce, some of these problems
would be alleviated (Akin, 2008). 41
In the meantime, one of the more interesting facets of the immigration question has
occurred in the United States, in Arizona; where a family has opened a business helping
illegal aliens who are being expelled from America locate construction work in Canada. The
company's owners joke that they will help Mexican workers find the jobs "that Canadians
don't want to do." 42 The company emphasizes that workers must have the appropriate
paperwork and that they must have the appropriate paperwork for their families, and that
Canada 'is not like the US' in this regard. Nevertheless, there is a great deal of interest in
these positions, and the company stays busy assisting workers who hope to leave the US and
move on to Canada.
40

Lee-Young, J. "BC signs labor agreement with Philippines." Vancouver Star, January 29,2008.
http://http: //www.canada.com/vancouversun/ news/story.htmJ?id=95b86a97-add5 -4d 16-831 Oa7ed7d6ee43d&k=62607.
~ Akin, D. "Canada's top problem is filling labor shortage." Can West News Service, May 5, 2008.
http://http: //www .amren.com/mtnews/archives/2008/05/canadas_top_ pro. php.
42
Rico, G. "Firm helps Mexicans get jobs in Canada." Arizona Daily Star, March 14,2008.
http ://http ://www.azstarnet.com/sn/bo rder/229617.

34
The British Columbia Ministry of Economic Development (2006) sponsors a program
for immigrants, ArriveBC. ArriveBC will help immigrants pay fees , class stipends, and
licensing and certification fees if the immigrant agrees to work in construction, healthcare, or
transportation. The program is not designed to train uneducated immigrants; rather it takes
immigrants with some training and English language skills and helps them upgrade their
skills to qualify for employment in British Columbia's most needy employment areas. The
program requires that the candidate have permanent resident status, and prefers that the
immigrant have arrived in Canada recently (within 5-6 years), be able to speak intermediate
level English, and have at least 3 years work experience in healthcare, construction, or
transportation. The agency also provides coaching, job support, mentoring, shadowing, and
apprenticeships or internships. 43 The organization assists employers who may have need for
employees, as well as immigrants searching for employers.
Canada is also making it easier for foreign workers to enter Canada under the "guest
worker" or "temporary foreign worker" option. These laborers may be skilled or largely
unskilled; they can receive visas for as long as two years. Their visa is tied to working for a
particular company, and they must have a job lined up to enter the country under this type of
visa. Entering Canada as a temporary foreign worker does not necessarily make it easier to
become an immigrant if the individual decides to try to stay in Canada (The Economist,
2007) 44 ; decisions on immigrant visas are made on other criteria that are largely based on
job experience, education, and proof either of offered employment or of a substantial bank

43

British Columbia Ministry of Economic Development. ArriveBC: Advancing immigrants' skills building BC's
workforce. 2006. /http: //www.arri vebc.com/ index.html.
44
"Canada's guest workers: No t such a warm welcome." The Economist, ovember 22 , 2007.
http :l/http ://www.economist.com/world/la/disp laystory.cfm?story_ id= I 0 177080.

35
account. Skilled workers are now required to score only 67% on a criteria listing that can be
found at http://www.workpermit.com (WorkPermit.com, 2007) 45
The issue does not seem to be whether or not immigrants will work in Canada, but
rather how to keep laborers. Canada, and specifically British Columbia, is not the only nation
scrambling for laborers; British Columbia is competing with most of the world's
industrialized nations to acquire laborers from a finite labor pool, even when addressed on a
global basis. Critics argue that if Canada is to acquire a reasonable number of employable
immigrants, it must revise its immigrant visa requirements yet again, placing more emphasis
on practical experience than on university study (WorkPermit.com, 2007).

46

3.5 Labor Unions and the Construction Industry

How have the labor unions affected the construction industry? The answer may lie in
whose perspective is adopted. The unions insist that any shortages can be filled first by union
workers, then by local workers that can be trained and assimilated into the unions, utilising
immigrants only as a last possible resort. The unions argue that by reducing the visa
requirements for immigrants who are trained as construction workers, the government is
encouraging local businesses to hire 'cheap labor' that cuts out Canadians, specifically
Canadian union workers.
Some analysts believe that the gap between union and non-union wages is steadily
narrowing, especially if differential for increased technical education, certification, and onthe-job experience is considered. 47 Unions also argue that one of the reasons that companies

45

"Canada skilled worker immigration - Points based immigration." The \I'Orld's mosr popular immigrarion
advice site. SIA Workpennit.com . 2008. www.workpem1it.com/canada/individual/skilled.htm.
46
"Construction sector wants review of Canada's immigration program." The H·or/d's most popular immigration
advice site. SIA Workpermit.com. http ://www.workpermit.com/news/2007-09-05/canada/canada-needs-moreimmigrant-construction-workers.htm
47
Fang, F. and Verma, A., "Union wage premium," Statistics Canada: Perspectives, no .Catalogue no. 75-001XPE (Winter 2002): 17-23. http ://www .statcan.ca/engli sh/studi es/75 -00 I /arc hi ve/e-pdf/e-0242.pdf.

36
try to bring in immigrant workers on guest visas is related to the quality of the company's
operations: not only can the visiting workers be paid less, but they are 'attached' to the
company by immigration law. If the workers complain over field conditions, job safety, or
pay, they can be fired and immediately expelled from Canada. Thus, say the unions, the issue
is not necessarily one of pay, but of job quality.
A example of this controversy occurred in 2006, when a German company that had
been awarded a construction contract for the Golden Ears Bridge (between Maple Ridge and
Langley) announced that it could not find enough qualified workers in Canada to do the job
and applied for leave to bring in immigrant workers. Leaders of local businesses and the
unions gathered to request that the government block the applications, citing Bilfinger
Berger's failure to negotiate "in good faith" with Canadian workers. Instead, local leaders
allege that Bilfinger Berger simply did not want to hire local workers at the going rate and
saw the newly reduced immigration criteria as a way to acquire cheap labor. This case is
unique in that both business owners and the union worked together in an effort to block the
visas and permits (Sandborn, 2006). 48 In the Bilfinger case, four British Columbian
companies had offered to provide construction workers for the project (thereby belying the
company's argument that local workers were not available). Each of the four companies was
allowed access to the bridge's construction drawings during the bid process, and each of the
companies later alleged that the drawings were "incomplete", "imprecise" and "imperfect".
All four companies submitted bids based on the inadequate drawings and were turned down.
Another company that exhibited interest in working with Bilfinger was alleged told to bid
low, that the company "would not be blackmailed by contractors on the price, they were a

48

Sandborn , T. "Canadian ironworkers shut out of big bridge job, say unions and contractors." The Tyee,
September I, 2006. http :l/thetyee.ca/News/2006/09/0 I/Ironworkers/.

37
very large, important company and if they needed to, they would just go offshore and obtain
lower priced workers." 49 This incident tends to confirm the unions ' allegations of utilizing
the immigrant system as a price-breaker.
Teo (2007) has argued that the use of immigrants as price-breakers has become so
severe that many of the immigrants on guest or limited work visas regard themselves as
prisoners. He provides this explanation from one of his case studies:
"We joke that skilled immigrants are like those Sichuanese seasonal migrant workers
coming to Guangdong to do very laborious work. They have poor meals and live in
very bad conditions .. . very, very bad ones. We compare ourselves- skilled
immigrants who have come to Canada - to agricultural workers who come to
Guangdong to do those kinds ofwork." 50 (Teo's emphasis has been included.)
While Teo's study was conducted in Vancouver, it is unlikely that the situation is
much different for immigrant families in British Columbia. The majority of the families that
Teo studied emphasized that even though Canada requires a certain level of education to
immigrate on a permanent basis, it does not mean that companies will accept the education as
being equivalent to a Canadian education. Thus, a doctor in China might end up an
ambulance attendant in Canada, or an engineer might end up as a construction worker. The
immigrants accept a far lower income and standard of living than they would have had in
China or their nation of origin, and they are stuck at that level until they earn citizenship
(three years or more). The process generally ensures that immigrants will be cheap labor, and
that they will not necessarily be well trained in the jobs they are hired to do. One can be an

49

Sandborn, September 2006.
Teo, S., "Vancouver's newest Chinese diaspora: settlers or "immigrant prisoners"?" GeoJournal, no.February
2007: 211-222. http://http ://www.riim.metropolis.net/Virtuai%20Library/2007/WP07-02.pdf.
50

38
excellent engineer or architect, but a lousy roofer. It is this combination of poor training and
virtual servitude that the labor unions argue they are fighting.
One of Canada's largest unions, the Boilermakers Contractors Association (BCA),
has attempted to address the aforementioned shortcomings in its own way: by voluntarily
translating training materials into other languages and visiting potential union members in
other nations to upgrade safety and operational training prior to the immigrants' arrival in
Canada (Versace, 2008). Through union partnerships, they established in Brazil and
Argentina, the union was even donated Canadian equipment for training so that immigrants
would arrive fully trained in operational and safety procedures (Versace, 2008). 51
The British Columbia Sheet Metal Association (Proctor, 2006) (SMACNA-BC) is
also doing its part to ensure a supply of trained union workers. They developed a preapprenticeship program that has taught young workers what to expect once they are officially
on the job. The program, which admits pre-apprentices to the union for free for one year, lets
young people "try out" the career at the normal first-year apprentice rate of $15 an hour.
Each of the contractors evaluates their pre-apprentices monthly. The organization has found
that the best apprentices are those that have gone through the pre-apprentice program and
understand fieldwork. They have found that university students or students from the technical
colleges, who have not gone through the pre-apprentice program, simply do not understand
the required work ethic and as a result have a much higher rate of attrition. Experience has
shown that young people who go through field pre-apprenticeship tend to be better, more
knowledgeable workers than those who have gone through the technical college's preapprenticeship. They also have lower turnover rates, quit less seldom, and are not laid off as

51

Versace, V. , "Foreign workers form essentia l part of Canada's labor force, panel says," Journal of' Commerce,
June II (2008): http ://http ://www.jocon l. com/ article/id28200.

39
often (Proctor, 2006). 52 " Overall, the union finds them to be more dependable and stable
workers.
3.6 Income of the Construction Worker

When statistics on 'work shortages' and 'construction workers' are being collected,
what professions are included in the definitions? The BC Work Futures organization
(Proctor, 2006) lists the following professions as being the construction careers. In the list
that follows, the number designates the job category code, provided for the reader's reference.
Thus, "log home" builders 0712.01 is a subset of residential home builders and renovators
(0712) and so on:
•

residential home builders and renovators (0712)

•

log home builders (0712.01)

•

industrial instrument technicians and mechanics (2243)

•

construction inspectors (2264)

•

house and property inspectors (2264.01)

•

registered fire protection technicians (2264.02)

•

construction safety officers (2264.03)

•

contractors and supervisors, electrical trades and telecommunications occupations
(7212)

52

•

contractors and supervisors, pipefitting trades (7213)

•

contractors and supervisors, metal forming, shaping and erecting occupations (7214)

•

contractors and supervisors, carpentry trades (7215)

Proctor, 2006.

40
•

contractors and supervisors, other construction trades, installers, repairers and
servicers (7219)

•

machinists and machining and tooling inspectors (7231)

•

electricians (except industrial and power system) (7241)

•

industrial electricians (7242)

•

plumbers (7251)

•

steamfitters, pipefitters and sprinkler system installers (7252)

•

steamfitters and pipefitters (7252.1)

•

sprinkler system installers (7252.2)

•

sheet metal workers (7261)

•

structural metal and platework fabricators and fitters (7263)

•

welders and related machine operators (7265)

•

carpenters (7271)

•

cabinetmakers (7272)

•

bricklayers (7281)

•

plasterers, drywall Installers and finishers and lathers, (7284) which includes
plasterers (7284.1 ), drywall installers and finishers (7284.2) and lathers (interior
systems mechanics) (7284.3)

•

roofers and shinglers (7291)

•

glaziers (7292)

•

insulators (7293)

•

floor covering installers (7295)

41
•

construction millwrights and industrial mechanics (except textile), (7311) which
includes millwrights, (7311.0 1) and industrial mechanics (7311.02)

•

heavy-duty equipment mechanics, (7312) which includes diesel mechanics, heavy
equipment (7312.01)

•

machine fitters (7316)

•

elevator constructors and mechanics (7318)

•

crane operators. 53
To the reader, the categories may appear somewhat subjective. Indeed, it is difficult to

understand why diesel mechanics, industrial mechanics, millwrights, and such diverse groups
as telecommunicator operators, and fire protection technicians are considered in this
category. One might wonder if including these groups of highly trained individuals may
actually skew the "average salary" range for construction workers.
According to the BC Work Futures, the average salary in British Columbia is $44,321
(BC Work Futures for Trades and Technical Operations, 2008). 54 In this section, a
comparison of construction salaries to the national average salary is provided. In the chart
below, jobs with a salary that is below average, average, or barely above average are
highlighted. Bolded lettering indicates a job category not traditionally associated with
construction work. The implications of these two categories will be discussed in Chapters 5
and 6.

53

BC Work Futures for Trades and Technical Operations (2008). Construction Introduction . Retrieved online
July I 2, 2008 at http ://handson .workfutures.bc.ca/profiles/ind.cfm?id=5&1ang=en&site=graphic
54
BC Work Futures (2008). Residential Home Builders and Renovators (0712). Retrieved online Ju ly I 2, 2008
at http ://handson.workfutures.bc.ca/ profiles/profile.cfm?noc=0712&1ang=en&site=graphic

42
Job Code

Average Salary

Unemployment

Increase

4.4%

%55 and
over
26%

residential home
builders and
renovators (0712)
industrial
instrument
technicians and
mechanics (2243)
construction
inspectors (2264)
contractors and
supervisors,
electrical trades and
telecommunications
occupations (7212)
contractors and
supervisors,
pipefitting trades
(7213)
contractors and
supervisors, metal
forming, shaping and
erecting occupations
(7214)
contractors and
supervisors,
carpentry trades
(7215)
contractors and
supervisors, other
construction trades,
installers, repairers
and servicers (7219)
machinists and
machining and
tooling inspectors
(7231)
electricians (except
industrial and power
system) (7241)
industrial electricians
(7242)
plumbers (7251)
steamfitters,
pipefitters and

36,814
60,417

4.8%

33%

1.4%

49,683

7.3%

39%

1.4%

62,607

2.8%

41%

1.1%

64,921

1.7%

25%

1.5%

58,064

2.8%

26%

1.4%

44,482

8%

24%

1.4%

42.936

4.7%

22%

1.7%

46,741

5.2%

28%

1.0%

43,857

7.9%

23%

1.6%

58.850

4.8%

35%

1,4%

38,056
53,161

7.2%
9.8%

19%
29%

1,5%
1.3%

1.7%

43
sprinkler system
installers (7252)

sheet metal workers
(7261}

41.691

8.4%

18%

1.9%

46,578

9.2%

32%

1.2%

welders and related
machine operators
(7265)
carpenters (7271)
cabinetmakers
(7272)
bricklayers (7281)
plasterers, drywall
Installers and
fmishers and lathers,
(7284) which
includes plasterers
(7284.1 ), drywall
installers and
finishers (7284.2)
and lathers (interior
systems mechanics)
(7284.3)
roofers and shinglers
(7291)
Glaziers (7292)
insulators (7293)
floor covering
installers (7295)

44,447

9.3%

25%

35,020
31,134

11.3%
8.2%

22%
19%

1.6%
1.5%

42,731
31,732

10.2%
10.%

28%
16%

1.6%
1.4%

35,361

17.3%

9%

1.8%

31,608
33,982
35,238

9.5%
8.8%
7.5%

15%
15%
14%

1.9%
1.8%
1.90/c,

58,698

6.1%

35%

.5%

53,530

4.9%

31.%

1.4%

structural metal and
platework fabricators
and fitters (7263)

construction
millwrights and
industrial
mechanics (except
textile), (7311)
which includes
millwrights,
(7311.01) and
industrial
mechanics (7311.02)
Heavy-duty
equipment
mechanics, (7312)

55

Not defined in the materials.

__ ))

44
which includes
diesel mechanics,
heavy equipment
(7312.01)
machine fitters

(7316)

elevator
constructors and
mechanics (7318)
crane operators
(7371)

44,553

3.9%

39%

4.1%

64,554

4.1%

33%

1.6%

50,597

8.3 %

28%

2.2%

Table 5. Occupations, average salary, unemployment rate, retirement rate, expansion rate. From BC
Work Futures. (2008)

3. 7 Chapter Summary

In this chapter, a great deal of current information on the status of construction
workers in British Columbia was reviewed. The chapter began with a discussion of whether
or not there really is a construction labor shortage in British Columbia. Literature was
presented both for and against the position, and possible explanations for why there is a
shortage were discussed. In the next section, the utilization of Aboriginal labor to lessen any
construction labor shortage was discussed. Issues involved in developing the youth labor
force were reviewed, and utilising immigrant labor to offset potential labor shortages in the
construction industry were reviewed. Finally, the impact of the unions on construction labor
shortages was discussed.
Throughout the literature, several clear threads of concern evolved. These will be
discussed in Chapter 5, Analysis.

45

4. Methodology
It is clear from the literature review that a number of differing opinions exist as to

whether or not there is an actual labor shortage, and if so, what causes it. Even the unions,
which alleges that there are plenty of workers in Canada, will concede that they cannot fill all
of the available jobs. Instead, they request that qualified Canadians be hired first and that
companies not be allowed to " import" workers without clear and present proof that there are
no available qualified Canadians who have applied for the construction jobs.
Whether or not the industry is actually expanding is a question that remains to be
answered. Analysts do agree that there are many jobs going unfilled, and projections for the
future generally concur that there will be shortages in construction labor for the next 5 years;
although many believe shortages will exist for many years. We return, then, to our two initial
questions: Why is there a shortage of labor in the construction industry in British Columbia,
and will utilizing immigrant labor reduce the shortage?
In answering these questions, we utilize a qualitative research methodology, archival
research, and analytic induction. These methods are described below.
4.1 Qualitative Research

Qualitative studies try to use a cultural context to address issues related to phenomena
or situations that the researcher has noted. Thus, it is ideal for investigations in which a
description of human behaviour is required (Marshall and Rossman, 2006).56 When
investigating behaviours, researchers may use interviews, memos, private papers, newspaper
clippings, or other business or cultural data, in what is termed 'archival research' (Heaton,

56

Marshall , C., & Rossman, G. Designing qualitative research. Newbury Park, CA: Sage.

46

1998). 57 The researcher attempts to bring order or logic to what they observe, and a great
deal of interpretation is involved. Qualitative research allows for the possibility of more than
one 'reality' , because it studies more than one type of data. Qualitative research does not
force the researcher to conclude that one way is wrong and another way is right. A holistic
description of procedures and philosophies involved in a setting may be needed to make an
accurate assessment of a situation. 58 . In quantitative research, pre-defined variables are
selected and studied and all else is excluded. Thus, it limits the study of materials that in
reality might have a great bearing on the outcome of a studied situation.
Qualitative research is normally inductive, a process in which the researcher makes
observations and generalizations and then develops a specific theory. In quantitative
research, the process is the opposite: the researcher begins with a very narrow hypothesis and
then tests it. Inductive reasoning is generally used in projects that need an open-ended,
exploratory process (Trochim, 2002). 59 For these reasons, a qualitative, inductive research
model, one utilising archival research of secondary materials, was chosen.
4.2 Archival Research

Archival research concentrates on gathering and interpreting information from a wide
variety of studies and research materials that have been developed by someone else. Because
of the unlimited nature of the materials, a wealth of data is provided without requiring an
intensive level of experience or training that might be necessary to produce an extensive
qualitative primary source study. This particular research project is particularly well suited to

57

Heaton, J ., "Secondary analysis of qualitative data," Social Research Update, no.22 .1998:
Stainback, Susan and William. "Conducting a Qualitative Research Study." Understanding and conducting
qualitative research. 1988 Reston, VA:
59
Trochim, W. Deduction and induction.2002 . Retrieved May 24, 2008 from
http ://www.socialresearchmethods.net/kb/dedind.htm
58

47
the use of archival materials because of the depth and breadth of the research questions and
the need to examine a large number of resources during the process of analytic induction.
Archival research, sometimes-called secondary analysis, studies existing data. It has
been used a great deal in the past in quantitative studies but is becoming quite utilised as a
method of implementation in qualitative research (Heaton, 1998). 60 Since the data can
include published materials, unpublished materials, journals, peer reviewed documents,
books, and even materials as diverse as diaries and personal emails, there is a great wealth of
data and the information can be exceptionally informative. In addition, the data does not have
to be written or collected in bound format; it can be visual, or even aural. Because archival
research is so closely connected to 'daily life', it is sometimes referred to as grounded
research (Heaton, 1998).
While it is impossible to generalize about a research approach to be taken with
materials that can vary so widely, it is clear that by varying the research approach with the
material, the researcher can develop theories and a hypothesis; determine whether or not the
hypothesis is likely to be correct, and discard materials based on the information gleaned. It
is important to develop a clear plan of investigation, and that plan uses analytic induction as
its basis. Every case of archival research varies, because the materials to be studied vary, but
the process of analytic induction remains substantially the same.
4.3 Analytic Induction

It has been clear from the preliminary literature review that there is a great deal of

conflicting information regarding construction labor in British Columbia. In order to answer
the questions posed in the first section of this paper, qualitative investigation techniques were
utilized. Methods of analytic induction were employed to review an expanded body of
60

Heaton, 1998

48
literature. As literature was reviewed and extracted, analytic induction was used to search for
similarities in broad categories of information relating to the research questions. Gradually
subcategories of information were developed, with the extracted information compared, in
order to recognize causal relationships.
As Znaniecki (1934) has pointed out, the general concept of analytic induction has
been used throughout history to make conclusions. 6 1 . While the method may have been used
throughout history, it was Znaniecki who named the method and developed a method of
systemization of analysis. The great advantage of this method of investigation and reasoning
is that it is possible to modify theories or hypothesis as the relationship between the concepts
changes over the course of the research. In a field or area of investigation that is constantly
changing and developing, this method of investigation allows the researcher to account for
and incorporate new information in his or her conclusions, making this method ideal for this
investigation.
Robinson (1951) pointed out that analytic induction has been utilized by a number of
individuals who were fore thinkers in their fields. Angell (1936) utilized the method in
studies on the family in depression; Sutherland ( 1949) utilized the method of analytic
induction in his studies on the causation of crime; Lindesmith (1940) used the method for his
studies on addiction, and Cressey (1953) utilized the method on his studies of embezzlement
and white-collar crime. 62
In Robinson, Cressey summarised six steps that could be used to successfully utilize
analytic induction:

61

Znaniecki , F. The method of sociology. New York: Farrar and Rinehart, 1934
Robinson, W. "The logical stmcture of analytic induction." American Sociological Review 16, no. 6 (Dec
1951 ): 8 12-818.

62

49

Figure 2. Analytic Induction Methodology (Robinson, 1951, citing Cressey)

1. Define a phenomenon
2. Develop a hypothesis
3. Consider one set of facts to determine if the facts confirm the hypothesis
4. Redefine either the phenomenon or the hypothesis so that new information is
included
5. Examine additional information to determine if the new hypothesis is confirmed,
and if it is, reach the conclusion that there is some certainty about the results of the
hypothesis, or

50
6. If the hypothesis is not confirmed, reformulate the hypothesis until there are no
exceptions and the hypothesis is confirmed. 63
This method was utilized in the investigation of labor shortage in British Columbia and
whether or not the importation of immigrant labor can solve any labor shortages in the
construction industry. The analytic inductive method as proposed by Cressey (cited in
Robinson, 1951) allowed the researcher to hone both the questions and hypothesis during the
course of the research. When this project was proposed, the researcher had stated that the
final question, hypothesis, and confirmed hypothesis might differ significantly from the
originally proposed questions. As we will see in the next chapter, they did indeed change
over the course of the research.
5. Analysis
A number of questions were investigated in the search of the research materials
relating to a labor shortage in the construction industry in British Columbia. The research
was guided by the initial questions and hypothesis:
•

Is there truly a shortage oflabor in the construction industry in British
Columbia, and if so, why?

•

Can any labor shortage in British Columbia's construction industry be reduced
if we hire more skilled immigrants, or are there other, more viable solutions to
the problem of construction labor shortage?

•

63

H: Hiring more immigrants will solve the labor shortage in BC.

Cressey, cited in Robinson, 1951.

51
5.1 Application and Analysis of Data

It quickly became clear that the validity of the hypothesis could not be determined

without thoroughly investigating the background of labor in the construction industry in
British Columbia. The investigation took place in a number of background areas. The
question of whether or not there even is a construction labor shortage in British Columbia
was first addressed.
5.1.lls there a Shortage ofLabor in the Construction Industry in British Columbia?

There was little doubt that at the present time, it is difficult to fill construction
positions in British Columbia. Whether or not this is a genuine 'shortage' or a temporary
condition caused by natural cycles of construction combined with the impending Olympics is
a different matter. The current trend is expected to continue until2010; after the Olympics
are over, no one is certain what will happen to construction demand in British Columbia. It is
unlikely, however, to continue at the present frenzied demand. The answer to whether or not
there is a construction labor shortage in British Columbia, and why, is very clear but
somewhat qualified:
1. At the present time, there is a construction labor shortage in British Columbia, due
to increased Olympic demand and due to lack of available acceptable workers 64
(Greer, 2005) 65 .
2. No one is certain what will happen after 2010, which is only two years away, but a
natural cycle of supply and demand 66 , illustrated below, tends to occur in the
construction industry (Youth and Labor Market Services Branch, 2001 ).

64

The concept of 'available acceptable workers' will be discussed further.
Greer 2005
66
Yo ~ and Labor Market Services Branch , 200 I.
65

52

Supply Decreases

Construction Worker
Demand Cycle

High Supply

Figure 3. Construction Worker Demand Cycle (based on information in Youth and Labor Market
Services Branch, 2001)

At this point, British Columbia is in a "high demand" cycle. The economy of British
Columbia is expanding. The supply of workers will increase through one mechanism or
another; once the supply is high, and the demand for workers will fall, resulting in a decrease
in supply. The demand increases, and the cycle begins again.
Given the nature ofthe cycle, combined with the approach ofthe 2010 Olympics and
a likely post-Olympic construction demand, the second research question acquires a great
deal of importance.

53
5.1 .2 Can Shortage be reduced by More Skilled Immigrants or Are There Other Alternatives?

In answering the second question en route to proving or disproving the hypothesis, it
became necessary to investigate the possibility of utilizing skilled immigrant workers and
determining what other viable alternatives, if any, there might be. Each ofthe possibilities is
discussed below.
5.1.3 Utilization ofAboriginal Populations in Construction

The research (Alberta Employment, Immigration and Industry, 2008; Aboriginal
Human Resources Development Council of Canada, 2007; Lamontagne, 2004) revealed that
there are a large number of aborigines searching for work and very interested in working in
the construction industry. They are young, mobile, hard working, and in general do not mind
physical labor. Unfortunately, they also tend to have lower education levels and are not
necessarily literate in English or French even though they may have an education. Many
companies do not realize that Aboriginal workers from other regions are available and
willing to relocate to work in their industry, and the workers might need assistance acquiring
a place to stay or live while working.
5.1.4 Youthful Labor Force

Many of the same advantages and disadvantages exist to hiring young laborers
(Greer, 2005; Coalition of British Columbia Business, 2007; Dunn, 2004). Many ofthe
young have high school diplomas but may be functionally illiterate. They have not yet
developed a work ethic, and unlike the Aboriginal population tend to steer away from what
they believe will be universally physically demanding work. While they are willing to
relocate, they may not have familial support and may leave the industry for that reason.
While Aboriginals leave the industry because of housing difficulties and this can be

54
remedied, it would be much more difficult to acquire familial support for the young. The
combination of lack of education, lack of experience, and lack of desire to endure hard work
may make the youthful population a less desirable workforce choice.
5.1 .5 Immigrant Labor

A two-fold difficulty in hiring immigrant labor was revealed through the research
(Lee-Young, 2008; Asia Pacific Post, 2008; Rico, 2008; the Economist, 2008;
Workpermit.com, 2007). The first, and most basic difficulty, is that nearly every
industrialized nation is clamouring for laborers, and Canada is only one nation in the
competition. In order to fill its construction needs with immigrants, Canada would need to
establish more programs to entice immigrants to the country, provide safeguards against
termination for immigrants who have been required to invest thousands of dollars in entering
Canada, and work out more partnership agreements with nations similar to the one signed
with the Philippines.
The second major difficulty with hiring immigrants is that most immigrants are
highly educated, but not highly skilled. The current 'immigrant score' process gives more
value to education than to practical skills. In addition, the immigrant may be highly educated
and may pass a basic language test, but still communicate so poorly that acquiring
construction skill education is difficult. Under these conditions, the immigrant can indeed be
hired by construction companies and can be hard working, strong, and have a good work
ethic, but still suitable only for unskilled construction labor. Unfortunately, that is not where
the openings are.

55
5.1.6 Labor Unions

The Unions argue that they have workers that can fill the positions in Canada and that
they are working with other nations to recruit highly trained union workers ready to deploy to
Canada to fill Olympic construction positions. They also argue, and the research confirmed,
that many times Canadian workers are already available and ready to work, but companies
hire cheap immigrant labor. The unions also suggest that field experience programs
combined with apprenticeships will help them train young and Aboriginal workers in work
ethic and allow these trainees to pass certifications much quicker and with a higher rate of
success, both in the certifications and in developing a work ethic.
5.1.7 Other Worliforce Possibilities

Other possibilities reviewed were that of expanding the numbers of women in the
construction field, and re-hiring individuals who retired from construction work. Both of
these options have advantages and disadvantages. Women tend to be literate and ready to
work, but they also have very little practical training or experience in fieldwork. They may
not have experience in the level of physical work required to succeed.
Retirees expressed several issues regarding returning to work, including the need for
more time off or job-sharing in order to meet doctor's appointments and to maintain their
pensions. However, a large portion of the recently retired would return to work if these
conditions (among others) could be worked out. Retirees are highly trained, can work for less
pay as they are receiving a pension, have experience, are certified, and literate. They are also
weaker, aging, and more prone to illness and injury. One possibility it to utilize retirees to
train to be inspectors and job coaches for construction sites and new hires.

56
5.2 Discussion and Analysis of Findings

Once the research was compiled, a simple grid analysis, or decision matrix analysis 67 ,
is utilized to find the most effective solution to Canada's temporary construction labor
shortage. In the weighted grid analysis method of decision-making, all of the needed criteria,
or factors, are entered (in this case as rows) and the options are listed (in this case as
columns). The relative importance of each factor is determined. The importance of some of
the options is obvious (a construction worker should be strong) but others are less so. The
next section discusses the results of the weighted grid analysis and the implications.
5.2.1 Weighted Grid Analysis

In this analysis, the researcher had a clear concept of the importance of the criteria
(factors), but if the importance had not been clear, then paired comparison analysis 68 would
have been utilised to assist in the decision making process. The data was collected from all of
the sources throughout this investigation. The grid is developed using analysis developed by
David, 1988. The questions utilized to drive the numbers and criteria was based on the
totality of information gathered during the study as being criteria necessary for a construction
worker. The criteria from each population were then scored with a scale of 1 to 5, with
1=failing to meet need and 5=meeting the need extremely well. (Weights and scores may be
duplicated.) Each of the scores is multiplied by the weighted value to acquire a relative score.
The relative scores for each population are added, and the total relative scores are compared.
The higher the total relative score, the more nearly the population would meet the criteria for

67

Government of Victoria. "Model Matrix eva luation Annex A." 2002. Retrieved on line June 20, 2008 at
http: //www.vgpb.vic.gov.au/CA256C4500 168508/WebObj /Matrixfm I /$Fi le/Matrixfm l .DOC
68
David, H.A. "The Method of Paired Comparisons". New York: Oxford University Press. 1988

57
fulfilling a short-term labor issue in the construction industry. The second table shows the
weighted assessment of how well each population fits the criteria.
Need/criteria
Heavy, "grunt" labor
Skilled construction labor
Higher-tech construction labor
Ease of becoming an inspector or
teacher/mentor
Basic mathematic and literacy skills
Able to move to find work
Easy to let go if do not work out
Cheap Labor
Total Score
Table 6. Grid or Matrix Analysis

Need/criteria

Weights
4
4

Aboriginal

Youth

3
3
I

3
3
I

5

5
2
4
3

2

Heavy, "grunt" labor
Skilled construction labor
Higher-tech construction labor
5
Ease of becoming an inspector or
2
teacher/mentor
Basic mathematic and literacy skills
4
Able to move to find work
3
Easy to let go if do not work out
2
Cheap Labor
3
Total Score
Table 7. Weighted Grid or Matrix Analysis

Aboriginal

20
12
15
2

3

Youth

Population
Immigrant

5

12
15
10
9
95

20
12
15
2

12
12
10
9
92

Other

5
5
5

3
3
3

5
5

3
3
3
3

I

3
4

3

Unions
4

2

2
1
5
5

3

5
5

3

Weights
4
4

5

Population
Immigrant.
3
3

12
12
10
2
8

3

10
15

72

1

I

1

Unions

16
20
25
10
20
15
2

3
Ill

Other
4

12
15
6
12
9
6
9

73

Utilising the weighted decision-making matrix, it becomes clear that filling available
job slots with union workers is the best option despite what some analysts argue is a higher
price tag. None of the other groups has a consistently high level of criteria to surpass the
experience, skills, strength, dexterity, and knowledge of the typical union-certified worker.
Evidence was presented in the research that the wage gap between union and non-union
workers is steadily closing (Fang and Verma, 2002) 69 .

69

Fang and Verma 2002.

58
In addition, other factors relating to wage and income must be addressed. These
factors may shed light on the alleged wage gap between union and non-union workers. In the
previous chapter, a list of the 'construction categories' for workers in British Columbia was
given. The average income for 16 of those 29 construction occupations falls below the
average income in British Columbia, sometimes by a significant margin. Of the remaining 13
job categories, 6 of them are not categories that the typical observer would consider to be
"construction work." Cable installers, diesel repairmen, mill workers, and others not only are
not typically considered construction workers, but may actually be employed in large
measure by other industries. Yet, for the government's purposes, the "numbers" are
considered in construction work statistics.
The net result of the two observations (BC Work Futures, 2008) above is to lower the
number of "high paying" construction work categories even further, with the conclusion that
of 29 construction occupation categories, only six job categories pay more than the average
wage in British Columbia. When viewed from this perspective, the concept of the 'expensive
union construction worker' takes on a different outlook.
The "average" salary in each of the areas is further clarified by government's notation
that if the employee is 'certified' or above the apprentice level, his or her income will be
higher than the average. By inference, individuals without these certifications will be on the
lower side of the employment salary. It becomes easy to understand why employers may
prefer to hire immigrants with no real construction skills: they are very much cheaper than
the average worker in British Columbia. As an example taken from Table 5, consider the
average income in British Columbia of $44,321 per year. A significant number of workers

59
will be above the $44,321 , and a significant portion lower, but the income of the average
worker in British Columbia is $44,321 .
Consider two groups of workers, insulators at an average of$33,982 per year, with
unemployment, and the Steamfitters, with an average income each year of$53 ,161.
Unemployment in both groups is relatively high. A significant number of employees in the
insulators will make more than $33 ,982; they will be the employees with higher certifications
who have completed apprenticeships. A significant number will earn less than $33 ,982; they
will be the unskilled workers who are in training for certifications. The same criteria, of
course, apply to steamfitters.
As a practical matter, an employer who is not concerned with quality, such as the
bridge construction company described in the previous chapter, will opt for cheaper workers.
Consider the math, based on information gained in BC Work Futures (2008). They may opt
for 3 unskilled workers at $28,000 each ($84,000 total) rather than 3 skilled workers at
$38,000 (total $114,000). At first glance, the unskilled workers look like a far better deal:
they are much cheaper indeed. However, the reality is that the skilled and certified workers
are trained, experienced, quicker, and safer, as shown by the research presented. In the long
run, the three skilled workers can accomplish more work, better, than the unskilled workers.
They also require less supervision, and there is less risk from shoddy workmanship. Placed in
this perspective, the trained union worker becomes a bargain compared to the unskilled
worker. The higher the salary of the construction group, the greater the savings appear by
hiring under-skilled workers, but in reality the greater the potential for loss would be.
Previously, the research showed that the salary gap in trained and certified workers is
closing between union and non-union workers, meaning that the only group that provides

60
employers with a real financial advantage to hire is the immigrant group, which scored
significantly lower on the weighted assessment than all of the other skill groups. Indeed, the
weighted differential is so extreme compared to all of the other groups that the question
arises why some companies continue to hire these groups. The answer may lie in the
research 70 / 1; which presented examples of the level of control that companies have over
immigrants. By tying immigration visas for an individual to a particular company, the
Canadian government essentially enters the immigrant into servitude. If they do not comply
with their host company directives, if they complain, if they ask for more money, they are
simply returned to their home country. It is clear that an unscrupulous company whose only
concern was the bottom line would have a reason to hire immigrants.
They can pay immigrants minimum subsistence rates, while virtually guaranteeing
that there will be no labor complaints.
In such a situation, it would not matter if the immigrants were less skilled and worked
slower; two to three times as many immigrants could be hired for the same price as union
level workers, while ensuring that the immigrants do as they are told, without complaint. The
bigger question then becomes whether or not the company would hire more, or just "make
do" with an inadequate and untrained workforce. The overall affect of indentured servitude
of the immigrants should be enough for the Canadian government to require local and
national level hires first, and to consider immigrant labor only as a last possible solution. The
suggestion has been made that some form of oversight must be given to companies before
they bring in immigrants, to ensure that Canadian workers are not available, rather than not

70

71

Sandborn (2006)
Teo (2007)

61

available at the rate the company wishes to pay 72 . By closing this gap or "loophole," the
Canadian government would acquire a better perspective as to whether or not immigrant
workers were necessary, or merely ' cheap' .
5.2.3 Other Possible Solutions

The unions argue that they have enough workers to fulfill job needs, and that any
shortages can be filled through aggressive apprenticeship and field programs. Indeed, several
of the unions have established their own 'immigrant' programs, travelling to other countries
to train union counterparts on Canadian methods and job skills so that union immigrants can
come into the country as fully productive workers. The unions have also proposed an
aggressive ' youth acquisition and training' program, and an accelerated field apprenticeship
for both Aboriginal populations and youth populations. In the areas that these programs have
been implemented, the main problems experienced have been the relative lack of literacy of
the candidates and the lack of 'real world' work ethic. One possibility for remedying these
problems would involve the re-hire of retirees, for a limited number of hours, for training and
mentoring purposes.
5.3 Rejection of the Null Hypothesis

During the course of the research, Cressey ' s six steps for successful analytic
induction were followed. The phenomenon was defined and clarified, and expressed in the
response to the first research question. There is indeed, a construction labor shortage in
British Columbia that will last through 2010, but the long-term future is unclear. There is
significant evidence that the expansion of the construction industry in British Columbia may
crash at the end of the Olympics. The hypothesis that hiring more immigrants will solve the
71

Sandborn (2006)

62
labor shortage in BC was developed, and research was conducted to determine if the facts
confirm the hypothesis. The phenomenon had to be somewhat refined to incorporate the
information received, and additional information was examined to determine how it fit into
the phenomena. Finally, the conclusion was reached that there is indeed some certainty
about the results of the hypothesis .73
The null hypothesis, that hiring more immigrants will solve the labor shortage in BC,
has been rejected based on the investigation, research, and analysis given. The conclusion
made is that it is unlikely that hiring more immigrants will solve the labor shortage in British
Columbia.
5.4 Weaknesses of the Study

The specific method of analysis utilised with the research, the weighted grid analysis
or matrix, is arguably somewhat subjective. Other researchers might give different factors
higher weights, or consider different categories of potential workers. Given the vast
difference between the categories, however, and based on the research, it is very likely that
even if the factors were given different weights, utilising union workers would still be the
best choice with the highest total factor score.
5.5 Chapter Summary

In this chapter, the guiding research questions were discussed and answered; a
weighted grid analysis of the research data was provided and analysed, and the null
hypothesis was rejected. The conclusion was made that it is unlikely that hiring more
immigrants will solve the construction labor shortage in British Columbia.

73

Cressey, cited in Robinson.

63
In the next chapter, specific recommendations will be made for alleviating the
construction labor shortage in British Columbia.

6. Conclusions and Recommendations
Today's construction industry needs highly trained, certified, experienced workers
who are literate and hold a good work ethic. The research revealed that skilled national
residents of Canada and British Columbia are a far better choice to solve the construction
labor shortage than the use of immigrant labor would be. Though it appears, on the surface,
that importing labor is the easy and quick solution, the use of immigrants does not solve the
problem. Instead, utilizing immigrants compounds existing social problems and adds a new
layer to social issues that already exist (Lee-Young, 2008; Rico, 2008; the Economist, 2008 ;
Workpermit.com, 2007).
6.1 Conclusions

Within Canada, the most highly trained and experienced group of workers is
undoubtedly the union populations. Once a worker joins the union, there is a tendency to
"police from within." Workers must meet certain job standards to progress from apprentice to
journeyman and finally to a fully qualified job as a certified construction worker with a
specialty. Union members tend to support and coach each other through this progression, but
there is also steady "peer pressure" to exceed safety standards on the job, as everyone
depends on everyone else. This solidarity is not always seen in non-union shops. In addition,
non-union shops do not have the level of certifications that union organizations require.
Salary differentials, however, appear to be linked more to certifications than to union
membership.

64
The research revealed that controversy exists over whether or not there are enough
union workers to fill available jobs, with the unions saying that there are, and some
employers loudly proclaiming there are not. One thing is certain, with an unemployment rate
of greater than 4% for union construction workers, there are workers available who are not
being utilised, and the reason appears to be financial, as given in the previous chapter. Many
employers profess to believe that union workers are 'expensive' but the research suggests
that it may be less a case of union workers being expensive than it is a case of immigrant
labor being cheap and controllable. It is difficult to explain why high unemployment levels
exist for many certified construction workers while certain companies are complaining there
are no workers. The conclusion is made that these companies are really complaining that
there are not enough cheap workers, a statement that is ludicrous in light of the low average
construction salary.
Unions throughout Canada have repeatedly offered to assist in developing and
implementing more training programs for Aboriginal populations, youth, and women. At the
present time, most of the construction job categories are filled with 96% males, or higher
(BC Work Futures, 2008) . 74 The unions however, cannot, sponsor the cost alone, and indeed
the argument may be made that it is unreasonable for them to attempt to do so. While some
unions have gone to the extent of going to other countries to train and certify union workers
there so that immigration to Canada is easier, the process of training and certifying workers is
expensive. It is not reasonable to expect the unions to bear the total brunt of training workers
when the trained workers will benefit the nation as a whole. Instead, much of the money that
Canada is utilising to attempt to attract immigrants should be channeled into providing

74

BC Work Futures, 2008

65
training funds for residents and for promotional funds to attract new trainees into the field,
especially youth, women, and Aboriginal workers.
6.2 Recommendations

By analysing the information acquired during the project and applying the knowledge
gained about the construction industry during the last two years, specific recommendations
have been arrived at below.
•

Increase funding available for housing for indigenous populations in order to allow
natives to study and work without having to stop the program to deal with issues
related to unsafe housing.

•

Increase funding for basic level-education programs to be included within the
fieldwork and apprenticeship programs of union training.

•

Assist in development of programs that will allow qualify older workers (in all fields)
to return to work part time or with accommodation, without losing pensions or facing
undue hardship, and in developing programs to train retirees to mentor and teach.

•

Require that all requests for immigrant worker visa sponsorships be reviewed by a
panel consisting of a government official, a human rights worker, a union official, and
two local business owners.

•

Provide economic stimulus to Canadian nationals who are willing to train in
construction to the same extent that it would have been provided to immigrant
workers.

•

Develop special training or incentive programs aimed at each of the three categories
targeted: youth, women, Aboriginal workers.

66
6.2.1 Provide Funding for Aboriginal Housing

The research showed that one of the factors contributing significantly to
attrition of indigenous workers was the lack of safe and comfortable housing 75 . Conditions in
Aboriginal homes were not conducive to studying in acquiring a basic education, and once
the workers were in the field, the housing conditions tended to distract them from jobs as
they worried about families. Thus, fixing these conditions should help Aboriginal workers
become successful construction workers, as shown in Aboriginal Human Resource
Development Council of Canada, (2007).
6.2.2 Provide Funding for Adult Basic Education within the Context of Construction Education

The research revealed that lack of basic educational skills, even among high school
graduates. This is a concern among union workers who are attempting to improve retention
rates in fieldwork and apprenticeship programs. Having a certificate of graduation does not
necessarily mean that the graduate can read, communicate, or measure and calculate, and all
ofthese skills are essential in the construction industry.
Lack ofbasic literacy and numeric skills makes it difficult for the worker (trainee) to
produce satisfactory work. Illiterate workers who manage to complete an assignment have
been required to invest so much energy in completing the tasks that they tend to quit and find
other employment in other fields . For these reasons, it makes both financial and practical
sense to expand on-site training of basic and applied education skills.

75

Aboriginal Human Resource Development Council of Canada, 2007

67
6.2.3 Assist in Developing Programs to Allow Older Workers to Re-Enter the Workforce

The Canadian government must develop programs that assist older workers in
returning to work on a part-time basis or that allow workers to go from full- to part-time jobs
without risking loss of pension (Malatest, 2003). Adult day care programs will assist with
family obligations that cause workers this age to retire, and should be part of a full plan to
assist older workers who wish to remain employed or return to part-time employment
(Malatest, 2003).
Assisting retirees to return to the workforce in modified capacities represents one of
the greatest contributions that the government can make to solving the construction labor
issue, simply because retirees are educated, experienced, and conscientious. Their potential
contributions as workers are wonderful, but they would also be the easiest group to cross
train to become inspectors and mentors. Further, the synthesis of my knowledge on this
subject and from the articles read, it has let me to realize that returning retired educators
could be assigned to job sites to help trainees who are having trouble reading or calculating,
or even to provide a daily educational briefing (Alberta Employment, Immigration and
Industry, 2008).
6.2.4 Require Panel Oversight of all Corporate Visa Sponsorship Requests

In order to prevent a repeat of the incident that occurred with the company
constructing the Golden Ears Bridge, 76 a panel consisting of one regional government
official, a human rights worker, a regional union representative, and two local construction
business owners should be convened, based on a synthesis of my learning and the
information acquired in this project. Each request for a corporate Visa sponsorship should be
76

Sandborn

68
investigated and reviewed by this committee. If investigation determines that there are
Canadian nationals available to take the job, then the request for Visa sponsorship will be
denied. If the request is approved, then the human rights worker becomes a 'case manager'
for the company's immigrant employee.
Instituting this panel would do two things: it would require construction firms to hire
locally and avoid "wage gouging" as a first option, since the Visas would not be approved if
there were any local workers, even at market price. It would also require firms to treat
employees better. As a practical matter, because the firm would not be able to automatically
hire immigrants if they were so vile that they could not keep local employees. Thus, the panel
would become an informal market regulator. Again, this suggestion was based on the
information gathered in the course of this investigation.
6.2.5 Provide Economic Stimulus to Canadian Workers

Monies that would have provided economic stimulus to immigrant groups should be
transferred to programs for Canadian nationals who are willing to train in construction.
Millions of dollars have been allocated to helping immigrant workers assimilate, learn the
language, and gain skills. These funds should be transferred to programs for Canadian
workers not only in construction but in other fields that are lacking workers, such as health
care and transportation.
If these funds were expected to attract immigrants who are willing to retrain (and that
was their stated purpose 77 ) , then it is just as logical to believe that they will attract Canadian
workers who need assistance.

77

British Columbia Ministry of Economic Development

69
6.2.6 Develop Training and Incentive Programs Aimed at Youth, Women, Aboriginal
Workers
Each of the three suggested categories of workers has high unemployment rates. By
developing attractive training materials and programs for youth, women, and Aboriginals, the
unions and the government of British Columbia may be able to attract more workers from
each of these groups. There are a number of advantages to doing so, not the least of which is
the concept that companies would be 'hiring Canadian' while taking people off the
unemployment dole. If Canada must train workers, it should be training citizen workers first.
6.3 Project Summary

The investigation began with the question of whether or not a construction labor
shortage really exists in British Columbia, and if it does, whether or not immigrant labor
would be the solution to the shortage.
Through the use of a qualitative study of archival materials, inductive reasoning was
applied to investigate the circumstances of construction labor and potential shortages in
British Columbia. By utilizing these methods, it became clear that a shortage exists at the
present time and is expected to continue through 2010. After that, however, no one is certain
of the future of construction in British Columbia, but natural cycles suggest that the
construction boom will slow and perhaps reverse.
Investigation of the possible solutions to the construction shortage revealed that there
is a shortage of qualified, educated workers both at home and abroad. Competition for
workers in the construction field is intense, not just in British Columbia, but throughout the
world. There is no logic nor advantage, then, to putting a great deal of effort and money into
attracting workers from foreign nations who will have to be retrained, acclimated, and
assisted to assimilate when the money could be used to train, retrain, and assist Canadian

70
national workers, and who may leave as soon as their commitment to their hiring company
expues.
Indeed, the conclusion of the investigation was that the only real advantage to
bringing in foreign workers is that companies sponsoring Visas can mistreat employees and
undercut local pay scales without fear of retribution from a population that is essentially held
hostage by paperwork. The analysis clearly showed that hiring unskilled labor is cheaper on
the surface, which undoubtedly attracts companies, which make these types of expeditious
hiring decisions, but it is equally clear that hiring untrained and unskilled is a "cheap
economy" which can easily backfire.
The final recommendation of the research is to hire trained Canadian workers as
primary source labor, and to institute or accelerate programs of training and education for
Aboriginal populations, youth, and women, while developing programs to utilise retirees who
may wish to return to part-time employment. Companies should also be educated as to the
true value of using native workers with skills rather than importing labor.

71

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