Month: April 2021

The following op-ed, written by eight key industry association leaders (including ICBA President Chris Gardner), ran in the April 17, 2021, edition of The Vancouver Sun:

British Columbia has recently entered the third wave of the pandemic and, with rising cases and an increase in variants, there are significant health challenges, growing frustration and anxiety in addition to continued economic impacts on people and many business sectors.

For months, businesses and individuals have worked together to keep our families, friends and communities healthy through new public health guidelines and safety protocols, including making necessary investments required to do so.  Most recently, businesses have rolled up their sleeves to support the vaccine rollout across the province.  Pharmacies, remote work camps, and the new partnership that will re-deploy thousands of tourism and hospitability workers to directly support vaccination clinics are only a few examples. Together, we are showing how it can be done.  We now need to apply this Team BC approach to ensure a safe economic recovery leads to a thriving future for all British Columbians.

The BC Government will unveil its 2021-22 budget on April 20th. As we begin the hard work to rebuild our economy, we need a post-pandemic vision for investment, jobs and opportunity – one that ensures that we are the best place to invest with competitive tax rates and low barriers to job-creating investments. We have some of the best talent in the world and, given the right conditions, our entrepreneurs will seize the opportunity to grow and innovate.

Early in the pandemic, through consultation and collaboration, the BC Government implemented several measures that provided a lifeline to many businesses, including some direct assistance and deferred or reduced property tax payments.

While critically needed, these measures have not been able to save all businesses. Data prior to the latest “circuit breaker” showed BC has recovered its pre-pandemic employment, although Statistics Canada still shows 2,300 fewer businesses operating across British Columbia. The pandemic has hit business owners and their employees hard with lost promise and jobs that in some cases will never come back.

Estimates for the real GDP show between a 5 and 6 per cent decline for 2020, which would be one of the worst declines experienced in BC’s history. It is expected that the provincial economy will rebound and expand by more than 5% this year followed by a similar performance in 2022, as it seeks to make up the ground lost due to the pandemic.

Sectors such as tourism, hospitality, events, sports, leisure and entertainment have been disproportionally impacted since the beginning of the crisis and many businesses couldn’t survive despite government support.   These sectors are again suffering more than others due to the new health orders and restrictions and will need additional support. Even as the vaccine rolls out, it is critical that work on a safe restart begins now in earnest to ensure that when it is safe to do so that these sectors are not left behind.

At the same time, the COVID-19 crisis has accelerated trends including AI and mass digitization, the reordering of global supply chains and trade, a heightened focus on the importance of ESG and a doubling down on working together to tackle climate change, to name a few. If there was ever a time that our province and our country needed governments at all levels to address both the challenges and opportunities these represent it’s now. Fresh thinking, new ideas, and smart policies to supercharge our economy are needed in the wake of the greatest health and financial crisis to grip the world in over a hundred years.

The vaccine rollout is good news, but it will take several more months until we see the full impact.  While that happens, the economic challenges continue. We must act with the same urgency and collaborative “Team BC” approach which helped at the beginning of the pandemic to minimize the economic devastation for communities, young people, individuals, and families around British Columbia.

With Budget 2021-22 the BC Government can address the immediate needs of businesses and employers that are suffering and start to build a stronger tomorrow. Finance, tax and regulatory reform is needed and must support and encourage economic activity and growth instead of deterring it. We need to welcome job-creating investment and continue to produce the goods and services the world needs in recovery. Many businesses and governments alike have experienced dramatic revenue losses and accumulated substantial amounts of new debt that will eventually need to be repaid by future generations. Meanwhile, certain sectors, and BC’s resource industries in particular, have largely been able to keep operating and people working across the province for much of this difficult period. Supporting and growing our resource sectors will remain fundamental to the road to recovery ahead.

Governments must resist the temptation to increase taxes or fees which deter investment, and instead focus on a plan to support sustainable economic growth and revenue for government. British Columbia can be a destination for low carbon and digitally driven companies and services at a time when the world is competing for private sector investment, talent and vital recovery dollars.

Lessons from the pandemic show that it is imperative to act together quickly and boldly to build a more prosperous and equitable future. Let’s get building with all the abundant ingredients BC has to offer.

Bridgitte Anderson
President and CEO, Greater Vancouver Board of Trade

Bryan Cox
President and CEO, Canadian LNG Alliance

Greg D’Avignon
President and CEO, Business Council of BC

Fiona Famulak
President and CEO, BC Chamber of Commerce

Chris Gardner
President, Independent Contractors and Businesses Association (ICBA)

Michael Goehring
President and CEO, Mining Association of BC

Samantha Howard
Director, Provincial Affairs, BC, Canadian Federation of Independent Business

Susan Yurkovich
President and CEO, Council of Forest Industries

 

The following feature on ICBA member Local Rental Solutions ran in today’s EnergyNow.ca:

Local Rental Solutions is an equipment rental and sales company that also specializes in temporary construction heating solutions. With 2 Locations in BC, Prince George and Terrace, their team is well positioned to serve Central and Northern British Columbia even in the most remote locations.

The LRS team brings over 100+ years of combined experience in the equipment rental, sales and construction heating solutions sector.

More than a typical rental company,  LRS works closely with you to deliver equipment, labour, and fuel solutions that align with your goals to help bring your project in on time and on budget. Their specialized heat team will work on the design and implementation of temporary heating solutions of all sizes providing the philosophy of one call does it all when working with Local Rental Solutions. With a gas contracting licence, certified gas fitters and qualified mechanics on staff, ther team can pull any necessary gas permits, deliver, install, leak test and professionally tune all equipment to ensure safe operating with maximum fuel efficiency. They leave their customers with the peace of mind in a job well done!

“Built on Safety, Trust and Reliability” is not just a tag line, it’s how they conduct business from start to finish. The LRS team has successfully served the construction industry with experience working on LEED (green) projects and operating in the mining, oil and gas, forestry, pulp and paper, bioenergy and wind energy industries.

At Local Rental Solutions, “Service” is in everything they do, with no job being too big, too small, or too remote for LRS to step up and help out. From major projects to renovations, Local Rental Solutions has the team, equipment, and expertise to deliver solutions that will save you time and money.

As an Exclusive Dealer for Wacker Neuson, you will find they rent, lease and sell only the best construction equipment. Find top brands such as Hilti, Genie, Skyjack, Flagro and Sureflame.

With Strategic Service Partners throughout the Northern British Columbia, they provide a network of quality equipment and services to assist their customers like no other.

For more information, visit www.localrentalsolutions.com.

By Chris Gardner, President, Independent Contractors and Businesses Association

It’s a common tactic to use polling to try and create the illusion that there is widespread support for an idea that will only actually benefit a narrow group of people.

A great example of this is a recent poll, released by the building trades unions, that claims 80% of British Columbians support compulsory trades. Interesting and slightly assuming, since I am quite confident that 80% of British Columbians have absolutely no idea what compulsory trades means and, if they did, would have a lot of questions about its unintended consequences for workers, construction companies and taxpayers.

In short, when a trade is deemed a compulsory trade by the provincial government, it means that everyone working on a job site in that trade must either be a ticketed tradesperson or a registered apprentice. Imposing compulsory trades is like saying “we don’t really want bookkeepers, everyone must be a CPA,” or “nobody can prepare a meal in a restaurant except for a red seal chef.” It makes no sense in the real world and prevents entry-level workers from exploring construction as a career option and branching off into specialty paths.

The stated goals of compulsory trades are to get more workers to complete their apprenticeship, increase the number of ticketed tradespeople, convince more people to consider a career in the trades, and improve the quality of work on construction sites. Important aspirations, but designating a trade compulsory completely misses the mark on the big challenges facing the construction industry.

There are some simple smart solutions that the provincial government could adopt to help workers, construction companies, and ease affordability pressures – rather than the out-of-date compulsory model.

By far, the biggest issue in our industry is the shortage of construction workers. Taking into account people retiring and the demand for new workers, the construction industry in B.C. will need 60,000 more workers between now and 2030. The work is here, and wages and benefits have never been higher.

Construction represents one of the best entrepreneurial opportunities in any sector in our economy – every construction company is owned by someone who gained experience, learned skills, and who took a risk to start an exciting venture. It’s a message that is rarely told to young people making career choices in high school.

Along with compulsory trades will come very restrictive ratios of ticketed tradespeople to apprentices. Arbitrary ratios complicate how work is performed, involve a new set of confusing regulations, and make it more difficult for young people to enter construction and receive comprehensive training.

One of the best investments the province can make is creating more trades training spaces in technical and vocational institutes. The wait lists to get in are embarrassingly long – at least a year, more often two years, and sometimes three years.

If you tell someone that it could take them a decade to complete a four-year apprenticeship program, it’s easy to understand why people move on.

Many trades programs are offered only in the Lower Mainland and only by one school. If COVID-19 has taught us anything, it’s that flexible delivery models can fill many gaps in skills training. Training curriculum needs constant updating; if textbooks are out-of-date and the materials not relevant, there is a sharp drop-off in student participation.

Finally, at a time when the top (non-COVID-19) issue facing average British Columbians is affordability, compulsory trades will drive up the cost of everything being built, from new condos and care facilities to new community centres.

It has been two decades since B.C. had compulsory trades. The construction industry long ago recognized that not every task on a job site needs to be performed by a ticketed tradesperson or an apprentice – always guided by the oversight provided by WorkSafeBC, Technical Safety BC, Industry Training Authority, and other government agencies.

Today, more than 85% of the men and women working in construction, including 82% of trades apprentices, are learning their craft with open shop construction companies like the ones ICBA represents. Training is a lifetime endeavour; construction workers are always learning and improving. That’s why the open shop model offers workers more choice, flexibility and opportunities to advance.

Last fall, the mandate letters given by Premier John Horgan to his new cabinet ministers made clear the province’s intention to restore compulsory trades. Rather than rush to fit the proverbial square peg into a round hole, the government would be better served to step back, broadly consult with the construction industry, and adopt smarter policies that focus on attracting young people to the trades, increasing the number of training spaces, and modernizing the content and delivery of training.

News release from ICBA following BC Budget 2021/22:

BURNABY – The economic devastation and dislocation of the COVID-19 pandemic reinforce how important it is for the BC Government to make investments today in the infrastructure we need to lock-in our long-term prosperity, said the Independent Contractors and Businesses Association (ICBA) in response to today’s BC Budget.

Among the vital infrastructure projects left out of the budget were a replacement for the Taylor Bridge in northeast BC, North Shore rapid transit, the Massey Tunnel replacement, the Brunette Highway 1 interchange, and the Quesnel Bypass.

“We need to get to yes on some of the most important infrastructure needs in BC, projects that are key to the provincial economy,” said Chris Gardner, President of ICBA. “For example, the Taylor Bridge is 60 years old, in rapid decline, and a vital connection between the north and south Peace River regions. At a time when natural gas royalties from that area are booming and providing an important boost to the provincial economy, now is the time to re-invest in the region.”

The Massey Tunnel replacement was also pushed off another year, with no substantial money for construction in the budget. Four years ago, the province cancelled a replacement bridge that was tracking well under budget and would have opened in 2022; since then, Massey has been delayed again and again, forcing commuters south of the Fraser to navigate one of the worst traffic bottlenecks in Canada.

The importance of speeding up approvals of construction projects was highlighted earlier this year when the World Bank published its annual rankings of competitiveness.

In the category of “dealing with construction permits”, Canada ranked #64 in the world, a ridiculously long approval time for projects at the core of the housing affordability crisis in many major centres in BC.

“We simply wait too long to pull the trigger and make the investments we need in the infrastructure to power our economy and improve our quality of life and, as a result, we continue to fall behind compared to other parts of the world,” said Gardner.

The construction industry – which weathered a 16% drop in housing starts last year, along with drops in building permit values of 26.6% for commercial and 22% for industrial – accounts for nearly 10% of the provincial economy and should have received more attention.

By far, the biggest issue in the construction industry is the shortage of construction workers. Taking into account people retiring and the demand for new workers, the construction industry in B.C. will need 60,000 more workers between now and 2030. The budget should have included major investments in trades training and for the expansion of trades and technical related programs and training institutes.

In addition, the government should have scrapped its expensive community benefits agreements (CBAs) scheme and instead focused on maximizing value for every taxpayer dollar.

“When you cut 85% of construction workers out of taxpayer-funded infrastructure projects, as the province has done under its CBA policy, construction gets a lot more expensive and workers lose opportunities,” said Gardner. “The government could have chosen to ensure that every construction worker and every construction contractor has an equal and fair shot at government funded work.  Instead, CBAs are artificially driving up construction costs and delivering work to one small segment of the workforce.”

Said Gardner, “No one expects the government to get it right every time, but what people do expect, is when it’s abundantly clear that something is not working or if a policy is unfair, the government corrects course.”

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The Independent Contractors and Businesses Association (ICBA) represents more than 3,300 construction and responsible resource development members and clients, trains nearly 5,000 workers every year, and is the single largest sponsor of trades apprentices in B.C. ICBA Benefits is one of the leading independent providers of group health and retirement benefits in western Canada, supporting more than 75,000 Canadians.

The following alert was sent by ICBA to our members this afternoon:

Dear Member,

I wanted to pass along three important news items for you to be aware of today.

First, I have a new op-ed, published in today’s Journal of Commerce, making the case against compulsory trades, as the NDP Government seems poised to bring in. To bring much needed young workers into the industry, we need more flexibility and modernized training plans – not schemes that went out with the 1990s. Click HERE to read the full piece.

Second, minutes ago, the BC Government released its 2021/22 provincial budget, and there are important takeaways for ICBA’s construction and responsible resource development members.

Several key projects were left without funding in the three-year plan:

• Still no money for construction of a new Massey Tunnel or Surrey-Langley SkyTrain (just some modest planning dollars)
• No money for Taylor Bridge, Brunette/Hwy 1 improvements, Quesnel bypass, or North Shore rapid transit

ICBA believes that a significant portion of these projects could have been funded by scrapping the NDP government’s expensive, union-only monopoly on Pattullo Bridge, the Broadway subway and Highway 1 expansion.

The budget document also gives some important economic indicators:

• BC GDP fell 5.3% in 2020. Projected to grow 4.4% in 2021 and 3.8% in 2022
• No balanced budgets are expected for 7-9 years, though the government claims it’s “too early to forecast a specific timeline”
• BC housing starts dropped 16% in 2020, are projected to drop another 8.6% in 2021, drop 3% in 2022, and drop 1.3% in 2023
• Non-residential building permit value fell 14.8% in 2020 (Down 26.6% for commercial and 22% for industrial. Government permit value was up 36.5%)
• Non-residential building permit value down another 8.3% so far in 2021
• Provincial debt swelling to $127B by 2024. If interest rates increase by 1%, that’s an extra $156M cost every year
• Natural gas price now projected at twice what government thought last year (Predicted 74 cents/GJ – now $1.48). That’s an extra $95M for government in royalties

Government did announce a very modest fund of $4 million for a short-term skills training program for unemployed people, hoping to move them into work in construction, technology, health care and childcare.

To see ICBA’s news release on the provincial budget, click HERE.

Third, in the federal budget yesterday, there was an important measure related to support for companies employing apprentices:

“Employers will be eligible to receive up to $5,000 for all first-year apprenticeship opportunities to pay for upfront costs such as salaries and training,” the budget states. “In addition, to boost diversity in the construction and manufacturing Red Seal trades, this incentive will be doubled to $10,000 for employers who hire those underrepresented, including women, racialized Canadians and persons with disabilities.”

More on the federal budget can be found HERE, and we will pass along more program details as government unveils them.

Chris Gardner
President, ICBA