Thorunn Howatt
Northern News Services

Yellowknife (July 27/01) - Faced with a labour shortage, BHP Diamonds Inc. is rethinking its Northern hiring policy.

And it is taking its case up with the government of the Northwest Territories.

Giant machinery works in the Panda pit at the Ekati Diamond Mine. - Thorunn Howatt/NNSL photo

"We may have to re-look at our socio-economic agreement," said Yellowknife's BHP spokesperson, Denise Berlingame.

BHP has an agreement with the territorial government that requires it to have a work force of 62 per cent Northern employees and 31 per cent Northern aboriginals.

Although Berlingame said the company is not looking to rewrite the agreement, "It has become apparent it may no longer be possible to meet or exceed our targets in the future."

BHP has an 80 per cent ownership in the Ekati Diamond Mine.

Currently 81 per cent of its employees are Northerners and 41 per cent are Northern aboriginals.

Berlingame cited education as well as the North's high cost of living as reasons the company's fear of future worker shortages.

"The problems aren't exclusive to BHP. They will pertain to Diavik and DeBeers as well," she said.

Future diamond mining as well as oil and gas development have meant a vibrant Northern economy but the boom has also forced employers to compete for trained workers.

Representatives from Diavik, DeBeers, BHP and companies contracted to work for them met with Joe Handley, territorial minister for economic development, and representatives of the Northwest Territories government Thursday to talk about barriers to employment.

Berlingame said the approach was seen as necessary after a June meeting between BHP and its contractors who cited Northern employment quotas as a problem.

"They are having a tough time recruiting Northerners," said Handley.

"It's an increasing problem -- perhaps a good problem. It's better than high unemployment."

Handley said the Alberta oil boom is adding to the worker shortage because people prefer to stay south, where the cost of living is lower.

We can't be totally fixated on quotas," he said. "Rather than punish them we will try to work with them."

A workshop is planned for early September.