NWT/NUNAVUT
A major Northern general contracting company closed its doors in a quiet hurry this month.
The future of Dowland Contracting Ltd. hangs in the balance as the company abandons a job site and fails to pay employees. Northern projects completed by the company, which originated in Tuktoyaktuk, include the construction of Inuvik's East 3 School. - Nick Westover photo
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There seem to be more questions than answers about what caused Dowland Contracting Ltd. to stop paying employees and what will happen next.
On May 8, Dowland employees abandoned one of the company's largest current projects, a $32 million renovation on Iqaluit's Qikiqtani General Hospital, which it was involved in through a joint venture with NCC Development and Nunavut Construction Company.
Shortly before Dowland abandoned the hospital site, employees in Inuvik stopped receiving pay, according to reports from the community.
Inuvik mayor Floyd Roland, who worked for the company five days per month as vice president of strategic relations, says he stopped receiving pay about one-and-a-half months ago and took it as a sign he was no longer employed by them.
"There's a few of us who have tried to get in touch with (Dowland) and have not gotten a response," he said. "There's a lot of rumours floating around, but that's all."
Roland estimated 10 or more people in Inuvik were directly employed by the company and that payment issues have emerged for both management and non-managerial staff.
Calls made by News/North to Dowland Contracting Ltd. were directed to the company's communications department but messages left with the department were not returned.
According to the company's website, it has offices in Edmonton, Inuvik, Iqaluit, Kamloops, Rankin Inlet, Sasktoon, Thunder Bay, Whitehorse, Winnipeg, Yellowknife, and Anchorage.
Surviving a slow economy
As the country struggles to climb out of an extended economic downturn, its expected that some companies are not likely to survive this period of economic transition, said Mike Bradshaw, executive director for the NWT Chamber of Commerce.
"This is a time when our economy can look forward because of things like devolution but also has to go through a period of transition," said Bradshaw. "That's what's called a correction in the economy and in the net year or so we're going to see the effects of that.
"I'm not surprised that some construction companies are feeling the pinch. I was a little surprised that Dowland was one of them because my sense was that they had done several major projects over the last while and that they were in pretty good shape."
Speaking as mayor, Roland said the loss of Dowland is felt strongly by the community but it may open an opportunity for smaller businesses to fill the void.
"There are many people in this community who are watching with concern to see what happens here," Roland said.
"We've got a number of businesses in town who would be capable and able to step up and move to the next level but I know from the other side of it, people are worrying and wondering who is going to fill the gap and will they have the strength to hold their ground."
