All work and no play
High cost-of-living still preventing many mining workers from moving to the territory: study
Meagan Leonard
Northern News Services
Monday, March 30, 2015
NORTHWEST TERRITORIES
More than half of those working in the Northwest Territories mining industry do not live here, and the biggest reason for it appears to be the high cost-of-living.
The NWT Bureau of Statistics released a survey last week which examined the demographic profile of employees, their experiences working at the mines, health and wellness, community of residence and factors considered when thinking about relocation.
Non-resident mine employees said the main thing keeping them from moving to the NWT was they liked their home community and wanted to remain close to family and friends.
For those who had never lived in the territory, 80 per cent of respondents said the high cost of living made them reluctant to move, while one in three said they were likely to look for another job in the next year.
Industry, Tourism and Investment Minister David Ramsay remained optimistic about the survey findings but acknowledged the territorial government needs to find ways to address the issue.
"We have probably about $350 million on an annual basis that leaves the territory and we really need to continue to look at ways to get people to live here," he told News/North.
Ramsay offered a few ideas for lowering energy costs, including an infrastructure plan abandoned by the GNWT last fall, as possibilities for reducing high energy costs in the territory.
He told News/North he hopes to see the territorial government connect its hydro grid to Alberta and Saskatchewan. Finance Minister Michael Miltenberger announced to the legislative assembly in October 2014 that a project to link the Taltson dam in the South Slave to the southern grid was no longer feasible, because a GNWT-commissioned study estimated it would come with a $1.2 billion dollar pricetag, a number almost double what the government had previously anticipated.
To complete infrastructure projects to reduce energy costs, Ramsay says he is in support of Finance Minister Michael Miltenberger's initiative to increase the territory's borrowing limit. Miltenberger is still in negotiations with the federal government to raise the limit from its current amount to $1.8 billion.
Ramsay says the government is also taking smaller steps, such as increasing minimum wage, to address the issue.
As well, he said his department is also working closely with the Department of Education, Culture and Employment to promote awareness and training about mining jobs both in the territory and out.
"We just have to keep putting our best foot forward when it comes to trade fairs, attracting workers and telling them what a great place the NWT is to live," he explained. "The finance minister made a commitment to try and attract 2,000 people in the next five years. That's a goal I think is attainable but it's going to take a lot of hard work to get us where we need to go."
Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines, said he was not surprised by the findings and saw little change from the previous study in 2009.
"The consistent result is that we still see a lot of people living down south and they are still providing the same message on why they do that," he said. "It's the cost-of-living that's the issue and it's not surprising because a lot of us who live here are saying the same thing."
Hoefer says one of the biggest barriers when it comes to finding homegrown workers is lack of education - young people aren't aware of the job opportunities available and don't have the skills necessary to fill positions. He said one possible way to address this is by incorporating mining education into the school curriculum so students can be guided toward the post-secondary education they need to be successful.
"We need to plant seeds in their minds that mining is a good career ... that it isn't taking a shovel and pick and digging up rocks," he said. "Our mines are a community ... you've got a whole range of jobs, you've got clerical staff, mechanics, trades people, cooks, engineers (and) geologists."
With the mining industry continuing to grow, he said this will be more important than ever - especially in light of the territorial population decreasing, he said.
"The population decreased by 338 persons last year so how do you plug that leak?" he mused, stating that if Northerners aren't given the necessary skills they will never be able to replace southern workers and the cycle of unemployment and high cost-of-living will continue.
"We have a lot of bills up here and especially if you've got high unemployment, you've got a lot of people adding to the bill and not generating the revenues," Hoefer said.
"Give them the skills they need to replace southern workers (and) stem the outflow of existing workers."
