Saturday, October 31, 2009

He's a madman, not a martyr

I was two blocks away when a guy with a gun entered the Workers Compensation Board (WCB) Building a week ago and took 9 hostages and held them for 10 hours. The hostage situation was national news and continues to have the spotlight here in Alberta. He appeared in court yesterday and what disturbs me about all of this is how many people are turning up to support him.


Most Albertans know people who have been through the WCB system and a lot appear to have negative experiences. My dad is on compensation because of his cancer and he got a far less settlement than he should have. But a lot of people are using this hostage situation to show dissatisfaction with the government and are angry that the WCB is unresponsive to their needs and not providing everything they believe they are entitled to.



The WCB is a provincially mandated insurance company. It does not receive provincial funds, it only follows provincial legislation. The WCB makes money by charging premiums to companies. The goal of any insurance company is to minimize payouts so they can minimize premiums. In the unfortunate situation of a mishap, the WCB should be there for Albertans who need it. But is insurance, not a government handout.



Albertans are very fiscally minded and insist that any government institution should be fiscally responsible. There is never enough resources to provide for all the services citizens may demand. I get a lot of requests from people who want to start a business who believe that there are lots and lots of start-up grants out there. In Alberta, I can say that there is exactly $0 dollars available for start up businesses. Instead, the private sector provides the financing or you need to save up or put a second mortgage on your house. Many businesses fail in the first years of start up. If government were to offer grants, they would be losing a lot of money in failed enterprises. This is not a wise use of resources, especially when people are finding the capital they need to start a business without government interference.



I'm now going to oversimplify things to make a point (doesn't every blogger take this liberty?) The government plays a very important and complex role in the labour market. First of all, it's a very large employer. Second, it provides leadership. Third, it makes sure citizens are supported to make positive contributions. Government cannot afford to support all it's citizens financially, that's why we need a vibrant private sector. A private sector that is encouraged to make a profit. The private sector needs to contribute with it's tax dollars and WCB insurance contributions, but it cannot be hobbled by this. There needs to be a balance.



The government does provide services to citizens, but there is only so much money and so there is only so much they are able to provide. But some people feel they're entitled to government assistance for whatever reason. I do agree that citizens are entitled to service, but the government cannot provide an unlimited level of service - like fully funded schooling. The same goes for WCB. Yes, it would be nice that if every injured worker got money to live out the rest of their days in comfort, but unfortunately, there just isn't the resources to do it.


Of course, people should expect to receive excellent service from their government services. They should not be tossed around or kept chasing a string in a false hope that they'll receive benefits. And some people are mistreated by government. It's the mistreatment that bothers me. Since government employees are paid by tax dollars, the public is entitled to excellent service. The training should be in place to provide this service. But excellent service does not neccessarily mean money. If you are entitled to the money through a fair and transparent process - sure. But if you are not, that does not mean you should hold 9 people hostage to try and get what you want.


The truth is, the guy who took the hostages was a coke head with huge anger management issues. He felt he was entitled to more than what he was assessed for. Now, I don't know if he was mistreated by staff or not. But even if he was, talking a gun and holding 9 hostages to make a point does not make him a hero. The staff does their job with the rules they are given. Are the rules perfect? Of course not. But there are means to get involved and change the rules. But 3.5 million people have their opinion, and those 3.5 don't understand the complexities involved in allocating resources.

Now, I hope that those who are involved with the WCB and other government departments realize that there is dissatisfaction with government agencies and that these agencies become more responsive to the people. But in no way should a mad man with a gun dictate government policies.



Monday, October 19, 2009

Where you are affects who you are

As a career counselor I see people on two ends of the same spectrum - those who have an overconfidence of what they can achieve vs those who have no confidence whatsoever on what they can achieve. While I probably see more of the latter, the former also concerns me. If someone is on social assistance because of a medical condition then going from no high school to becoming a lawyer might be somewhat unrealistic. This is not a question of the person's intelligence, but when I hear of people like this, I question if they may set themselves up for defeat.

I have traveled extensively and these experiences have made me a firm believer in personal choice. All of our decisions have consequences. But the environment that we live also affects us. We need to realize what the affects of the environment are on what we are doing and make our decisions accordingly. Coming to Alberta as a fashion designer is going to limit your career options. We are not a province with really anything of a fashion industry.

When it comes to life decisions there is never an easy answer. And people expect there to be. I can't tell you what jobs are 'recession proof'. 6 months ago I would have said that was health care, but that has since become an area of great concern. 2 years ago it seemed everyone was getting a welding ticket and now I now get a lot of welders telling me that they can't find work. Now that person who took two years of schooling can't find a job and loans are piling up or they're used to making 30 bucks an hour and they can't anymore. Both of these individuals face some hard choices, but it's not the governments role to make it for them or to bail them out. For me, the role of government is to facilitate the choice of the individual. But the individual needs to make the choices and make sure they have the resources for those choices. This sometimes requires some hard choices.

I always have a plan b. Or c or d or q. Life always brings unexpected surprises. The labour market has so many variables and is very difficult to predict. There are certainly trends that you can identify, but nobody expected the bust last year. Heck, last October we were at the lowest unemployment rate ever. And now we're seeing some of the highest numbers in 20 years. In our own life, we'd like to move from our condo to a house. But unfortunately with a hiring and possible hiring freeze I just don't see how that will happen. So we need to have patience. And patience is hard.

With the choices one makes, one ends up in a certain place. That place allows one to make other decisions. Some people are handed some pretty rotten cards, but are able to do some awesome things. But everyone I've seen who started out at the top and ended up at the bottom can only look at their own decisions.

Sunday, October 11, 2009

Temporary Foriegn Workers in Alberta - an opinion

During 'The Boom' (yea, I think it has become so legendary now I think it deserves to be a proper noun) Alberta decided to fill it's labour shortages with international workers. Some companies claimed it was because they couldn't find skilled labour form overseas but to honest, they wanted to bring workers to fill the semi-skilled jobs that no Albertan wanted to take. Why would a high school student work at McD's for $9 bucks an hour when they could drop out of school and work the rigs (or whatever else they could find) for $20? So a whole lot of people from around the world came to work in our fast food restaurants, kitchens and hotels.


Part of this is because the government relaxed the rules for the Federal Temporary Foriegn Worker (TFW) program and allowed TFW's to stay in Canada for up to 2 years. They also streamlined the approval process. The number of TFW's in Alberta doubled in a year. Now the program was always intended as a temporary solution - after all these people had to go home after working in Canada for two years. For those who worked in skilled jobs there was an opportunity to apply for permanent residence but it seems that most TFW's did not fall into that category. Even the provincial nominee program had limited allowances to sponsor semi-skilled workers. The TFW's were supposed to go home. The problem was, that most of the TFW's who took jobs came with the intention that this would be a backdoor for them to immigrate here.


Most TFW's came from developing countries - most notably the Phillipines, Mexico and India. They wanted to leave their country and go for something better in one fo the richest countries in the world. Now a lot of their two year visa's are running out and many are scrambling for an opportunity to stay. A lot lost their jobs when the economy 'corrected' itself. Some ended up with exploitative employers. The problem is, the system is set up to dash their dreams of immigrating to Canada. It doesn't want these people to move here. They were temporary workers for a temporary problem. Alberta now has a 7.1% unemployment rate, can Albertans take those jobs now?


For me, the TFW program fails to live up what I expect from out immigration system. Canada has a very proud tradition of welcoming people to come to Canada and then contribute to the nation as a whole. Now in some cases temporary workers do have their place, but I disagree with allowing such a large amount into our country as disposable labour. We are setting people up to be abused and we are setting people up to fail. A lot of the TFW's who do come to Canada have a University education and end up working in jobs meant for people without high school. We are taking advantage of people who are willing to give up a successful career in their home country on the small chance that they may be able to immigrate to Canada.

Canada is a nation built largely by immigrants. We need immigration as a nation to survive. As a nation we want people who will contribute to our nation. We can't pick those who are born here, but we should definitely reserve the right to pick those who move here. In a competitive world, we need to compete as a nation. The streamlined process of the TFW program does not take this into account. Some people are doing jobs that they were not trained to do. Others are doing jobs that they are overqualified for. This system is unjust and I really think it should be abandoned. I can see the purpose of limited TFW program for seasonal labour and international experts. But I really don't see any need for TFW's to work in a fast food restaurant.

We as Canadians have to keep in perspective that $20/hr jobs do not come to people without a high school education. If we don't fill the positions at Timmies then maybe those 7.1% who are unemployed will start to apply. Instead, we are letting the companies take the easy way out by bringing people over who will do just about anything to immigrate to Canada. I think it's time for the feds to stop providing the permissions to hire at fast food restaurants and the like and instead encourage employers to find the jobs internally.

Throughout my travels I saw a lot of migrant workers. Taiwan in particular brought in workers from poorer parts of Asia to work in its factories. These workers lived in substandard conditions and came over only for the opportunity to make money. This is not a road I think Canada should go down. We should pursue an immigration policy that brings in the best people to grow our economy and our nation. This of course involves the growth of one's personal wealth. But I do not want a revolving door immigration system that provides workers no protection. Instead we need to encourage more permanent residents to come and make Canada their home.


Friday, October 9, 2009

September's labour stats

The Alberta unemployment rate finally came down, after 11 months of increase. For the Alberta perspective, go here. It wasn't a large decrease and it happened for 2 reasons - a slight increase in jobs and a decrease in Alberta's working population. Last month the unemployment rate was 7.4%, this month it is 7.1%.

I was hoping that the rate would start going down before now. This rate would indicate that the economy is not really getting worse, but it's not getting any better. I really think we've hit a plateau and this is where we are going to be for a while - maybe even a few years.

The bulk of Alberta's natural resource activity is actually in natural gas. And the price for natural gas is depressed right now. I anticipate that the oil sands are going to see some construction for the next few years, but it won't be at a frantic pace like it was 2 years ago. This will allow for some job creation (in construction) but it will be slower than before. With prices still low in natural gas we won't see as much activity in the gas sector for a while.

The economists are calling our labour market 'balanced'. I agree with this. It's harder for people to find work but it's still possible for those who have the skills and keep their expectations realistic. A high school drop out is going to have trouble making over $15/hour. Someone with just high school really needs to be flexible and should really look at further training. And individuals who are looking for training should look at keep their education general, as specialization may paint one into a corner if a particular company no longer needs that set of skills. Specialization is often inevitable, but if one has to specialize, specialize in more than one thing.

Alberta is still a great place. We'll have some challenges ahead of us, but I think these challenges are no worse than what we saw in the early 90's. For me, I just think it's important not to get too arrogant and keep things in perspective. We're always going to need oil and gas, but we need to keep it sustainable. This is an opportunity for Alberta to slow down and take stock make some appropriate investments. Then these investments will pay off in a few years when the economy starts to pick up again.

Wednesday, October 7, 2009

What do you mean by a 'labour market'?

For some, a labour market might be considered a fairly technical term, but I am using a straight forward definition. For me the labour market is the people behind the economy. It's the jobs that are created, the migrants who move looking for a better life, the decisions that are made and everything else behind the economic numbers that everyone seems to take so much stock in. The labour market is much more than the rise and fall of stocks on what ever street you are following. It's about people. And that's why I am so interested in it.

Alberta's labour market has always been an active place. This past decade has seen incredible growth and that saw a very sudden decline last October. August 2008 Alberta saw an unemployment rate of 3.5%. In August 2009 it was 7.4% (source). There are so many stories behind those numbers. Everyone has questions. Will this high unemployment stick? Why were so many jobs lost so suddenly? How does something in New York affect what happened in Fort McMurray? Are we going to see more health care cuts? All these questions are related to the labour market.

Now, I have no crystal ball. I only have an interest in this area. I have some close connections to the 'front lines' and an interest in writing about Alberta. I am no academic but I am no dummy either. I am able to listen and learn, if someone has something interesting to say.

And so the discourse begins...

Tuesday, October 6, 2009

Alberta's Labour Market

I read the blog of Penelope Trunk quite regularly. While she can be quite controversial, she is a very successful blogger and I think she has a lot to say about how to write a successful blog. In her most recent blog she writes about how important it is for a blog to have a topic - a focal point. Now my blog hasn't had this focus and I think that is part of the problem as to why I'm not updating it as much as I should. Penelope is right, you need to focus. And it's really not hard to find that topic. It took me a trip to the toilet to figure out what my blog topic should be...

I did a quick search on Google blogs and found that no one is writing about Alberta's labour market. While the topic may sound quite boring at first, it is a favorite topic of interest of mine. Alberta of course is my home and I am interested in everything about this beautiful province. The labour market has so many different facets to it and it is something I always have a comment about. So really, this is something that I will find it easy to write about. I'm still seeking truth, but I'm a little more specific now - I'm searching for it in Alberta's labour market.

Of course this won't stop me from writing about other things, but the blog needs a focus, a theme. I'm looking forward to writing more about this. This appears to be the fall/winter of writing - I'm starting to engage in a few different writing projects and I hope this will further help to develop my skills as a writer.

So, I hope this new direction will get me to write more - Friday is the release of the newest employment numbers. I'm really not sure where we went in September. And it's bad luck to voice one's predictions. I find that if I write them in a secret place they come true. If I tell everyone my prediction, I'm wrong.