The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article by Reporter Steve Arnold published in the September 12, 2005 edition

 

Big steel faces crisis as workers retire: study

By Steve Arnold
The Hamilton Spectator
(Sep 12, 2005)

A new study warns Canada's steel industry faces the loss of more than half of its most skilled workers over the next decade and lacks the training programs needed to replace them.

The Human Resources Study of the Broader Canadian Steel Industry says current high prices may tempt companies to avoid making the investments in people and equipment that will be crucial to weathering the next downturn in the business cycle.

"The key difference, however, is that having postponed dealing with critical human resources issues, the industry would find its work force correspondingly older, the urgency of the demographic and other issues correspondingly greater, and the time and capacity of the industry to address these, correspondingly less."

Prepared for the Canadian Steel Trades Employment Congress, the study calls for the immediate launch of a work force development plan for the industry.

This would unite the efforts of employers, unions, government and the community college system.

"The study is going to be a very useful manual for how we move ahead on this problem," said Cheryl Jensen, executive dean at the faculty of engineering technology at Mohawk College and a member of the study's steering committee.

"This is one of the most complete studies I've ever seen on this problem."

Among the study's findings:

* Fifty-five per cent of the steel work force is over 45 years old and as they retire companies will lose knowledge and skills the industry is ill-prepared to replace.

* The steel industry employs about 57,000 people directly and supports another 115,000 jobs in secondary industries.

* While only about half the workers who retire will be replaced, an estimated 2,300 new operations and trades workers will have to be hired over the next five years -- between two and three times recent recruitment rates.

* Technological change will put a premium on work force agility.

That's a challenge because waves of layoffs have culled the labour force to the oldest workers, usually with the lowest education and computer skills.

"This industry is critical to the Canadian economy and we have to act now to ensure there will be a strong and vibrant industry in Canada in the future," said Ken Neumann, Canadian director of the United Steelworkers of America and labour co-chairman of CSTEC.

Among the study's recommendations:

* Creation of a work force development plan with management, union and government support.

* A Canada-wide apprenticeship program modelled on the current joint effort by CSTEC, Mohawk College, Stelco, Dofasco and the USWA.

* A publicity campaign promoting the industry to students as a career choice.

sarnold@thespec.com

905-526-3496