The debate over B.C.’s Community Benefits Agreement (CBA) policy has been waged in press releases, newspaper pages and even the Supreme Court.
But Community Savings Credit Union CEO Mike Schilling hopes the discussion moves into the homes of British Columbians.
“This should be a breakfast table issue,” said Schilling. “I have two daughters and I want them to grow, get good jobs and be able to live near me. So do many others. This is about jobs and kids getting good trades careers. We want ordinary British Columbians in on this debate so they can say if this is working for them or not.”
The institution is B.C.’s largest fully unionized credit union. In addition to having an obvious interest in economics, Schilling said the financial institution takes a special interest in issues that impact working people and communities.
To spur the discussion, the credit union released its analysis of the CBA policy so far.
In terms of addressing the province’s looming shortage of skilled labour and including underrepresented groups, Schilling believes early data shows it is a winning strategy.
“Up-skilling the workforce, providing good jobs, putting money in the pockets of workers — these are much better ideas than flying in talent,” said Schilling. “The early signs are that the province’s targets are creating a more equitable workforce.”
The report noted that priority hires (women, Indigenous, youth, local residents and others) accounted for 46 per cent of employment on BC Infrastructure Benefit’s (BCIB’s) first CBA-designated project in 2019. The 2020 construction season, while impacted by COVID, saw further increases in employment opportunities for priority groups on CBA-designated projects, with participation of women and Indigenous people significantly higher than industry averages.
“We believe early stages are delivering gains there,” said Schilling, but he cautioned that more time is needed to assess the benefits.
While Schilling believes the CBA strategy is showing early signs of benefiting communities and workers, when it comes to assessing the financial costs of the policy, things become complicated.
“There have been estimates from the province that calculate a 2.5 to 3.5 per cent increase in tendered costs but frankly that is impossible to prove,” he said. “No two projects are the same, so I think you have to take that with a grain of salt.”
He noted it is clear that having a skilled workforce increases international investment and generates more local economic activity.
“That is basic economics,” he said. “Also, there is long-term generational benefits.”
He explained children with working parents are much more likely to work throughout their lives.
“The legacy of the Pattullo Bridge won’t be the bridge,” he said. “It will be hundreds of working families and we think these benefits are clear.”
Schilling also highlighted B.C.’s low trades training completion rates.
“There is a gap there and we think the CBA is trying to fill that gap,” he said. “B.C. has one of the lowest completion rates in Canada. There is a huge amount of waste there. People are not seeing things through.”
He noted a closer look needs to be taken at the Industry Training Authority to assess how completion rates can be improved.
Schilling said going forward, strong reporting measures from BCIB and the province will be the key to success. He explained research shows jurisdictions attempting policies similar to CBAs were less likely to achieve their goals without strong reporting.
“We need to hold people to account,” said Schilling.
The institution plans to continue tracking trades training pass rates, underrepresented group participation and other metrics on moving the needle for local work opportunities. When it comes to tracking project costs going forward, Schilling said it is of less interest.
“You have to be careful on project costs,” he said. “We do want to see them coming in competitively, but people will be arguing about them forever and it won’t be the focus of what we do. It is important to look at employability and job opportunities – that is where the long-term benefits are for our province.”
The full report is available at www.buildingabetterbc.ca.
Follow the author on Twitter @RussellReports.
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