There’s a rumor going around Calgary that a couple of engineering firms will be laying off a few thousand workers because of upgraders that have been put on hold. I’m not so sure this holds water.
Seven projects delayed, reviewed. Of the seven planned upgraders, Petro-Canada, Total and StatoilHydro are also reviewing their projects while BA Energy and Northwest Upgrading are seeking new investors. The seventh upgrader was planned by Synenco, but Total is in the process of buying that company.
In the case of the projects under review, the companies looked at the uncertainty around environment regulations as well as the labour market, said Neil Shelly, executive director of Alberta’s Industrial Heartland Association.
“Initially when all these (upgrader) announcements were made, they all seemed to crescendo about the same time, which created a real labour pinch around 2012, 2013,” he said.
“I believe the companies are starting to look at each other saying, ‘We can’t do this all at the same time. Let’s try and drag out some of these deadlines,’” he added.
If the engineering firms staffed themselves according to an expected peak labour demand in 2012-2013, then it stands to reason that engineer layoffs would be a leading indicator of what’s in store for the rest of the economy. This is because much of the engineering work is done prior to the construction of an upgrader. But so far, there’s no confirmations of engineer layoffs in the province. At worst, the delays will smooth out the peaks and eliminate engineer shortages.
