IUOE News December 2014

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How important is Liquified Natural Gas? How important is the potential Liquified Natural Gas [LNG] industry to British Columbia’s economy—and to jobs for IUOE Local 115 members? There is much debate and constant news about LNG plants in B.C. under consideration, in planning stages and sometimes being put on hold temporarily but just one statistic may give members some idea of how significant LNG can be. If just one large LNG plant is constructed to export gas to the Asian market, it will require 15,000 beds to accomodate all the workers needed for the project! Between the liquefaction facility and the pipeline that would be created to send natural gas to the west coast, a recent report from FirstEnergy Capital corporation estimated that a single LNG project could require as many as 15,000 beds. Not 1,500 but 15,000 beds—that represents more than one bed per every existing member of our local! And that’s with only one plant—the B.C. government hopes for three to five LNG plants to proceed in the next several years. “When you visualize that, you realize that LNG represents an enormous opportunity for IUOE Local 115—not just current members but thousands of potential new members,” says Business Manager Brian Cochrane. “LNG could be the biggest boost our union and B.C.’s economy has seen in decades — that’s why we have to work hard to make sure LNG proceeds,” Cochrane says. If five LNG plants were operational by 2020 the benefits would be huge—for B.C. and our membership. “LNG could be the biggest boost our union and B.C.’s economy has seen in decades.” Studies indicate five LNG plants could mean: • Up to 75,000 permanent new jobs; • More than 39,000 average annual jobs over a nine-year construction period; • Over $98 billion in new capital investment; and • Potential new government revenues in excess of $100 billion over the next 30 years. We know there are no guarantee— and each private company involved will make its own decisions based on the price and market for LNG while competing globally with other producers, the cost of construction and operations and other factors well beyond our control. But one thing we can control is creating public support to proceed with LNG plants. And IUOE Local 115 is asking its members across the province to help create a positive response to the LNG industry. Unfortunately, some environmental groups oppose LNG, particularly because of the hydraulic fracturing or 24 News December 2014
fracking process needed to remove natural gas from underground. There have been unscrupulous reports about a multitude of alleged problems caused by fracking but in reality the track record is very safe and this method of extraction has been used successfully for decades. What’s more—the industry is heavily regulated—and no one wants to create a problem that could shut down a profitable multi-billion industry. LNG is also the cleanest fossil fuel available today—producing significantly less greenhouse gas emissions than oil, gasoline, coal or other products. It’s not perfect but it’s readily available today and potentially both cheaper and greener than other alternatives. Already the LNG industry is making serious investments in B.C.—more than $6 billion since 2012 towards developing LNG for export and $1 billion more spent preparing for construction of LNG facilities and transportation networks. “These LNG companies are spending real money—and they wouldn’t be doing that if there wasn’t a strong belief LNG plants will be built,” says Cochrane. “This is our union’s opportunity of this generation—and we have to make the very most of it.” Cochrane is asking all members to contact their local Member of the Legislative Assembly—MLA, their Member of Parliament—MP and their mayors and councilors to tell them IUOE Local 115 supports the LNG industry proceeding. Letters to the editor of newspapers, calls to talk radio shows and other methods of getting them message out are also important, Cochrane says. And Cochrane adds that IUOE Local 115 support for the LNG industry is not unconditional. “These LNG companies are spending real money — and they wouldn’t be doing that if there wasn’t a strong belief plants will be built.” “We want to see LNG construction and operations proceed with union representation for the workers doing these jobs and we do not want to see thousands of Temporary Foreign Workers filling jobs that could be done by qualified Canadians,” said Cochrane. “Our union’s support for LNG depends on companies reaching Project Labour Agreements with our union, other BC Building Trades unions and not be reliant on the Temporary Foreign Worker Program and other trade deals to bring in non-Canadian workers on these projects,” he said. Cochrane noted with concern, comments reportedly made by B.C. Premier Christy Clark in India regarding the possible use of temporary foreign workers. “We believe that British Columbians have to be first in line for these jobs, but it’s also true that there will be some need for some temporary workers to come in and support these projects when there are peaks in production and construction because we simply don’t have enough people,” said Clark after the Times of India reported she suggested Temporary Foreign Workers from that country might find jobs in B.C. “We understand that in some circumstances there may be shortages of certain skilled trades but B.C. and Canada have relied far too much on temporary foreign workers to the detriment of our own members and other skilled Canadians,” said Cochrane, noting that there are 74,000 Temporary Foreign Workers in B.C. currently. It’s up to IUOE Local 115 members and leadership to ensure that not only does LNG go ahead but that union members are hired for this important industry, Cochrane concluded. One of the leading LNG projects that is closest to going in BC is the Pacific NorthWest LNG which is a proposed natural gas liquefaction and export facility on Lelu Island within the District of Port Edward on land administered by the Prince Rupert Port Authority. The facility would liquefy and export natural gas produced by Progress Energy Canada Ltd. in northeast B.C. Pacific NorthWest LNG will create new economic and social benefits for the local community, BC and Canada in an environmentally safe and sustainable manner. Key Facts about this Proposed Project: • Facility operations would create an estimated 330 long-term careers, plus approximately 300 new local, spinoff jobs in the community • Construction of the facility would create up to 4,500 jobs at peak activity News December 2014 25
Page 1 and 2: News SHAPING THE FUTURE Securing fu
Page 3 and 4: We must invest time and work now to
Page 5 and 6: They told the crowd how they wanted
Page 7 and 8: We need to organize, and identify u
Page 9 and 10: Offering support to our Tumbler Rid
Page 11 and 12: Sledgehammers and security guards s
Page 13 and 14: Are you Ready to Lead, Ready to Fol
Page 15 and 16: District Two Brothers Steele Gorosh
Page 17 and 18: Hoping for some big projects to bec
Page 19 and 20: If you have questions, make sure yo
Page 21 and 22: Courses starting up for another yea
Page 23 and 24: Training Association Report Mobile
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Page 29 and 30: Membership Service Awards August 20
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Page 41 and 42: Member Recognition Member Service A
Page 43 and 44: Contact Details Local 115 District

IUOE News December 2014

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