Strengthen Working Relationships with Aboriginal Peoples a Study of Manitoba Hydro’S Strategic Goal
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Strengthen Working Relationships with Aboriginal Peoples A Study of Manitoba Hydro’s Strategic Goal Myron Smolarski An Applied Research Project Submitted in Partial Fulfillment of the Requirements for the Degree of Masters of Business Administration Masters of Business Administration Degree April 2015 Applied Project Academic Supervisor: Dr. Rocky Dwyer Athabasca University Abstract Manitoba Hydro is a Crown Corporation and ranks among Canada’s largest electrical and natural gas distribution utilities. Approximately 98% of Manitoba Hydro’s electrical energy is derived from renewable hydropower generated by 15 hydraulic generating stations. Hydroelectric development has impacted the provinces waterways and the communities residing near them, in particular First Nations. Prior to hydro development, Aboriginal society was marginalized by colonialism and institutionally racist policies of the 1876 Indian Act. Among the most detrimental impacts to First Nations was an attempt to assimilate Aboriginals into mainstream Canadian society by placing children in residential schools, removing them from influences of family and culture. Cumulative impacts of development and policy, resulted in collective trauma which damaged social life and the bonds attaching people together. As a result of systemic problems, Aboriginal People today have comparatively lower educational attainment, labour force participation, and employment rates, presenting challenges for employers of Aboriginal people. Manitoba Hydro has identified Strengthening Working Relationships with Aboriginal Peoples as a strategic initiative in their corporate strategic plan. To accomplish their goal, they have focused on three main tactics; Resolve and manage ongoing obligations from past development; Increase Aboriginal representation by recruiting, developing and retaining Aboriginal employees; Develop and maintain business relationships with Aboriginal businesses. Like many companies, MB Hydro is challenged with attracting, training and retaining Indigenous employees and engaging Indigenous communities and businesses. 2 A qualitative design was used to study the collective literature regarding challenges companies face engaging Indigenous populations. The internal environment was analyzed using the Indigenous Employment Evaluation (IEE) Tool; a reporting framework developed by the Centre for Responsibility in Mining (CSRM) at Australia’s University of Queensland. It identifies strengths and weaknesses of a company’s current Indigenous employment practices. The external environment was analyzed using the DEPEST framework (Demographic, Economic, Political/Legal, Technological, Socio Cultural and Ecological). Findings reveal that Aboriginal People are a young, rapidly growing demographic making them a valuable human equity resource. MB Hydro has implemented a number of positive initiatives to address the inequality of opportunity faced by Indigenous people and to resolve claims of adverse affects of hydro operations. Despite successes, Aboriginal protests directed at the corporation persist indicating opportunities to improve Aboriginal relations persist. The research presents seven recommendations for MB Hydro to consider for their Aboriginal relations strategy. Improve analytics to assess effectiveness of Aboriginal relationship strategies. Modify HR Policy to include adaptations for Indigenous cultural differences, e.g. provisions for cultural leave. Develop a career path development strategy specific to Aboriginal employees to increase participation in management. Partner with industry and high schools to develop technology major programs for Industrial Mechanics and Electricians. Leverage internal management expertise to mentor Aboriginal businesses. Implement alcohol and drug testing programs that educate but does not permanently restrict employment options. Verify Aboriginal employment numbers submitted by contractors and establish penalties for non compliance. 3 Table of Contents Abstract ................................................................................................................................ 2 Introduction ........................................................................................................................... 5 Background .......................................................................................................................... 7 Research Objectives .......................................................................................................... 12 Research Methodology ....................................................................................................... 12 Literature Review ................................................................................................................ 15 Research Questions ........................................................................................................... 38 Research Methodology / Design ......................................................................................... 39 Research Findings, Recommendations and Conclusions .................................................. 42 Indigenous Employment Evaluation Tool ........................................................................... 69 DEPEST Analysis ............................................................................................................... 79 Recommendations .............................................................................................................. 88 References ......................................................................................................................... 92 Appendix 1.......................................................................................................................... 98 Appendix 2........................................................................................................................ 100 Appendix 3........................................................................................................................ 102 4 Introduction Manitoba Hydro (2012; 2013) is a vertically integrated Crown Corporation of the province of Manitoba. With over $14 billion in assets and 5700 megawatts of installed electricity capacity, they rank among Canada’s largest electrical and natural gas distribution utilities. Manitoba Hydro currently provides electricity to 548,774 domestic customers and natural gas to 269,786 domestic customers. Approximately 98% of Manitoba Hydro’s electrical energy is derived from renewable hydropower generated by 15 hydraulic generating stations. They also maintain two thermal generating stations to back up the hydro-electric system and purchase power from two independent wind farms. As a Crown corporation, all Manitoba residents are considered stakeholders however, from a strategic planning perspective, there are varying degrees of saliency among them. Stakeholder identification and management is a critical component of the corporation’s strategic planning process in order to continue fulfilling their mandate which is reflected in their Mission Statement: To provide for the continuance of a supply of energy to meet the needs of the province and to promote economy and efficiency in the development, generation, transmission distribution, supply and end-use of energy. MB Hydro( 2013) indicated that to accomplish their mission and meet projected future energy requirements of the province, their preferred development plan included a $25 billion dollar investment in plant and equipment between now and 2026. The bulk of that investment involves construction of two new hydraulic generating stations, both of which are located within the scope of First Nations traditional territory. In addition, a new Bipole transmission line will span significant portions of First Nations traditional territory. 5 Previous hydroelectric development has negatively impacted First Nations people and left a legacy of suspicion and distrust. Since the early 90’s Manitoba Hydro has had two goals in their Corporate Strategic Plan (CSP) that in some form or another were meant to address inequities in economic development among Manitoba First Nations and to provide employment and business opportunities for the indigenous people of the province. The most recent version of those CSP goals are to Strengthen Working Relationships with Aboriginal Peoples; and to Attract, develop and retain a highly skilled and motivated workforce that reflects the demographics of Manitoba. Despite significant milestones being reached towards achievement of those goals, there remains an underlying distrust and at times, strained relations between the parties. Measuring the strength of relationships has proven difficult. Despite the fact that Aboriginal employment and business partnerships have increased measurably, it is difficult to measure direct correlation between the strategy of increasing Aboriginal employment and business opportunities with the goal of strengthening relationships. As a Crown corporation, there are moral and socio economic imperatives for engaging Aboriginal people. In a study conducted for The Centre for the Study of Living Standards, Sharpe and Arsenault, (2010) estimated that completely closing educational and employment gaps between Canada’s Aboriginal and non-Aboriginal population would lead to cumulative benefits of $400.5 billion (2006 dollars) in additional output and $115 billion in avoided government expenditures over the years 2001-26. Increased employment rates lead