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 to increased labour income, and household income is positively related to social development and health incomes (Parkouda and Brichta 2013). From a business perspective, positive relations are essential to protecting in service dates for the
6 corporation’s development plan and ensuring its reputation remains favorable enabling continued export sales.
Background
MB Hydro (2013) The Corporation’s strategic positioning in the competitive export market contends that Manitoba Hydro is considered a valuable contribution towards global reduction of greenhouse gas (GHG) emissions. The ability to produce reliable, renewable hydropower is due to the province’s fortunate geographical location as the main outlet of a massive drainage basin that encompasses much of Western Canada, the Midwest United
States and Northern Ontario as noted in Appendix 1.
Manitoba’s energy history can be traced back to 1873 when the Winnipeg Gas
Company was first incorporated to provide the city of Winnipeg with gas lighting (MB
Hydro, 2002). Despite the lengthy history of electricity in the province, the First Nations people of Manitoba have a much longer history, tracing roots back 10,000 years, shortly after the last ice age glaciers retreated. Like Manitoba Hydro, First Nations people have always relied on the rivers as a source of prosperity. Manitoba’s rivers have served as transportation routes, they’ve provided sustenance and they have served as a means of trade between indigenous tribes and later between indigenous people and European fur traders.
Although Manitoba’s rivers provide clean renewable energy capable of an abundant and affordable supply of electricity; hydroelectric development has had an impact on the provinces waterways and the communities who reside in close proximity to them, in particular, First Nations Communities. The shared economic ties to Manitoba’s Rivers and the impact Manitoba Hydro operations have had, elevates the importance of Aboriginal
7 people as stakeholders and Aboriginal relations as a Corporate Social Responsibility (CSR) issue.
As a Crown Corporation, all residents of the province are considered shareholders.
Besides the obvious advantages of having the lowest average retail electricity price in
North America, and one of the most reliable energy systems in the world, Manitobans also benefit from employment opportunities, business transactions and payment of taxes and levies by the corporation to Provincial coffers (MB Hydro, 2013).
Despite the seemingly enviable position that Manitoba Hydro and the Province of
Manitoba occupy, it is not without controversy. Post World War II Manitoba experienced a period of unprecedented growth. Economic expansion combined with a rural electrification program to extend electrical service to the entire province meant that the existing and potential generating capacity in southern Manitoba would quickly become inadequate. To address growth projections and the anticipated shortfalls in generating capacity, the province investigated development of the province’s northern rivers.
Unfortunately, in the late 50’s and early 60’s, as development plans to harness the potential of the north were being drawn, little community consultation took place.
Construction and operation of Manitoba’s hydroelectric system has had an undeniable impact on the provinces waterways and on the communities who depended on them for their livelihood, in particular First Nations (MB Hydro, 2002).
The first northern hydro project for Manitoba involved damming the Saskatchewan
River near the mouth of the river where it emptied into Lake Winnipeg. The Grand Rapids
Generating station transformed Cedar Lake into a massive reservoir and required the relocation of the entire Chemawawin Cree community to a new purpose built site at
8 Easterville. The project damaged trapping, destroyed moose habitat and created problems for commercial and domestic fishing. In 1971, elevated mercury levels in the white fish population as a result of contamination from decaying vegetation and soil erosion led to a closing of the commercial fishery (Loney 1987; Waldram 1980a, 1980b; Waldram 1988a,
1988b)
The impact development had on the indigenous people was much deeper and longer lasting than that of the fishing and hunting ecosystem. Loney (1995) concluded that impacted communities appear to exhibit significant and measurable increases in social and pathology, consistent with the concept of community trauma. Erikson (1976) described community or collective trauma as a blow to the basic tissues of social life that damages the bonds attaching people together and impairs the prevailing sense of communality. The collective trauma works its way slowly and even insidiously into the awareness of those who suffer from it, so it does not have the quality of suddenness normally associated with trauma.
Following the construction of the Grand Rapids Generating Station, the province of
Manitoba continued to progress its development plan, a plan which included increasing outflows of Lake Winnipeg and diverting the Churchill River via the Rat and Burntwood
Rivers into the lower Nelson to increase water flows needed to power the large dams being proposed. But the Grand Rapids experience united Aboriginal opposition to the development in the form of the Northern Flood Committee, comprised of the First Nations communities of Nelson House - now Nisichawayasihk Cree Nation, Cross Lake, Split Lake
-now Tataskweyak Cree Nation, York Factory and Norway House. Despite a collaborative effort, the Cree failed to block the proposed development.
9 Subsequent negotiations with the Cree Northern Flood Committee culminated in an agreement between The Federal Government of Canada, Manitoba Hydro and the
Province of Manitoba known as the Northern Flood Agreement (NFA). The NFA and an accompanying Economic Development Agreement (EDA) were signed in 1977 and were to provide for mitigation works, compensation, training, employment and community planning.
It also included provisions for an arbitration process (Province of Manitoba, 1977).
By the mid 80’s it was apparent that the NFA’s arbitration process was not working to resolve outstanding issues. Disputes arose, claims were held up in the courts, unscrupulous Lawyers took advantage of a desperate populace unprepared for the legal battle they fought and suspicion and distrust abounded between parties.
At the initiative of First Nations, renewed negotiations began with the goal of achieving Comprehensive Implementation Agreements (CIA). Long arduous negotiations resulted in four of the five NFA First Nations, signing CIA’s during the 90’s. Split Lake in
1992, York Factory in 1995, Nelson House in 1996 and Norway House in 1997. In 1997
Cross Lake, after several years of negotiation, decided to not pursue a CIA, opting for implementation of the NFA in accordance with its “spirit and intent.” Since 1998, Crown parties have provided Cross Lake First Nation (CLFN) with approximately $5 million for its costs supporting the negotiation process. On October 15th 2002 Canada’s funding for the negotiation process ended as planned. CLFN had not responded to Canada’s proposals.
Negotiations between Manitoba, Manitoba Hydro and CLFN continue (Government of
Canada, 2010).
After the completion of the Limestone Generating Station in 1992, Manitoba Hydro’s construction plans remained dormant until construction began on the Wuskwatim
Generating Station in 2006. It was a radical departure from past projects and marked the 10 first time an energy utility and First Nation partnered to develop a major hydroelectric generating station. MH and the Nisichawayasihk Cree Nation (NCN) entered into an agreement under a joint equity partnership that provides for NCN to own up to 33% of the
Wuskwatim generating station.
Use of Ethinesewin, the traditional knowledge and collective wisdom of
Nisichawayasihk people, was an essential part of the Wuskwatim planning process, helping to reduce the impact of the dam and establish the location of the construction camp and routes for the access road and transmission lines. The goal of including Ethinesewin in the process was to ensure that as the project moved forward, it achieved Kistethichekewin, meaning that the conduct of those involved in the development of Wuskwatim is always based on the sacred responsibility to treat all things with respect and honour. Ethinesewin, along with conventional environmental monitoring procedures, were used as a major source of information to help ensure minimum disruption to the local environment. A $60 million pre project training initiative was also set up to ensure First Nations people had the skills required to work on the Wuskwatim project and future projects.
Despite initiatives to recruit, develop and retain Aboriginal employees along with efforts to foster and maintain business relationships, there remains a cultural divide and lingering trust issues.
First Nations have entered into several joint business partnerships with companies that do business with MH however it appears that First Nations play more of a support role rather than a lead role, which draws into question the sustainability of the Aboriginal business. Once the requirement for the project is completed, the joint partnership will dissolve and the Aboriginal component may not carry on independently. In Gillam,
Manitoba Hydro’s northern headquarters, several independent First Nations businesses
11 have failed despite the corporations efforts to patronize the business. The recent Idle No
More movement and blockades of MB Hydro operations indicate a divide remains between
First nations and non-aboriginal society. Despite Manitoba Hydro’s efforts to strengthen working relations with Aboriginal peoples, much work remains.
Research Objectives
The objective of this research is to identify deficiencies in current programs and strategies related to Manitoba Hydro’s strategic goal of strengthening Aboriginal relations.
It will determine factors that may be impeding the corporation’s ability to engage First
Nations people as a source of operational strength, both internally in the form of employee relations regarding attraction, retention, and motivation as well as externally in the form of developing and sustaining First nations businesses. Although the result of this research will present strategies that can be applied corporate wide, greater emphasis will be placed on strategies specific to Manitoba Hydro’s Generation North Division where past and future development has, and continues to have the greatest impact on First Nations people, and where First Nations representation is demographically most significant.
Research Methodology
The research method and design provide structure for the framework that binds the research project together. The context of determining appropriate method and design is to ensure that the major parts of the research project hold together. For the proposed study, I intend to use qualitative case study as the research framework to address the fundamental research questions proposed in the study.
Quantitative and qualitative researchers use different methods to gather and interpret data though both methodologies attempt to reach the same goal, which is to 12 develop meaning from the data. For the study, I will utilize the qualitative method, which is characteristic of research aimed at understanding real-life phenomena in-depth by understanding encompassed, important, contextual conditions.
Qualitative research derives from interpretivism, which is an approach of inquiry grounded on the philosophy that human beings assemble meanings as they engage with the world that they are deciphering. Researchers of interpretivism embrace the theory, which denotes human dialogue, and action, which positivist methods of natural and physical science cannot analyze. Interpretivists believe humans will base their meanings on historical and social perspectives.
With the interpretivist philosophy, the qualitative researcher seeks to gain a perspective by attempting to understand the background of the participants. Additionally, researchers strive to interpret what they find, mainly through an intense or extended contact with the subject of study. This is similar to the qualitative principle of empathetic understanding, in which the researcher seeks to capture data from the literature and through publicly available data regarding the working relationships between Manitoba
Hydro with Aboriginal Peoples.
The process of qualitative data construction and interpretation and in accomplishing a holistic survey of the context under study, researchers unintentionally introduce personal experiences and backgrounds.
Much of the data gathered through qualitative methods is text-based, generated from sources such as word-for-word transcriptions of previously conducted interviews or discussion, descriptions of interchanges, accounts of experiences, and observations of interactions gleaned from Manitoba Hydro sources. The challenge facing researchers is to offer some consistency and structure to the data set while maintaining the original accounts 13 and observations from which it originated. Despite the challenge, I will utilize a qualitative approach as the research method.
The quantitative approach employs measurement strategies to develop knowledge based on cause and effect. I did not choose the quantitative method because the research question is seeking to measure relationships, but to explore meaning, making the quantitative method inappropriate for this study. The mixed methods approach focuses on collecting, analyzing, and mixing both quantitative and qualitative data in a study. The main purpose of the mixed methods approach is to provide a better understanding of the research problem by combining quantitative and qualitative approaches rather than by using either approach alone.
As opposed to the qualitative research method, the quantitative approach essentially requires researcher to be distant and objective. A quantitative research design is not appropriate for the proposed study as my interest as the researcher is not to determine the relationship between one variable (the independent variable) and another (the dependent or outcome variable) by means of hypothesis testing. Quantitative methods employ the use of statistical techniques and objective inferences to make determinations about what data means, contrasted with qualitative methodologies that use phenomenological procedures and broad views of reality from findings. In quantitative studies advances in knowledge are verified hypotheses involving reliable, valid, and accurately measured variables.
Quantitative methods are limited in determining causation and accounting for the complexities of human interaction.
In this research, I determined the questions based on a qualitative approach as the best approach based upon the central research question for this study. The study has been designed to understand a phenomenon that is not measurable. A qualitative design was
14 appropriate for the proposed study since the interest is to gather the collective literature concerning Manitoba Hydro, and its relationship with Aboriginal Peoples in the province.
Literature Review
Context
Manitoba Hydro’s goals, values and principles have evolved over time. As a Crown
Corporation the company bears a responsibility to return value to its shareholders, the people of Manitoba. The company’s mandate is to ensure a reliable supply of energy to meet the provinces needs while maintaining domestic electricity rates among the lowest in
North America. It has been successful in maintaining low rates and yet, the company finds itself at odds between keeping rates low, and investing in the future to ensure a reliable supply of energy. Compounding the debate is the expectation that a government owned entity is a leader in environmental and social responsibility. Of course not all constituents of the province subscribe to this belief and there are powerful political influences who, like free market economist Milton Friedman, are apprehensive of the firm engaging in activities that deviate from maximizing profit.
Friedman (1963) theorized that
There is one and only one social responsibility of business- to use its
resources and engage in activities designed to increase its profits so long as
it stays within the rules of the game, which is to say, engages in open and
free competition without deception or fraud.
During the early years of hydro development in Manitoba’s north, it seems apparent that the firm’s strategic direction followed more closely with the theories of Milton Friedman,
15 as the corporation pushed forth their development plan with insufficient consideration of impacts to the environment and indigenous people.
William Allen (1992) presented two different concepts regarding the role of the firm; the property conception, which views the firm as a collection of assets owned by the stockholders, and the social entity conception, which views the firm as a community of individuals, sustained and supported by its relationships with its social, political, economic, and natural environment.
The firm as property view implied narrow focus on maximizing shareholder value or profit, the firm as social entity implied that fundamental requirements for survival and prosperity are the maintenance of the firm’s social relationships which require coexistence with the external environment (Grant, 2008).
Given the fact that Manitobans have elected an NDP government for four consecutive terms, one can make the assumption that the provinces constituents, Manitoba
Hydro shareholders, subscribe to the concept of the firm as social entity by way of their political endorsement of the firms modern day strategic direction. The ultimate goal is a strong independent Aboriginal community described by Parkouda and Brichta (2013, p.11) as “an Aboriginal population that is economically indistinguishable from the mainstream economy, yet is able to respect and preserve its cultural heritage.”
Stakeholder Theory
Mitchell, Agle and Wood (1997) developed a theory of stakeholder identification and salience based on stakeholder attributes of power, legitimacy and urgency.
Power is defined as exercising a relationship among social actors in which one social actor can get another social actor to do something that they would not otherwise do. 16 Legitimacy is a general perception that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs and definitions based on the individual, the organization or society.
Urgency is the degree to which the stakeholders claim or relationship calls for immediate attention, and exists when a claim or relationship is important or critical to the stakeholder.
To better understand the importance of the relationship between Aboriginal People and the corporation so that an appropriate response to stakeholder concerns can be developed, Frooman (1999) suggested management must determine; who the stakeholders are? What do they want? How will they try and get what they want?
Specifically, Frooman’s research centered on determining how stakeholders act to try and influence the organizations decision making and behaviour! Using resource dependence theory (when a stakeholder supplies a resource and exercises some control over it) as a framework he determined there are three types of resource control and influence pathways that determine strategies available to stakeholders.
Withholding strategies: where the stakeholder withholds supplying a resource to the organization with the intent of changing certain behaviour.
Usage strategies: When a stakeholder continues to supply a resource but specifies how it will be used.
And an Influence pathway: where withholding strategies could be performed by an ally of the stakeholder with whom the stakeholder has resource dependence.
17 Where stakeholder management focuses on managing relationships, and is linked to short term goals, Liedtka (1996), Bragg (1996) and Hegarty (1996) all suggested a different approach, one of stakeholder collaboration. They utilized Gray’s (1989) definition of collaboration as a process of decision making among interdependent parties; it involves joint ownership of decisions and collective responsibility for outcomes. Liedtka (1996, p.24) observed that;
Although the high performing firms are partnerships in a legal sense of the
word, as we better understood their sources of advantages we came to see
the legal partnership form as playing only a part in their success. Other
factors, potentially present in organizations of all legal forms, contributed
more significantly to their ability to achieve collaborative outcomes of real
strategic value. These factors included: a partnering mindset; a partnering
skill set; and a supportive context that provides commitment, processes and
resources to facilitate collaboration.
Social Capital
Wheeler, Colbert & Freeman (2003) created a framework to define how organizations may create value across three dimensions of the aspirational notion of sustainability, i.e. economic, social and ecological.
18
Figure 1. Framework for classifying organizational cultures
Source: Wheeler, Colbert and Freeman (2003) Journal of General Management, Vol. 28 No. 3, p.11
The concept of social capital is increasingly being used to facilitate an understanding of relationships between organizations and their stakeholders. Social capital is a more sophisticated approach to understanding stakeholder relationships, one that involves a complex understanding developed through analysis of interrelationships between the corporation and its stakeholders. The use of methodologies to increase understanding of stakeholder relationships improves the organizations ability to develop trust. In turn the corporation benefits by minimizing legal, costs, negotiations and business disruptions.
Definitions of social capital are various. Adler and Kwon (2002) defined social capital as: “the goodwill available to individuals or groups. Its source lies in the structure and
19 content of the actor's social relations. Its effects flow from the information, influence, and solidarity it makes available to the actor” (p. 23).
While Schiff (1992) defined social capital as “the set of elements of the social structures that affects relations among people and are inputs or arguments of the production and/or utility function” (p. 161).
Yet, Putnam (2000, pp. 288-290) defined why social capital is important.
First, social capital allows citizens to resolve collective problems more easily… People often might be better off if they cooperate, with each doing her share. ... Second, social capital greases the wheels that allow communities to advance smoothly. Where people are trusting and trustworthy, and where they are subject to repeated interactions with fellow citizens, everyday business and social transactions are less costly…. A third way which social capital improves our lot is by widening our awareness of the many ways in which our fates are linked... When people lack connection to others, they are unable to test the veracity of their own views, whether in the give or take of casual conversation or in more formal deliberation. Without such an opportunity, people are more likely to be swayed by their worse impulses…. The networks that constitute social capital also serve as conduits for the flow of helpful information that facilitates achieving our goals…. Social capital also operates through psychological and biological processes to improve individual’s lives. … Community connectedness is not just about warm fuzzy tales of civic triumph. In measurable and well-documented ways, social capital makes an enormous difference to our lives.
Diversity Management and Inclusiveness
Effective diversity management requires a culture of inclusion that creates a work environment nurturing teamwork, participation and cohesiveness (Carnevale & Stone,
1994; Dwyer, Richard & Chadwick, 2001). Diversity culture should be emphasized in organizational vision, mission and business strategy and the HRM strategy (Shen, Chanda,
D’Netto & Monga, 2009)
20 Measuring diversity and diversity management practices is strongly regarded as the initial step of HR diversity management practice (Kossek, Lobel & Brown, 2005).
Lam (2010) noted diversity management is much more than simply removing discrimination. Lam categorized employer approaches to diversity management into three main categories; Assimilation, differentiation or Integration.
The assimilation approach, also called the melting pot, expected individuals to conform to the general norm of the majority. Individual differences are ignored and discouraged. Employers comply with human rights legislation by treating everyone the same and not proactively providing reasonable accommodation to employees.
The differentiation approach values individual differences believing that they constructively add to the skill base of the organization. Varied perspectives enrich decision making and enhance productivity and performance. Lam cautions that in an organizational setting, emphasizing individual differences and acting on the knowledge of such differences, the organization may be providing differential treatment to employees which can be viewed as discrimination if not handled properly. Too much diversity can create dysfunctional conflicts.
The integration approach incorporates merits of the previous two approaches. Equal opportunities are promoted and individual differences respected and valued. It attempts to balance between the two extremes recognizing differences and seeking out common bonds and synergies. Effectively managing diversity can give organizations a competitive advantage.
21 Jayne and Dipboye (2004) described common organizational practices for managing diversity. In the areas of recruitment they suggested marketing the organization as a potential employer to target groups through job fairs and schools and minority communities.
They further suggested that retaining a diverse workforce is accomplished by providing appropriate employee benefits and a well-balanced work-life program, although it seems quite plausible that the same could be said for any workforce group. Jayne and
Dipboye (2004) also indicated that employee assistance programs (EAP) providing consultation and counseling are also beneficial to successful employee retention.
Observations at MB Hydro can attest to the importance of EAP’s but what Jayne and
Dipboye failed to explore is that often minority groups, First Nations in this case, are apprehensive to seek assistance of such programs if the provider is not from their particular cultural group.
Regarding training and development, all leaders should be trained to embrace diversity and to integrate it into organizational decision making. Leaders need to be sensitive to cultural differences while treating everyone fairly. Workers and managers should be well versed in respectful workplace programs so that they are aware of acceptable and unacceptable behaviours. Mentoring programs are useful particularly with minority groups to better integrate new employees into the organization.
Senior management must communicate their commitment to diversity and inclusiveness to all staff and external stakeholders. Diversity management can be explicitly made a performance goal formally recording and rewarding contributions to diversity management (Jayne & Dipboye, 2004).
22 Jayne and Dipboye (2004) recommended recruiting or assigning specialized staff to foster an environment of inclusiveness. Committees or processes should be established to investigate cases of discriminatory treatment or harassment.
Lam (2010) stated that successful implementation of diversity programs are dependent on senior management commitment, middle manager support and buy in from all staff.
Research is needed to identify employee attitudes related to diversity and gaps in diversity management in order to strategize how best to address them. Program evaluation is critical to determine the extent diversity goals are accomplished and to receive quality feedback in order to plan future strategies. An audit of the effectiveness of diversity management programs may include:
Identifying representation of minority groups in various units or occupational groups
within the organization and making comparisons to the labour market composition;
Evaluating recruitment and promotional data to ensure employment decisions are
not prejudiced;
Reviewing grievances or discrimination complaints to ensure due processes are in
place and follow up action are taken to eliminate root causes;
Comparing turnover rates of equity target groups with overall turnover to ensure
those groups are not experiencing greater dissatisfaction because of treatment they
receive; and
Analyzing employee survey or exit interview data looking for potential discriminatory
issues.
Lam (2010) cautioned against overlooking the needs of the majority in an effort to address the issue of minority representation. Some people claim since the organization needs to fill quotas for minority groups, those in the majority are sometimes bypassed for
23 promotional or training opportunities. By targeting a specific minority group, the organization is practicing reverse discrimination. Reverse discrimination does not do anyone a favour. Hiring or recruiting minorities unsuitable for the job will result in the employee being unhappy due to their incompetence, the organization will suffer and the majority members in the organization will resent such decisions. The purpose of diversity is to level the playing field between majority and minority groups, not to tilt it. Appropriate diversity management should focus on ensuring jobs are awarded on individual merit.
Communication and transparency in selection criteria help employees understand fairness in management decisions and prevent resentment in perceived reverse discrimination.
Diversity Management
Shen et al. (2009) recommended that diversity management should occur at the strategic, tactical and operational levels through a range of different activities involving manager’s at all three levels. At the strategic level, it is necessary to have a management philosophy recognizing diversity as critical for organizational success. Top management commitment should be reflected in the organizational vision, mission and business strategy in order to remove psychological and operational barriers to diversity management. At the tactical level, human resource management (HRM) diversity policies should be developed to support this management philosophy. At the operational level, HRM diversity policies are implemented at the workplace, involving mainly educating employees, identity based networking groups, targeting communications to different affinity group members, flexible employment and support for work life balance. At all levels, line management should play an important role in diversity management. Sanglin-Grant (2000) determined that line managers iterations of organizational policy on racial equality are sometimes at odds with employees’ views of organizational practice. Accordingly, to fully understand and effectively
24 implement diversity management, line management involvement in the decision making process is desired.
Shen et al. (2009) proposed a conceptual framework of diversity management
(Figure 2). It indicated that diversity management not only includes equal employment opportunity (EEO) and affirmative action (AA) but also an appreciation for making use of diversity to benefit organizations and individuals.
Figure 2: A framework of human resource diversity management. Source: Shen, Chanda, D’Netto and Monga, 2009, p .245
Challenges Attracting and Retaining an Aboriginal Workforce
Parkouda and Brichta (2013) argued that comparatively low, Aboriginal educational attainment, labour force participation, and employment rates reflect long term systemic problems in Aboriginal educational development in school, school to work transitions and workplace training. Policies of segregation and forced assimilation within the educational
25 system have resulted in lower levels of educational attainment for Aboriginal peoples. The modern workforce revolves around formal education credentials and failure to complete secondary education acts as a barrier to entrance into the labour force. The problem is not unique to Aboriginal people, the same holds true for all Canadians who, for example, fail to complete high school. The difference is that a disproportionate number of the Aboriginal population do not attain higher formal education.
The 2006 census identified that the Aboriginal population lags behind the general population in educational attainment as noted in (figure 3).
Figure 3: Canadian population by highest level of educational attainment (aged 25 to 64) (per cent) Source: Howard, Edge and Watt, 2012, p. 5 26 A Conference Board of Canada report by (Howard, Edge, & Watt 2012) noted that
Lack of appropriate language and literacy skills is often a key barrier preventing Aboriginal workers from achieving their full workforce potential. An OECD International Adult Literacy
Survey (IALS) (OECD and Statisitics Canada, 2000) identified three key elements of literacy skills for the workplace.
Proficiency in using document, reading text, and solving problems;
Doing these things in languages in which business is conducted in Canada; and
Demonstrating such skills against the back drop of workplace culture.
Aboriginal workers are further challenged by racism in Canada. A 2009 report by the
National Collaborating Centre for Aboriginal Health found that 37.9 per cent of First Nations adults living on reserves had experienced racism in the previous 12 months and 27 per cent who experienced racism claimed it had some or a strong effect on their self esteem.1
Aboriginal people continued to be underemployed compared to non-Aboriginals with the same education levels as demonstrated in the following Figure 4:
Figure 4: Unemployment rate by highest level of educational attainment, 2009(per cent) Source: Howard, Edge and Watt, 2012. p. 6
1 Reading and Wien, Health Inequalities 27 Howard et al. (2012) in a Conference Board of Canada report indicated that 58.1 per cent of Canadian businesses reported their most significant challenge was a shortage of qualified skilled workers. 33.5 percent claimed they were challenged in retaining qualified skilled workers. This challenge was most frequently expressed by respondents from
Manitoba (52.4%). Furthermore, 29.9% of businesses reported challenges attracting under represented workers (Aboriginal Peoples, women and immigrants).
Table 1 indicates survey results obtained by the Conference Board of Canada when they asked Canadian companies if they were challenged attracting Aboriginal workers.
Table 1 Challenges Attracting Potential Aboriginal Workers (per cent)
Source: Howard, Edge and Watt, 2012, p. 13
In a Conference Board of Canada survey, Canadian companies’ indicated they face many challenges attracting aboriginal workers as shown in (figure 5); chief among them is inadequate education, skills or work experience necessary for the job. 70.2 per cent of survey respondents indicated that low literacy, technical and leadership skills among potential aboriginal employees were a concern when recruiting. 39.1 per cent of Canadian companies also cite difficulty contacting Aboriginal workers or a reluctance of workers to move from their home communities as a challenge when trying to attract Aboriginal workers.
28
Figure 5: Top challenges in attracting Aboriginal workers (per cent of businesses surveyed; n=151) Source: Howard, Edge and Watt, 2012, p. 13
As noted in Figure 5, 46.4 per cent of survey respondents indicated they were very or somewhat challenged in hiring Aboriginal workers for a variety of reasons with the most significant challenge being low skill levels necessary for the job.
Hiring challenges also vary across different groups of Aboriginal workers with companies reporting the least challenges for Métis workers and the greatest challenges for
Inuit workers as indicated in Table 2.
Table 2 Challenges Hiring Potential Aboriginal Workers (per cent)
Source: Howard, Edge and Watt, 2012, p. 15
29 41.9% of businesses surveyed by the Conference Board of Canada indicated they were very or somewhat challenged with the work performance of Aboriginal workers as depicted in Table 3.
Table 3 Challenges with Work Performance of Aboriginal Workers (per cent)
Source: Howard, Edge and Watt, 2012, p. 20 The greatest work performance issues of Aboriginal workers relate to the skills, attitudes and behaviours required for the workplace as identified in Figure 6 2
Figure 6: Top challenges for Businesses with Work Performance of Aboriginal Workers (per cent of businesses surveyed; n=149) Source: Howard, Edge and Watt, 2012. p. 21
2 While employers were asked to indicate the work performance challenges they have with Aboriginal workers, the survey does not directly compare challenges with work performance of Aboriginal workers explicitly to challenges with non Aboriginal workers. A direct comparison is beyond the scope of the survey. 30 Retention of Aboriginal workers was a significant issue for survey respondents with
45.4 per cent indicating they were very or somewhat challenged retaining Aboriginal workers, as noted in Table 5. Retention refers to both voluntary and involuntary employee turnover. Respondents with operations in Saskatchewan, Nunavut and Manitoba were more likely to indicate retention challenges with Aboriginal workers.
Table 4 Challenges with Retention of Aboriginal Workers (per cent)
Source: Howard, Edge and Watt, 2012, p. 21
The most significant retention issues employers face with Aboriginal workers is dissatisfaction with career and skills development as well as cultural issues such as racism or misunderstandings between Aboriginal and non –Aboriginal workers as depicted in
Figure 7.
31
Figure 7. Top challenges With Retention of Aboriginal Workers (per cent of businesses surveyed; n=137) Source: Howard, Edge and Watt, 2012, p. 23
The Conference Board of Canada survey revealed that Employers use a variety of partners, tools, and strategies to recruit Aboriginal workers as illustrated in Figure 8
Figure 8: Partners, Tools, or Strategies Used to Recruit Aboriginal Workers (per cent of businesses surveyed; n=138) Source: Howard, Edge and Watt, 2012, p. 27 32 The 2012 Conference Board report indicated that organizations successful in recruiting Aboriginal workers exhibited a marked willingness to engage with a variety of organizations including Aboriginal ones to spread awareness of the company’s human resource requirements and to encourage Aboriginal candidates to apply for employment.
Some businesses use Aboriginal liaison officers to recruit Aboriginal workers and liaise with
Aboriginal organizations. Mentoring programs, job placement programs and internships are also widely used to recruit Aboriginal workers. Job shadowing or internship programs provide opportunities, advice and exposure to career paths available to them.
Businesses surveyed make use of a variety of programs tools and strategies to motivate and retain Aboriginal workers including cultural programs and cultural support staff as displayed in Chart Figure 9.
Figure 9: Programs, Strategies and Tools to Motivate and Retain Aboriginal Workers (per cent of businesses surveyed using program, strategy, ot tool; n=136) Source: Howard, Edge and Watt, 2012, p. 29
33 Corporate – Aboriginal Relations
The literature reviewed yields few studies in the field of corporate – Aboriginal business relations. However, Sloan and Hill (1995) examined case studies of companies that provide opportunities for Aboriginal contractors and suppliers. They discussed the effectiveness of collaborative relationships between corporations, Aboriginal firms and the government. A common thread is that training, community involvement and visionary leadership are essential elements in partnerships.
Loizides and Wutunee (2005) identified six key factors contributing to the success of
Aboriginal band owned enterprises:
Strong leadership and vision:
A strategic community economic development plan;
Access to capital, markets and management expertise;
Good governance and management;
Transparency and accountability; and
Positive interplay of business and politics
Lozides (2000) noted in a Conference Board of Canada report three factors that determined corporate performance in building business relationships with Aboriginal firms.
Senior Management commitment and direction in ensuring that business units,
contractors and suppliers maximize the use of Aboriginal firms.
Identification of department needs and alignment of these with Aboriginal
contractors (current and new) business capabilities.
Monitoring of performance and ongoing transfer of business, management and
administrative expertise to Aboriginal firms.
34 Lozides (2000) further stated, that sole sourcing contracts to Aboriginal firms at an early stage helps them get off the ground. Longer term contracts, 3 – 5 years provide stability of cash flow and facilitates access to credit from financial institutions.
Corporations can enhance Aboriginal firms’ performance by transferring management expertise (especially short term assignments of executives). Business mentoring appears to be one of the most effective tools to promote Aboriginal business development. Lozides
(2000) observed that in this context, “mentoring is defined as the relationship established between a corporation and an Aboriginal firm to enhance their business relationships; facilitate the transfer of business expertise, management skills and technical knowledge from corporations to Aboriginal firms; and improve the performance and potential of
Aboriginal firms to take advantage of business opportunities” (p.1). Aboriginal economic development and community involvement are essential for successful Aboriginal corporate relations. Mutual understanding of how each party operates and of each other’s expectations; effective and continuous communication and sensitivity to cultural differences are seen as critical.
Lozides (2000) presented several case studies of companies mentoring Aboriginal businesses. Syncrude has a long history of corporate aboriginal relations. Syncrude executives make themselves available to mentor Aboriginal businesses. While building
Aboriginal business acumen, Syncrude stresses the need for competitive price and quality.
Aboriginal firms must establish themselves as reliable over long term relationships, committed to quality at competitive prices.
PCL construction promotes corporate Aboriginal partnerships. PCL provides cross cultural training for project managers, foremen, key suppliers and contractors.
35 Cameco set a corporate objective to purchase approximately 50% of its goods and services in the north. In order to appease their operations managers who were demanding competitive, high quality, experienced suppliers they knew were available in the south,
Cameco encouraged joint ventures between southern contractors and partners in the north.
The joint venture concept was very successful but it was considered an intermediate step.
Ultimately Cameco’s objective is to facilitate development of wholly owned and operated
Northern Aboriginal suppliers.
Tiplady and Barclay (2007), in a collaborative study between The Centre for Social
Responsibility in Mining at the University of Queensland in Australia, and Australian mining companies, revealed startling similarities regarding barriers to Indigenous employment in both Australia and Canada. The report indicated that low levels of education were viewed as the greatest hurdle to increasing indigenous workforce participation. The data aligns with that of the Conference board of Canada survey that indicated 70.2 per cent of
Canadian survey respondents indicated that low literacy, technical and leadership skills among potential aboriginal employees were a concern when recruiting.
Beyond a lack of education and relevant training, Tiplady and Barclay (2007), cite other factors as obstacles to increased indigenous employment that coincide with those experienced by Canadian companies and MB Hydro such as:
Lack of exposure to the mainstream workforce, the ‘industrial culture’ of the
mining industry and the expectations of employers.
Geographical isolation.
Challenges balancing community and family obligations with the demands of
full time work.
Poor Health and difficulties with substance abuse.
36 Obstacles faced by companies trying to increase Indigenous employment include:
The lack of a job ready pool.
Insufficient appreciation of how socio economic disadvantage impacts on the
recruitment and retention of Indigenous employees.
The report states that the foremost factor to achieving sustainable improvements in
Indigenous employment requires organizational commitment. Companies with successful
Indigenous employment strategies are characterized by:
An executive leadership that has publicly committed to improving Indigenous
employment by providing adequate financial and human resources
A commitment to the development of honest and transparent relationships
with Indigenous communities.
Corporate champions who ‘go the extra mile’ in supporting Indigenous
employees and who have influence with operations management to ensure
Indigenous employment issues remain on the corporate agenda.
Qualified, skilled, informed and committed personnel in training and liaison
positions, who are respected by the local Indigenous community.
Regarding retention strategies, Tiplady and Barclay indicated that considerable effort has been put into developing new approaches to Indigenous recruitment but relatively little has been done to develop specific retention strategies for Indigenous employees. Indigenous employees face particular challenges in balancing work and family commitments and making the transition to a new organizational and cultural environment. For employees of fly-in, fly-out operations, an added pressure is the need to spend extended periods away from home.
37 The report strategies to increase retention include:
Ongoing mentoring and support
More flexible work rosters
Provision of career development opportunities and family support as well as addressing racism in the workplace.
Research Questions
From the literature review, I identified several theories, comparative data and strategies that will be used to achieve the research objective. The research questions provided focus on the objective and contribute to the goal of engaging Aboriginal people as a source of operational strength.
What is the maturity level of Manitoba Hydro’s Aboriginal employment strategies?
Are the corporations Aboriginal employment strategies effective and how can they
be improved?
Are Manitoba Hydro’s Aboriginal relations strategies effective in fostering the
establishment of strong, sustainable business relations with the provinces
Indigenous people? How can they be improved?
38 Research Methodology / Design
To answer the research questions an analysis of the internal environment related to
Manitoba Hydro’s Aboriginal relations strategies was conducted 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. Tiplady and
Barclay,(2007) developed the tool as part of a larger study of Indigenous employment in the Australian minerals industry.
The IEE Tool is appropriate given the similarities Canadian and Australian companies face when trying to engage an Indigenous populace negatively impacted by the effects of colonialism and institutional racism. The IEE Tool provided a means to asses a company’s Indigenous employment strategy in an effort to overcome the injustices of the past and the resulting inequalities of opportunity created.
The IEE framework is meant to assist mining companies to establish good practices in their Indigenous employment and training initiatives. The specific purposes of the tool were to establish appropriate evaluation criteria for assessing each aspect of a company’s
Indigenous employment initiatives and, to establish a blueprint for an Indigenous employment evaluation system.
The IEE Tool gathers information on Indigenous employment practices across all levels of an organization. Its primary purpose was to identify the strengths and weaknesses of a company’s current Indigenous employment practices. The framework is applicable to operations of all sizes.
39 The IEE Tool can be used for:
assessing the Indigenous employment aspects of external or site managed
community assessment programs
comparing operations within the same company
identifying and prioritizing performance gaps
developing an Indigenous employment strategy
assisting stakeholders to evaluate the effectiveness of Indigenous
employment practices in different companies
As demonstrated in Figure 10, the tool has been developed using the Plan-Do-
Check-Act (PDCA) model as a framework. This model is widely used in industry, so that the Tool is readily adaptable to existing management systems. The IEE Tool is structured around the six levels of a performance management system: leadership, policy development, planning, implementation, performance monitoring and a review of progress.
Guidance notes in Appendix 3 provide examples of the types of inputs that enable practitioners to rate a company’s Indigenous employment policies and practices. Sections with guidance notes are identified by an asterisk *.
40
Figure 10: Indigenous employment evaluation framework Source: Tiplady and Barclay, 2007 p. 3
An analysis of the external environment will be conducted using the DEPEST framework provided by (Sorli, 2006). The DEPEST acronym refers to Demographic,
Economic, Political/Legal, Technological, Socio Cultural and Ecological impacts on the industry. The framework will be employed to analyze efforts designed to increase
Aboriginal employment within the corporation as well as to develop Aboriginal businesses
Benchmarking is widely used in manufacturing to measure performance against peers in an effort to achieve world class performance. The literature reviewed will provide
41 the basis for comparison of Manitoba Hydro’s Aboriginal relations against various Canadian organizations.
Research Findings, Recommendations and Conclusions
Stakeholder Assessment of Aboriginal Peoples
Applying Mitchell, Agle and Wood’s (1997) theory of stakeholder identification and salience based on stakeholder attributes of power, legitimacy and urgency, the following assessment of Manitoba First Nations as stakeholders of Manitoba Hydro was completed.
Power; Indigenous people of Manitoba have demonstrated considerable power to influence MB Hydro over the years. Influencing tactics employed by First Nations have included employing professional public relations firms to bolster public support and, to lobby American state legislatures to boycott power from Manitoba until the demands of the
First Nation are met. They have staged public demonstrations and blockades which garner media support and force action on behalf of the government and the corporation. In
October 2014, protesters from the Pimicikamak Okimawin Cree of Cross Lake blockaded a
MB Hydro generating station and staff house preventing free movement of workers until the
Minister responsible for MB Hydro and the President and CEO of MB Hydro met with them to hear issues raised by the community and to develop a process agreement to resolve a stalemate on implementation of the Northern Flood Agreement. In January, 2015, the
Sapotaweyak Cree blockaded workers from accessing a 200 km stretch of the route stating the corporation failed to consult the First Nation. The contract to clear the land was awarded to a Manitoba Métis economic development company. The Manitoba Métis also have staked a land claim on the area under blockade.
42 For these reasons, First Nations can be counted among Manitoba Hydro’s most powerful stakeholders.
Legitimacy; It is generally perceived that Aboriginal Peoples land claims are appropriate, and the settlement of those claims is desirable. First Nations actions of delaying or preventing development without assurances of environmental protection, cultural recognition, employment opportunities and a share of the revenue made possible from resources within their jurisdiction is believed to be in the best interests of society over the long run. The Report of the Royal Commission on Aboriginal Peoples (1996) stated;
“No Canadian acquainted with the policies of domination and assimilation wonders why
Aboriginal people distrust the good intentions of non-Aboriginal people and their governments today.” In addition the reports research indicated that, “In poll after poll,
Canadians have said that they want to see justice done for Aboriginal people, but they have not known how.”
In the Haida and Taku River decisions in 2004, and the Mikisew Cree decision in
2005, the Supreme Court of Canada held that the Crown has a duty to consult and, where appropriate, accommodate when the Crown contemplates conduct that might adversely impact potential or established Aboriginal or Treaty rights. The Court explained that the duty stems from the Honour of the Crown and the Crown’s unique relationship with
Aboriginal Peoples. The Court further explained that: the duty to consult is a constitutional duty; applies in the context of modern treaties; officials must look at treaty provisions first; and where treaty consultation provisions do not apply to a proposed activity, a parallel duty to consult exists.
43 Because Manitoba Hydro’s operations have and continue to impact First Nations, along with the legal obligations to consult, Aboriginal stakeholders hold a high degree of legitimacy.
Urgency; MB Hydro’s preferred development plan requires 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 First Nations traditional territory. So too is the construction of a High Voltage Direct
Current (HVDC) convertor station which will convert alternating current to direct current to be transmitted south via a new Bipole transmission line being constructed that will span significant portions of First Nations traditional territory. Any delays in construction come with considerable cost. As of December 2014, the burn rate of the Keeyask generating station alone is estimated to be $2 million per day.
In order for the corporation to continue fulfilling its mandate to provide for the continuance of a supply of energy to meet the needs of the province, the corporation urgently needs to establish strong relationships with Aboriginal stakeholders.
Because Aboriginal People possess all three attributes, they are definitive stakeholders and considered as highly salient.
Influence Strategies
Frooman (1999) conducted research centered on determining how stakeholders act to influence the organizations decision making and behaviour. Using resource dependence theory (when a stakeholder supplies a resource and exercises some control over it) as a framework he determined there are three types of resource control and influence pathways that determine strategies available to stakeholders. In order to evaluate MB Hydro’s 44 response to stakeholder concerns, an analysis of First Nations stakeholders using
Frooman’s framework was deemed appropriate.
Withholding strategies are where the stakeholder withholds supplying a resource to the organization with the intent of changing certain behaviour.
Aboriginal groups have blockaded MH facilities at Grand Rapids, Jenpeg and
Wuskwatim as well as projects under construction at Keeyask and along the Bipole III line.
In essence, by blockading, First Nations groups withhold resources by preventing access for staff and supplies necessary for operation or construction in an effort to change a corporate behaviour. The strategy generates an urgent reaction from the corporation and has been quite successful in influencing relatively small victories for the stakeholder. In the summer of 2014 protesters from Tataskweyak Cree Nation (TCN) blockaded provincial road 280 in protest of the poor condition of the road which they attributed to increased traffic related to construction of the Keeyask project, a project that they are partners in.
Construction and hydro vehicles were not permitted to travel through. Resulting delays in the project schedule were estimated at $1 million per day at the time. As the project progresses the cost of delays is expected to rise considerably. According to an informational pamphlet from the blockade, Tataskweyak protesters wanted the road paved.
The demand is difficult to meet because of considerable initial cost and the impracticality of paving roads built on perma frost. Annual upkeep is cost prohibitive because of extensive annual damage from frost heaves. TCN protesters also requested resolution of outstanding hydro-related damage claims from trappers and commercial fishers; and, good faith dealings by Hydro with respect to construction work contracts that were to be granted to
TCN-owned companies. The last point is subjective depending on one’s perspective.
According to MB Hydro, the corporation repeatedly tried to reach a deal with TCN for
45 construction contracts however TCN would not submit a competitive price. As a result contracts were agreed to with much lower cost bidders. TCN contends that the work takes place in their resource area and rightfully belongs to them. In the end, the blockade withholding strategy resulted in a commitment from MB Hydro and the province to conduct a feasibility study on paving PR 280 to Split Lake. There is also $28 million pledged to upgrade the road cost shared between MB Hydro and the province.
Usage strategies are when a stakeholder continues to supply a resource but specify how it will be used.
Possibly the most significant example of usage strategy was the involvement of the
Nisichawayasihk Cree during the planning of the Wuskwatim Generating Station.
Preliminary engineering studies indicated that the Taskinigup Falls could yield 350 megawatts (MWs) of power although it would result in flooding 140 square kilometers of land. An alternative design using a lower head would reduce flooding to less than ½ of one square kilometer and would produce 200 MWs, considerably less power than the high head design. At the time the Nisichawayasihk Cree were considering a 30% ownership share in the project. The decision to consider only the low head design was included in the information submitted to the Nisichawayasihk people for consideration in a referendum to partner with MB Hydro and approve the project which they eventually did. Leaving 150
MWs on the table is not insignificant; it could power more than 21,000 homes. In so doing both partners sacrificed some economic benefit to achieve a higher level of environmental protection.
An Influence pathway is where withholding strategies could be performed by an ally of the stakeholder with whom the stakeholder has resource dependence.
46 The Minnesota Public Utilities Commission (2006, July 28) approval of Northern
States Power Company d/b/a Xcel Energy’s resource plan is an example of how influence pathways have been attempted by stakeholders in Manitoba’s hydro electric industry. In
2003, one of the five signatory First Nations to the Northern Flood Agreement (NFA), the
Pimicikamak Cree Nation (PCN), attempted to influence the Minnesota Public Utilities
Commission by challenging Xcel Energy’s purchased power contract with Manitoba Hydro.
PCN claimed that the Commission had failed to discharge its duty under Minnesota law and its own resource planning rules requiring it to examine the environmental and socioeconomic impacts of the hydroelectric generation Xcel was purchasing.
The Commission determined that these impacts had been internalized by the NFA and continued to be addressed through the ongoing arbitration provisions of the
Agreement. PCN appealed that determination. The Court of Appeals upheld the
Commission’s decision, finding, among other things, that there was little to be gained by any attempt to insert the Commission or the State of Minnesota into ongoing disputes within the Canadian judicial process.
The Commission’s order, however, did require Xcel to monitor and report on the status of the on-going implementation of the NFA in its next Resource Plan.
Xcel reported that it had done its best to monitor implementation of the Northern Flood
Agreement, but being neither a party to the agreement nor an adjudicator, it had limited access to information and limited expertise.
The Company reported that the arbitration process established in the Agreement was clearly being used, that some $80 million had been spent for mitigation, compensation, and programming since the mid-1970's, and that some $11 million had been spent as part of a 2003-2004 action plan for addressing the dams adverse environmental and socioeconomic effects. Xcel also stated that its reporting obligation had placed it in the
47 awkward position of appearing to offer the kind of end-run opportunity criticized by the
Court of Appeals, and the Company asked to be relieved of further reporting obligations.
The commission noted that four of the agreement’s signatories, Manitoba Hydro, the
Government of Manitoba, the Nisichawayasihk Cree Nation and the Tataskweyak Cree
Nation opposed further reporting, arguing that responsibility for monitoring compliance with the Northern Flood Agreement lay with the Canadian government and that Xcel’s third- party monitoring could only distract the parties and undermine their collective engagement.
None of the other signatories to the Agreement offered comments.
The Minnesota Department of Commerce recommended accepting Xcel’s report and discontinuing monitoring.
Other stakeholders commented in an attempt to influence the process, including a group of 400 displaced residents, Minnesota Witness for Environmental Justice, the Joint
Environmental Interveners, the University of Minnesota Human Rights Center, Minnesotans for an Energy-Efficient Economy, and Senator Ellen R. Anderson, recommended further, more extensive monitoring of the implementation of the Northern Flood Agreement, citing persistent poverty and unemployment among residents and communities affected by the dams.
After hearing from stakeholders the Commission accepted Xcel’s report on the implementation of the Northern Flood Agreement and dismissed the requirement for further reporting. In its ruling the Commission cited that;
While it was reasonable, in 2001, to require an initial report on the operation of the
Northern Flood Agreement; that report demonstrates that the Agreement is anything but a dead letter. Implementation and enforcement activities are vigorous and ongoing. These activities are marked by controversy, but, for an undertaking this vast and complex,
48 controversy does not necessarily signal a dysfunctional process. In fact, the absence of controversy might raise concerns.
Further, it is significant that no signatory to the Agreement filed comments recommending the continuing involvement of Xcel or this Commission, and that four signatories have affirmatively asked this Commission to end its involvement. The two signatory arms of the Canadian government who commented in this case stated that, while they have the resources, jurisdiction, and expertise to implement and enforce the
Agreement, this Commission does not. And the two signatory Cree Nations who commented stated that this Commission, however well-intentioned it may be, is ill-equipped to add anything helpful to the implementation and enforcement process.
The Commission concurred with the commenting signatories and the Minnesota
Court of Appeals that responsibility for monitoring and enforcing compliance with the
Northern Flood Agreement lies in the hands of the Canadian government and should be left there. The commenting signatories are also clearly correct that issues such as persistent poverty and high unemployment, important as they are, do not lie within the Commission’s specific areas of expertise.
Finally, as the Court of Appeals noted, continued involvement by this Commission creates end run opportunities that can distract parties from duly established processes for seeking redress, potentially undermining the effectiveness of those processes. It would be both ironic and tragic if Commission efforts to address humanitarian needs resulted in exacerbating those needs.
For all these reasons, the Commission will accept Xcel s report on the implementation of the Northern Flood Agreement and will not require further reporting at this time.”
Historical Review of Manitoba Hydro / Aboriginal Relations
49 A review of Manitoba Hydro’s Aboriginal relations back to the 1960 construction of the Grand Rapids Generating Station reveals a slowly evolving process that has arguably lacked sufficient strategic direction until the past 15 years or so. As society’s view of the environmental and social issues associated with hydro electric development has evolved, so too has Manitoba Hydro’s.
The 1990’s gave rise to an awakening and renewed effort to address adverse effects of prior development, to resolve claims where Aboriginal communities have experienced loss or damage, or have had their communities and ancestral home relocated, but also to develop a new responsible, inclusive approach to the development of new projects.
In the early years of hydro electric development in the province, there was little to no consultation with Aboriginal people and admittedly, little regard for the adverse effects that development would inflict upon them. The promise of renewable, reliable and low cost electricity spawned a development plan that failed to fully understand how it would impact eco systems and the people who maintained a strong dependence on those eco systems.
If there was an Aboriginal relations strategy at the time, it appears to be one that pursued development first and sought to negotiate compensation second, or after the fact.
History of compensation:
In December, 1977 the Northern Flood Agreement (NFA) was signed by the
Manitoba Provincial Government, The federal Government of Canada and five Aboriginal bands, Nelson House, Norway House, Cross Lake, Split Lake and York Factory. The agreement was to establish a mechanism to compensate communities and individuals adversely affected by Lake Winnipeg regulation and the Churchill River Diversion Project.
The NFA held provisions for parties to seek resolution through an arbitrator when required. 50 By the mid 80’s it was apparent that the NFA’s arbitration process was not working to resolve outstanding issues.
At the initiative of First Nations, renewed negotiations began with the goal of achieving Comprehensive Implementation Agreements (CIA). Long arduous negotiations resulted in four of the five NFA First Nations, signing CIA’s during the 90’s. Split Lake in
1992, York Factory in 1995, Nelson House in 1996 and Norway House in 1997. In 1997
Cross Lake, after several years of negotiation, decided to not pursue a CIA, opting for implementation of the NFA in accordance with its “spirit and intent.”
Compensation for stakeholders outside of the NFA who were impacted by adverse effects was also undertaken. In November of 1990, Manitoba Hydro and the Chemawawin
First Nation who had been relocated to a purpose built site at Easterville Manitoba, along with residents of Moose Lake, settled on a compensation package of $21 million for socio economic impacts resulting from the construction of the Grand Rapids Generating Station between 1960 and 1968.
In 1991, the Opaskwayak First Nation located at The Pas Manitoba, The Cormorant
Community Association and the Chemawawin First Nation of Grand Rapids reached settlement agreements with MB Hydro as compensation for adverse impacts of flooding resulting from the construction of Grand Rapids Generating Station. Compensation disbursements resulted in Opaskwayak First Nation receiving $4.56 Million; Cormorant
Community Association $1.198 million and Chemawawin First Nation received $5.05 million in addition to the $21 million received in 1990.
In 1992 the Tataskweyak First Nation from Split Lake along with Federal and provincial governments as well as MB Hydro, signed a CIA to meet outstanding obligations under the terms of the 1977 NFA. The agreement provided for total compensation of 51 $47.37 million for adverse effects resulting from Lake Winnipeg regulation and from the
Churchill River Diversion Project. MB Hydro’s portion of the compensation package was
$29.92 million.
Also in 1992, the South Indian Lake housing authority and Community Association of South Indian Lake (on behalf of South Indian Lake residents) received $18 million from
MB Hydro and the provincial government of Manitoba for adverse impacts of the Churchill
River Diversion Project.
Later in the year, an $8 million settlement was reached with the Pimicikamak First
Nation of Cross Lake regarding their claim of loss of recreational opportunities.
Agreements were also reached with the Nisichawayasihk First Nation of Nelson
House regarding impacts to domestic fishing and to provide for the ongoing operational funding for the Gilbert McDonald Arena which was constructed as part of the NFA.
In 1995 York factory First Nation settled on a CIA with MB Hydro for outstanding claims related to the NFA. The settlement included $24 million in cash and Hydro bonds, new reserve lands, and land and resource management agreements.
In 1996 the Nisichawayashk First Nation of Nelson House agreed to a CIA to settle outstanding claims related to the NFA. Key elements of the final settlement included
$62.375 million in cash and Hydro Bonds, new reserve lands and land and resource management agreements.
In 1997 MB Hydro and the town of Churchill signed an agreement to address low water levels in the Churchill River upstream of the town. The adverse effects were a result of the Churchill River Diversion project which diverted water from the Churchill River to generating stations on the Nelson River. The $26 million settlement included financial
52 compensation to the town, construction of a weir to raise water levels enhancing recreational use and improving fish habitat, and the establishment of a trust fund to address unmitigated adverse effects.
In December 1997, a CIA to settle outstanding claims related to the NFA was signed by Norway House Cree First Nation, Manitoba Hydro, as well as the Provincial and Federal
Governments. Key features of the agreement include $78.9 million in cash and Hydro
Bonds, 24,300 hectares of new reserve lands and the creation of a resource co- management board with the province.
By 2014, MB Hydro had reached agreements or working arrangements with all
Aboriginal communities affected by Hydro electric development along waterways.
Comprehensive implementation agreements had been signed with four of the five First
Nation signatories to the Northern Flood Agreement. Only the Pimicikamak First Nation of
Cross Lake remains to sign a comprehensive implementation agreement or to continue trying to implement the NFA which they consider a modern day treaty.
Overall MB Hydro has spent over $1 billion on remedial works, compensation and mitigation because of an Aboriginal relations strategy that pursued development first and sought to negotiate compensation second.
Although financial compensation for adverse effects of Hydro electric development was justified and necessary, its effectiveness at mending relations between the corporation and First Nations communities is not universally accepted. There remains deep seeded mistrust from a legacy of failing to consult prior to construction and from the lengthy timeframes experienced to settle outstanding claims for adverse effects. The positive social impact of financial compensation is not immediately evident in indigenous communities
53 although over time, strategic deployment of capital to improve education and employment outcomes is expected to have a very positive socio economic impact. Settlement money has been used to further business opportunities and improve infrastructure, recreation, housing and schools however, these same Indigenous communities continue to experience social issues disproportionate to those of Manitoba society as a whole such as lower high school graduation rates, higher unemployment levels and higher rates of substance abuse and violence. Financial compensation for adverse affects is a positive step to improving socio economic outcomes of First Nations communities but more is required to engage an
Indigenous population whose traditional ways of life were impacted by Hydro development and whose society was marginalized by institutionally racist policy such as the residential school experience.
As a Crown corporation Manitoba Hydro has a vested interest in developing strong social and economic conditions among Indigenous people of the province. Engaging
Indigenous people is vital to enhance working relationships and ensure the corporation fulfills its mandate to supply a reliable source of energy to meet the needs of the province.
Corporate Strategic Plan Evaluation
MB Hydro’s commitment to improving Aboriginal relations is evident by making it one of the seven goals found in their corporate strategic plan (CSP). Key areas of focus for the Aboriginal relations goal are:
Address the adverse effects of our operations on Aboriginal communities
Continue to be a leading Canadian utility in aboriginal representation through
initiatives to recruit, develop and retain Aboriginal employees
Develop and maintain business relationships with Aboriginal businesses
54 Provide opportunities for Aboriginal participation in future development
projects
To accomplish the goal requires commitment and dedication. MB Hydro has dedicated an entire division, the Aboriginal Relations Division reporting to the Corporate
Relations Business Unit. They are committed to improving corporate/Aboriginal relations and accomplishing the key area of focus listed in the CSP.
Aboriginal Relations Key Areas of Focus
Address the adverse effects of our operations on Aboriginal communities
Four of five 1977 signatories to the NFA have signed comprehensive implementation agreements. The remaining community Pimicikamak Okimawin of Cross
Lake signed a formal process agreement in the fall of 2014 following a six week protest and blockade of the Jenpeg Generating Station. The process agreement sets out an engagement process and guiding principles for discussions on the implementation of the
Northern Flood Agreement as well as other topics including policy issues such as revenue sharing and programs to reduce energy consumption at Cross Lake. It also includes a proposed timetable and a commitment to a reasonable funding process. The federal
Government, also a party in the NFA, has approved the appointment of a new NFA arbitrator to assist with resolving claims. Since 1977 Manitoba Hydro and the province have spent over $100 million on a range of compensation, mitigation and other programs for
Cross Lake. Despite reaching successful comprehensive implementation agreements with four of five NFA First Nations, the process took far too long. It took thirty years to reach a compensation settlement for adverse effects from the first northern project at Grand
Rapids. Despite successful agreements with four of five NFA signatories, it has been 38 years and there is still no agreement with Pimicikamak Okimawin of Cross Lake. Despite 55 the long time frame, MB Hydro has signed comprehensive implementation agreements with all Aboriginal stakeholders that experienced adverse effects from Hydro operations except
Cross Lake. The strategy has been effective but an agreement with Pimicikamak Okimawin in a reasonable time frame of less than two years is essential to claim success on this strategy.
Continue to be a leading Canadian utility in aboriginal representation through initiatives to recruit, develop and retain Aboriginal employees.
Programs targeted at increasing Aboriginal representation have been successful. In particular, the Aboriginal Pre Placement (APP) program has been responsible for 28% of the Aboriginal workforce and nearly 60% of women in trades have an APP origin. Since
1998, 406 Aboriginal candidates have been recruited into the APP program. 321 of them or
79% were retained as staff status employees, 282 into technical positions and 39 into other occupations.
The program is designed for Aboriginal candidates who do not meet the minimum academic qualifications for Trades Training Programs. The Pre-Placement Programs provide individuals with paid academic upgrading and on-the-job training and experience.
Programs run between 6 and 10 months and there is no guarantee of employment at the completion of the program. It begins with targeted recruitment in Aboriginal communities.
APP coordinators conduct career fairs to inform potential employees about various job opportunities that may be available to them. Candidates selected to the program have to complete a skills assessment and trades orientation program (SATO). Successful SATO candidates are given an opportunity to experience different aspects of trades. In the operating Technician program, candidates are rotated through mechanical, electrical and
56 operating departments. It is an opportunity for the candidate to assess potential careers and for Hydro to assess the candidate’s suitability for employment.
Strategies are employed to assist candidates to overcome obstacles they may face attaining a career. One such obstacle is the lack of educational opportunities in many
Northern First Nations. Employment with MB Hydro in trades requires completion of math and physics 40S, but 40S courses are frequently not available in many Northern Aboriginal communities. To address the issue, Academic supports are provided as required. APP candidates may attend Adult education classes for the first 6–8 weeks of employment to upgrade their education to the 40S requirements.
Candidates often face economic hurdles as well. To address the issue, all travel and accommodation expenses are covered. Another financial support provides for the purchase of safety footwear. Corporate policy reimburses new employees for safety footwear after they attain status, 6 months employment. MB Hydro found that some APP candidates didn’t have the finances to purchase safety footwear that can range between $125 and
$200, so the 6 month requirement is waved.
Many APP candidates have never been away from their home community and the sudden social transition to an unfamiliar way of life creates anxiety that sometimes leads to performance issues or even withdrawal from the program. To ease the transition, APP candidates are provided opportunities to either bring family members to live with them, or they are provided mileage expenses to return to their community every 30 days while in the program.
Programs such as APP are effective in increasing Aboriginal representation in MB
Hydro. Figure 11 demonstrates a steadily closing gap with Aboriginal employee’s share of the MB Hydro’s work force increasing from around 6% in 1991 to fully 17 % by 2012. 57
Figure 11: Ratio of Manitoba Hydro Aboriginal Employees to Total Employees Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22
Statistics Canada’s 2011 National Household survey indicated that Manitoba has the highest percentage of Aboriginal people among Canadian provinces. The survey indicates that 16.7 % of Manitoba’s population identifies as Aboriginal. Figure 12 demonstrates that
Aboriginal representation in MB Hydro’s workforce is approximately 1/6th of the total workforce. As of January 2015, Aboriginal participation in Manitoba Hydro’s work force consisted of 1,116 employees. That figure indicates that MB Hydro has surpassed their goal of a workforce reflective of the demographics of the province when it comes to
Aboriginal employment.
58
Figure 12: Ratio of Manitoba Hydro Aboriginal Employees to Total Employees Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22
Figure 13 displays the 9 largest occupation groups within MB Hydro and the percentage Aboriginal employees share in each of those groups. Considering 16.7 % of
Manitoba’s population identifys as Aboriginal, it indicates that trades occupations are meeting or exceeding targets but technical, management and proffesional positions which require post secondary education lag behind. All positions are trending up however the pace is inadequate. For example, Aboriginal representation in management and the proffesional engineer designation has only increased 3% over 12 years. Although most occupations are doing well, MB Hydro recieves a cautionary grade regarding their inability to develop an Aboriginal workforce for management and proffesional positions.
59 Figure 13: Aboriginal workforce share, Hydro’s 9 largest occupation groups
Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22
Figure 14: Voluntary turnover rates Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22 60 Another key component of MB Hydro’s Aboriginal Employment strategy in addition to recruitment and development, is the ability to retain employees. Figure 14 indicates that voluntary turnover rates (those due to an employee initiated departure) of Aboriginal employees, has at times, been less than voluntary turnover rates of non Aboriginal employees, but over a 20 year period, averages higher. Despite that fact, an average 1% voluntary turnover rate for Aboriginal employees surpasses performance of the overall
Canadian average which according to a Conference Board of Canada report (2014) was
7.3% in 2012-13.
Figure 15: Involuntary turnover rates Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22
According to figure 15, involuntary termination rates of Aboriginal employees (those initiated by the employer) fairly consistently exceed involuntary termination rates of non
Aboriginal employees. The most common reason cited by the Generation North Human
Resources department is absenteeism and absence reporting protocol which is consistent 61 with the Conference Board of Canada data displayed in figure 6 page 35 of this document,
“Top challenges for businesses with work performance of Aboriginal workers.” A review of
Manitoba Hydro’s absenteeism rates indicate that corporately employees average 6.61 sick days per employee. In MB Hydro’s Generation North Division, the average is 8.00 days per employee. In comparison, table 5 indicates an average of 8.9 days for government and 6.3 for utilities.
Table 5 Canadian absenteeism rates by sector and industry (days per employee)
Source: Stewart and Lamontagne, 2014, p. 21
62 Further examination of MB Hydro’s Generation North Division indicates that
Aboriginal employees make up 43% of the workforce but account for 53% of sick days, or an absenteeism rate 30% higher than the non Aborignal group. This information combined with the knowledge that absenteeism and absence reporting protocol are the main reason for involuntary terminations of Aboriginal employees, indicates MB Hydro needs to do a better job investigating the root causes of absenteeism and absence patterns and formulate strategies to address the issue.
Table 6 examines retention rates of employees with an APP origin and those recruited through the regular intake. The table indicates employees of APP origin have an involuntary termination rate at twice that of non APP employees but display lower rates of voluntary terminations.
Table 6 Technical trades hires, 2006 -2013, termination rates
Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22
63 Figure 16: 5 year retention Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22
Nevertheless, retention of Aboriginal employees exceeds the overall Canadian average, which according to the conference board of Canada in 2012 - 2013 equated to
7.3% voluntary turnover and 3.7% involuntary turnover. The same report provides a more direct industry comparison indicating that rates for Government voluntary and involuntary turnover are 4.9% and 2.4% respectively. For utilities, voluntary and involuntary turnover rates are 5% and 1.8% respectively. Figure 16 indicates that MB Hydro is making considerable gains in Aboriginal employee retention for those retained for at least five years. If the trend continues retention rates between Aboriginal and non Aboriginal employees should be virtually indistinguishable by 2017. According to supervisors at
Manitoba Hydro’s Generation North division, the success is attributed to improved
64 screening at hire and improved tracking and monitoring of trainee progress which enables early intervention for those struggling.
Overall, Manitoba Hydro does very well retaining Aboriginal employees.
Develop and maintain business relationships with Aboriginal businesses
To foster improved Aboriginal relations by developing and maintaining business relationships, MB Hydro has adopted a Northern Purchasing Policy as noted in Appendix 2.
The policy states that.
“Manitoba Hydro will encourage participation in business and employment opportunities for
Aboriginal and northern communities within the Northern Affairs Boundary through the following measures:
Information sharing
Scoping
Restricted tender or direct negotiated contracts
Aboriginal and Northern Content provisions
Prioritization of contract awards
Such measures may, with the approval of the president & CEO, be extended to Aboriginal and other communities located outside the Northern Affairs Boundary.”
When work is planned in the vicinity of a First Nation or Northern community, information is provided that may include presentations or discussions to assist in understanding technical requirements of the contract.
Projects are scoped to provide opportunities for Aboriginal contractors, provided the contract remains reasonably competitive and schedules and quality are are not compromised.
65 Tenders may be restricted to Aboriginal contractors if they are capable of performing the service at competitive rates. There are also provisions to direect negotiate with contractors in the near vicinity of the project.
Contract terms include provisiions to increase Northern Aboriginal participation including employment and training.
Northern contracts are prioritized in the following order:
1. Northern Aboriginal Contractor
2. Northern Business
3. Manitoba Business
5. Other
As a means of generating business for Aboriginal companies the policy has been effective. In fact in a January 23rd 2015 companywide address, Manitoba Hydro’s President and CEO, Scott Thompson, stated that “nearly $400 million in contracts have been awarded to Manitoba Aboriginal Companies in the last three years.”
Although the dollar value tied to supporting Aboriginal business is significant, observations of the policy in practice indicate that there is more to be done to develop
Aboriginal businesses into sustainable enterprises not solely dependent on MB Hydro business. For example, in Gillam, MB Hydro’s northern hub of operations, the corporation maintains approximately 400 housing units. Replacement and refurbishment of those units is often accomplished by contracting work to Aboriginal businesses. Most of the contracts involve joint ventures with the First Nation and a non Aboriginal contractor. What appears to be lacking is a mechanism to ensure Aboriginal employment and skills training are taking place. Joint venture contractors, faced with the same challenges faced by many Canadian companies as indicated by the Conference Board of Canada with job performance, 66 recruitment and retention of skilled Aboriginal workers, may manipulate the Northern
Purchasing policy by accounting for extra costs in the contract and not delivering on
Aboriginal employment and training expectations. In the end the contract concludes and the Aboriginal portion of the joint venture neither has the skilled workers or managerial skills to sustain business independently.
There have been several independent First Nation business ventures in Gillam that have also failed despite MB Hydro’s efforts at patronizing them. One of the most recent such ventures was the Gillam hardware store. Although Manitoba Hydro’s Gillam housing maintenance department attempted to obtain most of their supplies through the First Nation owned and operated business, they were often required to source supplies from other vendors because the First Nation lacked sufficient managerial skills with regards to accounting practices and supply chain management.
There is opportunity for MB Hydro to refine their goal to “Develop and maintain business relationships with Aboriginal businesses”, to one focused on developing independently sustainable Aboriginal business, perhaps a goal such as that taken by
Cameco in Saskatchewan, discussed earlier in this paper, where the objective is to facilitate development of wholly owned and operated Northern Aboriginal suppliers. As
Lozides (2000) stated, one of the key factors that determine corporate performance in building business relationships with Aboriginal firms is the monitoring of performance and an ongoing transfer of business, management and administrative expertise to Aboriginal firms. MB Hydro has opportunity to better leverage internal expertise in accounting and supply chain management and actively mentor Aboriginal businesses.
67 Provide opportunities for Aboriginal participation in future development projects
In this area MB Hydro has learned from past mistakes and has undertaken a revolutionary approach to development of new projects within First Nations traditional territory. The construction of the 200 MW, $1.6 billion Wuskwatim Generating Station located on the Burntwood River in Northern Manitoba is precedent setting for Canada and quite possibly the world in terms of an Electric Utility partnering with an Indigenous people.
The Wuskwatim Limited Partnership is a legal entity that provides the Nisichawayasihk
Cree Nation with a 33% share of the generating station. MB Hydro took the position that consultation for any new significant development would begin well in advance. In the case of Wuskwatim, that consultation began in 1996 with the signing of a comprehensive implementation agreement between MB Hydro and the Nisichawayasihk Cree Nation
(NCN), ten years in advance of breaking ground. Complex negotiations followed which resulted in a 1500 page legal document outlining the conditions of the partnership. Further complicating negotiations was a legacy of mistrust by the NCN people who remembered the adverse effects and lack of consultation they had experienced from the Churchill River diversion. Adding to the complexity was the requirement to make the document easy to understand and then to translate it into Cree. There are no words in the Cree language for much of the financial language in the document. Financing a 33% stake of a $1.6 billion project is no small undertaking for a First Nation so provisions were implemented where
MB Hydro would provide the financing to NCN for their share. The project is a true collaboration with its own board comprised of MB Hydro and NCN representatives.
In preparation for the project the Atoskiwin Training and Employment Centre of
Excellence was built to develop Aboriginal skills necessary for employment on the project.
Over 400 NCN members received training at the centre. Chief Jerry Primrose commented
68 in a documentary on the partnership regarding the value of the training provided stating that “the project will end, but the skills learned will last.”
The project was also unique in that a purpose built facility was constructed to provide mandatory cultural awareness training for all workers on the project.
The Wuskwatim project paved the way forward for a new way of doing business.
Presently MB Hydro is constructing the Keeyask Generating Station on the Nelson River.
The 695 MW Generating station is a partnership between four Manitoba First Nations, working together as the Keeyask Hydropower Limited Partnership (KHLP): Tataskweyak and War Lake (acting as the Cree Nation Partners); York Factory and Fox Lake.
The strategy of providing opportunities for Aboriginal participation in future development projects is proving to be successful and a marked departure from mistakes of past projects.
Indigenous Employment Evaluation Tool
Evaluation Topic LEADERSHIP* Y N P N/A COMMENTS
There is publicly available evidence of the company’s commitment to Y Indigenous employment initiatives on the corporate website The company’s annual report affirms commitment to improving employment Y outcomes. INDIGENOUS EMPLOYMENT POLICY
Corporate Policy*
The company has a corporate policy Y with overarching objectives that support
69 its Indigenous employment and training policies. The policy is promoted in the workplace. The policy refers to career development Y opportunities for Indigenous employees. The policy refers to respect for different Diversity Goals. Discrimination Y cultures and employment practices. and Harassment free Workplace Policy The policy has guidelines that explain and clarify its intent regarding Indigenous Y employment commitments. The policy refers to Indigenous employment and training commitments Y throughout its operations. Site level policies MH policies are corporate. Site Level differences equal higher Aboriginal recruitment targets for Northern Zones to reflect the demographics of the region. The policy refers to Agreement Joint Keeyask Development commitments. Agreement (JKDA) is an employment framework to P achieve operational employment targets over a 20 year timeframe. The policy defines “local’ Indigenous Indian, Inuit or Métis including people. status, treaty, registered, non Y status or non registered. “Local” defines prescribed northern zones. The policy refers to Indigenous Y employment. The policy refers to Indigenous training. Y APP Program. The policy refers to Indigenous small Northern Purchasing Policy Y business opportunities. The policy is promoted in the Y workplace. Indigenous employment objectives are A workforce that reflects Y consistent with overall company policy. the demographics of Manitoba The operation requires major contractors Y to align themselves with its Indigenous 70 employment and training objectives. The operation has a HR Policy that Y refers to EEO and diversity. The HR Policy includes specific No formal policy although leave adaptations for Indigenous cultural with pay is granted for cultural N differences, e.g. provisions for cultural events on a case by case basis. leave. PLANNING Aspects and Impacts Register*
The company has a documented Research and Analysis section process for identifying factors within its in the Recruitment and Diversity P control that impact on Indigenous Department forecasts employment outcomes. employment requirements. The process refers to specific Recruitment Calendar. Training accountabilities. progress monitoring, Y demographic employment forecasting, The process refers to internal Y stakeholders. The process refers to external Refers to JKDA signatories but stakeholders. P does not encompass all stakeholders. The process refers to Agreement Y requirements. The process refers to timing. Recruitment Calendar. Training Y progression schedule. CSP Targets The process includes a risk rating No risk rating. process and matrix to Canadian N Standards. The Aspects and Impacts document is Secure intranet and change filed in a site register subject to controls management controls. Y that limit access to modify without authorization. Legal and other requirements The company has a corporate Intranet directory/database containing: Y all relevant legislation all Agreement requirements Y all Community or External Y Relations Standards The Community/External Relations Y 71 Standard/s articulate the relevant Indigenous employment or local employment standard/s. The Community/External Relations Standard/s include clearly defined Y processes for operational personnel to implement. Objectives and Targets Y Indigenous employment objectives are consistent with the requirements of Y Indigenous Land Use Agreements The operation has an overall Indigenous 16% Overall employment target. 45% North Y 6% Management 8% Professional There is a specific timeframe for Y achieving the target. The overall target takes account of the demographic characteristics of the Y region, i.e. the percentage of the population who are Indigenous. The operation sets incremental % of Business Units with Indigenous employment targets yearly increased contribution to Y to achieve the overall target in the CSP Aboriginal employment specified timeframe. targets – 100% Annual Management Programs The operation has a documented Aboriginal Relations Division system that records all management utilizes Enterprise performance Y programs or plans that are relevant to Management system(SAP) and Indigenous employment. Secure intranet The management program identifies: aspects and impacts that affect Y Indigenous employment outcomes the risk rating of each aspect N program objectives Y the resources required (people, dollars, equipment and Y infrastructure) planned completion date Y Person/s accountable. P Refers to business units Management programs or plans are Y V.P. Corporate Relations.
72 approved by the General Manager. The Management program or plans are Reported to Division Manager of monitored for completion by reporting Aboriginal Relations and VP Y progress monthly to the General Corporate Relations. Manager and/or the Managing Director Implementation Structure and Responsibility HR Systems In this aspect MB Hydro differs The Indigenous employment from mine operations. accountabilities for all relevant roles on Responsibility lies with Division site, such as Communities, HR, P managers and Business unit Training and line leadership, are VP’s. documented and signed off by the General Manager, Operations. Indigenous employment targets are MB Hydro uses core used as a measure of personnel competency evaluation and performance and/or in reward and N does not offer rewards or remuneration systems. This includes: remuneration for performance. community roles HR roles N training roles N line leadership roles N Work readiness, recruitment and Not specified however APP retention systems Coordinators conduct career The operation’s work readiness (pre- fairs in Aboriginal communities vocational), recruitment and retention P and provide supports as systems specify: required. face-to-face recruitment and application processes work readiness programs that Candidates are screened for select all/majority Indigenous N suitability. Not all are selected. intakes for the first 2 to 6 months individual case management for APP candidates are managed the first 6 to 18 months by coordinators. There is a P mentor program. Involvement is limited. individual coaching for 6 to 18 Mentor program. Some family months, with family support supports such as RAP trips to P home community on a 30 day interval. alcohol and other drug testing MB Hydro does not have a drug that educates and does not NA testing program. permanently restrict employment 73 options security clearance systems that Personnel Risk Assessments do not automatically eliminate all are a NERC standard CIP-004-1 offenders R3. Assessments are based on the nature and gravity of the P offence(s); the time passed since the offence(s); and the nature of the job sought. There are no accommodations granted for Aboriginal candidates. Remote and regional recruitment APP Coordinators conduct practices recruitment in remote Remote and regional application and communities. Face to face is a Y recruitment procedures are conducted key component. face-to-face. Career Communicators serve as role models at Career Fairs. The company provides Indigenous APP Coordinators conduct applicants with support in preparing recruitment in remote applications and resumes. communities. Face to face is a P key component. Supports not required for most positions but are provided for entry level low skill positions. The site maintains a recruitment HR Analysis is a section of the database. Y Recruitment and Diversity Department Individual sites support local Recruitment and Diversity, not employment agencies. site, assists Aboriginal P employment agencies with placements Career path development Each employee has a personal The operation has a career path development plan completed in development system for Indigenous P conjunction with their employees. supervisor. No differentiation is given to Aboriginal employees. The system records individual personal development plan Y aspirations. The system records development personal development plan Y conversations, plans and opportunities. The system records development personal development plan Y opportunities actioned / completed. Exit interviews Exit interviews are conducted for The operation has a formal exit Y all employees who voluntarily interview system. leave the Corporation. 74 The system records the reasons people To gain a better understanding leave. of why employees are leaving Y the Corporation.
The system documents actions planned Monitor trends and take any and taken to address issues identified. necessary remedial action Y before serious skill shortages become apparent There is clear evidence of the system functioning for Indigenous people, e.g. Y Indigenous exit interviews are consistently completed. Contractors No specific targets. The operation’s contract tendering requirements for prime contractors P include specific targets for Indigenous employment. The operation’s contract tendering and Weighting for Aboriginal contractor selection processes include a Y employment is used when weighting for Indigenous employment. awarding contracts. The operation’s prime contractors use the operation’s Indigenous employment Y readiness and recruitment systems, procedures and practices. Training, awareness and competence Training structure The operation has an adequate ratio of Y trainers to trainees and apprentices. Knowledge, skills and experience Trainers are trained in Career required of trainers and community communications and Aboriginal personnel with Indigenous Y Employment Mentorship. accountabilities are documented in the Records are maintained. company’s HR system. Training programs There is a budget allocated specifically to Y Indigenous employment and training in the current operational plan. The budget is adequate to achieve the plan in: Y HR training Y community Y
75 trainees and apprentices Y The operation has a work readiness Funding is provided to (pre-employment /pre-vocational) P Aboriginal organizations for program. work readiness programs. The operation has an Australian Quality Quality is controlled by Training Framework (AQTF) Traineeship NA interprovincial apprenticeship standards. The operation has an Apprenticeship Y program. The operation has a Cadetship/ Co-Op Education Program. Scholarship program. Several awards, bursaries and P scholarships for Aboriginal students. Cultural awareness Diversity information and The operation’s Indigenous employment discrimination and harassment commitment is included in induction P free policies are included in programs for all site employees and orientation packages for all contractors. employees and contractors. The operation keeps records and SAP Enterprise system includes Y monitors all induction attendance HRMS Corporate managers are required to All employees receive new conduct Indigenous induction employee orientations. Not procedures. P specific to Aboriginal employees. Orientations are conducted by supervisors. Company personnel are required to Not all employees are required complete a cultural awareness program. but it is mandatory for all in high ratio Aboriginal employment departments. There have been P 152 Aboriginal cultural awareness sessions held of which 1837 employees have participated in to date. Approx. 1/3 of the corporate workforce. Communication * The operation has a documented Corporate intranet. process for regular formal communication across the relevant Y levels and functions of the operation about its Indigenous employment programs and initiatives. The operation has a documented Aboriginal Relations Division process for regular formal Y communication with external 76 stakeholders Documentary evidence confirms that Y the process is being followed. Document control system The operation’s Indigenous employment system is subject to document control. Y The system includes: yearly plans the Aspects and Impacts Y register management programs Y recruitment data Y retention data Y traineeship data Y apprenticeship data Y evaluation records Y PERFORMANCE MONITORING Monitoring and measurement * The Indigenous employment standards or the reporting system contain Y definitions for each Indigenous employment measure. The Indigenous employment standards Aboriginal peoples mean or the reporting system clearly define persons who are Indian, Inuit, or what the company means by Métis peoples of Canada (including status, treaty, or ‘Indigenous’ and ‘local Indigenous” registered persons as well as people. non-status and non-registered persons).
Y Local - deemed to be a Northern Resident if the person has resided in that part of Manitoba north of the boundary as set out in Schedule D for: A period of five (5) years accumulatively, or more; period of six (6) consecutive months, or more, immediately prior. Current and historical indicators 17.9% Corporate The operation’s Indigenous employment 45.9% Northern Employees measures include: Y 14.3% Southern Employees the proportion of the workforce 7% Management that is Indigenous 7.2% Professional the number of Indigenous P Women are an equity target 77 employees (male and female) group and Aboriginal women are tracked but included in measures for women and for Aboriginal employment. the number of local and non- JKDA employees are tracked P local Indigenous employees role type e.g. Trainee or General Y Manager position type e.g. permanent, Y contractor, part/ full time full time equivalent calculations Y turnover rates Y The data are collected quarterly Monthly Y (minimum). The data are maintained on an historical Y basis. Assessment/audit Internal audit The operation has a documented process for conducting an Y internal/external audit of its Indigenous employment policies and procedures. Included in the internal/external audit is a review of: Y policy objectives strategic plans Y Agreement requirements Y The operation has a documented Internal audit of employment process for conducting an P equity programming. internal/external audit. Included in the external audit is a review No external audit of: N Indigenous employment standards relevant legislation Y Corrective and preventative actions * The operation has a corrective action Y planning register. The register records: instances of non-conformance Y or non-compliance the nature and number of Corporate complaint registry Y complaints and requests from
78 Indigenous people the process for managing Y complaints and requests the outcomes of the process Y Records The operation keeps the assessment records from external assessments or Y reviews of complaints The operation tracks and completes action items identified in reviews or Y assessments. Progress Management Review The operation has a documented process for management review such as minutes Y of meetings and actions. The actions are reviewed and closed Y out.
DEPEST Analysis
Demographic - The 2011 National Household Survey (NHS) show that 1,400,685 people had an Aboriginal identity in 2011, representing 4.3% of the total Canadian population.
The Aboriginal population increased by 232,385 people, or 20.1% between 2006 and 2011, compared with 5.2% for the non-Aboriginal population.
The Aboriginal population is much younger than that of the non Aboriginal population due to higher fertility rates and shorter life expectancies. Aboriginal children aged 14 and under made up 28.0% of the total Aboriginal population and 7.0% of all children in Canada. Non-Aboriginal children aged 14 and under represented 16.5% of the total non-Aboriginal population. Aboriginal youth aged 15 to 24 represented 18.2% of the total Aboriginal population, and 5.9% of all youth in Canada. Non-Aboriginal youth accounted for 12.9% of the total non-Aboriginal population. 79 The median age of First Nations people was 26, followed by Métis at 31. The median age for First Nations People in Manitoba was 21, half that of the non Aboriginal population.
Manitoba’s Aboriginal population was 195, 900 representing 16.7% of the provinces total population. Manitoba had the highest proportion of Aboriginal citizens of any provinces but less than that of the three territories.
Currently, 57.9 % of Manitoba’s First Nations people with registered Indian status live on reserves.
There were 78, 830 Métis in Manitoba. Winnipeg had 46,325 Métis, the highest number of any metropolitan area.
Almost one-half (48.4%) of Aboriginal people had a postsecondary qualification in
2011, including 14.4% with a trades certificate, 20.6% with a college diploma, 3.5% with a university certificate or diploma below the bachelor level3, and 9.8% with a university degree.
In comparison, almost two-thirds (64.7%) of the non-Aboriginal population aged 25 to 64 had a postsecondary qualification in 2011. Of this group, 12.0% had a trades certificate, 21.3% had a college diploma, 4.9% had a university certificate or diploma below the bachelor level, and 26.5% had a university degree. The main difference between the
Aboriginal and non-Aboriginal populations in terms of postsecondary qualifications was with the proportion of university graduates. The same pattern was observed in the 2006 census.
3 Comparisons with other data sources suggest that the category 'University certificate or diploma below the bachelor's level' was over-reported in the NHS. It is recommended that users interpret the results for this category with caution. 80 There was also a difference in the proportion of Aboriginal and non-Aboriginal people with 'no certificate, diploma or degree'. Among Aboriginal people aged 25 to 64,
28.9% had 'no certificate, diploma or degree' while the proportion for non-Aboriginal people in the same age group was 12.1%. The proportion of Aboriginal people aged 25 to 64 with a high school diploma or equivalent as their highest level of educational attainment was
22.8%. In comparison, 23.2% of non-Aboriginal people in the same age group had a high school diploma or equivalent as their highest qualification.
Education levels among Aboriginal people are increasing however continue to lag behind the non Aboriginal population. There were 68.0% of Aboriginal people aged 35 to
44 with at least a high school diploma compared with 58.7% for those aged 55 to 64. The proportion of high school graduates among non-Aboriginal people aged 35 to 44 was
88.7% compared with 79.5% among those aged 55 to 64.
The proportion of Aboriginal women aged 35 to 44 who had a university degree in
2011 was 13.6%, compared with 10.2% of those aged 55 to 64. Among Aboriginal men, there was no difference in the proportions that held a university degree between age groups. It was 7.6% for both men aged 35 to 44 and 55 to 64.
In 2011, younger Aboriginal women and men were both more likely to have college diplomas than older ones. Among Aboriginal women aged 35 to 44, 27.1% had a college diploma in 2011, compared with 21.4% of those aged 55 to 64. With a proportion of 18.3%,
Aboriginal men aged 35 to 44 were also more likely to have college diplomas than those aged 55 to 64 where the proportion was 14.1%.
Just over 389,200 adults, or 58.0% of the total adult Aboriginal identity population aged 25 to 64, reported a First Nations (North American Indian) identity on the NHS questionnaire in 2011. 81 Of these, 44.8% had a postsecondary qualification: 13.2% a trades certificate,
19.4% a college diploma, 3.6% a university certificate or diploma below the bachelor level and 8.7% a university degree.
The proportion of First Nations people with a postsecondary qualification was higher among those without registered Indian status (52.1%) than among those with registered
Indian status (42.3%).
The proportion of college and university graduates among First Nations people with registered Indian status was higher for those living off reserve than on reserve. Among the former, 21.2% had a college diploma and 10.9% had a university degree compared with
14.8% and 4.7% for the latter.
In 2011, 60.2% of First Nations people aged 25 to 64 had completed at least a high school diploma.
Just over 237,700 adults, or 35.4% of the total adult Aboriginal identity population aged 25 to 64, identified themselves as Métis on the NHS questionnaire in 2011. Over half
(54.8%) of Métis aged 25 to 64 had a postsecondary qualification: 16.3% a trades certificate, 23.2% a college diploma, 3.5% a university certificate or diploma below the bachelor level and 11.7% a university degree. These are the highest proportions among the three Aboriginal groups (First Nations people, Métis and Inuit).
In 2011, the proportion of Métis aged 25 to 64 with at least a high school diploma was
73.6%.
With a population growth outpacing that of the non Aboriginal population and a median age of 21, Manitoba First Nation must be considered as a valuable human resource necessary to fill jobs now and in the future. To harness the full potential of the
82 demographic, government, industry and First Nations must cooperate to improve educational outcomes for Aboriginal Peoples.
Economic – According to the 2006 Statistics Canada census, between 1996 and 2006, the unemployment rate for the Aboriginal population decreased from 21.8% to 13.0%, more than double the improvement for the non-Aboriginal population. Similarly, the employment rate for Aboriginal individuals increased by 10.2 percentage points, from 52.8% to 63.0%, compared to a 4.1 percentage points increase for non-Aboriginal individuals.
In 2005, median individual total income for the Aboriginal population was $16,752, almost $10,000 lower than for the non-Aboriginal population ($25,955). Across provinces and territories, median income for Aboriginal people ranged from a high of $20,690 in the
Yukon to a low of $13,843 in Saskatchewan. The income gap between the Aboriginal and non-Aboriginal populations remained fairly consistent over the past decade.
The gap in median income between genders is less pronounced in the Aboriginal population than for the non-Aboriginal population. Aboriginal males made $3,060 more than females in 2005 ($18,714 and $15,654). Comparatively, non-Aboriginal males made
$11,999 more than their female counterparts ($32,639 and $20,640).
Over the past decade, the proportion of Aboriginal households that experienced crowding decreased from 7.6% to 4.3%. Despite this improvement, crowding remains three times more prevalent in Aboriginal households than in non-Aboriginal households.
The 1996 and 2006 Censuses show very little improvement in the percentage of
Aboriginal dwellings in need of major repair. In 2006, Aboriginal dwellings were almost three times more likely to require major repairs than non-Aboriginal dwellings (19.0% compared to 7.0%). Aboriginal dwellings in Manitoba needing repair were over 22%.
83 Labour force activity for the Registered Indian population has improved over the past decade (Figure 8). The Registered Indian population living off reserve, in particular, experienced considerable gains in employment increasing 12.7 percentage points from
49.3% to 62.0%. The unemployment rate for this population also dropped by 10.3 percentage points, from (23.3% to 13.0%). However, the Registered Indian population, both on and off reserve, is less likely to be employed than the non-Aboriginal population and also experiences higher unemployment than the non-Aboriginal population. As well, the gaps between Registered Indians living on and off reserve have widened.
Between 1995 and 2005, the median total income for the Registered Indian population living on reserve has not changed much (Figure 9).[7] Gains are most pronounced for Registered Indians living off reserve where median income increased from
$13,839 to $17,173.
The 2006 Census indicates that the median individual income is highest for the
Registered Indian population living in the Territories ($17,667); and lowest for those living in the provinces of Saskatchewan and Manitoba ($10,874 and $11,822 respectively).
Median individual incomes are also slightly higher for Registered Indian females than for
Registered Indian males ($14,337 to $13,802).
In 2005, employment was the major source of income for one-half (48.4%) of the on- reserve Registered Indian population with income. This is followed by government transfer payments as the major source for 46.8% of individuals and other sources for 4.8% of individuals.
Employment as the major source of income is higher for the Registered Indian population off reserve. Further, between 1995 and 2005 the proportion of the Registered
Indian population off reserve with employment as their major income source increased from 84 52.0% to 60.6%, narrowing the gap when compared to the proportion of non-Aboriginal individuals with employment as their major income source (66.2%).
Political/Legal - Section 35 of the Constitution Act, 1982 provides that:
1. The existing aboriginal and treaty rights of the aboriginal peoples of Canada are
hereby recognized and affirmed.
2. In this Act, “aboriginal peoples of Canada” includes the Indian, Inuit and Métis
peoples of Canada.
3. For greater certainty, in subsection (1) “treaty rights” includes rights that now exist
by way of land claims agreements or may be so acquired.
4. Notwithstanding any other provision of this Act, the aboriginal and treaty rights
referred to in subsection (1) are guaranteed equally to male and female persons.
In addition to the common law duty to consult, there are a number of other legal reasons for the Crown to consult with Aboriginal groups, including specific requirements to consult that are set out in statutes and regulations as well as provisions in land claim agreements, self-government agreements and consultation agreements. The Crown’s duty to consult applies to provincial and territorial governments.
An Action Plan on consultation and accommodation was announced in November
2007 led by Aboriginal Affairs and Northern Developments Canada (AANDC) and Justice
Canada. Interim Consultation Guidelines were released in February 2008. Since the initial guidelines were released in 2008, much has been learned about consultation and accommodation. As a result, updated guidelines were released in 2011.
85 The objective of the Guidelines is to provide an approach to consultation and accommodation that:
acknowledges and respects the Crown’s unique relationships with Aboriginal
peoples;
promotes reconciliation of Aboriginal and other societal interests;
integrates consultation into government day-to-day activities, e.g. environmental and
regulatory processes;
reconciles the need for consistency in fulfilling the Crown’s duty to consult with the
desired flexibility, responsibility and accountability of departments and agencies in
determining how best to do so; and
fosters better relations between the federal government and Aboriginal peoples,
provinces, territories, industry and the public.
Ecological – North American legislation is increasingly mandating the requirement to incorporate the use of renewable energy of which hydro electric is included. The requirement to obtain energy from renewable sources presents an opportunity for MB
Hydro to increase exports which are used to subsidize the huge capital cost of new generation. In so doing, the utility is able to keep domestic rates low and offset the financial impact of adding capacity. By the same token, environmental impacts to land and aquatic life as a result of hydroelectric development are intensely scrutinized and MB Hydro must conduct comprehensive environmental impact assessments and identify mitigation measures prior to any new development. The requirement adds time to schedules and considerable cost. There is a legal duty to consult First Nations on environmental and regulatory processes. For projects that impact First Nations MB Hydro utilizes
86 Ethinesewin, the traditional knowledge and collective wisdom of Aboriginal people along with conventional environmental monitoring procedures to help ensure minimum disruption to the local environment.
Socio Cultural- Within MB Hydro and society in general, there has been a marked shift in values regarding diversity, and in the way negotiations are conducted with Aboriginal communities since the last Generating Station on the Nelson River was completed 25 years ago. Aboriginal representation in MB Hydro’s workforce has progressively increased year over year. Consultation with First Nations and consensus is required prior to any new projects commencement. In order to continue to meet the energy needs of the province, it is essential to develop and maintain business relationships with Aboriginal businesses and employ an Aboriginal workforce reflective of the demographics of the region. Cultural awareness training is a key component of enabling a respectful workplace and fostering better relations between the MB Hydro and Aboriginal peoples.
Technological - As technology advances at an ever increasing pace, the demand to employ a highly skilled and educated workforce becomes increasingly more critical.
Although technology has enabled greater productivity with fewer workers, it has also mandated greater amounts of training and development and higher levels of capital investment. Technological advancement and the associated complexity present a challenge to MB Hydro when recruiting Aboriginal employees from a pool that has lower levels of high school graduation and lower levels of post secondary education then the non-
Aboriginal population.
87 Recommendations
Manitoba Hydro has been striving to accomplish their strategic goal of strengthening working relationships with Aboriginal Peoples by concentrating on three main tactics;
Resolve and manage ongoing obligations from past development;
Increase Aboriginal representation through initiatives to recruit, develop and
retain Aboriginal employees.
Develop and maintain business relationships with Aboriginal businesses.
The measures in place indicate that the corporation is achieving their tactical goals however, there appears to be a deficiency in correlating achievement of tactical goals with their impact on the strategic initiative of strengthened Aboriginal stakeholder relationships.
For example, one may assume that relationships with Aboriginal People employed by the corporation have improved, but what about Aboriginal People not employed by the corporation, or not directly engaged in business ventures? Blockades against the corporation in 2014 by three separate First Nations suggest that the communities are not satisfied with the relationship they have with Manitoba Hydro.
1. It is recommended the corporation develop an analytics program to assess the
effectiveness of their Aboriginal relationship strategies. Survey Aboriginal customers
to gain greater understanding of the effectiveness of Aboriginal relations strategy.
Surveys can be included along with Hydro bills, hard copy or electronic. Respondents
should be designated as Aboriginal status, non status, or Métis. Further
disaggregated data should be obtained to determine First Nations band affiliation,
living on reserve or off reserve, as well as if they or any members of their immediate
family are employed by MB Hydro. Trends should indicate increasingly favourable
88 responses as a result of implementing Aboriginal relations strategies. An example of
questions for the Aboriginal customer satisfaction survey are presented in figure 17
Strongly agree (9,10) Somewhat agree (7,8) Neutral (5,6) Somewhat disagree (3,4) Strongly Disagree (1,2)
MB Hydro is a trustworthy 20% 30% 10% 20% 20% company
MB Hydro has ethical, 24% 25% 6% 20% 25% responsible management
MB Hydro acts in the best interest of its customers 29% 29% 6% 20% 19%
MB Hydro acts to improve 16% 26% 21% 19% 20% Aboriginal relations
Figure 17: Proposed Aboriginal satisfaction survey questions and theoretical responses. Source: Myron Smolarski, 2015 03 20
2. Modify HR Policy to include specific adaptations for Indigenous cultural differences, e.g.
provisions for cultural leave. Presently the corporation provides employees with paid
family responsibility leave up to six days per year. Leave is taken from an employee’s sick
leave credits. It is meant to enable employees to attend to the illness and medical/dental
appointments of a parent, spouse or child. The policy should be amended to also include
cultural and religious leave. In addition to supporting Aboriginal employees, there is an
added diversity benefit of applying to other equity groups. In addition, three days of
approved leave without pay should be granted to Aboriginal employees for seasonal or
traditional activities such as caribou hunting.
3. MB Hydro is meeting their employment targets for overall Aboriginal recruitment targets
however they are less successful promoting Aboriginal employees to management 89 positions. This may suggest that while dedicated recruiters and recruitment strategies are
proving effective, the absence of a specific Aboriginal career path development strategy is
a contributing factor for lower than expected rates of Aboriginal participation in
management. To address the inequity of Aboriginal people in management, it is
recommended that achievement of Aboriginal employees in management targets are
used as a measure of personnel performance for division and department managers.
4. MB Hydro’s work readiness (pre vocational) strategies have consisted of funding pre-
employment programs targeted at an adult audience. The city of Thompson Manitoba is
considered to be the hub of the north and the Vale mine operation makes Thompson a
major industrial center. The R.D. Parker high school in Thompson presently offers
technology majors for Certified Automotive Technician and Heavy Duty Equipment
Technician; both are accredited programs with Apprenticeship Manitoba however, two
trades most in demand at MB Hydro as well as the mining industry are Industrial
Mechanic (Millwright) and Industrial Electrician. It is recommended that MB Hydro, in
partnership with the Mining Association of Manitoba and the Mystery Lake School
Division, develop technology major programs for Industrial Mechanics and Electricians.
Upon graduation students would be credited with apprenticeship hours and given the
option of writing their level one apprenticeship exam. MB Hydro’s investment in the
vocational education of northern students would be offset by a reduction in recruitment
costs as well as employee training. It is estimated that MB Hydro’s cost to develop trades
technicians is approximately $100,000 per year. Graduates of the high school vocational
program would begin their careers with a stronger background and already have one
year of apprenticeship completed. Hydro’s return on training investment from recruitment
until trainees function independently would be measurably shorter.
90 5. It is recommended that MB Hydro leverage their internal expertise in accounting and
supply chain management and actively mentor Aboriginal businesses with who they
have dealings with. Improved monitoring of performance and an ongoing transfer of
business, management and administrative expertise to Aboriginal firms will build
business relationships and improve outcomes establishing sustainable Aboriginal
businesses.
6. MB Hydro should consider establishing an alcohol and other drug testing program
that educates but does not permanently restrict employment options. The
predominant reason for Aboriginal employee terminations in Generation North is
excessive absences and failure to follow absence reporting protocol. Substance
abuse is often a factor in employee’s poor attendance. Alcohol and drug testing
not only supports the corporation’s number one strategic goal, safety, but it
provides management the tools required to obtain early intervention for
employees on a self destructive path to termination of employment. A successful
alcohol and drug testing program should have early mechanisms and supports to
assist employees in becoming safe and productive employees.
7. MB Hydro’s contract tendering requirements are weighted for contractors
partnering with or employing Aboriginal employees. To prevent contractors trying
to circumvent the system, it’s recommended that MB Hydro contract
administrators randomly verify Aboriginal employment numbers submitted by the
contractor and penalties are established for non compliance.
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97 Appendix 1
Figure 1
Manitoba Hydro facilities source: Manitoba Hydro
98 Figure 2
Energy Balance- Dependable Energy Showing Deficit by 2023 (Manitoba Hydro)
99 Appendix 2
MANITOBA HYDRO NORTHERN PURCHASING POLICY
POLICY STATEMENT: Manitoba Hydro will encourage participation in business and employment opportunities for Aboriginal and northern communities within the Northern Affairs Boundary through the following measures: • Information sharing • Scoping • Restricted tender or direct negotiated contracts • Aboriginal and Northern Content provisions • Prioritization of contract awards Such measures may, with the approval of the President & CEO, be extended to Aboriginal and other communities located outside the Northern Affairs Boundary.
DESCRIPTION:
Information Sharing: Information will be provided to Aboriginal and northern communities on upcoming Hydro contracts and work packages scheduled for their vicinity.
Information may include presentations, seminars and discussions with Northern Aboriginal Contractors and other Northern Businesses to assist in the understanding of technical requirements of contracts and Manitoba Hydro’s procurement processes and requirements.
Scoping: Contracts will be scoped where feasible to provide opportunities for Northern Aboriginal Contractors and other Northern Businesses provided any additional costs are acceptable to Manitoba Hydro and there are no adverse effects on project schedules or the quality of goods or services provided.
Restricted Tender or Tender calls may be restricted to Northern Aboriginal Contractors or Direct Negotiated other Northern Businesses where such businesses are capable of Contracts: performing contract services at competitive rates.
In certain circumstances, where contract opportunities have been identified for Northern Aboriginal Contractors or other Northern Businesses, contracts may be direct negotiated with contractor located in the vicinity of the project.
Aboriginal and Tenders and contracts for northern work will, where schedule and Northern Content skill requirements permit, contain contract terms which provide for Provisions: Northern Aboriginal and northern worker participation including employment and training.
100 101
Prioritization of Contract Awards: Purchasing pri ori ti es on nort hern work w i l l be appli ed in t he following order: 1. Northern Aboriginal Contractor 2. Northern Businesses 3. Manitoba Businesses 4. Canadian businesses 5. Other
DEFINITIONS:
1. "Aboriginal and Northern Content" refers to the practice of developing tenders incorporating requirements for bidders to include details of Northern Aboriginal or Northern Business content including such items as labour, equipment rentals, material purchases and service provided.
2. "Manitoba Business" is a business which is registered to do business in the Province of Manitoba, and the firm, or its principals, maintains their facilities, equipment and staff in Manitoba on a continuous basis.
3. "Northern Aboriginal" shall mean a First Nations, Non-status Indian, Metis or Inuit person who has resided in Manitoba, north of the Northern Affairs Boundary for a cumulative period of five years or more.
4. "Northern Aboriginal Contractor" is a Northern Business (including Aboriginal joint venture, partnership or corporation): • which is at least 51% owned and controlled by northern Aboriginals; and • if the business has six or more full-time staff, at least one-third of them are Aboriginal people.
5. “Northern Affairs Boundary” shall be designated as indicated in the link: https://www.hydro.mb.ca/selling_to_mh/north_affairs_boundary_map.pdf
6. "Northern Business" is a Manitoba Business which is located within the Northern Affairs Boundary.
7. "Scoping" is the breaking up of a normal contract package into smaller work packages to suit the capability of community or businesses targeted to participate in the opportunity. Scoping may result in incremental costs to the Corporation, (i.e., internal administrative costs or additional mobilization/demobilization costs, etc.). In making contract awards under the Northern Purchasing Policy, the aggregate additional cost of all individual work packages arising from negotiation and restricted tendering will be evaluated.
101 102
Appendix 3 IEE Tool Guidance Notes
Leadership A company’s leadership commitment can be identified by: Its public statements to shareholders and other stakeholders The resources it allocates towards funding Indigenous employment initiatives
Indigenous Employment Policy Comprehensive Indigenous Employment policies make specific reference to: Employing and training Indigenous people Providing career development opportunities Contributing to improvements in Indigenous education Promoting cultural diversity in the workplace Eliminating racism in the workplace Providing business development opportunity for Indigenous people Depending on the structure of the company and the nature of its operations, it may be appropriate to develop separate policies for: The company’s overall corporate operations Secondary level policies, e.g. site level An International policy Contractor policies Site level policies have different names in different operations, e.g. Community Policy Corporate Social Responsibility (CSR) Policy Australian Indigenous Policy Some companies have their own Indigenous Policy that is in addition to, and complements, their Community Policy. Some operations have also developed site- specific Aboriginal Relations policies that support their Agreement commitments to local Indigenous groups. ASPECTS AND IMPACTS REGISTER An Aspects and Impacts Register identifies the key elements influencing Indigenous employment outcomes that are within the company’s sphere of influence. Examples of Indigenous Employment Aspects include documentary evidence of:
102 103
Commitment Agreement reporting requirements, partnerships STEP and Corporate Leaders contracts. Promotional activities School visits Advertising Communication and promotion of Indigenous employment and training initiatives. Work readiness programs Details of work readiness, traineeship apprenticeship and cadetship programs Medicals Alcohol and other drug testing Security clearance Health Recruitment Size of pool of people ready for recruitment Work experience School based traineeships and apprenticeships Applications Selection Traineeships for site, departments and teams Apprenticeships for site, departments and teams LEGAL AND OTHER REQUIREMENTS Examples of other planning requirements are: Records of systems, procedures, practices and employment levels Processes that encourage contractors to participate in the operation’s Indigenous employment initiatives Closure plans that include Indigenous employment considerations OBJECTIVES AND TARGETS Companies should establish, implement and maintain records of Indigenous employment objectives and targets that reflect the commitments of their Indigenous Employment policies and Agreements. In achieving objectives and targets the company should establish a process that: Ensures key stakeholders, including Indigenous groups are involved in setting targets Designates responsibility for achieving targets Identifies a time frame for completion Establishes appropriate measures of performance COMMUNICATION Examples of formal communication channels: STEP reports
103 104
Corporate Leaders reports Reports to Traditional Owners that are part of Agreement requirements Community visits Site monthly reporting. Informal communication channels include: Weekly newsletters Personnel performance conversations Managers meetings Site notice boards.
MONITORING AND MEASUREMENT What are appropriate measures? Measures that effectively capture the information needed for setting targets and objectives include a mix of current indicators, historical data and lead indicators. Current indicators include: Number of Indigenous employees Their gender and age Number of local vs. other Indigenous employees Number of Indigenous employees in each role type, namely: o trainees o apprentices o operators/semi-skilled o trades o clerical/administrative o supervisor o technical o graduate o professional o specialist o superintendent o manager o executive
Number of Indigenous employees in each position type Permanent, part time, contractors etc Indigenous turnover rates.
Historical indicators Track current performance in current indicators over time.
104 105
Lead indicators Identify potential employees for the site. These include: Records of school, TAFE and University performance and attendance.
CORRECTIVE AND PREVENTATIVE ACTIONS As part of an Indigenous employment management system, it is important to establish a procedure for managing instances of non- conformity or non-compliance. Examples of matters that need to be reported are: Incidents of non-conformance or non- compliance with company policy Issues identified in the risk register Community complaints and expectations The outcomes of corrective or preventative actions Reviewing the effectiveness of corrective and preventative measures.
MANAGEMENT REVIEW Examples of inputs for the management review: Progress reports relating to Indigenous Employment management plans and programs Results of internal audits and assessments of compliance with legislation, corporate policies, ILUAs and Community Standards Communications from external stakeholders, including complaints Status of corrective and preventative actions Follow-up actions taken after a previous management review Identification of external changes that may influence company policies related to Indigenous employment
105