Employment, Immigration and Industry This report was prepared on behalf of the Ministry by the Department of Alberta Employment, Immigration and Industry in collaboration with the Alberta Labour Relations Board and the Appeals Commission for Alberta Workers’ Compensation. For additional copies, contact: Employment, Immigration and Industry Organizational Planning and Effectiveness Branch 6th floor, 10808 – 99 Avenue Edmonton, Alberta T5K 0G5 Tel. (780) 422-2857, toll-free by first dialing 310-0000 Fax (780) 415-2477 TDD/TTY number: 427-9999 in Edmonton or 1-800-232-7215 Electronic versions of this document are available at www.employment.alberta.ca/annualreports Fall 2007 ISSN 1913-6501 Employment, Immigration and Industry Annual Report 2006-07 CONTENTS p2 Preface p3 Minister’s Accountability Statement p4 Message from the Minister p6 Management’s Responsibility for Reporting p7 Overview p8 Organizational Charts p17 Operational Overview p28 Ministry Organization Changes 2006-07 p32 Highlights of Key Accomplishments p37 Results Analysis p38 Message from the Deputy Minister p39 Auditor General’s Report on Performance Measures p40 Integrated Results Analysis p53 Detailed Program Results Analysis and Discussion Core Business 1: Employment p55 Goal 1: All Albertans share in and contribute to the economic prosperity of Alberta Core Business 2: Immigration p65 Goal 2: Alberta is able to attract workers to the province Core Business 3: Industry p69 Goal 3: Alberta has a competitive and sustainable economy p81 Goal 4: Alberta has strong and vibrant regions and rural communities p87 Goal 5: Alberta has a fair, safe and healthy work environment Alberta Labour Relations Board (ALRB) p93 Goal 6: Alberta has a fair, equitable and stable labour relations environment Appeals Commission for Alberta Workers’ Compensation (Appeals Commission) p97 Goal 7: Alberta has an effective mechanism for the final appeal of Workers’ Compensation Board decisions p99 Future Challenges p103 Ministry Financial Information p104 Ministry Financial Analysis and Discussion p110 Financial Statements p111 Auditor’s Report on Ministry Financial Statements p134 Supplementary Ministry Financial Information p137 Workers’ Compensation Board Financial Statements p185 Appendices p186 Appendix A Government Organization Changes 2006-07 p188 Appendix B Ministry Acts p191 Appendix C Ministry Office Locations p197 Appendix D Alphabetical List of Government Entities’ Financial Statements p202 Appendix E Performance Measures Sources and Methodologies 2006-07 Employment, Immigration and Industry Annual Report Preface Public Accounts 2006-07 The Public Accounts of Alberta are prepared in accordance with the Financial Administration Act and the Government Accountability Act. The Public Accounts consist of the annual report of the Government of Alberta and the annual reports of each of the 20 Ministries. The annual report of the Government of Alberta released June 21, 2007 contains the Minister of Finance’s accountability statement and the consolidated financial statements of the Province. The Measuring Up report released June 28, 2007 provides a comparison of the actual performance results to the desired results set out in the government’s business plan. This annual report of the Ministry of Employment, Immigration and Industry contains the Minister's accountability statement, the audited financial statements of the Ministry and a comparison of actual performance results to desired results set out in the Ministry business plan. This Ministry annual report also includes: • the financial statements of entities making up the Ministry, • other financial information as required by the Financial Administration Act and Government Accountability Act, either as separate reports or as a part of the financial statements, to the extent that the Ministry has anything to report, and • additional information relating to the Department of Employment, Immigration and Industry, Alberta Economic Development Authority, Northern Alberta Development Council, Alberta Labour Relations Board, Appeals Commission for Alberta Workers’ Compensation, and Workers’ Compensation Board – Alberta. 2 2006-07 Employment, Immigration and Industry Annual Report Minister’s Accountability Statement The Ministry’s annual report for the year ended March 31, 2007, was prepared under my direction in accordance with the Government Accountability Act and the government’s accounting policies. All of the government’s policy decisions as at September 1, 2007 with material economic or fiscal implications of which I am aware have been considered in the preparation of this report. Original signed by: Iris Evans Minister of Employment, Immigration and Industry 3 2006-07 Employment, Immigration and Industry Annual Report Message from the Minister At the end of 2006, government changed, welcoming a new premier, new cabinet, several new ministries and a new direction for the province. Premier Stelmach gave me the gift of leading the newly formed Department of Employment, Immigration and Industry (EII). Several teams were combined to form this new department, including staff involved in Aboriginal programs, status of women, labour strategy, health and safety of workers, economic development, rural development, and immigration. These teams coordinated efforts to tackle enormous change while continuing to deliver great service to Albertans and address the labour force needs of the province. EII’s mission is to build Alberta’s economy and workforce to ensure a vibrant and prosperous province for all Albertans. I am proud to be a part of these activities and think they can be simplified even further – this department is about helping people be successful to ensure maximum benefit for all Albertans. The 2006-07 fiscal year saw continued, unprecedented growth in the province – one of the strongest ever recorded by a Canadian province. The numbers are truly impressive; in 2006, $90 billion in exports, $75 billion in investment, a record low 3.4 per cent unemployment rate and 86,240 employment growth. News of Alberta’s economy has spread – Alberta is a magnet for investment worldwide. On a per capita basis, investment in Alberta is more than double the national average. In the last year, I have had the opportunity to travel to Europe and the United States, bringing news of what Alberta has to offer and encouraging investment. With the province’s continued growth comes a challenge of labour and skill shortages. Launched in 2006, Alberta’s comprehensive 10-year labour strategy, Building and Educating Tomorrow’s Workforce, is a guide for increasing the number of workers, enhancing the skills and opportunities for people who have traditionally struggled to find and keep jobs, and encouraging innovative workplaces. EII continues to work on addressing the labour shortage in Alberta through renewed funding for Aboriginal students, strategies to retain mature workers, and increased technology adoption. Our first priority is to ensure Albertans who are willing and able to work, can do so. With Alberta’s low unemployment rate, we still need more people to fill the job openings. Immigration and temporary workers are a valuable resource to help manage growth pressures and build a stronger Alberta. We continue to work with our partners and stakeholders to attract and retain immigrants, and support their successful transition into the social, cultural and economic life of the province. I have heard many examples of people who have received support and advice from a variety of programs we offer to match them to a job suited to their abilities or to achieve their dreams of a new life in a new place. Having people who are well-matched to and happy in their jobs contributes to a strong labour force for the future. I am particularly proud of the more than 500 additional people who came forward due to the decision to extend the time limit under the Alberta Income Support Class Action Settlement. The decision was made to be as fair as possible to Albertans who needed more time to make claims and allowed for notices to be placed in newspapers to let more people know about the proposed settlement process. 4 2006-07 Employment, Immigration and Industry Annual Report These are just a few of the highlights from a banner year. Looking to the future, EII will continue to work on addressing the labour shortage, continuing improvements to the immigration process, and expanding economic development including new or emerging technology and alternative energy. The remainder of this document will paint a complete picture of all the work this department is doing for Alberta. Original signed by: Iris Evans Minister Employment, Immigration and Industry 5 2006-07 Employment, Immigration and Industry Annual Report Management’s Responsibility for Reporting The Ministry of Employment, Immigration and Industry includes: Department of Employment, Immigration Appeals Commission for Alberta Workers’ and Industry Compensation Alberta Economic Development Authority Workers’ Compensation Board Medical Panels Northern Alberta Development Council Workers’ Compensation Board – Alberta Alberta Labour Relations Board Occupational Health and Safety Council Rural Alberta’s Development Fund The executives of the individual entities within the Ministry have the primary responsibility and accountability for their respective entities. Collectively, the executives ensure the Ministry complies with all relevant legislation, regulations and policies. Ministry business plans, annual reports, performance