Good afternoon.
On behalf of the International Union of Operating Engineers in Canada, I am honoured to appear before the committee today.
The majority of our members build and maintain Canada's infrastructure. We build it all, such as hydro dams, mines, nuclear plants, solar farms, wind turbines and pipelines. We fully support Bill C-49 and the development of clean energy projects. However, the bill does not address the important issue of ensuring Canadians have the opportunity to work on these projects.
We have noticed that, when large projects are discussed, labour tends to be seen as an afterthought and not a forethought in decision-making. Wind farms cannot be built without a steady supply of labour, so labour must be a key focus. The Public Policy Forum estimates that the development of 1,000 offshore wind turbines near Sable Island would employ 30,000 Canadians annually during construction. It sounds wonderful. Unfortunately, there is no guarantee that Canadians will actually fill many of those positions.
If the federal government truly wants to support offshore wind, it must take measures to guarantee that Canadians work on these projects. We believe it is in Canada's best interest to encourage, through Bill C-49, the adoption of measures like project labour agreements, which cover all construction work for a project, utilize Canada's skilled tradespeople and apprentices, and ensure any foreign workers are paid the prevailing wage. At a minimum, strengthen the industrial benefits component found within the Nova Scotia and Newfoundland offshore petroleum board accords.
Look at what's happening in the U.S. on offshore wind. They have the Jones Act, which ensures that, between American ports—including offshore platforms—vessels are flagged, crewed and built by Americans. Some states have project labour agreements in place for offshore wind projects. The Biden administration encourages project labour agreements and community benefit agreements for these projects through their offshore leases.
Also, in the U.S., there's a national agreement with Ørsted, a project proponent that will help build the local workforce by guaranteeing that a certain percentage of the workforce for offshore work is local and provided by unions, and that our American members are able to shadow and receive on-the-job training. This allows the building up of a domestic workforce, gradually and realistically, for work that project proponents would otherwise seek foreign labour to do. However, even with this in place, it's estimated that, currently, only about 40% of the work is being performed by Americans.
At least there are attempts in the U.S. to ensure Americans are working on these projects. Nothing like these efforts has been discussed by any level of government in Canada. Unions, including our own, will have discussions with offshore wind project proponents. However, with no incentives from the federal or provincial governments, it's a challenge for us to ensure Canadian workers can work on these projects. As of right now, there's no guarantee that Canadians will have any of the offshore work, or even much of the onshore work, for these projects.
We ask that the committee consider labour guarantees in its deliberations on Bill C-49 and amend the bill to include a requirement that project proponents adopt project labour agreements, Canadian crewing requirements on vessels and, at minimum, some safeguards to ensure Canadians get to work on these projects.
Project labour agreements are more than just guarantees that local workers will have jobs on these projects. They're also a way for Canada to build its workforce by enshrining targets for the involvement of under-represented workers, such as women and indigenous Canadians. These types of agreements are nothing new to the Atlantic provinces and, in fact, have helped Atlantic Canadians obtain work on the projects that have impacted their communities.
Federal policies and incentives relating to offshore wind development should aim to benefit Canadian workers and their communities. We believe the federal government must take the lead in every effort to ensure Bill C-49 reflects the goal of supporting and building Canada's workforce. Some of the suggestions we've outlined today would be the best avenues for doing so.
Thank you.