25
Funded in part by the Government of Canada and the Government of Alberta Photo Courtesy Savanna Energy Services Corp. HR Trends and Insights: Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

Embed Size (px)

Citation preview

Page 1: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

Funded in part by the Government of Canada and the Government of Alberta

Photo Courtesy Savanna Energy Services Corp.

HR Trends and Insights:

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

Page 2: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 2 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

HR TRENDS AND INSIGHTS: EXPLORING APPRENTICESHIP COMPLETIONS OF SKILLED TRADES IN THE UPSTREAM OIL AND GAS INDUSTRY

TABLE OF CONTENTS

Executive Summary ...................................................................... 3

Introduction: Growing Demand for Skilled Trades in the

Oil and Gas Industry...................................................................... 4

New Registrations in Apprenticeship Training Programs .......... 7

Apprenticeship Completions in Alberta ....................................... 8 Spotlight: Measuring Apprenticeship Completion Rates .............. 8

Factors Impacting Apprenticeship Completions ....................... 10 System-Based and Labour Market Factors ............................... 10 Employer-Specific Factors ........................................................ 10 Apprentice-Specific Factors....................................................... 10

Benefits of Hiring Apprentices ................................................... 12 Spotlight: Financial Resources for Apprentices

and Employers of Apprentices .................................................. 12

Effective Strategies to Increase Completion Rates ................... 13

Conclusion ................................................................................... 14

Appendix A: Provincial Financial Resources for Apprentices

and Their Employers ................................................................... 15

Appendix B: Report Methodology .............................................. 19 Key Data Sources ..................................................................... 19 Useful Definitions ...................................................................... 19

Endnotes ...................................................................................... 20

Acknowledgements ..................................................................... 24

Page 3: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 3 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

EXECUTIVE SUMMARY

The demand for skilled trades workers in the upstream oil and gas industry is expected to grow over

the next decade, but a limited supply of certified journeyperson1 trades workers is projected to result

in chronic and long-term labour shortages for skilled trades. This report examines apprentices as a

possible pool of workers that could meet this demand.

Much has been done to increase the number of

workers registering as apprentices. The following

factors, combined with positive economic conditions,

have meant that new apprentice registrations have

grown quickly in oil-producing provinces in the past

few years.

Governments and educational institutions

have implemented strategies to improve

apprenticeship education, increase the

number of seats available in training

programs, attract more workers to trades and

provide financial incentives for employers and

workers.

Large oil and gas producers, such as Suncor,

Shell and Imperial, are beginning to set

performance standards that require contractors

to employ a target number of apprentices as

part of their contract agreement. Future contract

agreements may also require that contractors

demonstrate the progression of apprentices

through technical training programs into higher

apprenticeship levels.

Despite these changes, however, apprenticeship

completions and certifications have not grown

proportionally. A low apprentice completion rate

threatens to leave the oil and gas industry with a

limited supply of experienced and qualified

journeyperson trades workers in future years. A

complex set of factors impact completion rates, and no

single reason explains why apprentices may not

complete their programs. If employers understand the

scope of interrelated factors that lead to non-

completions, they can implement policies and

practices that support workers throughout the

apprenticeship training period.

Employers in the oil and gas industry can play an

influential role in helping apprentices to progress

through their training program and complete their

apprenticeship. Successful completion of an

apprenticeship is directly dependent on sustained

employment over the course of the program; therefore,

employing the apprentice over the entire apprenticeship

period is critical. Employers can also encourage

apprentices to take time off work to complete technical

training.

WHAT’S INCLUDED IN THIS REPORT

This research highlights the critical importance of apprenticeship completion* in meeting the future supply

of skilled trades workers in the oil and gas industry. The report analyzes and identifies trends in

apprenticeship training for trades occupations that are core to the oil and gas industry. It then explores the

effective strategies that companies have employed to retain apprentices, encourage their progression

through technical training and improve completion rates.

The report contains:

information on recent trends in apprenticeship training and completions, in particular for trades that

are core to the oil and gas industry

explanation of factors contributing to non-completion of apprenticeships

effective strategies that employers are using to improve apprenticeship completion rates

* While apprenticeship completions are an important topic, this report does not attempt to calculate apprenticeship completion rates with precision.

Page 4: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 4 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

As large oil and gas producers begin implementing

requirements for contractors to employ apprentices,

forward-looking contractors are establishing formal

apprenticeship programs. These programs ensure

sustained employment of apprentices throughout

apprenticeship terms and promote successful

progression of apprentices through technical training.

A review of data, literature and interviews with

apprenticeship stakeholders identified several effective

strategies that employers can implement to increase

apprenticeship completion rates.

Prepare prospective apprentices for the job

by helping them understand the job duties,

working conditions, employer expectations

and requirements for success before

beginning the program. The effort spent in

preparation reduces the chance that workers will

leave their job or the trade in the first few years.

Foster a strong mentoring relationship

between journeypersons and apprentices.

Effective employers are able to build a high-

quality relationship between the apprentice

and mentor by employing the following tactics:

o ensuring the right fit between

apprentice and mentor

o providing a formal training plan

o promoting effective communication

(including intergenerational and cross-

cultural communication)

These steps can greatly affect the level of

satisfaction and engagement of the apprentice.

Develop a company culture that encourages

apprentices to complete their technical

training. Apprentices require time off of work

to complete technical training, and employers

that encourage and plan for this are

communicating to the apprentice the high

value placed on completion. Additionally,

employers with a positive training culture are

cautious when offering higher wages as an

incentive to delay the apprentice’s training.

Provide apprentices the support needed to

successfully complete their apprenticeship

program. This support can include the

following:

o sustaining employment of the apprentice

throughout the apprenticeship period

o training the apprentice in all categories

of technical skills required in the trade

o helping the apprentice cover technical

training and associated costs

Establish transition plans to help

apprentices complete training and

certification after lay-offs or during

economic downturns.

By using these strategies to implement apprenticeship

programs, oil and gas employers can increase

apprenticeship completions and expand the labour

supply of qualified tradespeople available to the oil and

gas industry for future years.

Page 5: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 5 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

INTRODUCTION: GROWING DEMAND FOR SKILLED TRADES IN THE OIL AND GAS INDUSTRY

Canada’s upstream oil and gas industry is estimated to employ more than 45,000 skilled tradespeople,

and industry demand for these workers is projected to grow by approximately 7,100 jobs by 2022.2

Demand for tradespeople is expected to grow in all skilled trades occupations, with particularly strong

demand for power engineers, heavy equipment operators, and oil and gas well drillers, servicers, testers,

and related workers (Table 1 below).

TABLE 1 Source: Canada Labour Market Outlook to 2022 Expansion Excel, Petroleum HR Council, 2013

* A portion of data describing apprenticeship programs for industrial electricians is reported for all electricians (industrial and non-industrial).

** Apprenticeship programs for insulators are not tracked by Statistics Canada; however, the provinces that provide apprenticeships for insulators provide some statistics on entrance and completion of apprenticeship programs.

Oil and gas producing regions across Canada are

expected to experience increasing demand for workers

in skilled trades occupations over the next decade.

Alberta: Between 2013 and 2023, Alberta is expected

to experience shortages (projected hiring demand

minus projected supply) of 6,788 workers in skilled

trades occupations that are core to the oil and gas

industry (Figure 1, page 6).3

British Columbia: Industry expansion in British

Columbia is expected to result in new demand for over

7,637 additional tradespeople in core oil and gas

occupations between 2010 to 2020 (Figure 2, page 6).4

Saskatchewan: The number of trades employment

opportunities due to new job creation in Saskatchewan

will be approximately 5,400 additional trades and

transport workers from 2013 to 2017.5

Atlantic Canada: In Newfoundland and Labrador, the

greatest occupational demand between 2011 and

2020 include Oil and Gas Drillers, Supervisors for Oil

and Gas, Operators in Oil and Gas Drilling, and

Machinery Equipment Mechanics.6

NOTE: Manitoba is also considered an oil-producing province but the Province does not maintain an occupational demand forecast or outlook.

TRADES OCCUPATIONS IN THE OIL AND GAS INDUSTRY: PROJECTED INCREASES IN EMPLOYMENT TO 2022 – EXPANSION SCENARIO

Occupation NOC

(2006)

Estimated Employment

2014

Hiring Due to Industry

Activity to 2022

Percentage Growth to 2022

Total – Trades Occupations 45,035 7,110 16%

Power engineers (steam-ticket required) 7351 5,720 2,170 38%

Heavy equipment operators (except crane) 7421 7,940 1,505 19%

Oil and gas well drillers, servicers, testers and related workers

8232 13,225 1,095 8%

Heavy-duty equipment mechanics 7312 2,565 550 22%

Millwrights 7311 4,595 495 11%

Welders 7265 3,745 445 12%

Industrial electricians* 7242 2,180 380 17%

Steamfitters and pipefitters 7252 2,745 245 9%

Machinists and machining and tooling inspectors

7231 980 90 9%

Insulators** 7293 665 70 11%

Crane operators 7371 680 60 9%

Page 6: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 6 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

Projected Labour Shortages of Skilled Projected Hiring Demand Due to New Job Trades Workers in Alberta to 2023 Creation 2010–2020, British Columbia, Selected Skilled Trades

FIGURE 1 Source: Alberta’s Occupational Demand FIGURE 2 Source: RTO Resource Labour and Supply Outlook 2013–2023 Market Information Report 2012

Page 7: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 7 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

NEW REGISTRATIONS IN APPRENTICESHIP TRAINING PROGRAMS

The number of new apprenticeship registrations is growing. The increase is attributed to positive

economic conditions and the coordinated efforts of stakeholders to attract workers to careers in trades,

provide high-quality technical education and offer incentives to companies to hire apprentices (through

tax credits).

Growth in apprentice registrations is especially strong in

Canada’s largest oil-producing province, Alberta, where

the total number of new apprentices registered in 2013

grew by almost 50 per cent from 2010.7 Alberta

Apprenticeship and Industry Training (AIT) certifies the

most compulsory trades of any province,8 many of which

are linked to the oil and gas industry. Although Alberta

has only 12 per cent of Canada’s labour force, it trains

approximately 20 per cent of the country’s apprentices. 9

In 2013, Alberta gained almost 15,000 new trades

workers for the oil and gas industry, including nearly

13,800 new apprentices in core trades for oil and

gas10 and almost 1,100 new valid power engineers.11

If the province were able to maintain this high level of

new registrations (and if all of the apprentices

completed their training), within 12 years, Alberta

could double the labour force of oil and gas trades

occupations.12

New apprentice registrations are highly cyclical (Figure

3 below), and apprentices are frequently laid off during

economic downturns. Fluctuations in apprenticeship

registrations are more acute in Alberta (and other

major petroleum producing provinces) than in Canada

as a whole, due to the cyclical nature of the oil and gas

industry. Since progression through apprenticeship

programs is dependent on employment, apprentices

who are unable to find new employment in their

apprentice occupation may change careers,

decreasing the number of apprentices and future

trades workers available to the oil and gas industry.

Furthermore, several years are required to complete

apprenticeships for most trades, so when layoffs

cause a decline in the number of apprentices in

training, it takes several years and a period of

sustained economic growth for the channel of

apprentices to recover and begin to produce certified

journeypersons.

Figure 4, below, illustrates how large increases in

registered apprentices may result in only moderate

increases in apprenticeship completions, which begin

to have an effect several years after new registrations

occur.

Growth in New Apprenticeship Registrations Registered Apprentices, New Registrations 1991–201113 and Apprentice Completions 1991–2011, Major Oil-producing Provinces 14

FIGURE 3 Source: Cansim Tables 477-0053 FIGURE 4 Source: Cansim Table 477-0053, 477-0054,477-0055, Statistics Canada15

Page 8: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 8 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

APPRENTICESHIP COMPLETIONS IN ALBERTA

Although the number of apprentice registrations has increased over the past two decades, there are

indications that completions have declined. The Alberta Apprenticeship and Industry Training (AIT) Board

Profiles 2013 estimates the “real completion rate” was 77 per cent in 2012–2013, down from 80 per cent

in 2009–2010.16

SPOTLIGHT: MEASURING APPRENTICESHIP COMPLETION RATES Apprenticeship completion rates are difficult to calculate with precision because some apprentices leave an

apprenticeship program and then re-enter at a later date, and other apprentices take longer to complete a

program than the expected on-time completion time. Additionally, some workers are able to obtain a trade

certificate by exam without formally completing all the apprenticeship requirements (e.g., when transferring

between provinces).

No consensus has been reached regarding the best measure for apprenticeship completion rates, and

estimates differ significantly based on the calculation method used. Two examples of completion-rate

calculations are referenced in this document:

“Real Completion Rate” is the measure used by AIT and is calculated based on the cohort of apprentices

who have completed all the requirements for their first period of apprenticeship training and went on to

complete their program within two years past the normally expected completion date.

“Implied On-Time Completion Rate” 17 uses data from the Registered Apprenticeship Information System

(RAIS) and is the number of apprenticeship completions in a given year divided by the number of new

apprenticeship registrations in an earlier year. The duration of each apprenticeship is between one and four

years. The “earlier” year corresponds to the prescribed length of the apprenticeship program (see Table 2

[page 9] for examples).

The economic cycle is one of the key reasons that the

number of apprenticeship completions is significantly

lower than the number of apprenticeship registrations.

Since progression and completion in apprenticeship

programs is dependent on continued employment, any

economic disruption can mean that years of

apprenticeship training is lost if workers transition to

different careers during economic downturns. This has

historically been the case for many experienced oil

and gas apprentices who sought more stable

employment following a layoff.

Despite the complexity of obtaining universally agreed-

upon figures, apprenticeship completion rates can

improve, and coordinated action by oil and gas

employers can impact the number of skilled

tradespeople available to the oil and gas industry in

the future.

Figure 5 (Page 9) shows the implied on-time completion rates in Alberta apprentice programs for six core oil and

gas occupations declined between 1995 and 2010.18 In 2013, Alberta’s implied on-time completion rates for apprentices in selected core occupations ranged from a low of 22 per cent for rig technicians to a high of 59 per cent for electricians. (See Table 2 [page 9] for calculations and Spotlight [above] for more explanation.)

The Economic Cycle

Page 9: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 9 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

Implied On-Time Completion Rates of Apprentice Programs in Alberta, Selected Occupations Core to the Oil and Gas Industry

FIGURE 5 Source: Cansim Tables 477-0053, 477-0054, 477-0055, Statistics Canada. Calculations by PHRC. 19

TABLE 2 Source: Alberta Apprenticeship and Industry Training Board, Statistical Profiles 2013. Implied completion rates calculated by PHRC.

“IMPLIED ON-TIME” COMPLETION RATES FOR CORE OIL AND GAS TRADES PROGRAMS, ALBERTA, 2013

Four-Year Programs New Apprentices

Registering in 2009 (A)

Apprentices Completing

Programs in 2013 (B)

Implied Completion Rate in Four Years

(B/A)

Electricians 2210 1302 59%

Heavy equipment technicians 1214 684 56%

Millwrights 443 234 53%

Machinists 179 75 42%

Three-Year Programs New Apprentices

Registering in 2010 (A)

Apprentices Completing

Programs in 2013 (B)

Implied Completion Rate in Three Years

(B/A)

Gasfitters 146 85 58%

Welders 1258 694 55%

Steamfitters and Pipefitters 1028 387 38%

Rig technicians 550 123 22%

One-Year Programs New Apprentices

Registering in 2012 (A)

Apprentices Completing

Programs in 2013 (B)

Implied Completion Rate in One Year

(B/A)

Crane and hoisting equipment operators 1,284 446 35%

Page 10: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 10 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

FACTORS IMPACTING APPRENTICESHIP COMPLETIONS

A complex set of factors affects whether workers complete an apprenticeship program. The 2007 National

Apprenticeship Survey asked more than 17,500 apprenticeship discontinuers about the reasons for their

apprenticeship non-completion. Of those who responded, 30 per cent checked the “other” category as

the top reason for discontinuing their apprenticeship.20

In addition to “other reasons,” commonly cited reasons

for non-completion included the following:

“not enough work or income” (16 per cent)

“receiving another job offer” (10 per cent)

“disliked the work or working conditions” (8 per

cent)

“lost interest in the trade/changed career”

(8 per cent)

“illness, disability and medical reasons”

(7 per cent)21

Canadian Apprenticeship Forum (CAF) research on

reasons for non-completion of apprenticeships22

identifies three broad factors that affect non-completion:

system-based and labour market factors (the most

frequently cited factors), employer-specific factors and

apprenticeship-specific factors. Additional insights

specific to the oil and gas industry were provided by

selected managers in the oil and gas industry as well as

managers in provincial apprenticeship training programs

in oil-producing provinces.23

SYSTEM-BASED AND LABOUR MARKET FACTORS

Many workers do not have a good grasp of what will

be involved in their apprenticeship and discontinue

their program because of difficult working conditions,

financial problems or other factors.

Layoffs during economic downturns were

among the top reasons apprentices did not

complete their training.

The high cost of training was also cited as

problematic. During classroom training periods,

apprentices are typically unpaid for several

weeks. In that same period, they must also pay

for classes and books. Some qualify for

employment insurance (EI) benefits, but these

benefits cover only a portion of the lost wages

that an apprentice could have earned while

working.

EMPLOYER-SPECIFIC FACTORS

The selected experts interviewed mentioned

that apprentices face a number of employer-

specific challenges:

Employers in the oil and gas industry may

find it difficult to provide apprentices with

experience across the full scope of practice

for the trade.

Adequate on-the-job training is sometimes

lacking from qualified journeyperson mentors

who are trained to supervise and instruct

apprentices.

Demanding business requirements make it

difficult to operate with a reduced workforce,

therefore, some employers are reluctant to

provide apprentices with any time off of work

to complete classroom training. In some

cases, employers encourage apprentices to

keep working, rather than take time off for

technical training, by offering higher wages.

APPRENTICE-SPECIFIC FACTORS

Top challenges cited by the stakeholders interviewed

for this report focused on the lack of preparation and

lack of understanding of apprenticeship work

conditions and requirements.

Some employers are not able to provide

adequate onboarding of apprentices during

periods of economic growth (due to rapid

hiring requirements). This results in low

workplace performance and reduces the

chance of program completion.

Some apprentices are reluctant to complete

training because they are concerned about

the added level of responsibility of becoming

a journeyperson.

Others are concerned their employer will

discontinue their employment when they

complete their apprenticeship and move to a

higher wage level.

Page 11: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 11 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

Table 3 provides a summary of findings from stakeholder interviews and CAF research.

TABLE 3 Sources: Interviews with Apprenticeship Stakeholders and Investigating Apprenticeship Completion in Canada (Canadian Apprenticeship Forum, 2011)

FACTORS AFFECTING APPRENTICESHIP COMPLETION RATES

System-Based and Labour Market Factors

Some apprentices enter careers where there are few or no jobs available.

Downturns in economic cycles can lead to layoffs of apprentices, possibly without explaining to the apprentice that the layoff is unrelated to work performance.

High costs are related to tuition, books, tools and other items, which can discourage progression in apprenticeship training.

Apprentices may be reluctant to continue training due to loss of work income during classroom technical training periods. Remote working locations make it challenging for apprentices who need to relocate to a city for classroom training.

Some apprentices are not able to afford or find accommodations during their period of study while maintaining accommodations at home.

Employer-Specific Factors

Some employers do not provide apprentices with the variety of experience required across the scope of practice for the trade, effectively preventing the apprentice from progressing.

Some employers offer apprentices higher wages, which discourages them from progressing as they continue to work as an employee without taking time off for technical training.

The workplace may lack a mentoring culture or formal mentoring program. Without a mentoring program and formal training, some journeypersons are unprepared to be an effective mentor, which leads to an unpleasant on-the-job training experience.

Poor communication between journeyperson mentors and apprentices can lead apprentices to leave the trade.

A lack of permanent employment can mean that some workers are unable to complete their required hours of practical training.

Companies reliant on short-term projects are less able to maintain continuous employment for apprentices.

Some employers argue that it is difficult to hire apprentices and still satisfy contractual agreements.

Harassment at the work site can be a factor.

Apprentice-Specific Factors

Some apprentices have problems with poor performance, unreliability, inability to work in a team and difficulties with supervision.

Some younger workers explore and then decide not to pursue a career in trades.

With limited experience of the program, some apprentices may find the working conditions are not a good fit. Remote worksites and difficult working conditions are common in oil and gas field operations.

The classroom component of trades training (together with exam anxiety) can be an obstacle to completion for apprentices who struggle with math or reading.

Some apprentices worry about losing their job while on leave in technical training.

Some apprentices are reluctant to take on the higher level of responsibility that comes with being a journeyperson.

Many apprentices do not complete their program because they do not see the value in completion or do not understand the career path which eventually leads to certification.

Page 12: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 12 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

BENEFITS OF HIRING APPRENTICES

Employers in the upstream oil and gas industry that hire apprentices can benefit in the following ways:

Canadian Apprenticeship Forum (CAF) research

has shown that employers with apprentices

experience an average incremental revenue of

$1.47 for every dollar they invest in apprentice

training (a return of nearly 50 per cent).24

Tax credits and grants are available to

employers to offset a portion of the costs (see

Spotlight below and Appendix A).25

SPOTLIGHT: FINANCIAL RESOURCES FOR APPRENTICES AND EMPLOYERS OF APPRENTICES

For Registered Apprentices

Registered apprentices are able to benefit from several financial resources:

The Canada Apprentice Loan, established through the Economic Action Plan 2014, will offer interest-

free loans to help registered apprentices with the cost of their technical training. Apprentices

registered in their first Red Seal trade apprenticeship will be able to apply for interest-free loans of up

to $4,000 per period of technical training.

The Apprenticeship Incentive Grant (AIG) is a taxable cash grant for registered apprentices in

designated Red Seal trades of $1,000 per year, up to a maximum of $2,000.

The Apprenticeship Completion Grant (ACG) is a taxable cash grant of $2,000 that helps registered

apprentices who have completed their training to become certified journeypersons in designated Red

Seal trades.

The Tradespersons' Tools Deduction is a Canada Revenue tax benefit that may allow apprentices to

deduct the cost of eligible tools bought to earn employment income as a tradesperson.

The Tuition Tax Credit for Certification Examination Fees is a tax credit for workers who incur

occupational, trade or professional examination fees of over $100 in order to obtain a professional

status, certification or license in a trade.

Provincial support for apprentices is also available. See Appendix A for a listing of relevant programs.

For Employers of Apprentices

Employers who hire apprentices are entitled to the Apprenticeship Job Creation Tax Credit (AJCTC). The

AJCTC is a non-refundable tax credit that encourages the hiring of young apprentices in certain high-

demand trades. The AJCTC is equal to 10 per cent of the eligible salaries and wages payable to eligible

apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is

$2,000 per year for each eligible apprentice. This credit is applied against the federal taxes owing.

Some provinces also offer financial assistance to companies who employ apprentices. See Appendix A for

a listing of relevant programs.

Page 13: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 13 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

EFFECTIVE STRATEGIES TO INCREASE COMPLETION RATES

Employers in the oil and gas industry can help to expand the labour supply pool of qualified tradespeople

by increasing apprenticeship completion rates. The first step is to invest in an apprenticeship training

program. For employers new to hiring apprentices, the provincial apprenticeship training organizations

and the CAF provide materials to streamline and simplify the process.26

EFFECTIVE STRATEGIES TO INCREASE COMPLETION RATES

Prepare new

apprentices for the

job before they

begin the program

Employers can expose candidates to the work conditions and requirements of the

workplace prior to starting the job by establishing or participating in exploratory career

programs. Candidates who understand job duties, working conditions, employer

expectations and requirements for success before registering for an apprenticeship are

more likely to complete the trades training.27

Ensure a strong

mentoring

relationship between

journeypersons and

apprentices

CAF research has shown that the relationship between a journeyperson mentor and an

apprentice strongly influences whether a worker completes apprenticeship training.28

Companies with effective mentoring programs retain apprentices by ensuring a good match

between the journeyperson and apprentice. They also offer training to mentors to improve

their communication with apprentices, paying specific attention to intergenerational or

intercultural differences. The relationship between apprentice and mentor is also supported

by a detailed training plan that helps both the apprentice and mentor track progress.

Conducting ongoing mentoring evaluation and providing journeypersons with ongoing

support is also beneficial.29

Create a company

culture that

encourages

apprentices to

continue technical

training

Stakeholders interviewed for this report indicated that some oil and gas employers

implement policies encouraging workers to complete their technical training and progress

toward certification as a journeyperson. Employers that establish a training culture that

rewards progress and completion are communicating to apprentices the value of

certification. Despite business pressures, these employers provide apprentices the

necessary time off work to complete classroom training. Some even associate pay

increases solely with the completion of technical training.

Provide apprentices

with the support

needed to

successfully

complete their

apprenticeship

program

Employers with effective apprenticeship programs begin with a commitment to sustained

employment of the apprentice throughout the term of apprenticeship. In order for

apprentices to progress, these companies ensure that apprentices gain experience in the

full scope of practice for the trade. Apprentices also benefit from financial support during

technical training to offset the hardships and difficulties of leaving work to return to school

or relocating to another city for technical training. Some employers pay their apprentices

while they are in school or augment EI benefits so apprentices continue to receive the

equivalent of their wages while in school. This can help to offset some of an apprentice’s

costs during training and improve employee engagement and retention.30 Other employers

encourage workers to access blended learning programs, offered by colleges, such as the

Southern Alberta Institute of Technology (SAIT), that allow apprentices to complete a

portion of their technical training online, thus requiring less time away from work. An

opportunity also exists for employers to allocate time blocks for apprentices to complete

online training at the work site. For apprentices with learning difficulties, employers can

provide access to learning resources, such as tutoring for technical training, exam

preparation courses and coaching to improve confidence during exams.

Page 14: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 14 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

EFFECTIVE STRATEGIES TO INCREASE COMPLETION RATES

Establish transition

plans for

apprentices that

help them to

complete training

and certification

regardless of

economic cycles

Employers can direct candidates to other employers who are hiring or help them arrange

for technical training during an economic downturn. Employers who are forced to lay off

apprentices may encourage them to remain within the trade by clearly communicating to

workers that the separation is a result of economic conditions, not a reflection on the

employee’s performance. Employers can help apprentices during layoffs by connecting

them with programs such as the Apprentice BC Program (www.apprenticebc.ca) or similar

programs that connect apprentices with employers.

Establish

prerequisites that

contractors must

hire apprentices

Companies such as Shell, Suncor and Imperial are currently implementing policies that

require contractors to employ apprentices and may introduce future policies that require

contractors to demonstrate that apprentices are progressing through their training program.

TABLE 4 Source: Interviews with Apprenticeship Stakeholders

Conversely, oil and gas employers can hire apprentices that are transitioning out of other industries, helping them

complete their training while acquiring workers with a higher level of experience. According to apprenticeship

training stakeholders, trades skills are often very transferable between industries.

Although apprentices from other industries may not have direct experience in oil and gas, they may have related

skills that transfer well into the oil and gas industry. More public information on these transferable skills is needed

to better educate workers and prospective employers. Examples of industries that do have similar skill sets are

construction, manufacturing, transportation and warehousing, utilities, agriculture and forestry.31

CONCLUSION

The demand for skilled tradespeople in the oil and gas

industry is expected to grow, and while economic

conditions are good, employers in the oil and gas

industry have an opportunity to boost apprentice

completion rates and increase the future supply of

skilled workers available to the oil and gas industry. By

implementing strategies outlined in this report, oil and

gas employers can build strong relationships with

apprentices and grow their talent from within.

“Most of the work is in the preparation. Employers need to be prepared to support apprentices and apprentices need to be prepared for the path they are facing. Understanding this really helps.”

– Doug MacLaren, Chief Executive Officer of the Resource Training Organization of British Columbia (RTO), responsible for overseeing the management and development of apprenticeship training for the resource sector in BC.

Page 15: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 15 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

APPENDIX A: PROVINCIAL FINANCIAL RESOURCES FOR APPRENTICES AND THEIR EMPLOYERS

PROVINCIAL FINANCIAL RESOURCES FOR APPRENTICES

Province Assistance Program Amount Type of Program

Alberta Apprentice Income Support

Amount varies, depending on financial need.

Grant can be used to cover tuition, books and living expenses incurred while attending the technical training of an apprenticeship program.

British Columbia

Basic Tax Credit $1,000 tax credit for completion of levels 1 or 2 of a BC-recognized (non-Red Seal) program.

Tax credit

Completion Tax Credit

$2,000 for completion of level 3 and $2,500 for completion of level 4 or higher.

Tax credit

Enhanced Tax Credit $1,500 tax credit for completion of levels 1 or 2 of a BC-recognized (non-Red Seal) program or $500 per level for Red Seal trade. $3,000 for completion of level 3 and $3,750 for completion of level 4 or higher.

Tax credit is available to any First Nations individual or a person with a disability that is entitled to a Basic or Completion Tax Credit.

Certification Tax Credit

Amount varies by trade Tax credit

Saskatchewan Graduate Retention Program (GRP)

The maximum refund is $3,000. GRP provides a refund for tuition fees paid by eligible graduates who live in Saskatchewan and who file a Saskatchewan income tax return.

Employee’s Tool Tax Credit

The maximum amount is dependent upon the trade group in which the individual is employed.

Tax credit offsets the cost of tools that are required for the trade.

Page 16: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 16 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

TABLE 4 Source: Tax Credits and Grants for employers, apprentices, journeypersons and trade qualifiers in Canada (Canadian Apprenticeship Forum, 2014)

Manitoba High School Apprenticeship Program (HSAP) Incentive

The value of the incentive varies by trade and is calculated using the number of levels in the apprentice’s chosen trade and the applicable tuition fee rates.

Tuition exemption for one level of technical training to a maximum of four levels.

Tuition Fee Income Tax Rebate

Graduates are entitled to receive a 60 per cent income tax rebate on their eligible tuition fees to a maximum benefit of $25,000.

Tax rebate to be claimed over as little as 6 years or as long as 20 years.

Journeyperson Business Start Program

Program provides a contribution of up to $2,500 based on 50 per cent of eligible expenditures.

Grant helps cover the cost of purchasing necessary equipment, tools, supplies, buildings, leasehold and building improvements related to starting a trade-related business.

Provincial Assistance from Employment Manitoba

Employment Manitoba determines the amount of funding participants may receive.

Eligible costs may include tuition, living allowance, childcare, commuting allowance, living-away-from-home allowance, travel assistance and disability allowance.

Funding Assistance for First Nations Bands or Manitoba Metis Federation (MMF)

Employment Manitoba determines the amount of funding participants may receive.

Grant helps individuals belonging to a First Nations Band to cover costs of travel, tuition, books, emergencies or living-away-from-home allowance

Nova Scotia

Provincial Apprentice Progression Award

Apprentices in four-level apprenticeship programs may receive $700 upon completing all Level 3/Group C technical training, and apprentices in five-level apprenticeship programs may receive an additional $700 upon completing all of their technical training for Level 4/Group D.

Taxable award

Provincial Apprentice Completion Award

The Provincial Apprentice Completion Award is $1,000.

Taxable award

Page 17: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 17 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

PROVINCIAL FINANCIAL RESOURCES FOR EMPLOYERS OF APPRENTICES

Province Assistance

Program Amount Type of Program

British Columbia

Basic Tax Credit After June 30, 2009, employers can receive 20 per cent of eligible salary and wages up to $4,000.

The Basic Tax Credit is based on the salary and wages an employer pays an eligible apprentice in the first 24 months of a non-Red Seal apprenticeship program. It is a refundable income tax credit for employers who employ apprentices enrolled in apprenticeship programs administered through the Industry Training Authority.

Completion Tax Credit

For Level 3, employers can receive 15 per cent of eligible salary and wages up to $2,500. For Level 4, employers can receive 15 per cent of eligible salary and wages up to $3,000. For Level 5, employers can receive 15 per cent of eligible salary and wages up to $3,000.

The Completion Tax Credit is based on the salary and wages paid to an apprentice in the 12 months prior to the apprentice completing a level. This tax credit is available for both Red Seal and non-Red Seal apprenticeship programs. For an employer to receive the credit, the apprentice must complete level 3 or higher of an apprenticeship program.

Enhanced Tax Credit

There is a total maximum tax credit up to $6,000. The amount depends on level completed.

The Enhanced Tax Credit is available to employers of First Nations individuals and persons with disabilities who are entitled to a Basic or Completion Tax Credit, or who are entitled to the federal Apprenticeship Job Creation Tax Credit for the year.

Manitoba Early-Level Apprentices Hiring Incentive (ELA-HI)

Employers may claim a 10 per cent tax credit for wages paid to apprentices in levels 1 and 2, up to a maximum of $2,000 per year per apprentice, effective January 1, 2011. As of January 1, 2013, employers in Winnipeg are able to claim 15 per cent of wages, up to a maximum of $3,000 per year per apprentice. Employers in rural and northern Manitoba are able to claim 20 per cent of wages, up to a maximum of $4,000 per year per apprentice.

This refundable tax credit is designed to assist employers who are not eligible for the federal Apprenticeship Job Creation Tax Credit (AJCTC).

Advanced-Level Apprentices Hiring Incentive (ALA-HI)

Employers are able to claim a five per cent tax credit for wages paid to apprentices for levels 3, 4 and 5, effective January 1, 2009, up to a maximum of $2,500 per year per apprentice. As of January 1, 2013, employers can claim 10 per cent of wages, up to a maximum of $5,000 per level per apprentice.

The ALA-HI is a refundable tax credit for employers of advanced-level apprentices in all trades in Manitoba.

Page 18: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 18 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

TABLE 5 Source: Tax Credits and Grants for employers, apprentices, journeypersons, and trade qualifiers in Canada (Canadian Apprenticeship Forum, 2014)

Journeyperson Hiring Incentive (J-HI)

The J-HI is equal to five per cent of wages and salaries paid to a journeyperson (net of other government assistance) up to $2,500 per 12 months of employment for each journeyperson. An eligible employer may earn the credit for each of the first two 12-month periods of permanent, full-time employment of a journeyperson for work performed in their certified trade primarily in Manitoba. Employers in Winnipeg are able to claim 10 per cent of wages, up to a maximum of $5,000 per year per journeyperson.

The JH-I is a refundable tax credit for employers of recent completers of apprenticeship programs.

Nova Scotia START Program Incentives will vary depending on the type of employment offered, the skill level of the employee and could include a retention bonus.

This pilot program for the fiscal year 2012–2013 is intended to encourage small- and medium-sized businesses to hire eligible Nova Scotians requiring work experience or apprenticeship support.

Newfoundland and Labrador

Journeyperson Mentorship Program

Funding will normally be provided for periods ranging from 6 to 12 months and may be eligible for an extension based on satisfactory progress assessment/ reports and the availability of funds. Individual applicant funding shall be calculated based on recognized salary rates for a journeyperson in the particular trade area and tailored to the specific employer. The journeyperson mentor must be employed full-time with the specific employer, which is recognized as a minimum of 35 hours per week, in order to receive funding.

This program provides financial contributions to eligible employers to fund a journeyperson mentor to support apprentices on the job.

Apprenticeship Wage Subsidy Program

A financial incentive of up to $14/hour will be provided to employers to help offset salary costs of hiring apprentices. A differential contribution rate will be applied to participating apprentices based on their years of experience in the trade.

This program assists underemployed and unemployed apprentices in the skilled trades, particularly those in their first and second years of block training, by providing funding to employers to help offset the salary costs of hiring apprentices.

Page 19: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 19 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

APPENDIX B: REPORT METHODOLOGY

This report analyzes statistics and trends in apprenticeship training for trades occupations that are core to the

oil and gas industry. It also explores the factors that cause workers to discontinue their apprenticeship

programs and identifies effective strategies to boost apprenticeship completions.

The report is based on a review of apprenticeship statistics

and interviews with selected experts who are either

managers in the oil and gas industry or managers in

provincial apprenticeship training programs for oil and gas

trades occupations in the oil-producing provinces (Alberta,

British Columbia, Saskatchewan, Manitoba, Nova Scotia,

and Newfound and Labrador).

Although apprenticeship completions are an important topic,

the report does not attempt to calculate apprenticeship

completion rates with precision. Stakeholders use many

different methodologies to calculate completion rates, which,

in some cases, exclude apprentices that register in their first

year and do not progress after that year. In addition, while

the prescribed time to complete an apprenticeship may be

four years, many apprentices complete their program in five

or six years. Others will drop out of the apprenticeship

program and then later re-enter, and others still will never

complete their program, but may obtain a certificate through

examination. While the preferred methodology for calculating

apprenticeship completion rates is a matter of debate, the

consensus among stakeholders is that there is significant

opportunity to increase the level of engagement, progression

and completion of apprenticeships and that employers

can play a key role by implementing some carefully

considered processes.

KEY DATA SOURCES

The Registered Apprenticeship Information System (RAIS)

The RAIS is a national system managed by Statistics

Canada to gather information on individuals who receive

training and those who obtain certification within a trade

where apprenticeship training is being offered.

Alberta Apprenticeship and Training Board Statistical Profile 2013

This study contains detailed information on apprenticeship

programs in Alberta. Of particular interest for this study are

total registered apprentices, by trade; total certificates, by

trade; total registered apprentices, by trade and training

program period (First period through fourth period [or year]);

and total new registrations, by trade. The report covers

Alberta trades in-depth, providing insight on apprenticeships

that are of interest to the oil and gas industry such as the rig

technician apprenticeship program.

Power Engineer Statistics for Alberta (January 2013–December 2013)

This study is published by the Alberta Boilers Safety

Association (ABSA), which regulates the power engineer

occupation in Alberta. It contains information on the number

of valid power engineers by class in Alberta. Power

engineers are not a skilled trade managed by Alberta

Apprenticeship and Training Board and are therefore

reported separately in this report.

USEFUL DEFINITIONS

Apprentice Certificates

Reflects the number of certificates awarded to individuals

who have completed their apprenticeship program (counted

as a completion) and have met all other requirements for

certification. Certification can occur in the same period as

completion, or it could occur in a future period, if for

example, a worker completes the required hours of

experience in one year and takes the exam in a future

year.32

Apprenticeship Completions

Reflects individuals who completed an apprenticeship

program during a stated period. Completion of the program

does not imply certification, which is usually achieved

through an exam.33

New Apprentice Registrations

Includes all individuals who register as an apprentice for the

first time in the stated trade during a reporting period, within

a jurisdiction. An individual may enroll in more than one

apprenticeship program during a reporting period. In

addition, an individual may enroll more than once in the

same category of apprenticeship program if relocating from

one province to another.

Oil and Gas Industry

Refers to businesses in four North American Industry

Classification System (NAICS) industry segments, including

NAICS 2111 Oil and Gas Extraction, NAICS 2131 Support

Activities for Mining and Oil and Gas Extraction, NAICS 4861

Pipeline Transportation of Crude Oil and NAICS 4862

Pipeline Transportation of Natural Gas.

Valid Power Engineers

Refers to power engineers in Alberta that have attained one

of the five levels of certification.

Page 20: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 20 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

ENDNOTES

Page 21: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 21 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

1 A certified journeyperson is recognized as a qualified skilled person in a trade and is entitled to the wages and benefits associated with that

trade. A journeyperson is allowed to train and act as a mentor to a registered apprentice.

2 See Labour Market Outlook to 2022 for Canada’s Oil and Gas Industry (Petroleum HR Council, May 2013). Last accessed April 15, 2014, at

http://www.careersinoilandgas.com/labour-market-information/reports/

3 See Alberta’s Occupational Demand and Supply Outlook 2013–2023 (Government of Alberta, n.d.). Last Accessed May 15, 2014 at

http://eae.alberta.ca/labour-and-immigration/labour-market-information/labour-market-forecasts/occupational-demand-and-supply-

forecast.aspx

4 See Resource Labour Market Information Report 2012 (Resource Training Organization, 2012). Last Accessed April 15, 2014 at

http://www.rtobc.com/Assets/RTO+Assets/About+RTO/RTO+LMI+Report+2012.pdf

5 See Saskatchewan Occupational Employment Outlook 2013–2017 (Government of Saskatchewan, 2013). Last Accessed April 15, 2014 at

http://economy.imaginesask.ca/2013-occupational-employment-outlook

6 See Newfoundland and Labrador Labour Market Outlook 2020 (Government of Newfoundland and Labrador, 2011). Last Accessed April 15,

2014 at http://www.aes.gov.nl.ca/publications/LMOutlook2020.pdf

7 See Alberta Apprenticeship and Industry Training Board, Statistical Profiles 2013 (Alberta Apprenticeship and Industry Training Board,

2014). Last Accessed April 15, 2014 at

http://tradesecrets.alberta.ca/sources/pdfs/BOARD_ANNUAL_REPORT/PDF/2013_STATISTICAL_REPORT.PDF

8 Compulsory trades are skilled trades for which an apprenticeship is required to work in the occupation. To work in a compulsory certification

trade, a person must either hold a recognized trade certificate or be a registered apprentice in the trade. An employer wishing to hire persons

to work in the trade must hire only certified journeypersons in that trade or apprentices registered in the trade and working under the

supervision of a certified journeyperson. Compulsory certification trades usually involve work where public and worker safety needs to be

closely monitored. In Alberta there are 38 skilled trades that are compulsory including several that are core to the upstream oil and gas sector,

including electricians, steamfitters, pipefitters, gasfitters, welders, heavy equipment technicians and mechanics, crane operators, and rig

technicians. In addition, power engineers are regulated by ABSA (www.absa.ca). For more information on compulsory trades, see

https://tradesecrets.alberta.ca/trades-occupations/compulsory-certification-trades/

9 See Alberta Apprenticeship and Industry Training Board, Statistical Profiles 2013 (Alberta Apprenticeship and Industry Training Board,

2014). Last Accessed April 15, 2014 at

http://tradesecrets.alberta.ca/sources/pdfs/BOARD_ANNUAL_REPORT/PDF/2013_STATISTICAL_REPORT.PDF

10 See Table 1 for a list of trades occupations that are core to the oil and gas industry.

11 See Power Engineer Statistics for Alberta, January 1, 2013 – December 31 2013 (ABSA, 2014). Last Accessed April 15, 2014 at

http://www.absa.ca/ECprogram/powerengineering/Power%20Engineer%20Spring%20Stats.pdf. Valid power engineers refers to power

engineers in Alberta that have attained certification at one of the five levels of certification offered for power engineers in Alberta. Power

engineers are certified by Alberta Boilers Safety Association, not the Alberta Apprenticeship and Industry Training Board.

12 According to the National Household Survey 2011, there were a total of 115,335 workers employed in Alberta in occupations listed in Table

1. At a rate of 15,000 new apprentice registrations per year, it would take eight years of new registrations to exceed the labour force of

115,335, plus up to four years to complete apprenticeship training and enter the labour force. Occupations included in this estimate include:

7201 Contractors and supervisors, machining, metal forming, shaping and erecting trades and related occupations

7202 Contractors and supervisors, electrical trades and telecommunications occupations

7203 Contractors and supervisors, pipefitting trades

7231 Machinists and machining and tooling inspectors

7237 Welders and related machine operators

7242 Industrial electricians

7252 Steamfitters, pipefitters and sprinkler system installers

7253 Gas fitters

7293 Insulators

7311 Construction millwrights and industrial mechanics

7312 Heavy-duty equipment mechanics

7371 Crane operators

7372 Drillers and blasters - surface mining, quarrying and construction

7521 Heavy equipment operators (except crane)

8221 Supervisors, mining and quarrying

8222 Contractors and supervisors, oil and gas drilling and services

8232 Oil and gas well drillers, servicers, testers and related workers

8412 Oil and gas well drilling and related workers and services operators

9241 Power engineers and power systems operators

Page 22: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 22 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

13 Trades occupations in this chart include electricians; heavy duty equipment mechanics; machinists; millwrights; plumbers, pipefitters and

steamfitters; welders; oil and gas well drillers, servicers, testers and related workers; heavy equipment and crane operators; and stationary

engineers and power plant operators. Major oil-producing provinces include British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia

and Newfoundland and Labrador.

14 Trades occupations in this chart include electricians; heavy duty equipment mechanics; machinists; millwrights; plumbers, pipefitters and

steamfitters; welders; oil and gas well drillers, servicers, testers and related workers; heavy equipment and crane operators; and stationary

engineers and power plant operators. Major oil-producing provinces include British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia

and Newfoundland and Labrador.

15 Source: Cansim Table 477-0053: Registered apprenticeship training, registrations, by age groups, sex and major trade groups; Cansim

Table 477-0054: Registered apprenticeship training, completions, by age groups, sex and major trade groups; CansimTable 477-0055:

Registered apprenticeship training, certificates, by age groups, sex, major trade groups, apprentice or trade qualifier indicator and red seal or

non-red seal indicator, annual (Number), (Statistics Canada, n.d.)

16 See Alberta Apprenticeship and Industry Training Board, Statistical Profiles 2013, page 16 (Alberta Apprenticeship and Industry Training

Board, 2014). Last Accessed April 15, 2014 at

http://tradesecrets.alberta.ca/sources/pdfs/BOARD_ANNUAL_REPORT/PDF/2013_STATISTICAL_REPORT.PDF

17 The term “implied” is used here because the data from the RAIS does not publish longitudinal measures of progression of individual workers

through the apprenticeship program, but rather totals of groups of workers. The implied on-time completion rate is calculated as the ratio of

completions in a year n divided by the number of new apprenticeship registrations in year n-y, there y is the number of years required to

complete the apprenticeship program. The on-time completion rate is not exact because some workers who complete their program in year n

began at a date earlier that year n-y (it took them longer than expected to complete the program) and because some of the completions in

year n are a result of workers who re-enter an apprenticeship program after leaving at an earlier date. Implied on-time completion rate is a

measure used in this report to reflect the rough ratio at which apprentices complete their program within the proscribed training period (one,

three, or four years).

18 Source: Cansim Table 477-0053: Registered apprenticeship training, registrations, by age groups, sex and major trade groups; Cansim

Table 477-0054: Registered apprenticeship training, completions, by age groups, sex and major trade groups; CansimTable 477-0055:

Registered apprenticeship training, certificates, by age groups, sex, major trade groups, apprentice or trade qualifier indicator and red seal or

non-red seal indicator, annual (Number), (Statistics Canada, n.d.)

19 See endnote 19 for calculation methodology. Implied on-time completion rates presented in Figure 5 are presented to illustrate a long-term

decline in completion rates, and are not intended to present a bias toward the methodology for calculating completion rates.

20 See National Apprenticeship Survey: Canada Overview Report, 2007. Last accessed April 15, 2014 at http://www.statcan.gc.ca/pub/81-598-

x/81-598-x2008001-eng.pdf

21 National Apprenticeship Survey (Statistics Canada, 2007). Last Accessed April 15, 2014 at

http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=3160

22 See Investigating Apprenticeship Completion in Canada: Reasons for Non-Completion and Suggested Initiatives for Improving Completion

(Canadian Apprenticeship Forum, 2011). Last Accessed April 15, 2014 at

http://caffca.org/uploads/documents/WebsiteReports/CAF2011_ApprenticeshipCompletion.pdf

23 Note: Findings in this section are based on a combination of interviews and review of reports from the Canadian Apprenticeship Forum. The

findings from the two sources have considerable overlap, but are organized in this section according to the perspectives shared by experts

interviewed for this report.

24 See Apprenticeship Pays (Canadian Apprenticeship Forum, n.d.). Last Accessed April 15 at

http://apprenticeshippays.com/english/PDFeng/Toolkit_pdf_Section1.pdf

25 For more information, see Tax Credits and Grants for Employers, Apprentices, Journeypersons and Trade Qualifiers in Canada, (Canadian

Apprenticeship Forum, 2014). Last Accessed April 2014 at http://caf-fca.org/document.php?id=143

26 See Employer Toolkit (Canadian Apprenticeship Forum, n.d.). Last Accessed April 15, 2014 at

http://caf-fca.org/index.php?page=employer-toolkit&hl=en_CA

27 For more information, See Investigating Apprenticeship Completion in Canada (Canadian Apprenticeship Forum, 2011). Last Accessed

April15, 2014 at http://caf-fca.org/uploads/documents/WebsiteReports/CAF2011_ApprenticeshipCompletion.pdf

28 Source: Making it Work: Mentoring Apprentices in the Workplace (Canadian Apprenticeship Forum, 2013).

29 Ibid.

30 See http://www.careersintrades.ca/index.php?page=what-is-an-apprenticeship&hl=en_CA

31 Results from the Petroleum HR Council’s 2012 Oil and Gas Online Careers Fair.

Page 23: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 23 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

32 In Alberta, apprentices must complete all requirements of their training, which includes passing their exams, in order to achieve

“completion.”

33 Ibid.

Page 24: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

May 2014 Page 24 of 25

Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry

ACKNOWLEDGEMENTS

The Petroleum Human Resources Council (a division of Enform Canada) gratefully acknowledges the

Government of Canada’s department of Employment and Social Development Canada and the Government of

Alberta for the funding to undertake and complete this study.

The Petroleum HR Council is also grateful for the time and expertise provided by petroleum companies, industry

associations and government organizations. Organizations who have been interviewed are as follows:

Alberta Institute of Training, Alberta Innovation and Advanced Education

Canadian Apprenticeship Forum – Forum canadien sur l’apprentissage

Construction Owners Association of Alberta

Imperial Oil

Resource Training Organization of BC

Saskatchewan Apprenticeship and Trade Certification Commission (SATCC)

In addition, we would like to thank other organizations who contributed to this report, but are not listed here by

name.

Last but not least, the Petroleum HR Council acknowledges the contributions of Field Guide Consulting

and Clay Graphic Design Inc. for assisting in the production of this report.

Copyright © Petroleum Human Resources Council 2014

Published May 2014

Disclaimer

All rights reserved.

The reader of this report has permission to use “limited labour market information (or LMI) content” for general reference or educational purposes in the reader’s

analysis or research reports. “Limited LMI Content” is defined as not exceeding 400 words or a maximum of two data tables or graphs per document. Where

Limited LMI Content is used, the reader must cite the source of the Limited LMI Content as follows: Source (or “adapted from”): Petroleum Human Resources

Council, name or product, catalogue, volume and issue numbers, reference period and page(s).

The reader of this report cannot:

Market, distribute, export, translate, transmit, merge, modify, transfer, adapt, loan, rent, lease, assign, share, sub-license or make available to

another person or entity, this report in any way, in whole or in part

Use this report and its contents to develop or derive any other information product or information service for commercial distribution or sale

Use this report and its contents in any manner deemed competitive with any other product or service sold by the Petroleum HR Council

The information and projections contained herein have been prepared with information sources the Petroleum HR Council has deemed to be reliable.

The Petroleum HR Council makes no representations or warranties that this report is error free and therefore shall not be liable for any financial or other

losses or damages of any nature whatsoever arising from or otherwise relating to any use of this document.

The opinions and interpretations in this publication are those of the Petroleum HR Council and do not necessarily reflect those of the Government of Canada or the

Government of Alberta.

For more information, contact:

Petroleum Human Resources Council (a division of Enform Canada)

Phone: 403-516-8100; Fax: 403-516-8171

Email: [email protected]

www.careersinoilandgas.com

Page 25: Exploring Apprenticeship Completions of Skilled Trades … · Exploring Apprenticeship Completions of Skilled Trades ... and oil and gas well ... Exploring Apprenticeship Completions

Funded in part by the Government of Canada and the Government of Alberta

The Petroleum Human Resources Council (a division

of Enform Canada) is the primary resource to address

workforce development and labour market issues in the

Canadian petroleum industry. We provide innovative and

strategic HR solutions to help the industry develop its

workforce and proactively address labour challenges.

The Petroleum HR Council addresses issues by:

developing strategies, solutions, products and services to address industry’s short, medium and long-term workforce issues

facilitating the exchange of ideas and information

providing industry-related information on workforce issues and career opportunities

Learn more about the Petroleum HR Council

and find our labour market information reports at

www.careersinoilandgas.com or contact us

at 403-516-8100 or at [email protected]

for more information.

www.careersinoilandgas.com

Follow us on