Irving Shipbuilding eyes Fort McMurray in effort to recruit workers
Company says it needs 250 more tradespeople to work on shipbuilding contract at Halifax Shipyard
Irving shipbuilding executives appeared before the Legislature's Economic Development committee Thursday to provide an update on the thirty-year Ships Start Here federal procurement program for the navy.
With steel scheduled to be cut this September on the first of the Arctic Offshore Patrol Ships (AOPS), the shipyard has moved into high gear. Job fairs are scheduled in Dartmouth and Fort McMurray to recruit 250 certified tradespeople.
"The immediate need that we have is for Red Seal journeyperson welders, ironworkers, pipefitters,and marine fabricators," said Anna Marenick, community relations director.
Ship repairs and planning for AOPS currently keep 800 people busy at the shipyard in Halifax.
Local skills
Pictou Centre MLA Pat Dunn wants to know how many jobs connected with the $2.3 billion contract for the AOPS can be filled in the province.
"Do you expect Nova Scotia will be able to meet the labour demand, or will you be forced to heavily advertise outside the province?" Dunn asked.
In response, Marenick said, "When to comes to short term demand for highly specialized technical positions, we may not have that expertise here now but the intent is that we would continue to build that."
The shipyard currently employs more than 100 apprentices, and is working with the Nova Scotia Community College to develop programs for minority groups.
Although Irving is providing bursaries and equipment, the actual number of people who can be accommodated through the college does not appear to have expanded.
Irving Shipbuilding's recruitment strategy includes the catch phrases, "grow at home," "bring them home" and "make it home." The latter is a reference to an international recruitment drive taking place around the globe to find up to 70 managers and staff.
Irving's vice president of programs, Scott Jamieson, referred to General Dynamics and Bath Ironworks in Maine as prime sources for many of its senior management team.
Dipping toes in the water
"We are going to do over the summer two of the 63 units that make up the ship," said Jamieson. "The first two will start early, ahead of full production, to test the design, test the new facility, to test the people [and] to make sure we debug any issues that we have before we move into full production."
Jamieson said AOPS will sustain one thousand direct and related jobs.
The project will include the construction of starter ships before work begins on the largest part of the $28 billion program: building replacements for the navy's destroyers, also referred to as Canada's Surface Combat ships.
Irving told the Economic Development Committee it hopes to begin work on these warships soon after 2020.
But, that timing depends on Ottawa. So far, there is neither a design, order nor a budget for the bigger ships.
If and when that order comes, Irving's projections show shipyard employment peaking at about 2500 people in 2023. Those numbers will average out to around 2000 until 2031.
Jobs are an important focus for Nova Scotia politicians and taxpayers who loaned Irving Shipbuilding $260 million as part of its $350 million expansion of the shipyard. If more than 4000 full-time jobs are created over 29 years, Irving won't have to pay the money back.
Meanwhile, Irving has said it has drawn down $175 million of the loan from the province.
The company has said the Province has received more than that in benefits, before the building of a single ship.
Here's a partial list as compiled by Jupia Consultants for Irving.
Economic Impacts of Shipyard Modernization and Arctic Offshore Patrol Ships, as May 21,2015:
- $190.8 million spent in N.S.
- 78 N.S. supplier companies
- 2000 direct and indirect jobs
- $100 million in wages