Federation president to set the record straight on bitumen glut

Edmonton – AFL president Gil McGowan will be tackling Alberta’s revenue problem this Saturday at the Alberta Economic Summit.

The summit will bring together industry, not-for-profit leaders, academics and government members to discuss Alberta’s economic future in light of the current low price of bitumen. McGowan will use this opportunity to ensure revenue reform and oil royalties are part of the discussion on how to tackle the deficit.

“In the debate so far, we’ve heard a lot of misinformation, some obfuscation – and even outright lies,” McGowan said. “Our economy is red hot. Balancing the budget should not be difficult, unless you’re either being deliberately dishonest, or you’re just bad at math.”

McGowan noted that Alberta does not spend more than other provinces on services, and when looking at expenditures on public services as a percentage of the economy, actually ranks dead last in Canada.

“We need to make sure that revenue is part of the discussion,” McGowan said. “By the government’s own numbers, we could collect $10 billion more in taxes and still be the lowest taxed province in Canada. We could use that $10 billion to protect and strengthen public healthcare and education.”

The summit, which will be held at Mount Royal University in Calgary, will involve four moderated panels. McGowan has been asked to participate in the moderated panel on “Balancing Expectations on the Services Albertans Need.” He notes that the ‘Services Albertans Need’ are already understaffed — Alberta has nearly the fewest public employees per capita in the country.

“It’s childish to think that Alberta can maintain good public services without having a revenue base to pay for them,” McGowan said. “That means royalty reform and it means returning to a progressive income tax like Alberta had before 2001.”

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AFL Factsheet:  “Revenue, spending, and public-sector wages”

MEDIA CONTACTS:

Gil McGowan, President, Alberta Federation of Labour at 780-218-9888 (cell)Olav Rokne, AFL Communications Director at 780-289-6528 (cell) or via email orokne@afl.org.

 Edmonton – The Alberta Federation of Labour applauds the Obama administration’s decision to delay the Keystone XL pipeline, saying it will give the Redford government an opportunity to pursue value-added opportunities here at home, rather than shipping unprocessed bitumen south for upgrading.

“There’s been a parade of Alberta government ministers travelling to the States to sell unprocessed bitumen. Now perhaps those same ministers can stay in Alberta and consider our needs and our future ahead of those of our neighbours south of the border,” says Gil McGowan, president of the Alberta Federation of Labour (AFL), which represents 145,000 workers.

“Upgrading more bitumen in Alberta will help our province in many ways. Increasing value-added industries will provide quality, long-term jobs for Albertans and Canadians. While good relationships with our neighbours are important, the government of Alberta must promote the long-term health of our province first. Increasing value-added energy industries in Alberta will increase revenues from royalties and taxes,” he says.

“As bitumen is upgraded and moved up the value chain, more funds will flow into the Treasury through higher royalties on finished products. This is money that can be used to pay for important public services like health care and education,” says McGowan.

McGowan took particular exception to the Wildrose Party’s reaction to the delay of the Keystone XL pipeline.

“The Wildrose Party was playing fast and loose with the facts in their media release today. They should avoid fear mongering. The truth is that this pipeline is bad news for quality jobs and bad news for royalties,” says McGowan.

“Danielle Smith is trying to convince us that we’ll lose billions in royalties if the Keystone XL pipeline isn’t approved, but the opposite is true. If we export unprocessed bitumen, we ruin a great competitive advantage,” says McGowan

“The National Energy Board notes that, ‘wide differentials provide refiners with an economic incentive to build heavy oil conversion capacity.’ If we get rid of the prices differential between our bitumen and global crude, we destroy future opportunities to boost our value-added industries,” he says.

“In this context, Albertans should see the Obama administration’s decision as an opportunity, not a disappointment. It is an opportunity for us to move up the value chain and create a more prosperous and stable economic future for Albertans.”

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Media Contact:

 

Gil McGowan, President, Alberta Federation of Labour @ 780-218-9888 (cell)

AFL says government is wrong and Chartered Accountants are right: labour shortage fears are overblown

EDMONTON-The Alberta Federation of Labour released internal government documents today, showing claims of a catastrophic "labour shortage" are based on a bizarre calculation not used anywhere else in Canada, and never used previously in Alberta.

Calculations using more conventional and widely accepted methods show that there will be more workers than jobs in Alberta for the foreseeable future.

"Albertans have been told by government and business that the sky is falling and that desperate measures are necessary," say Alberta Federation of Labour president Gil McGowan. "But the truth is that someone has been playing games with the numbers: the labour market situation in Alberta is not nearly as dire as we've been led to believe."

The AFL obtained Government of Alberta documents showing the often-cited shortage of "114,000 workers by 2021" is based on a complicated calculation that uses obscure methods not seen since 1957.

Rather than a straightforward labour supply and demand calculation – used in other provinces and in Alberta until 2009 - Alberta now employs a "growth in demand/growth in supply" projection model. This model appears to be designed to yield a desired conclusion - an imminent and catastrophic shortage of workers.

The AFL has re-calculated the government's projections using more traditional methods. These calculations show that supply will outpace demand for the entire forecast period up to 2021.

These findings are in line with a report released yesterday by Certified General Accountants Association of Canada. The CGAAC report argues that while shortages of skilled labour do exist across Canada, they are sporadic and tend to be short-lived.

McGowan has written to Human Services Minister Dave Hancock advising him about the Accountant's report and asking his department to return to the more traditional method for calculating labour demand – and if not, asking him to explain why not.

His letter reads, in part: "Labour market projections are used to make important public policy decisions that have profound implications for working people and the economy. We cannot afford to get these calculations wrong because bad analysis leads to bad policy. And this isn't just a hypothetical problem. Inaccurate and misleading projections on labour shortages have already led to bad public policy such as the unjustified expansion the Temporary Foreign Worker Program, the unnecessary changes that were made by the federal government to the age of eligibility for CPP and the punitive changes that were recently made to the EI system."

McGowan calls the claims of a catastrophic labour shortage "economics gobbledeegook intended to mislead the public about the actual state of the labour market."

"There is no question there are tight labour markets for some select trades," says McGowan. "But a somewhat tight labour market for select occupations or skills doesn't translate into an economy-wide shortage."

"Select skills shortages can be solved by government and industry investments in training and apprenticeship," continues McGowan. "The provincial government should also be working with the federal government to more effectively connect unemployed people in other provinces with jobs in Alberta. For example, we should be talking about things like making relocation allowance part of the EI program."

"Why did Alberta change the way it calculates a labour shortage?" asks McGowan. "It's likely the result of pressure from employers who have discovered that the notion of a massive labour shortage can be used as an effective political tool to win policies that drive down wages, such as expanding the Temporary Foreign Worker program."

"Working closely with the Harper government, low-wage lobbyists like the Canadian Federation of Independent Business and non-union construction groups like the Merit Contractors Association have been pressuring the government to use creative math to manufacture a crisis. This crisis is then being used to win policies that shortchange hardworking Canadians out of wages that keep up with the cost of living," adds McGowan.

"Any claim of a massive labour shortage must be taken with enough grains of salt to fill an oil sands-sized dump truck."

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For more information:

Gil McGowan, President, Alberta Federation of Labour, (780) 218-9888

Read the Backgrounder

Unions Stand Up for Majority of Albertans

In the lead up to Alberta’s 2013 budget, Alberta’s public sector unions worked together to advance the interests of the majority of Albertans.

The Alberta Federation of Labour, Canadian Union of Public Employees, Alberta Teachers’ Association, Alberta Union of Provincial Employees, United Nurses of Alberta and the Health Sciences Association of Alberta presented a united front against austerity policies and draconian cuts.

Polling, conducted by Environics in advance of the provincial budget showed that more than 70 per cent of Albertans reject public service cuts. More than three quarters of those polled agreed that there should be an increase on taxes for wealthy Albertans and for corporations. The majority of Albertans believe that the province should be investing more in health care, education and other services.

“Albertans aren’t as conservative as Alison Redford seems to believe,” AFL president Gil McGowan said. “She needs to listen better. Not to the radical tea party Tories, but to the majority of Albertans who are quietly progressive, and who want this province to be healthy and prosperous.”

LINK TO AUDIO

LINK TO PRESS RELEASE

STRIKE! The Musical

The Alberta Federation of Labour is proud to be bringing STRIKE! The Musical to Edmonton for its Alberta premiere.

This award-winning theatrical production, which tells the story of the 1919 Winnipeg General Strike, will be at the Timms Centre for the Performing Arts April 24 – April 28.

“When I saw Strike! three years ago in Winnipeg, I knew we needed to bring it to Alberta,” AFL president Gil McGowan said. “The 100th anniversary of the AFL was the perfect opportunity to organize this production. It’s an important story about the history of Canadian labour, and it’s one that inspires pride in the activism and work that our member unions do.”

For more information or to order tickets, please visit www.strikemusical.com

Solidarity with Post-Secondary Education

More than 500 students, workers, educators and activists marched on the legislature on March 15.

The rally, which was organized by the Coalition for Action on Post-Secondary Education, was protesting the massive cuts the Alberta Government imposed on universities and colleges throughout the province. The University of Alberta faces a 7.2 per cent cut.

Alberta Federation of Labour president Gil McGowan spoke at the rally, noting that the province’s economy depends on having a quality education system.

Urgent Action

Join us at the AFL’s 9th Biennial Convention

More than 500 labour activists, leaders and delegates will gather at the Shaw Conference Centre in downtown Edmonton from April 25 – 28 for the Alberta Federation of Labour’s 9th Biennial Convention.

The convention, which has the theme “Unions Stand on Guard for Thee,” will examine how the labour movement has helped create, and protect the prosperous, inclusive society of which Canadians are rightfully proud.

Coming from all corners of Alberta, delegates will celebrate the achievements of unions, hear from dozens of speakers, and help chart the direction of our further growth.

Registration starts Wednesday, April 24 and continues on Thursday, April 25.

2013 AFL Convention runs Thursday, April 25, 2013 - Sunday, April 28, 2013.

Convention Committees meet Wednesday, April 24.

AFL Council meets Tuesday, April 23.

Convention venue is the Shaw Conference Centre Convention hotel is the Crowne Plaza Chateau Lacombe

Location:  Shaw Conference Centre, Edmonton Contact:  Maureen Werlin at mwerlin@afl.org or 780-483-3021

Events

April 28 – International Day of Mourning for Dead and Injured Workers

May 1 – May Day March

May 3 – Deadline to register for Summer Labour School

June 14 - Deadline to register AFL Kids Camp

Did you know ... After production and development costs are factored in, Alberta only collects 54 per cent of the the excess profit from heavy oil production. By comparison, Norway collects 80 per cent, Russia collects 73 per cent and Angola collects 71 per cent. Once ravaged by debt and war, higher oil royalties have helped Angola turn a budget deficit of 8.6 per cent of GDP in 2009 into a surplus of 12 per cent of GDP in 2012. Alberta has the highest pay gap in Canada. Alberta women working full year and full time earn a median 68 per cent of what men earn. The pay gap is reduced for women in unions – to about 85 per cent of what men earn. According to Environics polling conducted in February, 77 per cent of Albertans support increased taxes on corporations and those making more than $200,000.

When I heard the news last week that several well-known union leaders and labour organizations were encouraging their members to get involved in the Tory leadership race - and in some cases, actually buying party memberships for them - my most prominent emotion was frustration.

What a sad commentary, I thought, on the state of democracy in our province: that people who are obviously not Conservatives feel the only way they can influence public policy is by joining a party they don't really believe in.

Don't get me wrong. On one level, I understand why people like Alberta Teachers Association President Frank Bruseker and leaders from the Alberta Building Trades Council did what they did.

After all, the Alberta Conservatives have been in power for more than 35 years and, if recent polls are any indication, there's every reason to believe they will win the next election as well.

So, if these are the people most likely to form and lead the next provincial government, why not cozy up to them?

But, from where I sit, there are at least two major problems with this line of thinking - the first being the not-so-subtle acceptance of the notion that Alberta is one-party state.

The phrase "one-party state" may make some people feel uncomfortable - but just look at the record.

Despite all the trappings of democracy (parties, elections, Question Period etc.) Alberta has for generations been missing one of the key ingredients for a true democracy - and that ingredient is change.

During the long reign of the Alberta Tories, provinces like B.C., Saskatchewan, Manitoba and Ontario have seen their government change multiple times.

Change and democracy go hand in hand. When you lose the hope for change I would argue you lose democracy itself.

Of course Conservatives and their supporters don't see it that way.

As the leader of Alberta's largest association of unions, I too have been courted by Tory leadership hopefuls who have pedalled what I refer to as the "Borg Argument."

"Alberta has always been and always will be Conservative," they whisper. "The only real democracy that exists in the province is democracy within our party. If you want to be heard, join us. Resistance is futile."

Well, I for one am not prepared to accept the notion that it's politically futile to exercise my democratic rights outside the Tory tent. And, to take the Star Trek metaphor one step further, I'm not prepared to accept that the only way you can make a difference in this province is to be "assimilated" into the Conservative Collective.

Unfortunately, whether they intended to do it or not, that's the message that Bruseker and the others union leaders are sending both to their members and the general public.

By joining the Tories, they are saying, at least implicitly, that resistance IS futile; and, as a result, they're making it more likely that the Tory one-party state will hang on, no matter how unhealthy that might be for our democracy.

That brings me to the second reason why I won't be using my office to encourage involvement in the Tory leadership race.

While I whole-heartedly support and defend the right of individual union members to belong to the parties of their choice, I oppose giving institutional support to the Conservatives because they are NOT really the "big tent" party they're pretending to be.

Union members should not forget that this is the same party and the same government that rolled back public sector wages in the mid-90s and imposed hiring freezes on nurses, teachers and other public servants - freezes that are now coming back to haunt us all.

It is the same government that has repeatedly thumbed its nose at public opinion and pushed the envelope on private health care. It is the same government that has consistently under-funded our schools, municipalities and post-secondary institutions; and which has left a legacy of huge infrastructure, social and environmental deficits.

It is also the same government that decided to essentially give our oil sands away at a ridiculous royalty rate of one penny on the dollar; and which continues to turn a blind on energy companies that want to mine our oil sands but have no intention of upgrading it or refining it here.

Finally, this is the same government that created and maintains the most restrictive, pro-employer labour laws in the country; and which has not be afraid to use its legislative power to intervene and tip the playing field even more dramatically in favour of employers - as they did in the case of the Horizon oil sands project near Fort McMurray.

After looking at this sorry record - and recognizing that five of the nine contenders for the Tory leadership were Klein-era cabinet ministers - I would argue that the Tories simply haven't earned the support of working people in this province.

Sure, we can wine and dine candidates. We can write cheques to the party. We might even be able to extract a few vague promises.

But, our money will never be more than a drop in the bucket compared to the flood coming from high-rolling corporate donors. And even more importantly, money and memberships will never trump the deeply ingrained ideological distrust most Conservatives feel for unions and the issues we care about.

At the end of the day that's the most frustrating part of this whole affair: the Tories know who they are - and they're not a "worker-friendly" party. There is no reason to believe that a few memberships sold here and there will make the leopard change its spots.

Calgary Herald, Sat Oct 21, 2006, Page A29By Gil McGowan, AFL President

Government of Alberta does not consider jobs, taxes, royalties, or the public interest in their evidence at Northern Gateway hearings

Edmonton – AFL President Gil McGowan will be available to the media throughout today as the Federation quizzes the Government of Alberta on their evidence before the Northern Gateway panel.

“We are very troubled by what we’ve heard so far today. The Government of Alberta did not put any evidence before the Board about jobs, taxes, or royalties, says McGowan, President of the Alberta Federation of Labour, representing over 145,000 unionized workers.”

“The Government’s evidence confuses what’s good for foreign-owned oil companies with what’s good for Albertans. Their evidence at Northern Gateway looks exclusively at industry profits, without considering jobs or royalties for Albertans.”

The province is “blurring the lines between profits for the world’s largest corporations and the public interest,” says McGowan.

“Oil companies are capable of advocating for themselves, they shouldn’t need the government’s help. It’s the government’s job to advocate for Albertans. They are failing to do that job at the Northern Gateway hearings.”

McGowan says the Government of Alberta’s evidence – though technical in nature and written by high-priced energy consultants – really tells a very simple story.

“The government allowed a stampede of development in the oil sands, without making good on their commitment to have 2/3 of our bitumen upgraded here,” says McGowan, adding that the province’s evidence predicts only 26% of Alberta’s bitumen will be upgraded in Alberta by 2025.

The result is a flooded market of an inferior product.

The Government’s evidence shows oil companies are getting a lower price for bitumen because Alberta doesn’t force them to upgrade it before it leaves Alberta.

“We are selling the wrong product,” explains McGowan.

“If we were selling upgraded synthetic crude oil, we would be getting better prices, and higher royalties as a result,” says McGowan.

Raw bitumen can only be turned into gasoline or diesel by a small number of refineries in North America. The rapid pace of development means there is too much bitumen on the market. The choice is simple: bitumen could be upgraded to synthetic crude before it leaves Alberta, creating thousands of jobs. It could then be refined at a large number of refineries around the world. Or, it could be shipped raw to China, and take thousands of jobs with it.

“There is not one word in the Government of Alberta’s evidence about the public interest. We are left to wonder if they care about jobs and royalties for Albertans, or if the priority is profits for oil companies backing the Northern Gateway pipeline – none of which are majority-owned by Canadians,” says McGowan.

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MEDIA CONTACT:  Gil McGowan, President at 780-218-9888 (cell) or 780-483-3021 (office) Alberta Federation of Labour

As accolades for former premier Peter Lougheed continued flooding in Friday, current Premier Alison Redford is cutting short her trade trip to Asia in honour of the Alberta icon who died Thursday.

Redford, who began her trip to China last weekend, was making arrangements Friday to return from China before its was originally scheduled to end on Monday, said her spokeswoman, Kim Misik.

"He was an important mentor for her, someone she cared a lot about," said Misik.

"She had quite a unique relationship with the former premier."

On Friday, the premier's office announced Lougheed will lie in state Monday and Tuesday at the Legislature in Edmonton.

"Peter Lougheed held a special place in Albertans' hearts, including mine as a dear friend and trusted mentor," Redford said in a press release.

"And it's important that Albertans who knew and admired him have the chance to say goodbye, and to reflect on his remarkable life and legacy."

Whatever funeral arrangements for Lougheed the province might have a hand in will "respect whatever path his family wants to take," she added.

His family has also said there'll be a private funeral for the man who was known as an elder statesman until his death.

Lougheed, who was Alberta premier from 1971 to 1985, died at age 84 in the hospital bearing his name following a lengthy illness.

He's widely credited with modernizing Alberta's social, environmental, health and energy revenue regimes while pioneering province's rights.

Flags at government buildings, schools and businesses around the province were flying at half mast in honour of Lougheed.

Earlier, Prime Minister Stephen Harper eulogized Lougheed as a driver of Alberta economic diversification while "working tirelessly toward a strong, united Canada."

The head of a political foe of Lougheed's PC's — Liberal leader Dr. Raj Sherman — said Friday that the political icon had foresight in many areas, including health care.

"A professional athlete, Lougheed understood the important role of prevention and wellness," he said, referring to Lougheed's stint as a professional football player.

"Thanks to his initiatives, Albertans received improved access to world-class publicly funded and delivered health care."

Just before Lougheed died, his successor as premier, Don Getty, was emotional about the loss, both on a personal and political level.

"My wife and I fell in love with Peter, in a way," said Getty, who recalled the times the families spent together during a turbulent era.

"It's heartbreaking."

Getty said he's most proud of Lougheed for standing up for Alberta during constitutional battles, and also for bolstering his country.

"We had a champion ... we were dealing with oil and gas and petro-chemicals and those are the things we used to strengthen Alberta and Canada," said Getty.

In rare praise for a premier from a union, Alberta Federation of Labour President Gil McGowan credited Lougheed as a champion of all citizens rather than only big business — a philosophy the AFL head said has retreated.

"He remained engaged and outspoken in the affairs of our province, I think, because he saw Alberta's potential as more than just the success of a few industries, or short-lived booms and busts," said McGowan.

"He saw us as a community."

Calgary Sun, Friday September 14 2012

Byline: Bill Kaufman

An outpouring of love and respect has touched the hearts of Peter Lougheed's family in the wake of his death Thursday at age 84.

A simple bouquet of white roses rested under his portrait in the premier's wing of the Alberta Legislature the day after his death. As flags flew at half-mast, around the province tributes and memories poured in for the man whose leadership moulded modern Alberta.

Edmonton resident Charles Bradbrooke recalled how Lougheed's campaign call for diligence and reward prompted him to relocate to Alberta.

"We moved from Saskatchewan to Alberta to help work our buns off so we wouldn't have to pay any taxes later," Bradbrooke remembered.

Subsequent government excesses blew that lead away, he said.

Solicitor General Jonathan Denis recalled said Lougheed's 2003 visit to his school shaped his career.

"He suggested three of us in the crowd would become MLA — at that moment I decided it was a career I wanted to pursue," Denis recalled.

What impressed Denis the most, he said, was the retired premier's positive attitude.

"His example to me is one of service — he looked at everyone around him as someone he served, one of his bosses," Denis said.

At the Alberta Legislature, where the Calgary native's upstart Progressive Conservative party blazed a new path four decades ago with a victory over the Social Credit party in a tide-turning election, tributes came in from all sitting parties.

"He modernized Alberta, toppled a political dynasty, diversified the economy, and established strong public institutions," said Liberal leader Raj Sherman, recalling Lougheed strengthening Alberta's role in confederation, taking on Prime Minister Pierre Trudeau's contentious National Energy Program over energy revenue sharing. A University of Alberta-educated lawyer with a Harvard MBA, Lougheed was well-served by his keen business sense and an aptitude for game-changing legislation.

"A true federalist, he was an outspoken proponent of Canadian unity and the Constitution Act. He also fought to enshrine our freedoms, defend property, and enhance civil liberties through the creation of the Alberta Bill of Rights," Sherman said.

Alberta NDP Leader Brian Mason said Lougheed's work is recognized nationally because as he stood up for Albertans, he remained a passionate Canadian.

"He was a giant of Alberta political history and, in many ways, the founder of modern Alberta — he was a huge figure in my political development, and I will miss him," Mason said.

Alberta Federation of Labour President Gil McGowan said Lougheed was a visionary and principled leader.

"He was unafraid of challenging his successors as they moved away from his priorities for the province.

Even when he was being actively critical of governments and leaders who came after him, he was always statesmanlike, always with a view to the bigger picture of Albertans' public interest," McGowan said.

Lougheed's family thanked all the professionals at Alberta Health Services who have helped care for him over the last months and days, which included a stay at the Peter Lougheed Centre named after him.

He is survived by his wife of 60 years, Jeanne (née Rogers), four children and seven grandchildren. The family plans a private service, and a public memorial will be announced, said Lougheed family spokesman Jason Hatcher. "The family are extraordinarily touched and grateful — in fact, overwhelmed — by the outpouring from Albertans and Canadians," said Hatcher

"They're very touched by the sentiments and many memories that have been expressed."

Citing Lougheed's many charitable interests, including The Banff Centre and the Lougheed House Conservation Society, as well as sports, health, education, parks and public spaces and culture, the family asked that donations or volunteer actions be given in lieu of flowers.

"Any donations or volunteer actions that support his charitable interests would continue to fulfil his hopes and vision for Alberta and Canada," Hatcher said.

Edmonton Sun, Friday September 14 2012

Byline: Jackie E. Larson

 

 

 

New farm safety rules 'useless' Experts hit out at voluntary certifications

A provincially funded research body says a leaked proposal for voluntary safety certification of Alberta's agriculture industry won't curb the rising rate of farm deaths and injuries.

The director of the Alberta Centre for Injury Control and Research said Monday that his group's advice to a government-appointed committee - that the province impose health and safety regulations on farms like every other jurisdiction in the country - was ignored.

"Our input was based on the science but it wasn't listened to," U of A epidemiologist Don Voaklander said.

"These corporate farms, large feedlots and custom haying operations are no different than businesses that are drilling for oil or fixing your car. The agrarian myth of the rugged family farm just doesn't apply."

Recent statistics show 355 Albertans have died and 678 were seriously-injured in the past three decades. About nine per cent of the fatalities involved hired workers.

In a report obtained by The Herald and submitted to the province last February, the Farm Safety Advisory council recommended increased education and voluntary certification of farms to improve the industry's worsening safety record.

But Voaklander, whose centre depends on $1.5 million a year from Alberta Health, said a 2008 study of a similar program in neighbouring Saskatchewan found no significant difference in injury rates among participating farms.

"We're directed to be at arm's length from the government," he said.

"I mean I'm not going to go out and (criticize a minister or the government) ... but there's very little evidence that education of farmers actually works."

Premier Alison Redford promised during her Tory leadership campaign last fall that she would extend health and safety law protection to farm workers if elected, but on Monday her staff referred questions on the issue to cabinet.

With Agriculture Minister Vern Olson and Human Ser-vices Minister Dave Hancock both declining to be inter-viewed about a report they've been studying for nearly seven months, opposition critics hammered the Tory government for delaying while farm workers continued to be killed and injured on the job.

"It's immoral," Calgary Liberal MLA Dr. David Swann said.

"This government, whose voter base has been traditionally rural, is hard-pressed to put in place what they would call onerous rules but which are absolutely the norm in Western civilization."

New Democrat MLA Rachel Notley said it would be delusional for the government to accept the advisory council's philosophy that farm workers, particularly a fastincreasing number of vulnerable temporary migrants, can be educated to assert their right to refuse dangerous work.

"Premier Redford has capitulated to a strong conservative lobby within her caucus and without," Notley said.

Calgary Wildrose MLA Jeff Wilson said his party supports the council's call for farm safety education programs to curb the rising fatality and injury rate.

"We do believe the safety of those working on farms should be worldclass," said Wilson, "but we also don't want to add more burdens or complicated regulations to the farming community."

Calgary Herald, Sunday Sept 16 2012Byline: Matt McClure

CALGARY - A new poll has uncovered some support for a merger of Alberta opposition political parties in the wake of a Conservative landslide victory in the March election.

Four in 10 Albertans surveyed by Angus Reid Strategies said they would support, in principle, a coalition of opposition parties before the next provincial election, while a quarter were uncertain what to think of the concept.

Most of the supporters identified themselves as Liberal backers. The least likely to approve of an opposition merger were Progressive Conservatives.

"For a place that has been so dominant for one single party, it's interesting that two in five would say maybe it's time to do something different," Angus Reid pollster Mario Canseco said. "The fact that there is something new on the horizon appears to interest people."

What remains unclear from the online poll of 802 Albertans between June 24 to June 26, is whether support for a coalition would translate into votes.

A melding of the Liberals and NDP was the most popular coalition combination, followed by a combination of Liberals, NDP and Greens. Respondents weren't offered the Wildrose Alliance as an option.

Calgary Liberal MLA David Swann views the survey results as a sign some Albertans are eager for an opposition shake-up.

"This is an encouragement, I think, at the very least to working more constructively together," said Swann, who's chairing a cross-party town hall meeting in Edmonton on Monday focused on re-engaging Albertans in democracy.

Four in 10 Albertans voted in the March provincial election, the worst turnout in the province's history.

While the Liberals are in the midst of their own shake-up, searching for a new party leader and debating a name change -- some members are even musing about starting a new political movement -- the NDP appear firm on flying solo.

Party members overwhelmingly rejected a coalition with the Liberals and Greens at the NDP annual convention in Calgary last month. But Gil McGowan, president of the Alberta Federation of Labour and NDP member, contends the Angus Reid survey underscores Albertans are open to a change of the political landscape.

McGowan, who favoured a merger, said both the NDP and Liberals need to "think outside the box" in order to defeat the Tories.

The survey offers "a very significant finding," McGowan said, "and it's one that the Liberals and New Democrats ignore at their own peril."

However, University of Lethbridge political scientist Peter McCormick doesn't put much stock in coalition talk or the survey's findings.

He thinks the main question asked by the Angus Reid poll, which has a margin of error plus or minus 3.5 percentage points 19 times out of 20, is too ambiguous to gauge support for a merged opposition.

"Supporting them forming a coalition is not the same as supporting them," he said, adding a tough road faces any new political movement after Ed Stelmach breezed through his first election as Tory leader.

"The Conservatives are in a beautiful position right now."

Edmonton Journal, Page B10, Sat July 12 2008Byline: Renata D'Aliesio

Peter Lougheed Passing Statement

On behalf of 150,000 Alberta union members, I extend my deepest condolences to the family of Peter Lougheed

EDMONTON- "On behalf of 150,000 Alberta union members, I extend my deepest condolences to the family of Peter Lougheed. We have lost a visionary and principled leader. Using our tremendous natural resources wealth, Peter Lougheed built the modern Alberta - investing in schools, hospitals, infrastructure, building industries, and protecting the environment, such as establishing Kananaskis Country. He built the Heritage Fund and urged us to think like owners of our resources. Lougheed understood the concept of the public interest, and did not confuse what was good for private industry with what is good for the public as a whole. He was not a cheerleader for narrow business interests, and he did not engage in gimmicks or short-term thinking. He used our wealth to build a better Alberta.

Lougheed was concerned about Alberta's future right to the end of his life, and used his political stature to raise important questions about the pace of development in the oil sands and the rapidly increasing trend towards shipping bitumen raw instead of upgrading it in the province. He was unafraid of challenging his successors as they moved away from his priorities for the province. Even when he was being actively critical of governments and leaders who came after him, he was always statesmanlike, always with a view to the bigger picture of Albertans' public interest. He remained engaged and outspoken in the affairs of our province, I think, because he saw Alberta's potential as more than just the success of a few industries, or short-lived booms and busts - he saw us as a community. "

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MEDIA CONTACT:

Gil McGowan, AFL President, 780-218-9888

A new poll has uncovered temperate support for a merger of Alberta opposition political parties in the wake of a Tory landslide victory in the March election.

Four in 10 Albertans surveyed by Angus Reid Strategies said they'd support, in principle, a coalition of opposition parties before the next provincial election, while a quarter were uncertain what to think of the concept.

Most of the supporters identified themselves as Liberal backers. The least likely to approve of an opposition merger were Progressive Conservatives.

"For a place that has been so dominant for one single party, it's interesting that two in five . . . would say maybe it's time to do something different," said Angus Reid pollster Mario Canseco. "The fact that there is something new on the horizon appears to interest people."

What remains unclear from the online poll, which contacted 802 Albertans between June 24 to June 26, is whether support for a coalition would translate into votes.

A melding of the Liberals and NDP was the most popular coalition combination, followed by a combo of Liberals, NDP and Greens.

Respondents weren't offered the Wildrose Alliance as an option.

Calgary Liberal MLA David Swann views the survey results as a sign some Albertans are eager for an opposition shakeup. "This is an encouragement, I think, at the very least to working more constructively together," said Swann, who's chairing a cross-party town hall meeting in Edmonton on Monday focused on re-engaging

Albertans in democracy.

Only four in 10 Albertans voted in the March provincial election, the worst turnout in the province's history.

While the Liberals are in the midst of their own shakeup, searching for a new party leader and debating a name change -- some members are even musing about starting a new political movement -- the NDP appear firm on flying solo.

Party members overwhelmingly rejected a coalition with the Liberals and Greens at the NDP annual convention in Calgary last month. But Gil

McGowan, president of the Alberta Federation of Labour and NDP member, contends the Angus Reid survey underscores Albertans are open to a change of the political landscape.

McGowan, who favoured a merger, said both the NDP and Liberals need to "think outside the box" in order to defeat the Tories.

The survey offers "a very significant finding," McGowan said, "and it's one that the Liberals and New Democrats ignore at their own peril."

However, University of Lethbridge political scientist Peter McCormick doesn't put much stock in coalition talk or the survey's findings. He thinks the main question asked by the Angus Reid poll, which has a margin of error plus or minus 3.5 percentage points 19 times out of 20, is too ambiguous to gauge support for a merged opposition.

Calgary Herald, Page A15, Sat July 12 2008Byline: Renata D'Aliesio

Reality Check:  Profits, Prices, and Access to Markets

Alberta is producing too much of the wrong product; no mystery why oil companies are getting a low price.

The Government of Alberta’s evidence filed with the Joint Review Panel for the Northern Gateway pipeline shows Alberta’s failure to upgrade bitumen is what is causing lower prices for bitumen and what is driving the alleged need for the Northern Gateway pipeline.

The Government of Alberta hired energy consultant firm Wood Mackenzie to do an analysis on the need for “new markets” for Alberta’s bitumen. The analysis is designed to support the Northern Gateway pipeline.

The report is technical in nature.

The GoA evidence says oil sands producers “could” lose up to $8/barrel because bitumen is flooding North American refineries incapable of handling it. Chinese refineries can handle bitumen, and it makes sense for oil sands operators deeply involved with Chinese state-owned oil companies to ship raw bitumen to Chinese refineries, who rely on lower labour and environmental laws.

There is plenty of North American refinery space for synthetic crude oil, which is upgraded bitumen. But the Government of Alberta hasn’t forced companies to build upgraders, and has allowed a stampede of development without any regard for keeping jobs in Alberta.

The Government of Alberta is responsible for the problems they describe in their evidence. We are pulling bitumen – a lower-quality product – out of the ground, shipping it out as fast as we can, flooding the market with a low-quality product, and wondering why we are losing money.

The Wood MacKenzie report before the NEB might be complicated and technical, but the explanation is quite simple. Upgrade the resource before it leaves Alberta, keep the good jobs here, earn more tax and royalty revenues for Albertans, and the economic case for the Northern Gateway pipeline evaporates.

Technical Backgrounder on the Wood MacKenzie Report

Wood MacKenzie’s $8/barrel “discount”

WMK’s $8/barrel discount prediction is a figure based on the concept of “refining value.”

WMK predicts Canadian producers “could continue to lose approximately C$8/bbl relative to its refining value.”[1]

The discount of value is driven by the fuel oil yield in the cracking configuration, which sells at a discount to the gasoline and diesel produced in a coking configuration.

“The Refining Value, which is the value of refined petroleum products produced from a given crude oil, falls as a refinery configuration becomes more ‘simple’ because the simpler configuration has less capability to convert the lower-value heavy end of the crude assay to higher-value products, such as transportation fuels.”[2]

The $8/barrel “discount” is attributable to:

A glut of supply for coking refineries Too much non-upgraded bitumen looking for a home. It is finding its home in cracking refineries, thus simply producing fuel oil rather than diesel or gasoline

Prediction of losses of refining value are further attributable to:

Not enough pipeline capacity to “premium heavy crude markets,” aka refineries that can process bitumen straight into gasoline or diesel Runaway growth in bitumen supply and a glut on the market

The Wood Mackenzie analysis relies on the following assumptions:

A lack of upgraders in Alberta. If bitumen is upgraded to SCO in greater amounts, higher refining values can be achieved A prediction of just 26% of Alberta bitumen being upgraded by 2025, far below the Government of Alberta’s stated policy goal of 2/3 bitumen upgraded in Alberta A growth in supply due to ERCB approving every project, without associated upgrading capability A total lack of pacing by the GoA Department of Energy Ignoring the use of rail entirely, which is not only being used right now but also contained in Enbridge’s analysis

Heavy Crude Refining Predicted to Fall in Western Canada With Northern Gateway

According to Enbridge’s evidence before the National Energy Board, Western Canadian “heavy crude” – aka bitumen coming from the oil sands -  will be increasingly refined in China, where state-owned companies are building massive refining complexes capable of handling bitumen.

Western Canada Refinery Throughput[3]

2011 Refinery Throughput – Reported to CAPP

2018 Forecast By Enbridge – With Northern Gateway Pipeline

Conventional Light-Medium

173,000

110,100

Synthetic Sweet

205,000

245,900

Heavy Crude, All Grades

199,000

152,400

Sour Synthetic

N/A

67,500

Total Throughput – Western Canada

577,000

575,900

About the AFL Northern Gateway Reality Check Series

The Alberta Federation of Labour is a full intervener in the Northern Gateway Pipeline.

The debate around the Northern Gateway pipeline is heated, and we hear governments and industry saying all kinds of things to justify locking Canada in to being a raw resource producer, but never move up the value chain with our natural resource wealth.

“The Northern Gateway pipeline hollows out our value-added industries, imposes higher oil prices on consumers, and rewrites the rules of Canada’s oil industry. Gateway will reduce the amount of oil sands upgraded in Alberta and ship thousands of jobs to China,” Gil McGowan, President, Alberta Federation of Labour.

[1]Page 1 of 12, A Netback-Impact Analysis of West Coast Export Capacity, Addendum Report for Alberta Department of Energy by Wood Mackenzie Inc, Appendix A, The Government of Alberta Responses to Information Request No 1, to Gitga’at First Nation.

[2] Page 4, Government of Alberta Response to Information Request No. 1, to Gitga’at First Nation, July 6, 2012.

[3] All 2018 Forecast figures for Western Canada and Ontario are taken from Enbridge Northern Gateway, “Market Prospects and Benefits Analysis For the Northern Gateway Project,” July 2012. Attachment 1 to Northern Gateway Reply Evidence. Prepared by Muse, Stancil & Co for Enbridge. Table A-9: Disposition of Canadian Synthetic and Light/Medium Conventional, Northern Gateway Case; Table A-10: Disposition of Canadian Synthetic and Light/Medium Conventional Base Case (No Northern Gateway); Table A-12: Disposition of Canadian Heavy Northern Gateway Case, All Heavy Grades.

EDMONTON — Premier Alison Redford is cutting short her trip to Asia and returning home as a result of the death Thursday of her friend and mentor, former Alberta Premier Peter Lougheed.

The Canadian flag over the legislature has been lowered to half staff and a dozen white roses have been placed by Lougheed's portrait outside the premier's office on the building's third floor.

The premier's spokesman Jay O'Neill said Redford plans to end her travel in Asia three days early.

"Arrangements are being made for her return," he said.

It isn't known whether Lougheed will lay in state at the legislature. The last to be honoured in that fashion was former Lt-Gov. Grant MacEwan.

Tributes have been pouring in for the 84-year-old former premier from all across the nation.

Prime Minister Stephen Harper said Canada had lost a truly great man.

"Peter Lougheed was quite simply one of the most remarkable Canadians of his generation," he said in a statement. "He was a driving force behind the province's economic diversification, of it having more control of its natural resources and their development, of Alberta playing a greater role in federation and of improving the province's health, research and recreational facilities. He was also instrumental in the creation of the Canadian Encyclopedia."

Harper noted Lougheed's legacy will live on in the institutions that he pioneered which continue to generate benefits for the people of Alberta and Canada.

Gov.-Gen. David Johnston said Lougheed never stopped believing in a better, stronger Canada.

"His was a full life, with a record of achievements that will be long remembered," said Johnston. "He was a loving husband, father and grandfather — and a dear friend — and he will be missed."

Premier Alison Redford said Lougheed was a visionary and an inspirational leader who forged for success and prosperity in the province. She expressed condolences to Lougheed's family on behalf of all Albertans.

"Peter Lougheed was a man who made us all so proud to be Albertans and he will be deeply missed," she said.

Colleen Klein expressed sympathy for the Lougheed family on behalf of her ailing husband, former premier Ralph Klein.

"Ralph, like all Albertans, understood how Peter Lougheed put Alberta on the global map, so that others, like Ralph, could follow," she said in a statement. "We are deeply saddened that he has passed away, but grateful for the doors that he opened."

Finance Minister Doug Horner, who grew up around the premier as the son of former Lougheed cabinet minister and right-hand man Hugh Horner, said Lougheed's legacy had a profound effect on Redford's Progressive Conservative government.

"He was a Progressive Conservative," he said. "We do have a social conscience and Peter Lougheed defined that and really did define what Progressive Conservative was all about."

He said everyone recognized that Lougheed always had Alberta's best interests at heart.

"From the right spectrum or the left spectrum, all of his ... political foes respected the fact he was in it for the right reasons, that he was there to do what in his heart was the right thing for his province. I think that's something all politicians should try and emulate."

Accolades have indeed come in from leaders of all political stripes.

"There's an element of grace to everything that he's done," said Roy Romanow, former NDP premier of Saskatchewan. "The hallmark of the man as an individual always will be that he was a gentleman."

Marc Lalonde, the former federal Liberal cabinet minister, there was nothing personal about the political battle between the Trudeau government and Alberta on the National Energy Program in the early 1980s.

He said Lougheed "was an extremely able politician and a very "hardball" player. He had very much at heart the interests of his province ... but nobody could question his strong views about Canada, and his strong support for Canadian unity."

NDP Leader Brian Mason said Lougheed fought for Alberta and was a tremendous builder of the province.

"His work to ensure that Albertans get a fair deal for their resources, to create a more progressive province, to improve our education system and to encourage a fairer society is of unquestionable importance to the province that we have today," he said in a statement. "He stood up for Albertans, but remained a passionate Canadian."

Liberal Leader Raj Sherman said Lougheed helped modernize Alberta.

"His zeal and determination to make our province and nation a better place will not soon be forgotten. He was a visionary Albertan who moved our province forward in the hopes of ensuring a prosperous future for our children and grandchildren."

Gil McGowan, president of the 150,000-member Alberta Federation of Labour, said Lougheed understood the concept of the public interest, and did not confuse what was good for private industry with what is good for the public as a whole.

"He was not a cheerleader for narrow business interests, and he did not engage in gimmicks or short-term thinking. He used our wealth to build a better Alberta."

The board and staff at the Epcor Centre for the Performing Arts expressed sadness at the loss of "a truly exceptional man and consummate statesman."

"Mr. Lougheed was a proud trailblazer for arts and culture in Alberta," the centre said in a statement.

The Calgary Herald, Friday September 14 2012

Byline: Darcy Henton

With files from James Wood and Kelly Cryderman

 

During the last provincial election, the Alberta Federation of Labour attempted to engage the parties in a discussion about the future of the oil sands. Black Gold, Clear Vision presents a proposed policy framework for dealing with the oil sands which was relevant then - and is even more urgently needed today.

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