Wind Solar Hydro Marine/Tidal Geothermal Biomass Storage. A National Human Resources STRATEGY. for Renewable Electricity

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1 Wind Solar Hydro Marine/Tidal Geothermal Biomass Storage A National Human Resources STRATEGY for Renewable Electricity

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3 TABLE OF CONTENTS 1. Background 2 2. Leading from Strength 4 3. Risks and Uncertainty 4 4. Creating Green Jobs 5 5. This is Not My Problem! 7 6. Defining and Measuring Success 8 7. Twelve Actions Conclusions and Implementation 23 A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 1

4 2 1. Background Electricity Human Resources Canada initiated the Renewing Futures (RF) research project to assess the capacity of Canada s workforce to meet the requirements of additions to renewable electricity (RE) systems. The scale of the expansion was estimated in alternative scenarios that bracket potential growth. For all RE systems, including large hydro, Canadian suppliers are expected to add between 20,000 and 52,000 MWs of new renewable electricity capacity from 2012 to In the Vision Scenario, that captures both policy targets and industry s view of potential, these gains add 60% to the total system (including large hydro). Capacity for the newer sectors; wind, solar, geothermal, bioenergy, small hydro and tidal / wave, will increase more than three fold. The report on labour market conditions and human resources management concluded that risks of skill shortages threaten to limit this expansion in each scenario. Even in the more limited growth scenarios, recruiting the required numbers of skilled workers will exceed the limits of current training programs and bring RE employers into competition with hiring anticipated in other industries. In the Vision Scenario, projected requirements from, 2012 to 2022, are two to three times current employment levels, and hiring on this scale presents a wide range of challenges. This National Human Resources Strategy proposes joint action by the RE employers, trainers, unions and governments that will expand the breadth and depth of the skilled workforce. Actions proposed here will limit problems recruiting, help job seekers find new careers and avoid delays or added costs in the deployment of Canada s new RE systems. To succeed the strategy will need to engage employers, trainers, unions and government regulators across all provinces and in all sectors.

5 These findings present an industry wide perspective; showing overall RE employment in contrast to competing industries and overall labour market conditions. Seen from this perspective, RE employers have a collective challenge ahead. Working together to build the needed workforce will secure support from government and training institutions. The RE sectors have a powerful story to tell Canadians as they present significant prospects for new jobs. This work is linked to environmental improvements and careers that span a range of employers and opportunities or advancement. EHRC is proposing stakeholders give further consideration to key elements of a national human resource strategy for RE employers. The strategy would be built around the advantages of collective action to attract, train and employ the needed workforce. Working together, RE employers can make long term investments in human resources that parallel the investments in systems to deploy new capacity. A plan that is supported by all the stakeholders will attract the support of government, and potentially, funding for training and certification initiatives. Collective actions to invest and promote this workforce will benefit Canada overall as well, adding skills and new thinking to communities nationwide, making Canada a more attractive place for potential immigrants, giving workers more career options, adding depth and applied industry interaction to our universities, and potentially spawning incremental innovations as training is applied. Even in the more limited growth scenarios, recruiting the required numbers of skilled workers will exceed the limits of current training programs and bring RE employers into competition with hiring anticipated in other industries. survey and interview process. The first four platforms each support a unique workforce with distinct qualifications and labour market conditions. In each case, there are established systems of qualifications and groups of trainers. Strategic actions proposed for each platform would build one group of skills and expertise. The critical central platform draws all these actions together into a complete national strategy that addresses all the HR needs and provides career paths for the workforce entering at any point. Exhibit #1: A National HR Strategy Five Platforms A. Leadership and Management Collective action is not assured. The case for a strategy must first clearly define and demonstrate specific advantages for each employer and other types of stakeholders. Even then, after creating an awareness of the problem, defining the solution and motivating action will be a major challenge. D. Sector Specialists Solar PV Installers Wind Technicians E. Career Bridges and Certifications B. Engineering and Technology One common element that draws diverse stakeholders together is their shared need to recruit large numbers of skilled workers in the same occupations. The strategy will be built on actions that are specific to the five platforms identified in Exhibit #1. Each platform includes a group of priority occupations identified by employers in an industry C. Trades and Related Occupations A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 3

6 2. Leading from Strength Growth is the dominant theme in the story of global renewable electricity deployment. Investment in wind and solar sectors in particular has grown by factors of over five times in many countries in the past decade and expectations are for employment gains from two to over three times 2011 levels in Canada by Growth on this scale make RE one of Canada s fastest growing industries. This represents business opportunities and jobs in every province and across six RE sectors: 1. Wind 2. Solar 3. Geothermal 4. Large and Small Hydro 5. Bioenergy 6. Marine: Tidal and Wave Further, the RF report highlights investments in the transmission, storage and distribution systems that are needed to support both the RE developers and local utilities. The latter workforce is a key enabling sector and developing the skills needed for this group is essential for the deployment of RE systems. These enabling technologies are a seventh sector: 7. Integration and Storage Economic benefits associated with RE investments are spread across many occupations, a wide span of the supply chain and among these seven sectors. There is a risk that, as this economic activity is dispersed across the economy, the public will lose sight of the large scope of benefits. All the RE activity is part of a shared objective to reduce carbon emissions and increase the contribution of renewable energy sources in electricity generation while developing local economies and diversifying energy supply. Canadians want to be part of this process and the strategy will build on the combined attraction of economic opportunities and environmental improvements. The RF report documents the range of employment gains. Even in the most cautious scenarios that assume limits to RE growth, there are significant job gains and related investment opportunities for workforce development. 3. Risks and Uncertainty There are three dimensions to RE growth. First there is a steady, year by year, expansion of jobs in operations. Second, new investments will create a cyclical ebb and flow in manufacturing, construction and installation employment. Third, shifting economic and policy conditions will create different growth paths among the provinces. Volatility creates its own risks and these have been assessed with a series of alternative scenarios that describe the pace of deployment of RE technologies across sectors, provinces and time. 4

7 Rapid deployment of RE systems creates external uncertainties related to changing economic conditions and government policies. Rapid deployment of RE systems creates external uncertainties related to changing economic conditions and government policies. Further, the scale and timing of investments will be uneven; creating more rapid hiring and then layoffs as projects ramp up and wind down. The industry has learned from experience that there are internal consequences related to safety, workplace quality and productivity related to these external conditions. A Technology Review, prepared as part of the RF research, considered the range of alternative technologies that are available in each sector and the likely timing of new investments. In many cases, the scenarios anticipate the deployment of current market ready systems and describe new workplace skills that are required. Attention is focused on the work at the interconnection points and in the associated upgrading of storage, distribution grids and transmission systems. These latter areas present the most likely challenges in terms of skill upgrading and changes in workplace conditions. A national HR strategy will include many elements of flexibility and portability that create a mobile workforce that is able to meet these challenges while minimizing the risks of unemployment and cyclical losses for the workforce and employers. 4. Creating Green Jobs The RF analysis looks across three scenarios to 2022 that track the upper and lower boundaries of RE deployment and related employment. A Vision scenario captures the upper bound of labour requirements. This covers both government policies that target a rising share of renewables in the energy supply and the industry s assessment of Canada s potential for each sector. High levels of investment and related manufacturing, construction and installation activity describe the upper bound of labour requirements and identify the occupations and specialized skills that will be required. Two additional scenarios identify more limited forecasts of expansion. The Reference Scenario is based on National Energy Board (NEB) 2011 energy projections and reflects the impact of slow economic growth held back by government spending restraint and low population growth. The Utility Scenario was built up through consultation with local and provincial utility planners and reflects their views on the capacity of the current infrastructure to absorb new RE generation. Exhibit #2 summarizes the outlook for the three scenarios. Exhibit #2: Impacts of RE Investments (Excluding Large Hydro) Incremental Capacity and Employment Impacts 2012 to 2022 Scenario Incremental Installed Capacity, MWs Total Cumulative Employment 2012 to 2022 Construction and Installation Person-Years Peak Employment, operations in 2022 Scenario A Utility Case 13, ,000 19,000 Scenario B Reference/ NEB Case 15, ,000 21,000 Scenario C Vision Case 42, ,000 34,000 Source: EHRC, Prism Economics and Analysis A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 5

8 The job potential is significant with 620,000 person years of short term employment in manufacturing, construction and installation needed to build new capacity. As these projects are completed another 34,000 full time and long term operator jobs are added by Work is spread across the supply chain and the seven sectors. Most of the jobs that are created are high skilled, well paid and technical occupations that offer opportunities for advancement throughout a career. The ideal strategy could focus on a group of eighteen key occupations: Exhibit #3: Key Occupations in the RE workforce Occupational Categories Renewable Energy Core Occupations Leaders and Mangers 1 Engineering managers 2 Utilities managers 3 Information systems analysts and consultants 4 Financial auditors and accountants 5 Sales, marketing and advertising managers 6 Other Leaders and Managers (including Project Managers) Engineers and Technologists 7 Electrical and electronics engineers 8 Mechanical engineers 9 Electrical and electronics engineering technologists and technicians 10 Mechanical engineering technologists and technicians 11 Power systems and power station operators 12 Other Engineers and Technologists Trades and Related 13 Electricians (except industrial and power system) 14 Power system electricians 15 Electrical power line and cable workers 16 Mechanical trades 17 Construction trades helpers and labourers 18 Other Trades and Related Source: EHRC, Prism Economics and Analysis 6

9 5. This is Not My Problem! The strategy would focus on the human resources challenges of a group of approximately 1,800 employers. To expand the available workforce and build the depth and breadth of skills required, employers will need to be engaged in an industry initiative that will combine their resources and concentrate their attention as they collaborate in a series of actions. Collaboration is not an obvious outcome. An employer survey completed for the RF study revealed a large number of small companies spread across the supply chain. These companies assigned a high priority to several challenges (e.g. energy policy) that ranked ahead of human resources. About half of the respondents reported only limited difficulties recruiting in the past year. Companies reported extensive training programs and expressed confidence in their current HR management practices. These practices included wide spread reliance on recruiting from other employers in the RE and electric utility industry. At the same time, the respondents reported ambitious plans for hiring in the coming two years with expansion on the scale anticipated in the Vision scenario. Analysis shows that there is an inconsistency in these views and the available workforce will not meet the emerging needs without bringing RE employers into direct competition with employers in other industries. Building the needed workforce is an industry-wide problem but it may not be perceived that way by many industry employers. From their current point of view, their firm does not appear to have a problem. In addition, they may have limited experience in working with competitors to solve common problems. Under these circumstances, the implementation of the any national strategy faces a significant challenge in convincing many employers that there is a problem to solve. A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 7

10 6. Defining and Measuring Success The strategy needs clear goals that can be measured. Stakeholders agree that success means: Building a strong consensus among a broad group of employers that collective HR action by the industry is needed, Youth and job seekers that consider employment in the RE industry as a career path that offers socially meaningful work opportunities, The RF research builds the strong case for collective action. RE deployment on the scale anticipated by industry vision and policy goals will not be possible without a parallel investment in human resources. Competing demands for skilled labour in other industries and their collective investments to meet their labour requirements require a common approach for the renewable energy industry. Once implemented, a national strategy will promote flexibility in the RE labour force. Short-term adjustments will be facilitated by the mobility of the workforce among provinces and sectors. Long-term planning can build training and certification systems that are based on alternative views of the needed skills and projected labour requirements. A national strategy that embraces skills for all sectors is insurance against cyclical swings in investments and labour market instability as big RE projects are developed, constructed and then become operational. More qualified graduates that meet employer needs coming from post-secondary programs, A larger and more skilled workforce with an improved safety record, rising productivity and access to ongoing development, and More bridges that connect programs, certifications and employers across sectors and provinces to provide market flexibility and worker mobility in job search. RE deployment on the scale anticipated by industry vision and policy goals will not be possible without a parallel investment in human resources. 8

11 Strategic actions will be initiated for each occupation platform, by sector, and will focus on the specific needs and circumstances highlighted in the research findings. Actions will have specific elements that target practical results and advantages for individual employers including: a unifying vision for the RE sector and a public relations communication campaign to promote the energy sector and a clean, renewable and low carbon message, Background documents that draw on the RF research to set out conditions that drive employers, the workforce and trainers. These documents would be customized to address the point of view of individual audiences; including specialized material for sectors, provinces and occupation groups, Training and certification content that addresses employer needs, and The success of the strategy will be measured by: The number of RE employers engaged in the process, The number of new entrants, leaders in IT, project, finance and marketing management, engineers, technologists and technicians, apprentices and skilled trade who enter and complete RE training and certification programs. Guidelines for the needed expansion for post-secondary program registrations and completions could indicate a 50% expansion by 2016 and could double by 2022, Certifications or designations that allow measures of completion and subsequent progress in labour markets, and Participation by colleges, private trainers and unions in the expansion of existing programs or creation and implementation of new programs. Plans for promoting the adoption and use of new HR features. A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 9

12 7. Twelve Actions This section defines twelve actions that would meet the objectives of the proposed strategy while focusing on specific conditions in individual occupations and the needs of employers in each sector. support in this environment requires distinct leadership skills that are essential to industry growth. It is especially important for the small-scale businesses that deploy RE to develop leaders to manage human resources. Industry growth includes financial, IT and market risks and success depends on a rapidly growing group of very talented leaders. A. Leadership and Management The Need for Action Stakeholders participating in the RF research frequently described a leadership imperative. Renewable energy investments offer fertile ground for innovation and social leadership. At the same time, there are higher than average risks and uncertainty. Securing government and investor 10

13 RF research identified very specific circumstances that require special aptitude for the next generation of RE employees in areas like engineering, information technology (IT), finance, government and community relations, marketing and project management. While advanced IT skills are needed across the supply chain, it was particularly clear that a large workforce of IT specialists will be needed in the interconnection and distribution of RE power on the grid. Attracting investors to new RE initiatives is another special challenge given the very distinct risks and uncertainties and a group of financial specialists is emerging in this area. The interaction and complexity of government policies, regulations and fiscal programs (at all levels of government) heighten RE sector risk and threaten to limit growth. Government and community relations expertise is an essential skill that must be added to the workforce. Finally, employers identified project and cost management and estimating skills as a top management priority for future leadership. STRATEGIC ACTION #1 Building Critical Leadership Skills Action #1 is divided into two initiatives. The first would establish a National Leadership Forum for Renewable Electricity. The Forum would create and adapt leadership training programs to meet the needs of the industry. In its first steps, the Forum would identify special attributes that apply to leadership in the RE business. As the program is implemented, the Forum would seek out outstanding young talent working on RE initiatives in all sectors and occupations. The Forum would offer them access to speakers, courses and activities that broaden their strategic vision for both the technological potential for RE systems and the experience of other jurisdictions in human resources management as well as areas like energy policy and regulation. The Forum would offer industry opportunities for mentoring and networking. Participants would be drawn from a range of disciplines including engineering, finance, project management, government policy and marketing. Several of these young leaders will be project managers, marketing, engineering and finance experts. Leaders for the future will be drawn from this pool of talent advancing through careers in RE. Nurturing this group requires both specialized knowledge and industry experience and actions #4 and #5 below set out plans in this area. It is proposed that the development of the RE Leadership Forum be linked to the mentoring / training plan set out there as newly recruited internationally trained experts in RE systems and project management, marketing, engineering and finance are invited to join the initiative and identify the best and brightest of the young RE employees that they are mentoring. The second initiative for Action #1 would focus on ways to accelerate the acquisition of RE specific knowledge for new company leaders in IT, government relations, project management, engineering, finance, cost management and sales. These actions will target expanding and adapting current RE programs offered at community colleges that teach technical sales, design and estimating skills in sustainable systems and related to RE products. In particular, these programs need to be adapted to add RE industry knowledge for the new IT workforce. Benefits The leadership imperative is about numbers and skills. A significant component of RE deployment will be managed by a rapidly growing number of small and expanding firms. There will be a parallel need for new leaders in the expanding large hydro and utility grid improvements to enable interconnection. A very large number of uniquely talented and experienced young managers will be needed and they must be drawn from a population where demographics will limit the number of candidates. Identifying a growing group of promising young leaders and adding to their RE skills may be a top priority benefit for the strategy. A very large number of uniquely talented and experienced young managers will be needed and they must be drawn from a population where demographics will limit the number of candidates. A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 11

14 These programs represent the core of Canada s current capacity to add depth and breadth to the RE workforce and will be the central focus for strategic actions. The strategic actions contemplated will span a wide range of occupations including the most skilled group of electrical power engineers, power system and station operators, power electricians as well as RE support occupations in sales, design, cost and estimators. B. Science and Technology The Need for Action Employers identified engineers as the most critical group of occupations in their HR plans. At the same time, broader research on engineering labour markets identifies a very distinct set of conditions that separate new graduates from Canadian universities, from engineers with five to ten or more years of experience. Expanding university programs have added a rising number of undergraduate students in engineering. At the same time, demographic conditions and industry competition have created a growing shortage of specialized engineers with five to ten or more years of experience. Requirements for this latter group are driven by attractive pension benefits and retirement plans in larger firms. The result is a relative abundance of young engineers seeking their first job and an acute shortage of specialized and experienced engineers. And these conditions are not unique to engineers as other science and professional groups face similar dynamics. A national HR strategy will offer a plan for RE employers to navigate these waters. RF research also prepared an inventory of training programs that focus on skills specific to RE projects. In all, 95 programs were counted with the largest group (52) being university and college programs offered to engineers and engineering technicians and technologists. 13 of these programs were university programs, while 39 were college programs. Employers identified engineers as the most critical group of occupations in their HR plans. STRATEGIC ACTION #2 Enhance Professional Engineering Post-Secondary Programs This initiative would prepare briefing material describing employment opportunities based on the Renewing Futures research that would target both employers and post-secondary engineering and other science faculties. The objective would be to prepare a growing number of Canadian graduates in disciplines targeted by RE employers for employment. Employers would be encouraged to identify the content in current university programs that best meets RE needs. This initiative would include the need for Power Engineers in Electrical Engineering Faculties as support for expansion of large hydro generation and distribution systems. The initiative would brief faculty on job opportunities and new curriculum and co-op opportunities that would prepare students for employment. STRATEGIC ACTION #3 Focus Professional Engineering Human Resources Management Actions here would complement the initiative in Action #2 and would work with HR managers in RE firms to offer co-op positions for undergraduate engineers. Employers would be encouraged to hire young engineering grads and provide them with essential mentoring and Engineers in Training programs. Plans would include provincial professional engineering associations and other engineering support groups. At the same time, industry recruiting would be encouraged to turn to experienced international engineers and scientists working in markets where RE activity is at a cyclical weak point (e.g. Spain). HR strategies for engineers would target experienced internationally-trained engineers. Other non-canadians can be recruited with the help 12

15 of government programs like the Federal Skilled Workers, Temporary Foreign Worker, Provincial Nominee Programs and industry based support systems. Programs like the Ontario Society of Professional Engineers (OSPE) Tapping into the Talent Pool Recruiting Internationally Trained Engineers and Engineers Canada Roadmap to Engineering in Canada are examples of material that could be adapted for use by RE recruiters and job seekers. STRATEGIC ACTION #4 Expand College Technician and Technologist Programs The Core of the Strategy A first step for this action would be to review the current offering of 39 training programs in the colleges with an objective of increasing registrations and placements. Structured and consistent advice on program content that better fits each sector and spans all provinces could be offered to the college community. Further, RF members could consider the equivalency of existing curriculum for college technician and technology programs and assess the potential for interprovincial standards to promote mobility. These programs are the only broad basis for RE training in Canada. Leveraging off this foundation may provide early success. Engineering technicians and technologists and other graduates from the college programs are a key starting point. These graduates and the programs themselves can be seen as a focal point as they substitute for professional engineers and offer expanded horizons for the trades. The second step for this action would bring together the unions, provincial labour market planners, faculty and employers in the current programs to consider the next generation of college RE training. Objectives set here could target new curriculum, registration targets, specializations related to sectors and to occupations. The latter content might target training in preparation for sales, design, project and cost management, construction estimation and other non-technical jobs. A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 13

16 Benefits The deployment of RE systems on the scale contemplated in any of the scenarios requires increased numbers of both young and experienced scientists, engineers, IT, marketing and finance specialists and engineering technicians and technologists. While many stakeholders have an interest in successfully building the workforce, they are widely dispersed and may not recognize their shared interest. Success in these core strategic actions would reduce human resources costs related to turnover, recruiting and retirements. There would be industry wide benefits in areas like safety, customer satisfaction with workplace quality and productivity gains. C. Trades and Related Occupations The Need for Action Strategic actions would specifically address industry goals for workforce mobility, improved safety, work quality and productivity. Actions could be built at two levels Red Seal trades and Interconnection Skills. More Red Seal trades are needed in RE manufacturing, construction and operations. Apprentices and journeypersons in the Red Seal trades bring key advantages to the workforce including national mobility and well defined occupational skills and training. Ideally, new Red Seal trades could be created that would specialize in RE work. This is proposed as a long-term strategic objective to take account of the long-time and multiple initiatives in each province that define occupational standards and training. A further step is required, once all provinces have adopted the trades, to build national occupational standards that span the provincial scope of work. Employers would be encouraged to develop initiatives to draw on current efforts in the colleges, utilities and apprenticeship training for electrical engineering technologists, power station and systems operators, power system electricians and power line technicians. While national Red Seal trades and related national occupational standards will take time, there are also short term options available in several provinces where trade specialities or modular training programs may permit the earlier introduction of RE skills. Accessing these shorter term provincial programs will require planning that keeps the goal of national standards that span all provinces in mind. Skills development priorities and initiatives to expand the interconnection workforce are HR objectives shared by RE employers and the utilities. This strategic action would bring these two groups together to assess where each workforce can benefit from added training and new certifications. Employers engaged here would include speciality and general contractors, installation and maintenance companies, electrical contractors, IT and engineering consulting firms. STRATEGIC ACTION #5 Boost the Role of Red Seal Trades with Renewable Electricity Skills The first action would address the existing and expanding group of trades that are now trained and certified through Red Seal apprenticeship programs. This includes electricians, plumbers, pipe-steam fitters, welders and refrigeration and air conditioning mechanics. While each of these trades is represented in the RE workforce, electricians are clearly the largest and most important. In each case, there is an immediate need to add RE material to the apprenticeship or post apprenticeship programs in a manner that is consistent across Canada. Apprenticeship programs, in some provinces offer an opportunity to propose sub trades and specialties perhaps in solar PV and wind technology in a program like industrial electrician. For journeypersons in the trades, expanding the use of the IBEW / CECA / CSA journeyperson designation is a 14

17 potential first step. While this initiative targets solar PV installation now, it could include apprenticeships offered by industrial electricians trained as wind technicians. The first priority would be to increase the employment of apprentices on RE job sites and encourage mobility for entry level workers in solar PV and wind installation into related apprenticeships. As these numbers grow, employers will be encouraged to send apprentices to short-term RE training and trainers would be encouraged to add RE topics to the apprenticeship curriculum. STRATEGIC ACTION #6 Build Interconnection Skills a Joint RE / Utility Venture Both utility and renewable electricity employers focus on the changing skill set and workplace needs for the highly skilled teams that work at the interconnection points and in the utility distribution systems. Actions would try to increase graduates from the apprenticeship and college training programs and promote a consolidation of program content and certification across provinces. Employers would be encouraged to develop initiatives to draw on current efforts in the colleges, utilities and apprenticeship training for electrical engineering technologists, power station and systems operators, power system electricians and power line technicians. At the present time, there is no uniformity of training options for these trades across provinces. Plans to alter job descriptions, qualifications and certifications are now being managed by utilities with in-house programs in some cases and by provincial apprenticeship systems in others. emerging here that would support shared development of the needed workforce at a lower cost for each province and their employers. D. Sector Specialities Each RE sector has some specialized needs or skills and practices to be acquired by the workforce. While the RF research indicated that few big changes are expected in these technologies by 2022, there is a significant need for a growing workforce with deeper and broader knowledge of current systems. While these needs are apparent in each of the six RE sectors, the strategy will focus on the three largest; Large Hydro, Solar PV installers and wind technicians. The Need for Action There are sector specific aspects to the HR needs of the renewable electricity sector. Three strategic actions are proposed here. Large Hydro Perhaps the most distinct example is the large hydro sector which, as part of the legacy systems across Canada, has a long tradition and large workforce with established practices and HR issues that stem from long-term changes. The RE national strategy will address this large and important area. Training and certification for these trades is widely dispersed and not well coordinated. The national strategy would adopt curriculum that draws on best practices and added depth in safety training and people skills. These two priorities would fill in gaps identified in the current program offerings. Benefits A key benefit would be drawing utilities, RE employers and trainers together to recognize their common interest in expanding the numbers and deepening and broadening the skills of the trades. Large groups doing interconnection work have been built up in each province or utility based on legacy systems and practices. Legacy systems need to be expanded and upgraded with similar technologies in order to face the same demands. A common national interest is A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 15

18 The 2011 Power in Motion study prepared by Electricity Human Resources Canada identified labour market conditions and human resources issues for the large hydro sector. The study focused primarily on the impact of the long and cyclical history of the traditional electricity utility industry and the impact of this legacy on the next ten years. Findings emphasized the need to rebuild and refurbish large parts of the traditional system to catch up with an infrastructure deficit. Investment in the sector in the future will involve: Refurbishing existing facilities by replacing equipment without increasing capacity, Upgrading facilities by both replacing old equipment and adding capacity, and Constructing new facilities. The consequences for HR would be that refurbishment and upgrading activities will help to limit the cyclical variations in the demand for labour that might be associated with the construction of new facilities. Large hydro employers are often very large firms. They have substantial resources and expertise to manage HR. Therefore an industry-wide strategy may have more Large hydro businesses must replace a growing wave of workers between the ages of 55 and 65 who will take pension benefits and leave fulltime employment over the 2012 to 2022 period. limited appeal for these companies because they typically manage their HR challenges independently. It is also an industry segment that relies on established technology that it could be argued is not changing as rapidly as new renewable technologies. More stable technology means that there is not quite the same urgency in changing the training of new recruits into this part of the RE industry. Only incremental changes to existing post-secondary curricula might be necessary to keep pace with technology evolution in large hydro. These needs are different from the new and expanding additions to the other RE sectors. But findings in several areas were similar to the RF research. In particular, the analysis identified a similar list of key occupations and related concerns about skills shortage and competition with other industries for important managements, engineering and skilled trades groups. 16

19 One key issue retirement -- stands out for the large hydro sector in contrast with the other RE sectors. New and growing RE businesses are less concerned about an aging workforce. In contrast, the large hydro sector has a legacy workforce that enjoyed a hiring cycle in the 1970s and 1980 s and then a prolonged loss of employment during the 1990s. This historical pattern leaves a distinct demographic footprint and a prominent set of human resources challenges. Large hydro businesses must replace a growing wave of workers between the ages of 55 and 65 who will take pension benefits and leave fulltime employment over the 2012 to 2022 period. Analysis in the Power in Motion study found that this group will be divided into those who permanently leave the workforce and those who retain informal, part time or contract based employment. Evidence suggests that the latter group may be large and offers a needed pool of specialties and experience. Some in this group may be candidates for recruiting into newer RE businesses on a short-term basis. Permanent losses to full retirement leave a big HR challenge. In many large firms, there is a legacy of older managers, the younger Baby Boomer generation, who are available to fill jobs opened by retirements. The bigger problem is a gap in the middle management workforce, age 30 to 40, that is needed for succession. The hiring gap in the 1990s leaves a shortage in this group. Solar PV Labour costs in solar PV installation will become a larger proportion of total system costs as the price of solar panels declines and their energy efficiency increases. These conditions combine with ongoing industry concerns about safety, quality and productivity to raise the profile of workforce skills and performance. New solar installations may need more of the technical skills of electrician apprentices, working, for example, with inverters and combiner boxes, to the entry level skills of the current installers. Wind Technicians At the same time, the larger size of wind turbines and the larger scale of operations are changing the needed depth and sophistication of the work force. The next generation of wind installations will use new composite materials and prefabricated components. As the units grow larger, the voltages to be managed increase and the need for added knowledge and training in electrical systems increases. Actions proposed here may link entry level installer work to apprenticeship programs. This connection is primarily intended to offer an opportunity to gain work experience that is portable to advancement into the skilled trades. However, this link also connects RE labour needs to provincial government plans to support and expand apprenticeship registrations. STRATEGIC ACTION #7 Address HR Priorities for Large Hydro Employers As the national RE strategy embraces the large hydro sector, it accepts the issues around replacement demand and retirement as a key responsibility. The strategic action proposed here would address the full scope of retirement issues; including retention initiatives and recruiting an older and more experienced immigrant workforce. While these actions were originally designed for the traditional utility sector, many RE employers covered in this report face the same issues and will benefit from A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 17

20 new efforts to meet the very large labour requirements that come from retirements from the existing electricity workforce. Two initiatives can be taken up as actions for the RF strategy. The first was anticipated in the Power in Motion Study and supports both the large hydro sector and other RE employers facing similar challenges. This action would expand workforce and succession planning for middle management career advancement and training. Electricity Human Resources Canada has developed a report on Succession Planning Best Practices and Tools for the Canadian Electricity and Renewable Energy Sector. This work can be adapted to meet the needs of large hydro and RE employers described in this study. The second initiative would extend the workforce and succession planning to include the potential for older utility managers, who are considering partial retirement, to contribute to the growth of the new RE businesses. The Renewing Futures post-secondary training inventory identified 14 programs dedicated to solar PV installation. STRATEGIC ACTION #8 Build the Solar PV Installer Workforce This action will bring together employers and trainers in the solar industry. A focus would be on the benefits of collaboration among employers to meet the expected labour requirements. The workforce is a mix of entry level solar installers and apprentice electricians. The stakeholder group driving the actions would include developers, general and trade contractors and unions. The Renewing Futures post-secondary training inventory identified 14 programs dedicated to solar PV installation. These current programs can be evaluated and alternative systems for certification assessed. Competing systems and private plans that provide both training and certification may not serve the industries long-term objectives of 18

21 improved safety and system quality. There is a need for a Canadian based system of worker certification based on a combination of in-school training and experience. One option would be to expand apprenticeship programs. The effectiveness of the apprenticeship model may be limited by the time required to gain recognition across all the provinces. Industry based action may be needed to move quickly in the face of accelerating demands. One option, is to target the addition of sub trades or specializations to existing apprenticeship programs as a starting point. Programs would be designed to encourage links and prior learning recognition to connect to traditional apprenticeships like industrial electrician. STRATEGIC ACTION #9 Build the Wind Technician Workforce This action will bring together employers and trainers in the wind industry. A focus would be on the benefits of collaboration among employers to meet the expected labour requirements. The workforce in this group is a mix of entry level wind installers and apprentice electricians. The stakeholder group driving the actions would include developers, general and trade contractors and unions. Expanding enrolment in the 11 wind technician programs offered across Canada is a natural priority. At least one Canadian college is embracing the BZEE accreditation system from Germany and this may be a standard that can be more broadly adopted. The action would assess, with employers and training program faculty, the need for adding advanced IT and electrical skills to reflect the additions of grid friendly operating characteristics including voltage control/ regulation; fault ride-through capabilities; real power control, ramping and curtailment; primary frequency regulation; inertia response; short-circuit duty control. There may be a need for the addition of training for work with composite materials. Wind technician programs now being offered have many features that are targeted in the RF strategy including links that join wind technician training to industrial electrician apprenticeship. Most programs are focused on maintenance and some specialized programs target installation. There is a repeated focus on safety and training in specialized IT applications. Programs are technician level programs and most colleges mention the opportunity to apply the certification to higher level related training. Benefits One key benefit of the actions proposed here is to alter the job descriptions for entry level skilled workers in the solar and wind sectors. These jobs will be linked more closely with apprenticeship training and the potential for work in the trades. This innovation will not only better meet the needs of employers for a more skilled workforce, but will also provide a growing number of young Canadians with the first step on a career path in renewable energy. E. Careers, Bridges and Certification The final three strategic actions apply to all four of the sector platforms. They address the need to promote the strategy and create career paths that will encourage members of the workforce, once they have started building up training and certification, to remain in the industry and advance as opportunities grow. The Need for Action Employers in all the sectors report similar HR experiences. They face common challenges in retaining their workforce in an environment where short-term employment and contracting out are dominant practices. At the same time, many small businesses will need to understand how their firm s interests are served by a national strategy. STRATEGIC ACTION #10 Increase Industry Awareness: What s in it for ME? Public Relations to Build Participation Using RF research, this action will prepare brief, communication material that describes the HR challenges from an industry perspective, and defines the benefits of collective actions that expand the skilled workforce. The marketing material will invite the employers to participate in the Renewing Futures strategic actions and encourage their support by emphasizing the specific benefits related to human resources management. A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 19

22 A first priority with this group will be to focus emerging leaders and managers on human resources issues in general and the need for collective action in collaboration with other industry employers in particular. Demonstrate the general need for and acceptance of a national HR strategy that spans all key occupations will be a top priority. This effort includes a public relations campaign that will raise the awareness of a full range of stakeholders in careers and labour requirements in the RE industry. Embark on a significant national, multi-year PR campaign to promote the many benefits of RE and the rewarding career paths it offers. Encourage SMEs and utilities to participate in the national campaign gaining exposure for their respective entities while promoting the merits of RE. Social media tools would be used here to cross promote industry and organizations, including links to website and Facebook pages, twitter feeds, and others.. Fundamentally, the PR campaign for the RE sector is the master tool to connect organizations towards the different components of the action plan. The RF PR campaign would complement strategies that other industry associations are conducting it would be the unifying theme to attract workers to the sector. Industry associations representing RE employers will be an important intermediary in this process. In many cases, these associations offer HR support and training programs. The Renewing Futures strategy complements and reinforces their efforts. In particular, the strategy must not be seen as competing for employer or government program funding. In some cases, associations are directing their attention to a different set of occupations and the RE strategy will complement these initiatives as it adds similar efforts directed to a different group of occupations. STRATEGIC ACTION #11 Create Career Paths for Renewable Electricity The engineering technology programs offered in the colleges are the most important foundation for developing the needed skilled workforce simply because they are the most numerous and diversified training available with any RE content. These programs College programs are well placed to act as a bridge that allows advancement through the technical skills workforce or non-technical occupations to advance in RE firms. are often linked to both professional engineering and trades training by both employers and job seekers. Employers have turned to college programs to prepare specialized technical workers who enter apprenticeship in their firms. For example, several of the college based wind technician programs are directly linked to industrial electrician apprenticeships. These programs, often designed in collaboration with employers, offer specialized skills and prequalify job seekers in ways that meet changing needs. Both graduate engineers and apprentices in the trades have also turned to these programs to fill in specialized skills to better qualify for employment. College programs are well placed to act as a bridge that allows advancement through the technical skills workforce or non-technical occupations to advance in RE firms. These bridging opportunities would be formalized in this action as employers and colleges structure curriculum and certifications so that knowledge acquired can be recognized in advanced standing in higher level programs. Career progressions tied to advanced certifications would be defined. While each of the strategic actions suggested above is important for specific occupations, there is an even greater need to connect as many of these initiatives as possible. The dispersed and disconnected nature 20

23 of the employers and sectors conceal the potential for workers to move among these groups and across job opportunities. This mobility not only makes the labour market function more efficiently, it also creates job search options and career paths for the workforce. This potential for a career in RE and the promise of promotion and advancement is particularly potent because of the growth. Once established in the industry, young Canadians can anticipate a range of opportunities if they are willing and able to move across sectors and regions while adding new training and experience. In particular, increasing the number of underrepresented groups working in RE, such as women and Aboriginals, should be a key focus of recruitment strategies. The national strategy will encourage trainers and employers to build bridges that recognize training and experience on one sector or province as a qualification in the next level of advancement. Entry level solar installers could, for example, be encouraged to move on to an electrician apprenticeship or college programs. Young engineering grads could be offered access to specialized RE programs as part of an Engineers in Training or mentoring experience. The prospect of strong employment growth over ten years is a powerful advantage. It is often the case that the promise of advancement in technical training is frustrated by layoffs and business cycles that interrupt or delay the accumulation of needed experience. With a well-designed system of training and certification and the anticipated growth in deployment the RE industry would have a major advantage building their workforce. STRATEGIC ACTION #12 Aim for National Certification A Long-Term Goal Current Canadian programs have largely ignored existing certification systems developed in Europe and U.S. Stakeholders were not positive about the potential for these systems in Canada, but the strategy development process might consider these options over the long term. A Canadian solution may ultimately include many of the features that are already established in the RE deployment processes in other countries. This strategic action would review a range of existing certification systems and consider how these programs A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 21

24 or program features might be applied in the other strategic actions. In each case, the inquiry would consider the potential for and barriers to the adoption of construction, installation and interconnection standards for the workforce in all provinces. Certification programs and systems to be studied might include: NABCEP BZEE Red Seal CGC Certified GeoExchange Program ECO Canada National certification would act to draw the national strategy together and offer the most complete workforce mobility. The system could be extended to cross the skill needs of all seven sectors; acting to promote mobility within the industry as well as across provinces. A complete system of occupational analysis, program accreditation and provincial registration would draw all the strategic actions together into a powerful force for workforce development. This vision involves potentially expensive and time consuming steps that may form part of a longer term vision. This vision of national certifications that span the workforce in each province was encouraged in the recent Progress Report on Canadian Energy Strategy from the Council of the Federation. The Council of the Federation Energy Strategy Working Group was founded in 2012 and includes all of Canada s provinces and territories*. Two key opportunities and challenges were outlined that fit closely with the RF findings and proposed actions; Develop and implement strategies to meet energy sector human resource needs now and well into the 21 century and, Facilitate the development of renewable, green and/or cleaner energy sources to meet future demands and contribute to environmental goals and priorities As the Provinces and Territories move to meet these goals their objectives will coincide with the RF national strategy. The progress report goes on to say; Provinces and Territories are using mechanisms to support the labour market and human resource needs of the energy sector in their jurisdictions and across Canada. These include increasing participation for under-represented groups and collaborative partnerships that support areas such as immigration, labour mobility and skills recognition. 1 Benefits Each strategic action will address at least one key step in building the workforce. But they all need to be seen as links in a chain. Taken individually, these actions target small groups of employers and workers that may not recognize the need for action. The last three actions are designed to tie the first nine steps together into a plan that has broad and long term impact. Taken together the actions will bring advantages to over 1,800 employers as the plan is implemented and link as many as 99,000 workers together as the Vision Scenario employment reaches its peak in See Canadian Energy Strategy Progress Report to the Council of the Federation, July 2013 *With the exception of Quebec and British Columbia 22

25 8. Conclusions and Implementation Over 400 RE stakeholders participated in the survey, focus groups and regional engagement sessions that were part of the RF research process. Their input provides guidance into the objectives and actions of a national strategy. Implementation will need to build a growing community of supporters from each sector and province. Awareness and support can be built from a core group that includes representation from: 1. Electricity Human Resources Canada and the Renewing Futures Steering Committee Employers/ associations (all sectors), 2. Organized Labour, 3. Post-secondary programs (all), 4. Government (all). A NATIONAL HUMAN RESOURCES STRATEGY FOR RENEWABLE ELECTRICITY 23

26 This core group could start the development of strategic actions in a series of sub committees for: 5. Leaders/Management 6. Science and Technology 7. Trades and Related 8. Large Hydro 9. Wind Specializations 10. Solar Specializations 11. Career Bridges and Certification Each group would begin by reviewing these research findings in detail. In the event that their experience of HR conditions is sustained from this work, the groups could then prepare draft strategic actions built on those proposed. Canadians will build between 13,800 and 42,800 MWs of new electrical generation capacity between 2012 and By 2022 as many as 99,000 people will be employed in this effort. A national investment on this scale requires a parallel investment in the human resources that will build, install and operate the system. Canada s ultimate reward will be a cleaner and more diversified energy system. The elements that make up the national human resources strategy proposed here will ensure that the business opportunities and jobs created will create the safest, most efficient and highest quality systems. Canadians will build between 13,800 and 42,800 MWs of new electrical generation capacity between 2012 and

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28 Connect With Us twitter.com/electricityhr facebook.com/electricityhr Funded in part by the Government of Canada s Sector Council Program