Strengthen Working Relationships with Aboriginal Peoples

A Study of Manitoba Hydro’s Strategic Goal

Myron Smolarski

An Applied Research Project Submitted in Partial Fulfillment

of the Requirements for the Degree of Masters of Business Administration

Masters of Business Administration Degree

April 2015

Applied Project Academic Supervisor: Dr. Rocky Dwyer

Athabasca University

2

Abstract

Manitoba Hydro is a Crown Corporation and ranks among Canada’s largest electrical and

natural gas distribution utilities. Approximately 98% of Manitoba Hydro’s electrical energy is

derived from renewable hydropower generated by 15 hydraulic generating stations.

Hydroelectric development has impacted the provinces waterways and the communities

residing near them, in particular First Nations. Prior to hydro development, Aboriginal

society was marginalized by colonialism and institutionally racist policies of the 1876 Indian

Act. Among the most detrimental impacts to First Nations was an attempt to assimilate

Aboriginals into mainstream Canadian society by placing children in residential schools,

removing them from influences of family and culture. Cumulative impacts of development

and policy, resulted in collective trauma which damaged social life and the bonds attaching

people together. As a result of systemic problems, Aboriginal People today have

comparatively lower educational attainment, labour force participation, and employment

rates, presenting challenges for employers of Aboriginal people.

Manitoba Hydro has identified Strengthening Working Relationships with Aboriginal

Peoples as a strategic initiative in their corporate strategic plan. To accomplish their goal,

they have focused on three main tactics; Resolve and manage ongoing obligations from

past development; Increase Aboriginal representation by recruiting, developing and

retaining Aboriginal employees; Develop and maintain business relationships with

Aboriginal businesses.

Like many companies, MB Hydro is challenged with attracting, training and retaining

Indigenous employees and engaging Indigenous communities and businesses.

3

A qualitative design was used to study the collective literature regarding challenges

companies face engaging Indigenous populations.

The internal environment was analyzed using the Indigenous Employment Evaluation

(IEE) Tool; a reporting framework developed by the Centre for Responsibility in Mining

(CSRM) at Australia’s University of Queensland. It identifies strengths and weaknesses of

a company’s current Indigenous employment practices.

The external environment was analyzed using the DEPEST framework (Demographic,

Economic, Political/Legal, Technological, Socio Cultural and Ecological). Findings reveal

that Aboriginal People are a young, rapidly growing demographic making them a valuable

human equity resource. MB Hydro has implemented a number of positive initiatives to

address the inequality of opportunity faced by Indigenous people and to resolve claims of

adverse affects of hydro operations. Despite successes, Aboriginal protests directed at the

corporation persist indicating opportunities to improve Aboriginal relations persist. The

research presents seven recommendations for MB Hydro to consider for their Aboriginal

relations strategy.

Improve analytics to assess effectiveness of Aboriginal relationship strategies. Modify HR

Policy to include adaptations for Indigenous cultural differences, e.g. provisions for cultural

leave. Develop a career path development strategy specific to Aboriginal employees to

increase participation in management. Partner with industry and high schools to develop

technology major programs for Industrial Mechanics and Electricians. Leverage internal

management expertise to mentor Aboriginal businesses. Implement alcohol and drug

testing programs that educate but does not permanently restrict employment options.

Verify Aboriginal employment numbers submitted by contractors and establish

penalties for non compliance.

4

Table of Contents

Abstract ................................................................................................................................ 2

Introduction ........................................................................................................................... 5

Background .......................................................................................................................... 7

Research Objectives .......................................................................................................... 12

Research Methodology ....................................................................................................... 12

Literature Review ................................................................................................................ 15

Research Questions ........................................................................................................... 38

Research Methodology / Design ......................................................................................... 39

Research Findings, Recommendations and Conclusions .................................................. 42

Indigenous Employment Evaluation Tool ........................................................................... 69

DEPEST Analysis ............................................................................................................... 79

Recommendations .............................................................................................................. 88

References ......................................................................................................................... 92

Appendix 1.......................................................................................................................... 98

Appendix 2........................................................................................................................ 100

Appendix 3........................................................................................................................ 102

5

Introduction

Manitoba Hydro (2012; 2013) is a vertically integrated Crown Corporation of the

province of Manitoba. With over $14 billion in assets and 5700 megawatts of installed

electricity capacity, they rank among Canada’s largest electrical and natural gas distribution

utilities. Manitoba Hydro currently provides electricity to 548,774 domestic customers and

natural gas to 269,786 domestic customers. Approximately 98% of Manitoba Hydro’s

electrical energy is derived from renewable hydropower generated by 15 hydraulic

generating stations. They also maintain two thermal generating stations to back up the

hydro-electric system and purchase power from two independent wind farms.

As a Crown corporation, all Manitoba residents are considered stakeholders

however, from a strategic planning perspective, there are varying degrees of saliency

among them. Stakeholder identification and management is a critical component of the

corporation’s strategic planning process in order to continue fulfilling their mandate which is

reflected in their Mission Statement:

To provide for the continuance of a supply of energy to meet the

needs of the province and to promote economy and efficiency in

the development, generation, transmission distribution, supply

and end-use of energy.

MB Hydro( 2013) indicated that to accomplish their mission and meet projected

future energy requirements of the province, their preferred development plan included a

$25 billion dollar investment in plant and equipment between now and 2026. The bulk of

that investment involves construction of two new hydraulic generating stations, both of

which are located within the scope of First Nations traditional territory. In addition, a new

Bipole transmission line will span significant portions of First Nations traditional territory.

6

Previous hydroelectric development has negatively impacted First Nations people

and left a legacy of suspicion and distrust. Since the early 90’s Manitoba Hydro has had

two goals in their Corporate Strategic Plan (CSP) that in some form or another were meant

to address inequities in economic development among Manitoba First Nations and to

provide employment and business opportunities for the indigenous people of the province.

The most recent version of those CSP goals are to Strengthen Working Relationships with

Aboriginal Peoples; and to Attract, develop and retain a highly skilled and motivated

workforce that reflects the demographics of Manitoba.

Despite significant milestones being reached towards achievement of those goals,

there remains an underlying distrust and at times, strained relations between the parties.

Measuring the strength of relationships has proven difficult. Despite the fact that Aboriginal

employment and business partnerships have increased measurably, it is difficult to

measure direct correlation between the strategy of increasing Aboriginal employment and

business opportunities with the goal of strengthening relationships.

As a Crown corporation, there are moral and socio economic imperatives for

engaging Aboriginal people. In a study conducted for The Centre for the Study of Living

Standards, Sharpe and Arsenault, (2010) estimated that completely closing educational

and employment gaps between Canada’s Aboriginal and non-Aboriginal population would

lead to cumulative benefits of $400.5 billion (2006 dollars) in additional output and $115

billion in avoided government expenditures over the years 2001-26. Increased

employment rates lead to increased labour income, and household income is positively

related to social development and health incomes (Parkouda and Brichta 2013). From a

business perspective, positive relations are essential to protecting in service dates for the

7

corporation’s development plan and ensuring its reputation remains favorable enabling

continued export sales.

Background

MB Hydro (2013) The Corporation’s strategic positioning in the competitive export

market contends that Manitoba Hydro is considered a valuable contribution towards global

reduction of greenhouse gas (GHG) emissions. The ability to produce reliable, renewable

hydropower is due to the province’s fortunate geographical location as the main outlet of a

massive drainage basin that encompasses much of Western Canada, the Midwest United

States and Northern Ontario as noted in Appendix 1.

Manitoba’s energy history can be traced back to 1873 when the Winnipeg Gas

Company was first incorporated to provide the city of Winnipeg with gas lighting (MB

Hydro, 2002). Despite the lengthy history of electricity in the province, the First Nations

people of Manitoba have a much longer history, tracing roots back 10,000 years, shortly

after the last ice age glaciers retreated. Like Manitoba Hydro, First Nations people have

always relied on the rivers as a source of prosperity. Manitoba’s rivers have served as

transportation routes, they’ve provided sustenance and they have served as a means of

trade between indigenous tribes and later between indigenous people and European fur

traders.

Although Manitoba’s rivers provide clean renewable energy capable of an abundant

and affordable supply of electricity; hydroelectric development has had an impact on the

provinces waterways and the communities who reside in close proximity to them, in

particular, First Nations Communities. The shared economic ties to Manitoba’s Rivers and

the impact Manitoba Hydro operations have had, elevates the importance of Aboriginal

8

people as stakeholders and Aboriginal relations as a Corporate Social Responsibility (CSR)

issue.

As a Crown Corporation, all residents of the province are considered shareholders.

Besides the obvious advantages of having the lowest average retail electricity price in

North America, and one of the most reliable energy systems in the world, Manitobans also

benefit from employment opportunities, business transactions and payment of taxes and

levies by the corporation to Provincial coffers (MB Hydro, 2013).

Despite the seemingly enviable position that Manitoba Hydro and the Province of

Manitoba occupy, it is not without controversy. Post World War II Manitoba experienced a

period of unprecedented growth. Economic expansion combined with a rural electrification

program to extend electrical service to the entire province meant that the existing and

potential generating capacity in southern Manitoba would quickly become inadequate. To

address growth projections and the anticipated shortfalls in generating capacity, the

province investigated development of the province’s northern rivers.

Unfortunately, in the late 50’s and early 60’s, as development plans to harness the

potential of the north were being drawn, little community consultation took place.

Construction and operation of Manitoba’s hydroelectric system has had an undeniable

impact on the provinces waterways and on the communities who depended on them for

their livelihood, in particular First Nations (MB Hydro, 2002).

The first northern hydro project for Manitoba involved damming the Saskatchewan

River near the mouth of the river where it emptied into Lake Winnipeg. The Grand Rapids

Generating station transformed Cedar Lake into a massive reservoir and required the

relocation of the entire Chemawawin Cree community to a new purpose built site at

9

Easterville. The project damaged trapping, destroyed moose habitat and created problems

for commercial and domestic fishing. In 1971, elevated mercury levels in the white fish

population as a result of contamination from decaying vegetation and soil erosion led to a

closing of the commercial fishery (Loney 1987; Waldram 1980a, 1980b; Waldram 1988a,

1988b)

The impact development had on the indigenous people was much deeper and

longer lasting than that of the fishing and hunting ecosystem. Loney (1995) concluded that

impacted communities appear to exhibit significant and measurable increases in social and

pathology, consistent with the concept of community trauma. Erikson (1976) described

community or collective trauma as a blow to the basic tissues of social life that damages

the bonds attaching people together and impairs the prevailing sense of communality. The

collective trauma works its way slowly and even insidiously into the awareness of those

who suffer from it, so it does not have the quality of suddenness normally associated with

trauma.

Following the construction of the Grand Rapids Generating Station, the province of

Manitoba continued to progress its development plan, a plan which included increasing

outflows of Lake Winnipeg and diverting the Churchill River via the Rat and Burntwood

Rivers into the lower Nelson to increase water flows needed to power the large dams being

proposed. But the Grand Rapids experience united Aboriginal opposition to the

development in the form of the Northern Flood Committee, comprised of the First Nations

communities of Nelson House - now Nisichawayasihk Cree Nation, Cross Lake, Split Lake

-now Tataskweyak Cree Nation, York Factory and Norway House. Despite a collaborative

effort, the Cree failed to block the proposed development.

10

Subsequent negotiations with the Cree Northern Flood Committee culminated in an

agreement between The Federal Government of Canada, Manitoba Hydro and the

Province of Manitoba known as the Northern Flood Agreement (NFA). The NFA and an

accompanying Economic Development Agreement (EDA) were signed in 1977 and were to

provide for mitigation works, compensation, training, employment and community planning.

It also included provisions for an arbitration process (Province of Manitoba, 1977).

By the mid 80’s it was apparent that the NFA’s arbitration process was not working

to resolve outstanding issues. Disputes arose, claims were held up in the courts,

unscrupulous Lawyers took advantage of a desperate populace unprepared for the legal

battle they fought and suspicion and distrust abounded between parties.

At the initiative of First Nations, renewed negotiations began with the goal of

achieving Comprehensive Implementation Agreements (CIA). Long arduous negotiations

resulted in four of the five NFA First Nations, signing CIA’s during the 90’s. Split Lake in

1992, York Factory in 1995, Nelson House in 1996 and Norway House in 1997. In 1997

Cross Lake, after several years of negotiation, decided to not pursue a CIA, opting for

implementation of the NFA in accordance with its “spirit and intent.” Since 1998, Crown

parties have provided Cross Lake First Nation (CLFN) with approximately $5 million for its

costs supporting the negotiation process. On October 15th 2002 Canada’s funding for the

negotiation process ended as planned. CLFN had not responded to Canada’s proposals.

Negotiations between Manitoba, Manitoba Hydro and CLFN continue (Government of

Canada, 2010).

After the completion of the Limestone Generating Station in 1992, Manitoba Hydro’s

construction plans remained dormant until construction began on the Wuskwatim

Generating Station in 2006. It was a radical departure from past projects and marked the

11

first time an energy utility and First Nation partnered to develop a major hydroelectric

generating station. MH and the Nisichawayasihk Cree Nation (NCN) entered into an

agreement under a joint equity partnership that provides for NCN to own up to 33% of the

Wuskwatim generating station.

Use of Ethinesewin, the traditional knowledge and collective wisdom of

Nisichawayasihk people, was an essential part of the Wuskwatim planning process, helping

to reduce the impact of the dam and establish the location of the construction camp and

routes for the access road and transmission lines. The goal of including Ethinesewin in the

process was to ensure that as the project moved forward, it achieved Kistethichekewin,

meaning that the conduct of those involved in the development of Wuskwatim is always

based on the sacred responsibility to treat all things with respect and honour. Ethinesewin,

along with conventional environmental monitoring procedures, were used as a major

source of information to help ensure minimum disruption to the local environment. A $60

million pre project training initiative was also set up to ensure First Nations people had the

skills required to work on the Wuskwatim project and future projects.

Despite initiatives to recruit, develop and retain Aboriginal employees along with

efforts to foster and maintain business relationships, there remains a cultural divide and

lingering trust issues.

First Nations have entered into several joint business partnerships with companies

that do business with MH however it appears that First Nations play more of a support role

rather than a lead role, which draws into question the sustainability of the Aboriginal

business. Once the requirement for the project is completed, the joint partnership will

dissolve and the Aboriginal component may not carry on independently. In Gillam,

Manitoba Hydro’s northern headquarters, several independent First Nations businesses

12

have failed despite the corporations efforts to patronize the business. The recent Idle No

More movement and blockades of MB Hydro operations indicate a divide remains between

First nations and non-aboriginal society. Despite Manitoba Hydro’s efforts to strengthen

working relations with Aboriginal peoples, much work remains.

Research Objectives

The objective of this research is to identify deficiencies in current programs and

strategies related to Manitoba Hydro’s strategic goal of strengthening Aboriginal relations.

It will determine factors that may be impeding the corporation’s ability to engage First

Nations people as a source of operational strength, both internally in the form of employee

relations regarding attraction, retention, and motivation as well as externally in the form of

developing and sustaining First nations businesses. Although the result of this research will

present strategies that can be applied corporate wide, greater emphasis will be placed on

strategies specific to Manitoba Hydro’s Generation North Division where past and future

development has, and continues to have the greatest impact on First Nations people, and

where First Nations representation is demographically most significant.

Research Methodology

The research method and design provide structure for the framework that binds the

research project together. The context of determining appropriate method and design is to

ensure that the major parts of the research project hold together. For the proposed study, I

intend to use qualitative case study as the research framework to address the fundamental

research questions proposed in the study.

Quantitative and qualitative researchers use different methods to gather and

interpret data though both methodologies attempt to reach the same goal, which is to

13

develop meaning from the data. For the study, I will utilize the qualitative method, which is

characteristic of research aimed at understanding real-life phenomena in-depth by

understanding encompassed, important, contextual conditions.

Qualitative research derives from interpretivism, which is an approach of inquiry

grounded on the philosophy that human beings assemble meanings as they engage with

the world that they are deciphering. Researchers of interpretivism embrace the theory,

which denotes human dialogue, and action, which positivist methods of natural and

physical science cannot analyze. Interpretivists believe humans will base their meanings

on historical and social perspectives.

With the interpretivist philosophy, the qualitative researcher seeks to gain a

perspective by attempting to understand the background of the participants. Additionally,

researchers strive to interpret what they find, mainly through an intense or extended

contact with the subject of study. This is similar to the qualitative principle of empathetic

understanding, in which the researcher seeks to capture data from the literature and

through publicly available data regarding the working relationships between Manitoba

Hydro with Aboriginal Peoples.

The process of qualitative data construction and interpretation and in accomplishing

a holistic survey of the context under study, researchers unintentionally introduce personal

experiences and backgrounds.

Much of the data gathered through qualitative methods is text-based, generated

from sources such as word-for-word transcriptions of previously conducted interviews or

discussion, descriptions of interchanges, accounts of experiences, and observations of

interactions gleaned from Manitoba Hydro sources. The challenge facing researchers is to

offer some consistency and structure to the data set while maintaining the original accounts

14

and observations from which it originated. Despite the challenge, I will utilize a qualitative

approach as the research method.

The quantitative approach employs measurement strategies to develop knowledge

based on cause and effect. I did not choose the quantitative method because the research

question is seeking to measure relationships, but to explore meaning, making the

quantitative method inappropriate for this study. The mixed methods approach focuses on

collecting, analyzing, and mixing both quantitative and qualitative data in a study. The main

purpose of the mixed methods approach is to provide a better understanding of the

research problem by combining quantitative and qualitative approaches rather than by

using either approach alone.

As opposed to the qualitative research method, the quantitative approach essentially

requires researcher to be distant and objective. A quantitative research design is not

appropriate for the proposed study as my interest as the researcher is not to determine the

relationship between one variable (the independent variable) and another (the dependent

or outcome variable) by means of hypothesis testing. Quantitative methods employ the use

of statistical techniques and objective inferences to make determinations about what data

means, contrasted with qualitative methodologies that use phenomenological procedures

and broad views of reality from findings. In quantitative studies advances in knowledge are

verified hypotheses involving reliable, valid, and accurately measured variables.

Quantitative methods are limited in determining causation and accounting for the

complexities of human interaction.

In this research, I determined the questions based on a qualitative approach as the

best approach based upon the central research question for this study. The study has been

designed to understand a phenomenon that is not measurable. A qualitative design was

15

appropriate for the proposed study since the interest is to gather the collective literature

concerning Manitoba Hydro, and its relationship with Aboriginal Peoples in the province.

Literature Review

Context

Manitoba Hydro’s goals, values and principles have evolved over time. As a Crown

Corporation the company bears a responsibility to return value to its shareholders, the

people of Manitoba. The company’s mandate is to ensure a reliable supply of energy to

meet the provinces needs while maintaining domestic electricity rates among the lowest in

North America. It has been successful in maintaining low rates and yet, the company finds

itself at odds between keeping rates low, and investing in the future to ensure a reliable

supply of energy. Compounding the debate is the expectation that a government owned

entity is a leader in environmental and social responsibility. Of course not all constituents of

the province subscribe to this belief and there are powerful political influences who, like

free market economist Milton Friedman, are apprehensive of the firm engaging in activities

that deviate from maximizing profit.

Friedman (1963) theorized that

There is one and only one social responsibility of business- to use its

resources and engage in activities designed to increase its profits so long as

it stays within the rules of the game, which is to say, engages in open and

free competition without deception or fraud.

During the early years of hydro development in Manitoba’s north, it seems apparent

that the firm’s strategic direction followed more closely with the theories of Milton Friedman,

16

as the corporation pushed forth their development plan with insufficient consideration of

impacts to the environment and indigenous people.

William Allen (1992) presented two different concepts regarding the role of the firm;

the property conception, which views the firm as a collection of assets owned by the

stockholders, and the social entity conception, which views the firm as a community of

individuals, sustained and supported by its relationships with its social, political, economic,

and natural environment.

The firm as property view implied narrow focus on maximizing shareholder value or

profit, the firm as social entity implied that fundamental requirements for survival and

prosperity are the maintenance of the firm’s social relationships which require coexistence

with the external environment (Grant, 2008).

Given the fact that Manitobans have elected an NDP government for four

consecutive terms, one can make the assumption that the provinces constituents, Manitoba

Hydro shareholders, subscribe to the concept of the firm as social entity by way of their

political endorsement of the firms modern day strategic direction. The ultimate goal is a

strong independent Aboriginal community described by Parkouda and Brichta (2013, p.11)

as “an Aboriginal population that is economically indistinguishable from the mainstream

economy, yet is able to respect and preserve its cultural heritage.”

Stakeholder Theory

Mitchell, Agle and Wood (1997) developed a theory of stakeholder identification and

salience based on stakeholder attributes of power, legitimacy and urgency.

Power is defined as exercising a relationship among social actors in which one

social actor can get another social actor to do something that they would not otherwise do.

17

Legitimacy is a general perception that the actions of an entity are desirable, proper,

or appropriate within some socially constructed system of norms, values, beliefs and

definitions based on the individual, the organization or society.

Urgency is the degree to which the stakeholders claim or relationship calls for

immediate attention, and exists when a claim or relationship is important or critical to the

stakeholder.

To better understand the importance of the relationship between Aboriginal People

and the corporation so that an appropriate response to stakeholder concerns can be

developed, Frooman (1999) suggested management must determine; who the

stakeholders are? What do they want? How will they try and get what they want?

Specifically, Frooman’s research centered on determining how stakeholders act to try and

influence the organizations decision making and behaviour! Using resource dependence

theory (when a stakeholder supplies a resource and exercises some control over it) as a

framework he determined there are three types of resource control and influence pathways

that determine strategies available to stakeholders.

Withholding strategies: where the stakeholder withholds supplying a resource to the

organization with the intent of changing certain behaviour.

Usage strategies: When a stakeholder continues to supply a resource but specifies

how it will be used.

And an Influence pathway: where withholding strategies could be performed by an

ally of the stakeholder with whom the stakeholder has resource dependence.

18

Where stakeholder management focuses on managing relationships, and is linked to

short term goals, Liedtka (1996), Bragg (1996) and Hegarty (1996) all suggested a different

approach, one of stakeholder collaboration. They utilized Gray’s (1989) definition of

collaboration as a process of decision making among interdependent parties; it involves

joint ownership of decisions and collective responsibility for outcomes. Liedtka (1996, p.24)

observed that;

Although the high performing firms are partnerships in a legal sense of the

word, as we better understood their sources of advantages we came to see

the legal partnership form as playing only a part in their success. Other

factors, potentially present in organizations of all legal forms, contributed

more significantly to their ability to achieve collaborative outcomes of real

strategic value. These factors included: a partnering mindset; a partnering

skill set; and a supportive context that provides commitment, processes and

resources to facilitate collaboration.

Social Capital

Wheeler, Colbert & Freeman (2003) created a framework to define how

organizations may create value across three dimensions of the aspirational notion of

sustainability, i.e. economic, social and ecological.

19

Figure 1. Framework for classifying organizational cultures

Source: Wheeler, Colbert and Freeman (2003) Journal of General Management, Vol. 28 No. 3, p.11

The concept of social capital is increasingly being used to facilitate an understanding

of relationships between organizations and their stakeholders. Social capital is a more

sophisticated approach to understanding stakeholder relationships, one that involves a

complex understanding developed through analysis of interrelationships between the

corporation and its stakeholders. The use of methodologies to increase understanding of

stakeholder relationships improves the organizations ability to develop trust. In turn the

corporation benefits by minimizing legal, costs, negotiations and business disruptions.

Definitions of social capital are various. Adler and Kwon (2002) defined social capital

as: “the goodwill available to individuals or groups. Its source lies in the structure and

20

content of the actor's social relations. Its effects flow from the information, influence, and

solidarity it makes available to the actor” (p. 23).

While Schiff (1992) defined social capital as “the set of elements of the social

structures that affects relations among people and are inputs or arguments of the

production and/or utility function” (p. 161).

Yet, Putnam (2000, pp. 288-290) defined why social capital is important.

First, social capital allows citizens to resolve collective problems more easily… People often might be better off if they cooperate, with each doing her share. ...

Second, social capital greases the wheels that allow communities to advance smoothly. Where people are trusting and trustworthy, and where they are subject to repeated interactions with fellow citizens, everyday business and social transactions are less costly….

A third way which social capital improves our lot is by widening our awareness of the many ways in which our fates are linked... When people lack connection to others, they are unable to test the veracity of their own views, whether in the give or take of casual conversation or in more formal deliberation. Without such an opportunity, people are more likely to be swayed by their worse impulses….

The networks that constitute social capital also serve as conduits for the flow of helpful information that facilitates achieving our goals…. Social capital also operates through psychological and biological processes to improve individual’s lives. … Community connectedness is not just about warm fuzzy tales of civic triumph. In measurable and well-documented ways, social capital makes an enormous difference to our lives.

Diversity Management and Inclusiveness

Effective diversity management requires a culture of inclusion that creates a work

environment nurturing teamwork, participation and cohesiveness (Carnevale & Stone,

1994; Dwyer, Richard & Chadwick, 2001). Diversity culture should be emphasized in

organizational vision, mission and business strategy and the HRM strategy (Shen, Chanda,

D’Netto & Monga, 2009)

21

Measuring diversity and diversity management practices is strongly regarded as the

initial step of HR diversity management practice (Kossek, Lobel & Brown, 2005).

Lam (2010) noted diversity management is much more than simply removing

discrimination. Lam categorized employer approaches to diversity management into three

main categories; Assimilation, differentiation or Integration.

The assimilation approach, also called the melting pot, expected individuals to

conform to the general norm of the majority. Individual differences are ignored and

discouraged. Employers comply with human rights legislation by treating everyone the

same and not proactively providing reasonable accommodation to employees.

The differentiation approach values individual differences believing that they

constructively add to the skill base of the organization. Varied perspectives enrich decision

making and enhance productivity and performance. Lam cautions that in an organizational

setting, emphasizing individual differences and acting on the knowledge of such

differences, the organization may be providing differential treatment to employees which

can be viewed as discrimination if not handled properly. Too much diversity can create

dysfunctional conflicts.

The integration approach incorporates merits of the previous two approaches. Equal

opportunities are promoted and individual differences respected and valued. It attempts to

balance between the two extremes recognizing differences and seeking out common

bonds and synergies. Effectively managing diversity can give organizations a competitive

advantage.

22

Jayne and Dipboye (2004) described common organizational practices for managing

diversity. In the areas of recruitment they suggested marketing the organization as a

potential employer to target groups through job fairs and schools and minority communities.

They further suggested that retaining a diverse workforce is accomplished by

providing appropriate employee benefits and a well-balanced work-life program, although it

seems quite plausible that the same could be said for any workforce group. Jayne and

Dipboye (2004) also indicated that employee assistance programs (EAP) providing

consultation and counseling are also beneficial to successful employee retention.

Observations at MB Hydro can attest to the importance of EAP’s but what Jayne and

Dipboye failed to explore is that often minority groups, First Nations in this case, are

apprehensive to seek assistance of such programs if the provider is not from their particular

cultural group.

Regarding training and development, all leaders should be trained to embrace

diversity and to integrate it into organizational decision making. Leaders need to be

sensitive to cultural differences while treating everyone fairly. Workers and managers

should be well versed in respectful workplace programs so that they are aware of

acceptable and unacceptable behaviours. Mentoring programs are useful particularly with

minority groups to better integrate new employees into the organization.

Senior management must communicate their commitment to diversity and

inclusiveness to all staff and external stakeholders. Diversity management can be explicitly

made a performance goal formally recording and rewarding contributions to diversity

management (Jayne & Dipboye, 2004).

23

Jayne and Dipboye (2004) recommended recruiting or assigning specialized staff to

foster an environment of inclusiveness. Committees or processes should be established to

investigate cases of discriminatory treatment or harassment.

Lam (2010) stated that successful implementation of diversity programs are dependent

on senior management commitment, middle manager support and buy in from all staff.

Research is needed to identify employee attitudes related to diversity and gaps in diversity

management in order to strategize how best to address them. Program evaluation is

critical to determine the extent diversity goals are accomplished and to receive quality

feedback in order to plan future strategies. An audit of the effectiveness of diversity

management programs may include:

Identifying representation of minority groups in various units or occupational groups

within the organization and making comparisons to the labour market composition;

Evaluating recruitment and promotional data to ensure employment decisions are

not prejudiced;

Reviewing grievances or discrimination complaints to ensure due processes are in

place and follow up action are taken to eliminate root causes;

Comparing turnover rates of equity target groups with overall turnover to ensure

those groups are not experiencing greater dissatisfaction because of treatment they

receive; and

Analyzing employee survey or exit interview data looking for potential discriminatory

issues.

Lam (2010) cautioned against overlooking the needs of the majority in an effort to

address the issue of minority representation. Some people claim since the organization

needs to fill quotas for minority groups, those in the majority are sometimes bypassed for

24

promotional or training opportunities. By targeting a specific minority group, the

organization is practicing reverse discrimination. Reverse discrimination does not do

anyone a favour. Hiring or recruiting minorities unsuitable for the job will result in the

employee being unhappy due to their incompetence, the organization will suffer and the

majority members in the organization will resent such decisions. The purpose of diversity

is to level the playing field between majority and minority groups, not to tilt it. Appropriate

diversity management should focus on ensuring jobs are awarded on individual merit.

Communication and transparency in selection criteria help employees understand fairness

in management decisions and prevent resentment in perceived reverse discrimination.

Diversity Management

Shen et al. (2009) recommended that diversity management should occur at the

strategic, tactical and operational levels through a range of different activities involving

manager’s at all three levels. At the strategic level, it is necessary to have a management

philosophy recognizing diversity as critical for organizational success. Top management

commitment should be reflected in the organizational vision, mission and business strategy

in order to remove psychological and operational barriers to diversity management. At the

tactical level, human resource management (HRM) diversity policies should be developed

to support this management philosophy. At the operational level, HRM diversity policies are

implemented at the workplace, involving mainly educating employees, identity based

networking groups, targeting communications to different affinity group members, flexible

employment and support for work life balance. At all levels, line management should play

an important role in diversity management. Sanglin-Grant (2000) determined that line

managers iterations of organizational policy on racial equality are sometimes at odds with

employees’ views of organizational practice. Accordingly, to fully understand and effectively

25

implement diversity management, line management involvement in the decision making

process is desired.

Shen et al. (2009) proposed a conceptual framework of diversity management

(Figure 2). It indicated that diversity management not only includes equal employment

opportunity (EEO) and affirmative action (AA) but also an appreciation for making use of

diversity to benefit organizations and individuals.

Figure 2: A framework of human resource diversity management.

Source: Shen, Chanda, D’Netto and Monga, 2009, p .245

Challenges Attracting and Retaining an Aboriginal Workforce

Parkouda and Brichta (2013) argued that comparatively low, Aboriginal educational

attainment, labour force participation, and employment rates reflect long term systemic

problems in Aboriginal educational development in school, school to work transitions and

workplace training. Policies of segregation and forced assimilation within the educational

26

system have resulted in lower levels of educational attainment for Aboriginal peoples. The

modern workforce revolves around formal education credentials and failure to complete

secondary education acts as a barrier to entrance into the labour force. The problem is not

unique to Aboriginal people, the same holds true for all Canadians who, for example, fail to

complete high school. The difference is that a disproportionate number of the Aboriginal

population do not attain higher formal education.

The 2006 census identified that the Aboriginal population lags behind the general

population in educational attainment as noted in (figure 3).

Figure 3: Canadian population by highest level of educational attainment (aged 25 to 64) (per cent)

Source: Howard, Edge and Watt, 2012, p. 5

27

A Conference Board of Canada report by (Howard, Edge, & Watt 2012) noted that

Lack of appropriate language and literacy skills is often a key barrier preventing Aboriginal

workers from achieving their full workforce potential. An OECD International Adult Literacy

Survey (IALS) (OECD and Statisitics Canada, 2000) identified three key elements of

literacy skills for the workplace.

Proficiency in using document, reading text, and solving problems;

Doing these things in languages in which business is conducted in Canada; and

Demonstrating such skills against the back drop of workplace culture.

Aboriginal workers are further challenged by racism in Canada. A 2009 report by the

National Collaborating Centre for Aboriginal Health found that 37.9 per cent of First Nations

adults living on reserves had experienced racism in the previous 12 months and 27 per

cent who experienced racism claimed it had some or a strong effect on their self esteem.1

Aboriginal people continued to be underemployed compared to non-Aboriginals with

the same education levels as demonstrated in the following Figure 4:

Figure 4: Unemployment rate by highest level of educational attainment, 2009(per cent)

Source: Howard, Edge and Watt, 2012. p. 6

1 Reading and Wien, Health Inequalities

28

Howard et al. (2012) in a Conference Board of Canada report indicated that 58.1 per

cent of Canadian businesses reported their most significant challenge was a shortage of

qualified skilled workers. 33.5 percent claimed they were challenged in retaining qualified

skilled workers. This challenge was most frequently expressed by respondents from

Manitoba (52.4%). Furthermore, 29.9% of businesses reported challenges attracting under

represented workers (Aboriginal Peoples, women and immigrants).

Table 1 indicates survey results obtained by the Conference Board of Canada when they

asked Canadian companies if they were challenged attracting Aboriginal workers.

Table 1

Challenges Attracting Potential Aboriginal Workers (per cent)

Source: Howard, Edge and Watt, 2012, p. 13

In a Conference Board of Canada survey, Canadian companies’ indicated they face

many challenges attracting aboriginal workers as shown in (figure 5); chief among them is

inadequate education, skills or work experience necessary for the job. 70.2 per cent of

survey respondents indicated that low literacy, technical and leadership skills among

potential aboriginal employees were a concern when recruiting. 39.1 per cent of Canadian

companies also cite difficulty contacting Aboriginal workers or a reluctance of workers to

move from their home communities as a challenge when trying to attract Aboriginal

workers.

29

Figure 5: Top challenges in attracting Aboriginal workers (per cent of businesses surveyed; n=151)

Source: Howard, Edge and Watt, 2012, p. 13

As noted in Figure 5, 46.4 per cent of survey respondents indicated they were very

or somewhat challenged in hiring Aboriginal workers for a variety of reasons with the most

significant challenge being low skill levels necessary for the job.

Hiring challenges also vary across different groups of Aboriginal workers with

companies reporting the least challenges for Métis workers and the greatest challenges for

Inuit workers as indicated in Table 2.

Table 2

Challenges Hiring Potential Aboriginal Workers (per cent)

Source: Howard, Edge and Watt, 2012, p. 15

30

41.9% of businesses surveyed by the Conference Board of Canada indicated they

were very or somewhat challenged with the work performance of Aboriginal workers as

depicted in Table 3.

Table 3

Challenges with Work Performance of Aboriginal Workers (per cent)

Source: Howard, Edge and Watt, 2012, p. 20

The greatest work performance issues of Aboriginal workers relate to the skills,

attitudes and behaviours required for the workplace as identified in Figure 6 2

Figure 6: Top challenges for Businesses with Work Performance of Aboriginal Workers (per cent of businesses surveyed; n=149)

Source: Howard, Edge and Watt, 2012. p. 21

2 While employers were asked to indicate the work performance challenges they have with Aboriginal

workers, the survey does not directly compare challenges with work performance of Aboriginal workers explicitly to challenges with non Aboriginal workers. A direct comparison is beyond the scope of the survey.

31

Retention of Aboriginal workers was a significant issue for survey respondents with

45.4 per cent indicating they were very or somewhat challenged retaining Aboriginal

workers, as noted in Table 5. Retention refers to both voluntary and involuntary employee

turnover. Respondents with operations in Saskatchewan, Nunavut and Manitoba were

more likely to indicate retention challenges with Aboriginal workers.

Table 4

Challenges with Retention of Aboriginal Workers (per cent)

Source: Howard, Edge and Watt, 2012, p. 21

The most significant retention issues employers face with Aboriginal workers is

dissatisfaction with career and skills development as well as cultural issues such as racism

or misunderstandings between Aboriginal and non –Aboriginal workers as depicted in

Figure 7.

32

Figure 7. Top challenges With Retention of Aboriginal Workers (per cent of businesses surveyed; n=137)

Source: Howard, Edge and Watt, 2012, p. 23

The Conference Board of Canada survey revealed that Employers use a variety of

partners, tools, and strategies to recruit Aboriginal workers as illustrated in Figure 8

Figure 8: Partners, Tools, or Strategies Used to Recruit Aboriginal Workers (per cent of businesses surveyed; n=138)

Source: Howard, Edge and Watt, 2012, p. 27

33

The 2012 Conference Board report indicated that organizations successful in

recruiting Aboriginal workers exhibited a marked willingness to engage with a variety of

organizations including Aboriginal ones to spread awareness of the company’s human

resource requirements and to encourage Aboriginal candidates to apply for employment.

Some businesses use Aboriginal liaison officers to recruit Aboriginal workers and liaise with

Aboriginal organizations. Mentoring programs, job placement programs and internships are

also widely used to recruit Aboriginal workers. Job shadowing or internship programs

provide opportunities, advice and exposure to career paths available to them.

Businesses surveyed make use of a variety of programs tools and strategies to motivate

and retain Aboriginal workers including cultural programs and cultural support staff as

displayed in Chart Figure 9.

Figure 9: Programs, Strategies and Tools to Motivate and Retain Aboriginal Workers (per cent of businesses surveyed using program, strategy, ot tool; n=136)

Source: Howard, Edge and Watt, 2012, p. 29

34

Corporate – Aboriginal Relations

The literature reviewed yields few studies in the field of corporate – Aboriginal

business relations. However, Sloan and Hill (1995) examined case studies of companies

that provide opportunities for Aboriginal contractors and suppliers. They discussed the

effectiveness of collaborative relationships between corporations, Aboriginal firms and the

government. A common thread is that training, community involvement and visionary

leadership are essential elements in partnerships.

Loizides and Wutunee (2005) identified six key factors contributing to the success of

Aboriginal band owned enterprises:

Strong leadership and vision:

A strategic community economic development plan;

Access to capital, markets and management expertise;

Good governance and management;

Transparency and accountability; and

Positive interplay of business and politics

Lozides (2000) noted in a Conference Board of Canada report three factors that

determined corporate performance in building business relationships with Aboriginal firms.

Senior Management commitment and direction in ensuring that business units,

contractors and suppliers maximize the use of Aboriginal firms.

Identification of department needs and alignment of these with Aboriginal

contractors (current and new) business capabilities.

Monitoring of performance and ongoing transfer of business, management and

administrative expertise to Aboriginal firms.

35

Lozides (2000) further stated, that sole sourcing contracts to Aboriginal firms at an

early stage helps them get off the ground. Longer term contracts, 3 – 5 years provide

stability of cash flow and facilitates access to credit from financial institutions.

Corporations can enhance Aboriginal firms’ performance by transferring management

expertise (especially short term assignments of executives). Business mentoring appears

to be one of the most effective tools to promote Aboriginal business development. Lozides

(2000) observed that in this context, “mentoring is defined as the relationship established

between a corporation and an Aboriginal firm to enhance their business relationships;

facilitate the transfer of business expertise, management skills and technical knowledge

from corporations to Aboriginal firms; and improve the performance and potential of

Aboriginal firms to take advantage of business opportunities” (p.1). Aboriginal economic

development and community involvement are essential for successful Aboriginal corporate

relations. Mutual understanding of how each party operates and of each other’s

expectations; effective and continuous communication and sensitivity to cultural differences

are seen as critical.

Lozides (2000) presented several case studies of companies mentoring Aboriginal

businesses. Syncrude has a long history of corporate aboriginal relations. Syncrude

executives make themselves available to mentor Aboriginal businesses. While building

Aboriginal business acumen, Syncrude stresses the need for competitive price and quality.

Aboriginal firms must establish themselves as reliable over long term relationships,

committed to quality at competitive prices.

PCL construction promotes corporate Aboriginal partnerships. PCL provides cross

cultural training for project managers, foremen, key suppliers and contractors.

36

Cameco set a corporate objective to purchase approximately 50% of its goods and

services in the north. In order to appease their operations managers who were demanding

competitive, high quality, experienced suppliers they knew were available in the south,

Cameco encouraged joint ventures between southern contractors and partners in the north.

The joint venture concept was very successful but it was considered an intermediate step.

Ultimately Cameco’s objective is to facilitate development of wholly owned and operated

Northern Aboriginal suppliers.

Tiplady and Barclay (2007), in a collaborative study between The Centre for Social

Responsibility in Mining at the University of Queensland in Australia, and Australian mining

companies, revealed startling similarities regarding barriers to Indigenous employment in

both Australia and Canada. The report indicated that low levels of education were viewed

as the greatest hurdle to increasing indigenous workforce participation. The data aligns

with that of the Conference board of Canada survey that indicated 70.2 per cent of

Canadian survey respondents indicated that low literacy, technical and leadership skills

among potential aboriginal employees were a concern when recruiting.

Beyond a lack of education and relevant training, Tiplady and Barclay (2007), cite

other factors as obstacles to increased indigenous employment that coincide with those

experienced by Canadian companies and MB Hydro such as:

Lack of exposure to the mainstream workforce, the ‘industrial culture’ of the

mining industry and the expectations of employers.

Geographical isolation.

Challenges balancing community and family obligations with the demands of

full time work.

Poor Health and difficulties with substance abuse.

37

Obstacles faced by companies trying to increase Indigenous employment include:

The lack of a job ready pool.

Insufficient appreciation of how socio economic disadvantage impacts on the

recruitment and retention of Indigenous employees.

The report states that the foremost factor to achieving sustainable improvements in

Indigenous employment requires organizational commitment. Companies with successful

Indigenous employment strategies are characterized by:

An executive leadership that has publicly committed to improving Indigenous

employment by providing adequate financial and human resources

A commitment to the development of honest and transparent relationships

with Indigenous communities.

Corporate champions who ‘go the extra mile’ in supporting Indigenous

employees and who have influence with operations management to ensure

Indigenous employment issues remain on the corporate agenda.

Qualified, skilled, informed and committed personnel in training and liaison

positions, who are respected by the local Indigenous community.

Regarding retention strategies, Tiplady and Barclay indicated that considerable effort has

been put into developing new approaches to Indigenous recruitment but relatively little has

been done to develop specific retention strategies for Indigenous employees. Indigenous

employees face particular challenges in balancing work and family commitments and

making the transition to a new organizational and cultural environment. For employees of

fly-in, fly-out operations, an added pressure is the need to spend extended periods away

from home.

38

The report strategies to increase retention include:

Ongoing mentoring and support

More flexible work rosters

Provision of career development opportunities and family support as well as

addressing racism in the workplace.

Research Questions

From the literature review, I identified several theories, comparative data and strategies

that will be used to achieve the research objective. The research questions provided focus

on the objective and contribute to the goal of engaging Aboriginal people as a source of

operational strength.

What is the maturity level of Manitoba Hydro’s Aboriginal employment strategies?

Are the corporations Aboriginal employment strategies effective and how can they

be improved?

Are Manitoba Hydro’s Aboriginal relations strategies effective in fostering the

establishment of strong, sustainable business relations with the provinces

Indigenous people? How can they be improved?

39

Research Methodology / Design

To answer the research questions an analysis of the internal environment related to

Manitoba Hydro’s Aboriginal relations strategies was conducted using the Indigenous

Employment Evaluation (IEE) Tool; a reporting framework developed by the Centre for

Responsibility in Mining (CSRM) at Australia’s University of Queensland. Tiplady and

Barclay,(2007) developed the tool as part of a larger study of Indigenous employment in

the Australian minerals industry.

The IEE Tool is appropriate given the similarities Canadian and Australian

companies face when trying to engage an Indigenous populace negatively impacted by the

effects of colonialism and institutional racism. The IEE Tool provided a means to asses a

company’s Indigenous employment strategy in an effort to overcome the injustices of the

past and the resulting inequalities of opportunity created.

The IEE framework is meant to assist mining companies to establish good practices

in their Indigenous employment and training initiatives. The specific purposes of the tool

were to establish appropriate evaluation criteria for assessing each aspect of a company’s

Indigenous employment initiatives and, to establish a blueprint for an Indigenous

employment evaluation system.

The IEE Tool gathers information on Indigenous employment practices across all

levels of an organization. Its primary purpose was to identify the strengths and weaknesses

of a company’s current Indigenous employment practices. The framework is applicable to

operations of all sizes.

40

The IEE Tool can be used for:

assessing the Indigenous employment aspects of external or site managed

community assessment programs

comparing operations within the same company

identifying and prioritizing performance gaps

developing an Indigenous employment strategy

assisting stakeholders to evaluate the effectiveness of Indigenous

employment practices in different companies

As demonstrated in Figure 10, the tool has been developed using the Plan-Do-

Check-Act (PDCA) model as a framework. This model is widely used in industry, so that

the Tool is readily adaptable to existing management systems. The IEE Tool is structured

around the six levels of a performance management system: leadership, policy

development, planning, implementation, performance monitoring and a review of progress.

Guidance notes in Appendix 3 provide examples of the types of inputs that enable

practitioners to rate a company’s Indigenous employment policies and practices. Sections

with guidance notes are identified by an asterisk *.

41

Figure 10: Indigenous employment evaluation framework

Source: Tiplady and Barclay, 2007 p. 3

An analysis of the external environment will be conducted using the DEPEST

framework provided by (Sorli, 2006). The DEPEST acronym refers to Demographic,

Economic, Political/Legal, Technological, Socio Cultural and Ecological impacts on the

industry. The framework will be employed to analyze efforts designed to increase

Aboriginal employment within the corporation as well as to develop Aboriginal businesses

Benchmarking is widely used in manufacturing to measure performance against

peers in an effort to achieve world class performance. The literature reviewed will provide

42

the basis for comparison of Manitoba Hydro’s Aboriginal relations against various Canadian

organizations.

Research Findings, Recommendations and Conclusions

Stakeholder Assessment of Aboriginal Peoples

Applying Mitchell, Agle and Wood’s (1997) theory of stakeholder identification and

salience based on stakeholder attributes of power, legitimacy and urgency, the following

assessment of Manitoba First Nations as stakeholders of Manitoba Hydro was completed.

Power; Indigenous people of Manitoba have demonstrated considerable power to

influence MB Hydro over the years. Influencing tactics employed by First Nations have

included employing professional public relations firms to bolster public support and, to

lobby American state legislatures to boycott power from Manitoba until the demands of the

First Nation are met. They have staged public demonstrations and blockades which garner

media support and force action on behalf of the government and the corporation. In

October 2014, protesters from the Pimicikamak Okimawin Cree of Cross Lake blockaded a

MB Hydro generating station and staff house preventing free movement of workers until the

Minister responsible for MB Hydro and the President and CEO of MB Hydro met with them

to hear issues raised by the community and to develop a process agreement to resolve a

stalemate on implementation of the Northern Flood Agreement. In January, 2015, the

Sapotaweyak Cree blockaded workers from accessing a 200 km stretch of the route stating

the corporation failed to consult the First Nation. The contract to clear the land was

awarded to a Manitoba Métis economic development company. The Manitoba Métis also

have staked a land claim on the area under blockade.

43

For these reasons, First Nations can be counted among Manitoba Hydro’s most

powerful stakeholders.

Legitimacy; It is generally perceived that Aboriginal Peoples land claims are

appropriate, and the settlement of those claims is desirable. First Nations actions of

delaying or preventing development without assurances of environmental protection,

cultural recognition, employment opportunities and a share of the revenue made possible

from resources within their jurisdiction is believed to be in the best interests of society over

the long run. The Report of the Royal Commission on Aboriginal Peoples (1996) stated;

“No Canadian acquainted with the policies of domination and assimilation wonders why

Aboriginal people distrust the good intentions of non-Aboriginal people and their

governments today.” In addition the reports research indicated that, “In poll after poll,

Canadians have said that they want to see justice done for Aboriginal people, but they

have not known how.”

In the Haida and Taku River decisions in 2004, and the Mikisew Cree decision in

2005, the Supreme Court of Canada held that the Crown has a duty to consult and, where

appropriate, accommodate when the Crown contemplates conduct that might adversely

impact potential or established Aboriginal or Treaty rights. The Court explained that the

duty stems from the Honour of the Crown and the Crown’s unique relationship with

Aboriginal Peoples. The Court further explained that: the duty to consult is a constitutional

duty; applies in the context of modern treaties; officials must look at treaty provisions first;

and where treaty consultation provisions do not apply to a proposed activity, a parallel duty

to consult exists.

44

Because Manitoba Hydro’s operations have and continue to impact First Nations,

along with the legal obligations to consult, Aboriginal stakeholders hold a high degree of

legitimacy.

Urgency; MB Hydro’s preferred development plan requires a $25 billion dollar

investment in plant and equipment between now and 2026. The bulk of that investment

involves construction of two new hydraulic generating stations, both of which are located

within First Nations traditional territory. So too is the construction of a High Voltage Direct

Current (HVDC) convertor station which will convert alternating current to direct current to

be transmitted south via a new Bipole transmission line being constructed that will span

significant portions of First Nations traditional territory. Any delays in construction come

with considerable cost. As of December 2014, the burn rate of the Keeyask generating

station alone is estimated to be $2 million per day.

In order for the corporation to continue fulfilling its mandate to provide for the

continuance of a supply of energy to meet the needs of the province, the corporation

urgently needs to establish strong relationships with Aboriginal stakeholders.

Because Aboriginal People possess all three attributes, they are definitive stakeholders

and considered as highly salient.

Influence Strategies

Frooman (1999) conducted research centered on determining how stakeholders act

to influence the organizations decision making and behaviour. Using resource dependence

theory (when a stakeholder supplies a resource and exercises some control over it) as a

framework he determined there are three types of resource control and influence pathways

that determine strategies available to stakeholders. In order to evaluate MB Hydro’s

45

response to stakeholder concerns, an analysis of First Nations stakeholders using

Frooman’s framework was deemed appropriate.

Withholding strategies are where the stakeholder withholds supplying a resource to

the organization with the intent of changing certain behaviour.

Aboriginal groups have blockaded MH facilities at Grand Rapids, Jenpeg and

Wuskwatim as well as projects under construction at Keeyask and along the Bipole III line.

In essence, by blockading, First Nations groups withhold resources by preventing access

for staff and supplies necessary for operation or construction in an effort to change a

corporate behaviour. The strategy generates an urgent reaction from the corporation and

has been quite successful in influencing relatively small victories for the stakeholder. In the

summer of 2014 protesters from Tataskweyak Cree Nation (TCN) blockaded provincial

road 280 in protest of the poor condition of the road which they attributed to increased

traffic related to construction of the Keeyask project, a project that they are partners in.

Construction and hydro vehicles were not permitted to travel through. Resulting delays in

the project schedule were estimated at $1 million per day at the time. As the project

progresses the cost of delays is expected to rise considerably. According to an

informational pamphlet from the blockade, Tataskweyak protesters wanted the road paved.

The demand is difficult to meet because of considerable initial cost and the impracticality of

paving roads built on perma frost. Annual upkeep is cost prohibitive because of extensive

annual damage from frost heaves. TCN protesters also requested resolution of outstanding

hydro-related damage claims from trappers and commercial fishers; and, good faith

dealings by Hydro with respect to construction work contracts that were to be granted to

TCN-owned companies. The last point is subjective depending on one’s perspective.

According to MB Hydro, the corporation repeatedly tried to reach a deal with TCN for

46

construction contracts however TCN would not submit a competitive price. As a result

contracts were agreed to with much lower cost bidders. TCN contends that the work takes

place in their resource area and rightfully belongs to them. In the end, the blockade

withholding strategy resulted in a commitment from MB Hydro and the province to conduct

a feasibility study on paving PR 280 to Split Lake. There is also $28 million pledged to

upgrade the road cost shared between MB Hydro and the province.

Usage strategies are when a stakeholder continues to supply a resource but specify

how it will be used.

Possibly the most significant example of usage strategy was the involvement of the

Nisichawayasihk Cree during the planning of the Wuskwatim Generating Station.

Preliminary engineering studies indicated that the Taskinigup Falls could yield 350

megawatts (MWs) of power although it would result in flooding 140 square kilometers of

land. An alternative design using a lower head would reduce flooding to less than ½ of one

square kilometer and would produce 200 MWs, considerably less power than the high head

design. At the time the Nisichawayasihk Cree were considering a 30% ownership share in

the project. The decision to consider only the low head design was included in the

information submitted to the Nisichawayasihk people for consideration in a referendum to

partner with MB Hydro and approve the project which they eventually did. Leaving 150

MWs on the table is not insignificant; it could power more than 21,000 homes. In so doing

both partners sacrificed some economic benefit to achieve a higher level of environmental

protection.

An Influence pathway is where withholding strategies could be performed by an ally

of the stakeholder with whom the stakeholder has resource dependence.

47

The Minnesota Public Utilities Commission (2006, July 28) approval of Northern

States Power Company d/b/a Xcel Energy’s resource plan is an example of how influence

pathways have been attempted by stakeholders in Manitoba’s hydro electric industry. In

2003, one of the five signatory First Nations to the Northern Flood Agreement (NFA), the

Pimicikamak Cree Nation (PCN), attempted to influence the Minnesota Public Utilities

Commission by challenging Xcel Energy’s purchased power contract with Manitoba Hydro.

PCN claimed that the Commission had failed to discharge its duty under Minnesota law

and its own resource planning rules requiring it to examine the environmental and

socioeconomic impacts of the hydroelectric generation Xcel was purchasing.

The Commission determined that these impacts had been internalized by the NFA

and continued to be addressed through the ongoing arbitration provisions of the

Agreement. PCN appealed that determination. The Court of Appeals upheld the

Commission’s decision, finding, among other things, that there was little to be gained by

any attempt to insert the Commission or the State of Minnesota into ongoing disputes

within the Canadian judicial process.

The Commission’s order, however, did require Xcel to monitor and report on the

status of the on-going implementation of the NFA in its next Resource Plan.

Xcel reported that it had done its best to monitor implementation of the Northern Flood

Agreement, but being neither a party to the agreement nor an adjudicator, it had limited

access to information and limited expertise.

The Company reported that the arbitration process established in the Agreement

was clearly being used, that some $80 million had been spent for mitigation, compensation,

and programming since the mid-1970's, and that some $11 million had been spent as part

of a 2003-2004 action plan for addressing the dams adverse environmental and

socioeconomic effects. Xcel also stated that its reporting obligation had placed it in the

48

awkward position of appearing to offer the kind of end-run opportunity criticized by the

Court of Appeals, and the Company asked to be relieved of further reporting obligations.

The commission noted that four of the agreement’s signatories, Manitoba Hydro, the

Government of Manitoba, the Nisichawayasihk Cree Nation and the Tataskweyak Cree

Nation opposed further reporting, arguing that responsibility for monitoring compliance with

the Northern Flood Agreement lay with the Canadian government and that Xcel’s third-

party monitoring could only distract the parties and undermine their collective engagement.

None of the other signatories to the Agreement offered comments.

The Minnesota Department of Commerce recommended accepting Xcel’s report and

discontinuing monitoring.

Other stakeholders commented in an attempt to influence the process, including a

group of 400 displaced residents, Minnesota Witness for Environmental Justice, the Joint

Environmental Interveners, the University of Minnesota Human Rights Center, Minnesotans

for an Energy-Efficient Economy, and Senator Ellen R. Anderson, recommended further,

more extensive monitoring of the implementation of the Northern Flood Agreement, citing

persistent poverty and unemployment among residents and communities affected by the

dams.

After hearing from stakeholders the Commission accepted Xcel’s report on the

implementation of the Northern Flood Agreement and dismissed the requirement for further

reporting. In its ruling the Commission cited that;

While it was reasonable, in 2001, to require an initial report on the operation of the

Northern Flood Agreement; that report demonstrates that the Agreement is anything but a

dead letter. Implementation and enforcement activities are vigorous and ongoing. These

activities are marked by controversy, but, for an undertaking this vast and complex,

49

controversy does not necessarily signal a dysfunctional process. In fact, the absence of

controversy might raise concerns.

Further, it is significant that no signatory to the Agreement filed comments

recommending the continuing involvement of Xcel or this Commission, and that four

signatories have affirmatively asked this Commission to end its involvement. The two

signatory arms of the Canadian government who commented in this case stated that, while

they have the resources, jurisdiction, and expertise to implement and enforce the

Agreement, this Commission does not. And the two signatory Cree Nations who

commented stated that this Commission, however well-intentioned it may be, is ill-equipped

to add anything helpful to the implementation and enforcement process.

The Commission concurred with the commenting signatories and the Minnesota

Court of Appeals that responsibility for monitoring and enforcing compliance with the

Northern Flood Agreement lies in the hands of the Canadian government and should be left

there. The commenting signatories are also clearly correct that issues such as persistent

poverty and high unemployment, important as they are, do not lie within the Commission’s

specific areas of expertise.

Finally, as the Court of Appeals noted, continued involvement by this Commission

creates end run opportunities that can distract parties from duly established processes for

seeking redress, potentially undermining the effectiveness of those processes. It would be

both ironic and tragic if Commission efforts to address humanitarian needs resulted in

exacerbating those needs.

For all these reasons, the Commission will accept Xcel s report on the

implementation of the Northern Flood Agreement and will not require further reporting at

this time.”

Historical Review of Manitoba Hydro / Aboriginal Relations

50

A review of Manitoba Hydro’s Aboriginal relations back to the 1960 construction of

the Grand Rapids Generating Station reveals a slowly evolving process that has arguably

lacked sufficient strategic direction until the past 15 years or so. As society’s view of the

environmental and social issues associated with hydro electric development has evolved,

so too has Manitoba Hydro’s.

The 1990’s gave rise to an awakening and renewed effort to address adverse

effects of prior development, to resolve claims where Aboriginal communities have

experienced loss or damage, or have had their communities and ancestral home relocated,

but also to develop a new responsible, inclusive approach to the development of new

projects.

In the early years of hydro electric development in the province, there was little to no

consultation with Aboriginal people and admittedly, little regard for the adverse effects that

development would inflict upon them. The promise of renewable, reliable and low cost

electricity spawned a development plan that failed to fully understand how it would impact

eco systems and the people who maintained a strong dependence on those eco systems.

If there was an Aboriginal relations strategy at the time, it appears to be one that pursued

development first and sought to negotiate compensation second, or after the fact.

History of compensation:

In December, 1977 the Northern Flood Agreement (NFA) was signed by the

Manitoba Provincial Government, The federal Government of Canada and five Aboriginal

bands, Nelson House, Norway House, Cross Lake, Split Lake and York Factory. The

agreement was to establish a mechanism to compensate communities and individuals

adversely affected by Lake Winnipeg regulation and the Churchill River Diversion Project.

The NFA held provisions for parties to seek resolution through an arbitrator when required.

51

By the mid 80’s it was apparent that the NFA’s arbitration process was not working to

resolve outstanding issues.

At the initiative of First Nations, renewed negotiations began with the goal of

achieving Comprehensive Implementation Agreements (CIA). Long arduous negotiations

resulted in four of the five NFA First Nations, signing CIA’s during the 90’s. Split Lake in

1992, York Factory in 1995, Nelson House in 1996 and Norway House in 1997. In 1997

Cross Lake, after several years of negotiation, decided to not pursue a CIA, opting for

implementation of the NFA in accordance with its “spirit and intent.”

Compensation for stakeholders outside of the NFA who were impacted by adverse

effects was also undertaken. In November of 1990, Manitoba Hydro and the Chemawawin

First Nation who had been relocated to a purpose built site at Easterville Manitoba, along

with residents of Moose Lake, settled on a compensation package of $21 million for socio

economic impacts resulting from the construction of the Grand Rapids Generating Station

between 1960 and 1968.

In 1991, the Opaskwayak First Nation located at The Pas Manitoba, The Cormorant

Community Association and the Chemawawin First Nation of Grand Rapids reached

settlement agreements with MB Hydro as compensation for adverse impacts of flooding

resulting from the construction of Grand Rapids Generating Station. Compensation

disbursements resulted in Opaskwayak First Nation receiving $4.56 Million; Cormorant

Community Association $1.198 million and Chemawawin First Nation received $5.05

million in addition to the $21 million received in 1990.

In 1992 the Tataskweyak First Nation from Split Lake along with Federal and

provincial governments as well as MB Hydro, signed a CIA to meet outstanding obligations

under the terms of the 1977 NFA. The agreement provided for total compensation of

52

$47.37 million for adverse effects resulting from Lake Winnipeg regulation and from the

Churchill River Diversion Project. MB Hydro’s portion of the compensation package was

$29.92 million.

Also in 1992, the South Indian Lake housing authority and Community Association

of South Indian Lake (on behalf of South Indian Lake residents) received $18 million from

MB Hydro and the provincial government of Manitoba for adverse impacts of the Churchill

River Diversion Project.

Later in the year, an $8 million settlement was reached with the Pimicikamak First

Nation of Cross Lake regarding their claim of loss of recreational opportunities.

Agreements were also reached with the Nisichawayasihk First Nation of Nelson

House regarding impacts to domestic fishing and to provide for the ongoing operational

funding for the Gilbert McDonald Arena which was constructed as part of the NFA.

In 1995 York factory First Nation settled on a CIA with MB Hydro for outstanding

claims related to the NFA. The settlement included $24 million in cash and Hydro bonds,

new reserve lands, and land and resource management agreements.

In 1996 the Nisichawayashk First Nation of Nelson House agreed to a CIA to settle

outstanding claims related to the NFA. Key elements of the final settlement included

$62.375 million in cash and Hydro Bonds, new reserve lands and land and resource

management agreements.

In 1997 MB Hydro and the town of Churchill signed an agreement to address low

water levels in the Churchill River upstream of the town. The adverse effects were a result

of the Churchill River Diversion project which diverted water from the Churchill River to

generating stations on the Nelson River. The $26 million settlement included financial

53

compensation to the town, construction of a weir to raise water levels enhancing

recreational use and improving fish habitat, and the establishment of a trust fund to

address unmitigated adverse effects.

In December 1997, a CIA to settle outstanding claims related to the NFA was signed

by Norway House Cree First Nation, Manitoba Hydro, as well as the Provincial and Federal

Governments. Key features of the agreement include $78.9 million in cash and Hydro

Bonds, 24,300 hectares of new reserve lands and the creation of a resource co-

management board with the province.

By 2014, MB Hydro had reached agreements or working arrangements with all

Aboriginal communities affected by Hydro electric development along waterways.

Comprehensive implementation agreements had been signed with four of the five First

Nation signatories to the Northern Flood Agreement. Only the Pimicikamak First Nation of

Cross Lake remains to sign a comprehensive implementation agreement or to continue

trying to implement the NFA which they consider a modern day treaty.

Overall MB Hydro has spent over $1 billion on remedial works, compensation and

mitigation because of an Aboriginal relations strategy that pursued development first and

sought to negotiate compensation second.

Although financial compensation for adverse effects of Hydro electric development

was justified and necessary, its effectiveness at mending relations between the corporation

and First Nations communities is not universally accepted. There remains deep seeded

mistrust from a legacy of failing to consult prior to construction and from the lengthy

timeframes experienced to settle outstanding claims for adverse effects. The positive social

impact of financial compensation is not immediately evident in indigenous communities

54

although over time, strategic deployment of capital to improve education and employment

outcomes is expected to have a very positive socio economic impact. Settlement money

has been used to further business opportunities and improve infrastructure, recreation,

housing and schools however, these same Indigenous communities continue to experience

social issues disproportionate to those of Manitoba society as a whole such as lower high

school graduation rates, higher unemployment levels and higher rates of substance abuse

and violence. Financial compensation for adverse affects is a positive step to improving

socio economic outcomes of First Nations communities but more is required to engage an

Indigenous population whose traditional ways of life were impacted by Hydro development

and whose society was marginalized by institutionally racist policy such as the residential

school experience.

As a Crown corporation Manitoba Hydro has a vested interest in developing strong

social and economic conditions among Indigenous people of the province. Engaging

Indigenous people is vital to enhance working relationships and ensure the corporation

fulfills its mandate to supply a reliable source of energy to meet the needs of the province.

Corporate Strategic Plan Evaluation

MB Hydro’s commitment to improving Aboriginal relations is evident by making it

one of the seven goals found in their corporate strategic plan (CSP). Key areas of focus for

the Aboriginal relations goal are:

Address the adverse effects of our operations on Aboriginal communities

Continue to be a leading Canadian utility in aboriginal representation through

initiatives to recruit, develop and retain Aboriginal employees

Develop and maintain business relationships with Aboriginal businesses

55

Provide opportunities for Aboriginal participation in future development

projects

To accomplish the goal requires commitment and dedication. MB Hydro has

dedicated an entire division, the Aboriginal Relations Division reporting to the Corporate

Relations Business Unit. They are committed to improving corporate/Aboriginal relations

and accomplishing the key area of focus listed in the CSP.

Aboriginal Relations Key Areas of Focus

Address the adverse effects of our operations on Aboriginal communities

Four of five 1977 signatories to the NFA have signed comprehensive

implementation agreements. The remaining community Pimicikamak Okimawin of Cross

Lake signed a formal process agreement in the fall of 2014 following a six week protest and

blockade of the Jenpeg Generating Station. The process agreement sets out an

engagement process and guiding principles for discussions on the implementation of the

Northern Flood Agreement as well as other topics including policy issues such as revenue

sharing and programs to reduce energy consumption at Cross Lake. It also includes a

proposed timetable and a commitment to a reasonable funding process. The federal

Government, also a party in the NFA, has approved the appointment of a new NFA

arbitrator to assist with resolving claims. Since 1977 Manitoba Hydro and the province have

spent over $100 million on a range of compensation, mitigation and other programs for

Cross Lake. Despite reaching successful comprehensive implementation agreements with

four of five NFA First Nations, the process took far too long. It took thirty years to reach a

compensation settlement for adverse effects from the first northern project at Grand

Rapids. Despite successful agreements with four of five NFA signatories, it has been 38

years and there is still no agreement with Pimicikamak Okimawin of Cross Lake. Despite

56

the long time frame, MB Hydro has signed comprehensive implementation agreements with

all Aboriginal stakeholders that experienced adverse effects from Hydro operations except

Cross Lake. The strategy has been effective but an agreement with Pimicikamak Okimawin

in a reasonable time frame of less than two years is essential to claim success on this

strategy.

Continue to be a leading Canadian utility in aboriginal representation through initiatives to

recruit, develop and retain Aboriginal employees.

Programs targeted at increasing Aboriginal representation have been successful. In

particular, the Aboriginal Pre Placement (APP) program has been responsible for 28% of

the Aboriginal workforce and nearly 60% of women in trades have an APP origin. Since

1998, 406 Aboriginal candidates have been recruited into the APP program. 321 of them or

79% were retained as staff status employees, 282 into technical positions and 39 into other

occupations.

The program is designed for Aboriginal candidates who do not meet the minimum

academic qualifications for Trades Training Programs. The Pre-Placement Programs

provide individuals with paid academic upgrading and on-the-job training and experience.

Programs run between 6 and 10 months and there is no guarantee of employment at the

completion of the program. It begins with targeted recruitment in Aboriginal communities.

APP coordinators conduct career fairs to inform potential employees about various job

opportunities that may be available to them. Candidates selected to the program have to

complete a skills assessment and trades orientation program (SATO). Successful SATO

candidates are given an opportunity to experience different aspects of trades. In the

operating Technician program, candidates are rotated through mechanical, electrical and

57

operating departments. It is an opportunity for the candidate to assess potential careers

and for Hydro to assess the candidate’s suitability for employment.

Strategies are employed to assist candidates to overcome obstacles they may face

attaining a career. One such obstacle is the lack of educational opportunities in many

Northern First Nations. Employment with MB Hydro in trades requires completion of math

and physics 40S, but 40S courses are frequently not available in many Northern Aboriginal

communities. To address the issue, Academic supports are provided as required. APP

candidates may attend Adult education classes for the first 6–8 weeks of employment to

upgrade their education to the 40S requirements.

Candidates often face economic hurdles as well. To address the issue, all travel and

accommodation expenses are covered. Another financial support provides for the purchase

of safety footwear. Corporate policy reimburses new employees for safety footwear after

they attain status, 6 months employment. MB Hydro found that some APP candidates

didn’t have the finances to purchase safety footwear that can range between $125 and

$200, so the 6 month requirement is waved.

Many APP candidates have never been away from their home community and the

sudden social transition to an unfamiliar way of life creates anxiety that sometimes leads to

performance issues or even withdrawal from the program. To ease the transition, APP

candidates are provided opportunities to either bring family members to live with them, or

they are provided mileage expenses to return to their community every 30 days while in the

program.

Programs such as APP are effective in increasing Aboriginal representation in MB

Hydro. Figure 11 demonstrates a steadily closing gap with Aboriginal employee’s share of

the MB Hydro’s work force increasing from around 6% in 1991 to fully 17 % by 2012.

58

Figure 11: Ratio of Manitoba Hydro Aboriginal Employees to Total Employees

Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22

Statistics Canada’s 2011 National Household survey indicated that Manitoba has the

highest percentage of Aboriginal people among Canadian provinces. The survey indicates

that 16.7 % of Manitoba’s population identifies as Aboriginal. Figure 12 demonstrates that

Aboriginal representation in MB Hydro’s workforce is approximately 1/6th of the total

workforce. As of January 2015, Aboriginal participation in Manitoba Hydro’s work force

consisted of 1,116 employees. That figure indicates that MB Hydro has surpassed their

goal of a workforce reflective of the demographics of the province when it comes to

Aboriginal employment.

59

Figure 12: Ratio of Manitoba Hydro Aboriginal Employees to Total Employees

Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22

Figure 13 displays the 9 largest occupation groups within MB Hydro and the

percentage Aboriginal employees share in each of those groups. Considering 16.7 % of

Manitoba’s population identifys as Aboriginal, it indicates that trades occupations are

meeting or exceeding targets but technical, management and proffesional positions which

require post secondary education lag behind. All positions are trending up however the

pace is inadequate. For example, Aboriginal representation in management and the

proffesional engineer designation has only increased 3% over 12 years. Although most

occupations are doing well, MB Hydro recieves a cautionary grade regarding their inability

to develop an Aboriginal workforce for management and proffesional positions.

60

Figure 13: Aboriginal workforce share, Hydro’s 9 largest occupation groups

Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22

Figure 14: Voluntary turnover rates

Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22

61

Another key component of MB Hydro’s Aboriginal Employment strategy in addition

to recruitment and development, is the ability to retain employees. Figure 14 indicates that

voluntary turnover rates (those due to an employee initiated departure) of Aboriginal

employees, has at times, been less than voluntary turnover rates of non Aboriginal

employees, but over a 20 year period, averages higher. Despite that fact, an average 1%

voluntary turnover rate for Aboriginal employees surpasses performance of the overall

Canadian average which according to a Conference Board of Canada report (2014) was

7.3% in 2012-13.

Figure 15: Involuntary turnover rates

Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22

According to figure 15, involuntary termination rates of Aboriginal employees (those

initiated by the employer) fairly consistently exceed involuntary termination rates of non

Aboriginal employees. The most common reason cited by the Generation North Human

Resources department is absenteeism and absence reporting protocol which is consistent

62

with the Conference Board of Canada data displayed in figure 6 page 35 of this document,

“Top challenges for businesses with work performance of Aboriginal workers.” A review of

Manitoba Hydro’s absenteeism rates indicate that corporately employees average 6.61 sick

days per employee. In MB Hydro’s Generation North Division, the average is 8.00 days per

employee. In comparison, table 5 indicates an average of 8.9 days for government and 6.3

for utilities.

Table 5

Canadian absenteeism rates by sector and industry (days per employee)

Source: Stewart and Lamontagne, 2014, p. 21

63

Further examination of MB Hydro’s Generation North Division indicates that

Aboriginal employees make up 43% of the workforce but account for 53% of sick days, or

an absenteeism rate 30% higher than the non Aborignal group. This information combined

with the knowledge that absenteeism and absence reporting protocol are the main reason

for involuntary terminations of Aboriginal employees, indicates MB Hydro needs to do a

better job investigating the root causes of absenteeism and absence patterns and

formulate strategies to address the issue.

Table 6 examines retention rates of employees with an APP origin and those

recruited through the regular intake. The table indicates employees of APP origin have an

involuntary termination rate at twice that of non APP employees but display lower rates of

voluntary terminations.

Table 6

Technical trades hires, 2006 -2013, termination rates

Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22

64

Figure 16: 5 year retention

Source: Damon Rondeau, Manitoba Hydro, PayPers and HRIS data 2014 01 22

Nevertheless, retention of Aboriginal employees exceeds the overall Canadian

average, which according to the conference board of Canada in 2012 - 2013 equated to

7.3% voluntary turnover and 3.7% involuntary turnover. The same report provides a more

direct industry comparison indicating that rates for Government voluntary and involuntary

turnover are 4.9% and 2.4% respectively. For utilities, voluntary and involuntary turnover

rates are 5% and 1.8% respectively. Figure 16 indicates that MB Hydro is making

considerable gains in Aboriginal employee retention for those retained for at least five

years. If the trend continues retention rates between Aboriginal and non Aboriginal

employees should be virtually indistinguishable by 2017. According to supervisors at

Manitoba Hydro’s Generation North division, the success is attributed to improved

65

screening at hire and improved tracking and monitoring of trainee progress which enables

early intervention for those struggling.

Overall, Manitoba Hydro does very well retaining Aboriginal employees.

Develop and maintain business relationships with Aboriginal businesses

To foster improved Aboriginal relations by developing and maintaining business

relationships, MB Hydro has adopted a Northern Purchasing Policy as noted in Appendix 2.

The policy states that.

“Manitoba Hydro will encourage participation in business and employment opportunities for

Aboriginal and northern communities within the Northern Affairs Boundary through the

following measures:

Information sharing

Scoping

Restricted tender or direct negotiated contracts

Aboriginal and Northern Content provisions

Prioritization of contract awards

Such measures may, with the approval of the president & CEO, be extended to Aboriginal

and other communities located outside the Northern Affairs Boundary.”

When work is planned in the vicinity of a First Nation or Northern community,

information is provided that may include presentations or discussions to assist in

understanding technical requirements of the contract.

Projects are scoped to provide opportunities for Aboriginal contractors, provided the

contract remains reasonably competitive and schedules and quality are are not

compromised.

66

Tenders may be restricted to Aboriginal contractors if they are capable of performing

the service at competitive rates. There are also provisions to direect negotiate with

contractors in the near vicinity of the project.

Contract terms include provisiions to increase Northern Aboriginal participation

including employment and training.

Northern contracts are prioritized in the following order:

1. Northern Aboriginal Contractor

2. Northern Business

3. Manitoba Business

4. Canadian Business

5. Other

As a means of generating business for Aboriginal companies the policy has been

effective. In fact in a January 23rd 2015 companywide address, Manitoba Hydro’s President

and CEO, Scott Thompson, stated that “nearly $400 million in contracts have been

awarded to Manitoba Aboriginal Companies in the last three years.”

Although the dollar value tied to supporting Aboriginal business is significant,

observations of the policy in practice indicate that there is more to be done to develop

Aboriginal businesses into sustainable enterprises not solely dependent on MB Hydro

business. For example, in Gillam, MB Hydro’s northern hub of operations, the corporation

maintains approximately 400 housing units. Replacement and refurbishment of those units

is often accomplished by contracting work to Aboriginal businesses. Most of the contracts

involve joint ventures with the First Nation and a non Aboriginal contractor. What appears

to be lacking is a mechanism to ensure Aboriginal employment and skills training are taking

place. Joint venture contractors, faced with the same challenges faced by many Canadian

companies as indicated by the Conference Board of Canada with job performance,

67

recruitment and retention of skilled Aboriginal workers, may manipulate the Northern

Purchasing policy by accounting for extra costs in the contract and not delivering on

Aboriginal employment and training expectations. In the end the contract concludes and

the Aboriginal portion of the joint venture neither has the skilled workers or managerial

skills to sustain business independently.

There have been several independent First Nation business ventures in Gillam that

have also failed despite MB Hydro’s efforts at patronizing them. One of the most recent

such ventures was the Gillam hardware store. Although Manitoba Hydro’s Gillam housing

maintenance department attempted to obtain most of their supplies through the First Nation

owned and operated business, they were often required to source supplies from other

vendors because the First Nation lacked sufficient managerial skills with regards to

accounting practices and supply chain management.

There is opportunity for MB Hydro to refine their goal to “Develop and maintain

business relationships with Aboriginal businesses”, to one focused on developing

independently sustainable Aboriginal business, perhaps a goal such as that taken by

Cameco in Saskatchewan, discussed earlier in this paper, where the objective is to

facilitate development of wholly owned and operated Northern Aboriginal suppliers. As

Lozides (2000) stated, one of the key factors that determine corporate performance in

building business relationships with Aboriginal firms is the monitoring of performance and

an ongoing transfer of business, management and administrative expertise to Aboriginal

firms. MB Hydro has opportunity to better leverage internal expertise in accounting and

supply chain management and actively mentor Aboriginal businesses.

68

Provide opportunities for Aboriginal participation in future development projects

In this area MB Hydro has learned from past mistakes and has undertaken a

revolutionary approach to development of new projects within First Nations traditional

territory. The construction of the 200 MW, $1.6 billion Wuskwatim Generating Station

located on the Burntwood River in Northern Manitoba is precedent setting for Canada and

quite possibly the world in terms of an Electric Utility partnering with an Indigenous people.

The Wuskwatim Limited Partnership is a legal entity that provides the Nisichawayasihk

Cree Nation with a 33% share of the generating station. MB Hydro took the position that

consultation for any new significant development would begin well in advance. In the case

of Wuskwatim, that consultation began in 1996 with the signing of a comprehensive

implementation agreement between MB Hydro and the Nisichawayasihk Cree Nation

(NCN), ten years in advance of breaking ground. Complex negotiations followed which

resulted in a 1500 page legal document outlining the conditions of the partnership. Further

complicating negotiations was a legacy of mistrust by the NCN people who remembered

the adverse effects and lack of consultation they had experienced from the Churchill River

diversion. Adding to the complexity was the requirement to make the document easy to

understand and then to translate it into Cree. There are no words in the Cree language for

much of the financial language in the document. Financing a 33% stake of a $1.6 billion

project is no small undertaking for a First Nation so provisions were implemented where

MB Hydro would provide the financing to NCN for their share. The project is a true

collaboration with its own board comprised of MB Hydro and NCN representatives.

In preparation for the project the Atoskiwin Training and Employment Centre of

Excellence was built to develop Aboriginal skills necessary for employment on the project.

Over 400 NCN members received training at the centre. Chief Jerry Primrose commented

69

in a documentary on the partnership regarding the value of the training provided stating

that “the project will end, but the skills learned will last.”

The project was also unique in that a purpose built facility was constructed to

provide mandatory cultural awareness training for all workers on the project.

The Wuskwatim project paved the way forward for a new way of doing business.

Presently MB Hydro is constructing the Keeyask Generating Station on the Nelson River.

The 695 MW Generating station is a partnership between four Manitoba First Nations,

working together as the Keeyask Hydropower Limited Partnership (KHLP): Tataskweyak

and War Lake (acting as the Cree Nation Partners); York Factory and Fox Lake.

The strategy of providing opportunities for Aboriginal participation in future

development projects is proving to be successful and a marked departure from mistakes of

past projects.

Indigenous Employment Evaluation Tool

Evaluation Topic

LEADERSHIP* Y N P N/A COMMENTS

There is publicly available evidence of

the company’s commitment to

Indigenous employment initiatives on

the corporate website

Y

The company’s annual report affirms

commitment to improving employment

outcomes.

Y

INDIGENOUS EMPLOYMENT POLICY

Corporate Policy*

The company has a corporate policy

with overarching objectives that support Y

70

its Indigenous employment and training

policies.

The policy is promoted in the

workplace.

The policy refers to career development

opportunities for Indigenous

employees.

Y

The policy refers to respect for different

cultures and employment practices. Y

Diversity Goals. Discrimination and Harassment free Workplace Policy

The policy has guidelines that explain

and clarify its intent regarding Indigenous

employment commitments.

Y

The policy refers to Indigenous

employment and training commitments

throughout its operations.

Y

Site level policies MH policies are corporate. Site

Level differences equal higher

Aboriginal recruitment targets for

Northern Zones to reflect the

demographics of the region.

The policy refers to Agreement

commitments.

P

Joint Keeyask Development

Agreement (JKDA) is an

employment framework to

achieve operational employment

targets over a 20 year

timeframe.

The policy defines “local’ Indigenous

people.

Y

Indian, Inuit or Métis including

status, treaty, registered, non

status or non registered. “Local”

defines prescribed northern

zones.

The policy refers to Indigenous

employment. Y

The policy refers to Indigenous training. Y APP Program.

The policy refers to Indigenous small

business opportunities. Y

Northern Purchasing Policy

The policy is promoted in the

workplace. Y

Indigenous employment objectives are

consistent with overall company policy. Y

A workforce that reflects the demographics of Manitoba

The operation requires major contractors

to align themselves with its Indigenous Y

71

employment and training objectives.

The operation has a HR Policy that

refers to EEO and diversity. Y

The HR Policy includes specific

adaptations for Indigenous cultural

differences, e.g. provisions for cultural

leave.

N

No formal policy although leave

with pay is granted for cultural

events on a case by case basis.

PLANNING

Aspects and Impacts Register*

The company has a documented

process for identifying factors within its

control that impact on Indigenous

employment outcomes.

P

Research and Analysis section

in the Recruitment and Diversity

Department forecasts

employment requirements.

The process refers to specific

accountabilities. Y

Recruitment Calendar. Training

progress monitoring,

demographic employment

forecasting,

The process refers to internal

stakeholders. Y

The process refers to external

stakeholders. P

Refers to JKDA signatories but

does not encompass all

stakeholders.

The process refers to Agreement

requirements. Y

The process refers to timing.

Y

Recruitment Calendar. Training

progression schedule. CSP

Targets

The process includes a risk rating

process and matrix to Canadian

Standards.

N

No risk rating.

The Aspects and Impacts document is

filed in a site register subject to controls

that limit access to modify without

authorization.

Y

Secure intranet and change

management controls.

Legal and other requirements

The company has a corporate

directory/database containing:

all relevant legislation

Y

Intranet

all Agreement requirements Y

all Community or External

Relations Standards Y

The Community/External Relations Y

72

Standard/s articulate the relevant

Indigenous employment or local

employment standard/s.

The Community/External Relations

Standard/s include clearly defined

processes for operational personnel to

implement.

Y

Objectives and Targets Y

Indigenous employment objectives are

consistent with the requirements of

Indigenous Land Use Agreements

Y

The operation has an overall Indigenous

employment target. Y

16% Overall

45% North

6% Management

8% Professional

There is a specific timeframe for

achieving the target. Y

The overall target takes account of the

demographic characteristics of the

region, i.e. the percentage of the

population who are Indigenous.

Y

The operation sets incremental

Indigenous employment targets yearly

to achieve the overall target in the

specified timeframe.

Y

% of Business Units with increased contribution to CSP Aboriginal employment

targets – 100% Annual

Management Programs

The operation has a documented

system that records all management

programs or plans that are relevant to

Indigenous employment.

Y

Aboriginal Relations Division

utilizes Enterprise performance

Management system(SAP) and

Secure intranet

The management program identifies:

aspects and impacts that affect

Indigenous employment

outcomes

Y

the risk rating of each aspect N

program objectives Y

the resources required (people,

dollars, equipment and

infrastructure)

Y

planned completion date Y

Person/s accountable. P Refers to business units

Management programs or plans are Y V.P. Corporate Relations.

73

approved by the General Manager.

The Management program or plans are

monitored for completion by reporting

progress monthly to the General

Manager and/or the Managing Director

Y

Reported to Division Manager of

Aboriginal Relations and VP

Corporate Relations.

Implementation

Structure and Responsibility

HR Systems

The Indigenous employment

accountabilities for all relevant roles on

site, such as Communities, HR,

Training and line leadership, are

documented and signed off by the

General Manager, Operations.

P

In this aspect MB Hydro differs

from mine operations.

Responsibility lies with Division

managers and Business unit

VP’s.

Indigenous employment targets are

used as a measure of personnel

performance and/or in reward and

remuneration systems. This includes:

community roles

N

MB Hydro uses core

competency evaluation and

does not offer rewards or

remuneration for performance.

HR roles N

training roles N

line leadership roles N

Work readiness, recruitment and

retention systems

The operation’s work readiness (pre-

vocational), recruitment and retention

systems specify:

face-to-face recruitment and

application processes

P

Not specified however APP

Coordinators conduct career

fairs in Aboriginal communities

and provide supports as

required.

work readiness programs that

select all/majority Indigenous

intakes for the first 2 to 6 months

N

Candidates are screened for

suitability. Not all are selected.

individual case management for

the first 6 to 18 months P

APP candidates are managed

by coordinators. There is a

mentor program. Involvement is

limited.

individual coaching for 6 to 18

months, with family support P

Mentor program. Some family

supports such as RAP trips to

home community on a 30 day

interval.

alcohol and other drug testing

that educates and does not

permanently restrict employment

NA

MB Hydro does not have a drug

testing program.

74

options

security clearance systems that

do not automatically eliminate all

offenders

P

Personnel Risk Assessments are a NERC standard CIP-004-1 R3. Assessments are based on the nature and gravity of the offence(s); the time passed since the offence(s); and the nature of the job sought. There are no accommodations granted for Aboriginal candidates.

Remote and regional recruitment

practices

Remote and regional application and

recruitment procedures are conducted

face-to-face.

Y

APP Coordinators conduct

recruitment in remote

communities. Face to face is a

key component.

Career Communicators serve as

role models at Career Fairs.

The company provides Indigenous

applicants with support in preparing

applications and resumes.

P

APP Coordinators conduct

recruitment in remote

communities. Face to face is a

key component. Supports not

required for most positions but

are provided for entry level low

skill positions.

The site maintains a recruitment

database. Y

HR Analysis is a section of the

Recruitment and Diversity

Department

Individual sites support local

employment agencies. P

Recruitment and Diversity, not

site, assists Aboriginal

employment agencies with

placements

Career path development

The operation has a career path

development system for Indigenous

employees.

P

Each employee has a personal

development plan completed in

conjunction with their

supervisor. No differentiation is

given to Aboriginal employees.

The system records individual

aspirations. Y

personal development plan

The system records development

conversations, plans and opportunities. Y

personal development plan

The system records development

opportunities actioned / completed. Y

personal development plan

Exit interviews

The operation has a formal exit

interview system.

Y

Exit interviews are conducted for

all employees who voluntarily

leave the Corporation.

75

The system records the reasons people

leave. Y

To gain a better understanding of why employees are leaving the Corporation.

The system documents actions planned

and taken to address issues identified. Y

Monitor trends and take any

necessary remedial action

before serious skill shortages

become apparent

There is clear evidence of the system

functioning for Indigenous people, e.g.

Indigenous exit interviews are

consistently completed.

Y

Contractors

The operation’s contract tendering

requirements for prime contractors

include specific targets for Indigenous

employment.

P

No specific targets.

The operation’s contract tendering and

contractor selection processes include a

weighting for Indigenous employment.

Y

Weighting for Aboriginal

employment is used when

awarding contracts.

The operation’s prime contractors use

the operation’s Indigenous employment

readiness and recruitment systems,

procedures and practices.

Y

Training, awareness and competence

Training structure

The operation has an adequate ratio of

trainers to trainees and apprentices.

Y

Knowledge, skills and experience

required of trainers and community

personnel with Indigenous

accountabilities are documented in the

company’s HR system.

Y

Trainers are trained in Career

communications and Aboriginal

Employment Mentorship.

Records are maintained.

Training programs

There is a budget allocated specifically to

Indigenous employment and training in

the current operational plan.

Y

The budget is adequate to achieve the

plan in:

HR

Y

training Y

community Y

76

trainees and apprentices Y

The operation has a work readiness

(pre-employment /pre-vocational)

program.

P

Funding is provided to

Aboriginal organizations for

work readiness programs.

The operation has an Australian Quality

Training Framework (AQTF) Traineeship NA

Quality is controlled by

interprovincial apprenticeship

standards.

The operation has an Apprenticeship

program. Y

The operation has a Cadetship/

Scholarship program. P

Co-Op Education Program.

Several awards, bursaries and

scholarships for Aboriginal

students.

Cultural awareness

The operation’s Indigenous employment

commitment is included in induction

programs for all site employees and

contractors.

P

Diversity information and

discrimination and harassment

free policies are included in

orientation packages for all

employees and contractors.

The operation keeps records and

monitors all induction attendance Y

SAP Enterprise system includes

HRMS

Corporate managers are required to

conduct Indigenous induction

procedures. P

All employees receive new

employee orientations. Not

specific to Aboriginal

employees. Orientations are

conducted by supervisors.

Company personnel are required to

complete a cultural awareness program.

P

Not all employees are required but it is mandatory for all in high ratio Aboriginal employment departments. There have been 152 Aboriginal cultural awareness sessions held of which 1837 employees have participated in to date. Approx. 1/3 of the corporate workforce.

Communication *

The operation has a documented

process for regular formal

communication across the relevant

levels and functions of the operation

about its Indigenous employment

programs and initiatives.

Y

Corporate intranet.

The operation has a documented

process for regular formal

communication with external

Y

Aboriginal Relations Division

77

stakeholders

Documentary evidence confirms that

the process is being followed. Y

Document control system

The operation’s Indigenous employment

system is subject to document control.

The system includes:

yearly plans

Y

the Aspects and Impacts

register Y

management programs Y

recruitment data Y

retention data Y

traineeship data Y

apprenticeship data Y

evaluation records Y

PERFORMANCE MONITORING

Monitoring and measurement *

The Indigenous employment standards

or the reporting system contain

definitions for each Indigenous

employment measure.

Y

The Indigenous employment standards

or the reporting system clearly define

what the company means by

‘Indigenous’ and ‘local Indigenous”

people.

Y

Aboriginal peoples mean persons who are Indian, Inuit, or Métis peoples of Canada (including status, treaty, or registered persons as well as non-status and non-registered persons).

Local - deemed to be a Northern Resident if the person has resided in that part of Manitoba north of the boundary as set out in Schedule D for: A period of five (5) years accumulatively, or more; period of six (6) consecutive months, or more, immediately prior.

Current and historical indicators

The operation’s Indigenous employment

measures include:

the proportion of the workforce

that is Indigenous

Y

17.9% Corporate

45.9% Northern Employees

14.3% Southern Employees

7% Management

7.2% Professional

the number of Indigenous P Women are an equity target

78

employees (male and female) group and Aboriginal women are

tracked but included in

measures for women and for

Aboriginal employment.

the number of local and non-

local Indigenous employees P

JKDA employees are tracked

role type e.g. Trainee or General

Manager Y

position type e.g. permanent,

contractor, part/ full time Y

full time equivalent calculations Y

turnover rates Y

The data are collected quarterly

(minimum). Y

Monthly

The data are maintained on an historical

basis. Y

Assessment/audit

The operation has a documented

process for conducting an

internal/external audit of its Indigenous

employment policies and procedures.

Y

Internal audit

Included in the internal/external audit is

a review of:

policy objectives

Y

strategic plans Y

Agreement requirements Y

The operation has a documented

process for conducting an

internal/external audit.

P

Internal audit of employment

equity programming.

Included in the external audit is a review

of:

Indigenous employment

standards

N

No external audit

relevant legislation Y

Corrective and preventative actions *

The operation has a corrective action

planning register. Y

The register records:

instances of non-conformance

or non-compliance

Y

the nature and number of

complaints and requests from Y

Corporate complaint registry

79

Indigenous people

the process for managing

complaints and requests Y

the outcomes of the process Y

Records

The operation keeps the assessment

records from external assessments or

reviews of complaints

Y

The operation tracks and completes

action items identified in reviews or

assessments.

Y

Progress

Management Review

The operation has a documented process

for management review such as minutes

of meetings and actions.

Y

The actions are reviewed and closed

out. Y

DEPEST Analysis

Demographic - The 2011 National Household Survey (NHS) show that 1,400,685 people

had an Aboriginal identity in 2011, representing 4.3% of the total Canadian population.

The Aboriginal population increased by 232,385 people, or 20.1% between 2006

and 2011, compared with 5.2% for the non-Aboriginal population.

The Aboriginal population is much younger than that of the non Aboriginal

population due to higher fertility rates and shorter life expectancies. Aboriginal children

aged 14 and under made up 28.0% of the total Aboriginal population and 7.0% of all

children in Canada. Non-Aboriginal children aged 14 and under represented 16.5% of the

total non-Aboriginal population. Aboriginal youth aged 15 to 24 represented 18.2% of the

total Aboriginal population, and 5.9% of all youth in Canada. Non-Aboriginal youth

accounted for 12.9% of the total non-Aboriginal population.

80

The median age of First Nations people was 26, followed by Métis at 31. The

median age for First Nations People in Manitoba was 21, half that of the non Aboriginal

population.

Manitoba’s Aboriginal population was 195, 900 representing 16.7% of the provinces

total population. Manitoba had the highest proportion of Aboriginal citizens of any provinces

but less than that of the three territories.

Currently, 57.9 % of Manitoba’s First Nations people with registered Indian status live on

reserves.

There were 78, 830 Métis in Manitoba. Winnipeg had 46,325 Métis, the highest number of

any metropolitan area.

Almost one-half (48.4%) of Aboriginal people had a postsecondary qualification in

2011, including 14.4% with a trades certificate, 20.6% with a college diploma, 3.5% with a

university certificate or diploma below the bachelor level3, and 9.8% with a university

degree.

In comparison, almost two-thirds (64.7%) of the non-Aboriginal population aged 25

to 64 had a postsecondary qualification in 2011. Of this group, 12.0% had a trades

certificate, 21.3% had a college diploma, 4.9% had a university certificate or diploma below

the bachelor level, and 26.5% had a university degree. The main difference between the

Aboriginal and non-Aboriginal populations in terms of postsecondary qualifications was with

the proportion of university graduates. The same pattern was observed in the 2006 census.

3 Comparisons with other data sources suggest that the category 'University certificate or diploma below the

bachelor's level' was over-reported in the NHS. It is recommended that users interpret the results for this category with caution.

81

There was also a difference in the proportion of Aboriginal and non-Aboriginal

people with 'no certificate, diploma or degree'. Among Aboriginal people aged 25 to 64,

28.9% had 'no certificate, diploma or degree' while the proportion for non-Aboriginal people

in the same age group was 12.1%. The proportion of Aboriginal people aged 25 to 64 with

a high school diploma or equivalent as their highest level of educational attainment was

22.8%. In comparison, 23.2% of non-Aboriginal people in the same age group had a high

school diploma or equivalent as their highest qualification.

Education levels among Aboriginal people are increasing however continue to lag

behind the non Aboriginal population. There were 68.0% of Aboriginal people aged 35 to

44 with at least a high school diploma compared with 58.7% for those aged 55 to 64. The

proportion of high school graduates among non-Aboriginal people aged 35 to 44 was

88.7% compared with 79.5% among those aged 55 to 64.

The proportion of Aboriginal women aged 35 to 44 who had a university degree in

2011 was 13.6%, compared with 10.2% of those aged 55 to 64. Among Aboriginal men,

there was no difference in the proportions that held a university degree between age

groups. It was 7.6% for both men aged 35 to 44 and 55 to 64.

In 2011, younger Aboriginal women and men were both more likely to have college

diplomas than older ones. Among Aboriginal women aged 35 to 44, 27.1% had a college

diploma in 2011, compared with 21.4% of those aged 55 to 64. With a proportion of 18.3%,

Aboriginal men aged 35 to 44 were also more likely to have college diplomas than those

aged 55 to 64 where the proportion was 14.1%.

Just over 389,200 adults, or 58.0% of the total adult Aboriginal identity population

aged 25 to 64, reported a First Nations (North American Indian) identity on the NHS

questionnaire in 2011.

82

Of these, 44.8% had a postsecondary qualification: 13.2% a trades certificate,

19.4% a college diploma, 3.6% a university certificate or diploma below the bachelor level

and 8.7% a university degree.

The proportion of First Nations people with a postsecondary qualification was higher

among those without registered Indian status (52.1%) than among those with registered

Indian status (42.3%).

The proportion of college and university graduates among First Nations people with

registered Indian status was higher for those living off reserve than on reserve. Among the

former, 21.2% had a college diploma and 10.9% had a university degree compared with

14.8% and 4.7% for the latter.

In 2011, 60.2% of First Nations people aged 25 to 64 had completed at least a high school

diploma.

Just over 237,700 adults, or 35.4% of the total adult Aboriginal identity population

aged 25 to 64, identified themselves as Métis on the NHS questionnaire in 2011. Over half

(54.8%) of Métis aged 25 to 64 had a postsecondary qualification: 16.3% a trades

certificate, 23.2% a college diploma, 3.5% a university certificate or diploma below the

bachelor level and 11.7% a university degree. These are the highest proportions among

the three Aboriginal groups (First Nations people, Métis and Inuit).

In 2011, the proportion of Métis aged 25 to 64 with at least a high school diploma was

73.6%.

With a population growth outpacing that of the non Aboriginal population and a

median age of 21, Manitoba First Nation must be considered as a valuable human

resource necessary to fill jobs now and in the future. To harness the full potential of the

83

demographic, government, industry and First Nations must cooperate to improve

educational outcomes for Aboriginal Peoples.

Economic – According to the 2006 Statistics Canada census, between 1996 and 2006, the

unemployment rate for the Aboriginal population decreased from 21.8% to 13.0%, more

than double the improvement for the non-Aboriginal population. Similarly, the employment

rate for Aboriginal individuals increased by 10.2 percentage points, from 52.8% to 63.0%,

compared to a 4.1 percentage points increase for non-Aboriginal individuals.

In 2005, median individual total income for the Aboriginal population was $16,752,

almost $10,000 lower than for the non-Aboriginal population ($25,955). Across provinces

and territories, median income for Aboriginal people ranged from a high of $20,690 in the

Yukon to a low of $13,843 in Saskatchewan. The income gap between the Aboriginal and

non-Aboriginal populations remained fairly consistent over the past decade.

The gap in median income between genders is less pronounced in the Aboriginal

population than for the non-Aboriginal population. Aboriginal males made $3,060 more than

females in 2005 ($18,714 and $15,654). Comparatively, non-Aboriginal males made

$11,999 more than their female counterparts ($32,639 and $20,640).

Over the past decade, the proportion of Aboriginal households that experienced

crowding decreased from 7.6% to 4.3%. Despite this improvement, crowding remains three

times more prevalent in Aboriginal households than in non-Aboriginal households.

The 1996 and 2006 Censuses show very little improvement in the percentage of

Aboriginal dwellings in need of major repair. In 2006, Aboriginal dwellings were almost

three times more likely to require major repairs than non-Aboriginal dwellings (19.0%

compared to 7.0%). Aboriginal dwellings in Manitoba needing repair were over 22%.

84

Labour force activity for the Registered Indian population has improved over the past

decade (Figure 8). The Registered Indian population living off reserve, in particular,

experienced considerable gains in employment increasing 12.7 percentage points from

49.3% to 62.0%. The unemployment rate for this population also dropped by 10.3

percentage points, from (23.3% to 13.0%). However, the Registered Indian population,

both on and off reserve, is less likely to be employed than the non-Aboriginal population

and also experiences higher unemployment than the non-Aboriginal population. As well,

the gaps between Registered Indians living on and off reserve have widened.

Between 1995 and 2005, the median total income for the Registered Indian

population living on reserve has not changed much (Figure 9).[7] Gains are most

pronounced for Registered Indians living off reserve where median income increased from

$13,839 to $17,173.

The 2006 Census indicates that the median individual income is highest for the

Registered Indian population living in the Territories ($17,667); and lowest for those living

in the provinces of Saskatchewan and Manitoba ($10,874 and $11,822 respectively).

Median individual incomes are also slightly higher for Registered Indian females than for

Registered Indian males ($14,337 to $13,802).

In 2005, employment was the major source of income for one-half (48.4%) of the on-

reserve Registered Indian population with income. This is followed by government transfer

payments as the major source for 46.8% of individuals and other sources for 4.8% of

individuals.

Employment as the major source of income is higher for the Registered Indian

population off reserve. Further, between 1995 and 2005 the proportion of the Registered

Indian population off reserve with employment as their major income source increased from

85

52.0% to 60.6%, narrowing the gap when compared to the proportion of non-Aboriginal

individuals with employment as their major income source (66.2%).

Political/Legal - Section 35 of the Constitution Act, 1982 provides that:

1. The existing aboriginal and treaty rights of the aboriginal peoples of Canada are

hereby recognized and affirmed.

2. In this Act, “aboriginal peoples of Canada” includes the Indian, Inuit and Métis

peoples of Canada.

3. For greater certainty, in subsection (1) “treaty rights” includes rights that now exist

by way of land claims agreements or may be so acquired.

4. Notwithstanding any other provision of this Act, the aboriginal and treaty rights

referred to in subsection (1) are guaranteed equally to male and female persons.

In addition to the common law duty to consult, there are a number of other legal

reasons for the Crown to consult with Aboriginal groups, including specific requirements to

consult that are set out in statutes and regulations as well as provisions in land claim

agreements, self-government agreements and consultation agreements. The Crown’s duty

to consult applies to provincial and territorial governments.

An Action Plan on consultation and accommodation was announced in November

2007 led by Aboriginal Affairs and Northern Developments Canada (AANDC) and Justice

Canada. Interim Consultation Guidelines were released in February 2008. Since the initial

guidelines were released in 2008, much has been learned about consultation and

accommodation. As a result, updated guidelines were released in 2011.

86

The objective of the Guidelines is to provide an approach to consultation and

accommodation that:

acknowledges and respects the Crown’s unique relationships with Aboriginal

peoples;

promotes reconciliation of Aboriginal and other societal interests;

integrates consultation into government day-to-day activities, e.g. environmental and

regulatory processes;

reconciles the need for consistency in fulfilling the Crown’s duty to consult with the

desired flexibility, responsibility and accountability of departments and agencies in

determining how best to do so; and

fosters better relations between the federal government and Aboriginal peoples,

provinces, territories, industry and the public.

Ecological – North American legislation is increasingly mandating the requirement to

incorporate the use of renewable energy of which hydro electric is included. The

requirement to obtain energy from renewable sources presents an opportunity for MB

Hydro to increase exports which are used to subsidize the huge capital cost of new

generation. In so doing, the utility is able to keep domestic rates low and offset the financial

impact of adding capacity. By the same token, environmental impacts to land and aquatic

life as a result of hydroelectric development are intensely scrutinized and MB Hydro must

conduct comprehensive environmental impact assessments and identify mitigation

measures prior to any new development. The requirement adds time to schedules and

considerable cost. There is a legal duty to consult First Nations on environmental and

regulatory processes. For projects that impact First Nations MB Hydro utilizes

87

Ethinesewin, the traditional knowledge and collective wisdom of Aboriginal people along

with conventional environmental monitoring procedures to help ensure minimum disruption

to the local environment.

Socio Cultural- Within MB Hydro and society in general, there has been a marked shift in

values regarding diversity, and in the way negotiations are conducted with Aboriginal

communities since the last Generating Station on the Nelson River was completed 25

years ago. Aboriginal representation in MB Hydro’s workforce has progressively increased

year over year. Consultation with First Nations and consensus is required prior to any new

projects commencement. In order to continue to meet the energy needs of the province, it

is essential to develop and maintain business relationships with Aboriginal businesses and

employ an Aboriginal workforce reflective of the demographics of the region. Cultural

awareness training is a key component of enabling a respectful workplace and fostering

better relations between the MB Hydro and Aboriginal peoples.

Technological - As technology advances at an ever increasing pace, the demand to

employ a highly skilled and educated workforce becomes increasingly more critical.

Although technology has enabled greater productivity with fewer workers, it has also

mandated greater amounts of training and development and higher levels of capital

investment. Technological advancement and the associated complexity present a

challenge to MB Hydro when recruiting Aboriginal employees from a pool that has lower

levels of high school graduation and lower levels of post secondary education then the non-

Aboriginal population.

88

Recommendations

Manitoba Hydro has been striving to accomplish their strategic goal of strengthening

working relationships with Aboriginal Peoples by concentrating on three main tactics;

Resolve and manage ongoing obligations from past development;

Increase Aboriginal representation through initiatives to recruit, develop and

retain Aboriginal employees.

Develop and maintain business relationships with Aboriginal businesses.

The measures in place indicate that the corporation is achieving their tactical goals

however, there appears to be a deficiency in correlating achievement of tactical goals with

their impact on the strategic initiative of strengthened Aboriginal stakeholder relationships.

For example, one may assume that relationships with Aboriginal People employed by the

corporation have improved, but what about Aboriginal People not employed by the

corporation, or not directly engaged in business ventures? Blockades against the

corporation in 2014 by three separate First Nations suggest that the communities are not

satisfied with the relationship they have with Manitoba Hydro.

1. It is recommended the corporation develop an analytics program to assess the

effectiveness of their Aboriginal relationship strategies. Survey Aboriginal customers

to gain greater understanding of the effectiveness of Aboriginal relations strategy.

Surveys can be included along with Hydro bills, hard copy or electronic. Respondents

should be designated as Aboriginal status, non status, or Métis. Further

disaggregated data should be obtained to determine First Nations band affiliation,

living on reserve or off reserve, as well as if they or any members of their immediate

family are employed by MB Hydro. Trends should indicate increasingly favourable

89

responses as a result of implementing Aboriginal relations strategies. An example of

questions for the Aboriginal customer satisfaction survey are presented in figure 17

Figure 17: Proposed Aboriginal satisfaction survey questions and theoretical responses.

Source: Myron Smolarski, 2015 03 20

2. Modify HR Policy to include specific adaptations for Indigenous cultural differences, e.g.

provisions for cultural leave. Presently the corporation provides employees with paid

family responsibility leave up to six days per year. Leave is taken from an employee’s sick

leave credits. It is meant to enable employees to attend to the illness and medical/dental

appointments of a parent, spouse or child. The policy should be amended to also include

cultural and religious leave. In addition to supporting Aboriginal employees, there is an

added diversity benefit of applying to other equity groups. In addition, three days of

approved leave without pay should be granted to Aboriginal employees for seasonal or

traditional activities such as caribou hunting.

3. MB Hydro is meeting their employment targets for overall Aboriginal recruitment targets

however they are less successful promoting Aboriginal employees to management

20%

24%

29%

16%

30%

25%

29%

26%

10%

6%

6%

21%

20%

20%

20%

19%

20%

25%

19%

20%

MB Hydro is a trustworthy

company

MB Hydro has ethical,

responsible management

MB Hydro acts in the best

interest of its customers

MB Hydro acts to improve

Aboriginal relations

Strongly agree (9,10) Somewhat agree (7,8) Neutral (5,6)

Somewhat disagree (3,4) Strongly Disagree (1,2)

90

positions. This may suggest that while dedicated recruiters and recruitment strategies are

proving effective, the absence of a specific Aboriginal career path development strategy is

a contributing factor for lower than expected rates of Aboriginal participation in

management. To address the inequity of Aboriginal people in management, it is

recommended that achievement of Aboriginal employees in management targets are

used as a measure of personnel performance for division and department managers.

4. MB Hydro’s work readiness (pre vocational) strategies have consisted of funding pre-

employment programs targeted at an adult audience. The city of Thompson Manitoba is

considered to be the hub of the north and the Vale mine operation makes Thompson a

major industrial center. The R.D. Parker high school in Thompson presently offers

technology majors for Certified Automotive Technician and Heavy Duty Equipment

Technician; both are accredited programs with Apprenticeship Manitoba however, two

trades most in demand at MB Hydro as well as the mining industry are Industrial

Mechanic (Millwright) and Industrial Electrician. It is recommended that MB Hydro, in

partnership with the Mining Association of Manitoba and the Mystery Lake School

Division, develop technology major programs for Industrial Mechanics and Electricians.

Upon graduation students would be credited with apprenticeship hours and given the

option of writing their level one apprenticeship exam. MB Hydro’s investment in the

vocational education of northern students would be offset by a reduction in recruitment

costs as well as employee training. It is estimated that MB Hydro’s cost to develop trades

technicians is approximately $100,000 per year. Graduates of the high school vocational

program would begin their careers with a stronger background and already have one

year of apprenticeship completed. Hydro’s return on training investment from recruitment

until trainees function independently would be measurably shorter.

91

5. It is recommended that MB Hydro leverage their internal expertise in accounting and

supply chain management and actively mentor Aboriginal businesses with who they

have dealings with. Improved monitoring of performance and an ongoing transfer of

business, management and administrative expertise to Aboriginal firms will build

business relationships and improve outcomes establishing sustainable Aboriginal

businesses.

6. MB Hydro should consider establishing an alcohol and other drug testing program

that educates but does not permanently restrict employment options. The

predominant reason for Aboriginal employee terminations in Generation North is

excessive absences and failure to follow absence reporting protocol. Substance

abuse is often a factor in employee’s poor attendance. Alcohol and drug testing

not only supports the corporation’s number one strategic goal, safety, but it

provides management the tools required to obtain early intervention for

employees on a self destructive path to termination of employment. A successful

alcohol and drug testing program should have early mechanisms and supports to

assist employees in becoming safe and productive employees.

7. MB Hydro’s contract tendering requirements are weighted for contractors

partnering with or employing Aboriginal employees. To prevent contractors trying

to circumvent the system, it’s recommended that MB Hydro contract

administrators randomly verify Aboriginal employment numbers submitted by the

contractor and penalties are established for non compliance.

92

References

Adler P., and Kwon S.W. (2002). Social capital: Prospects for a new concept. The

Academy of Management Review, Vol 27, No.1, pp. 17-40.

Allen, W. (1992). Our schizophrenic conception of the business corporation. Cardozo Law

Review 14, 261-81.

Barney, J. (2007). Evaluating firm strengths and weaknesses: the resource based view. In

gaining and sustaining competitive advantage (3rd ed).

Bragg, W., (1996) [an executive commentary]. The Academy of Management Executive,

Vol 10, No.2 , pp. 35-36

Canada, G. O. (2010, Sept. 15). Aboriginal Affairs and Northern Development Canada.

Retrieved Oct. 1, 2013, from Backgrounder- Manitoba Northern Flood Agreement

Implementation- Cross Lake First Nation: http://www.aadnc-

aandc.gc.ca/eng/1100100016367/1100100016368

Carnevale, A. P., & Stone, S. C. (1994). Diversity beyond the golden rule. Training and

Development, pp. Vol. 48, No. 10.

Dwyer, S., Richard, O.C., & Chadwick,K. (2003). Gender diversity in management and firm

performance: The influence of growth orientation and organizational culture. Journal

off Business Research, 56,1009-1019

Erikson, K. T. (1976). Everything in Its path, destruction of a community in the Buffalo

Creek flood. New York: Simon and Schuster.

Friedman, M. (1963). Capitalism and freedom. University of Chicago Press, Chicago.

93

Frooman, J. (1999, Apr). Stakeholder influence strategies. The Academy of Management

Review, pp. Vol 24, No.2, pp.191-205.

Government of Canada, (2011, May), Aboriginal consultation and accommodation, updated

guidelines for federal officials to fulfill the duty to consult

Government of Canada, (2013, May 8th), National household survey 2011

Retrieved March 1, 2015 from

https://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-011-x/99-011-x2011001-

eng.cfm

Grant, R. (2008). Contemporary strategy analysis - 6th ed. Malden, MA, USA: Blackwell

Publishing Ltd.

Gray, B. (1989). Collaborating: Finding common ground for multiparty problems. San

Francisco: Jossey-Bass.

Hegarty, E. (1996) [an executive commentary]. The Academy of Management Executive,

Vol 10, No.2, pp. 36-37

Howard, A., Edge, J., & Watt, D., (2012). Understanding the value, challenges, and

opportunities of engaging Metis, Inuit, and First Nations workers. Canada: The

Conference Board of Canada.

Indian and Northern Affairs Canada (1996) Highlights from the report of the Royal

Commission on Aboriginal Peoples: People to people, nation to nation

Retrieved March 9, 2015 from

http://www.ainc-inac.gc.ca/ap/pubs/rpt/rpt-eng.asp

94

Jayne, M., Dipboye, R., (2004). Leveraging diversity to improve business performance:

Research findings and recommendations for organizations. Human Resource

Management, Volume 43, issue 4, pp. 409-424.

Kossek, E., Lobel, S. & Brown, J., (2005). Human resource strategies to manage workforce

diversity. Handbook of Workplace Diversity (pp. 54-74). Thousand Oaks, CA: Sage.

Lam, H. (2010). Essentials of strategic human resource management & organizational

behaviour. Toronto, Ontario, Canada: Nelson Education Limited.

Liedtka J. (1996). Collaborating across lines of business for competitive advantage [an

executive commentary]. The Academy of Management Executive , Vol 10, No.2., p.

20-34

Loney, M. (1987). The construction of dependancy: The case of the Grand Rapids hydro

project. The Canadian journal of native studies, VII(1):57-78.

Loney, M. (1995). Social problems, community trauma and hydro project Impacts.

Canadian Journal of Native Studies, 15(2), 231-254.

Lozides, S. (2000). The ties that bind: corporate mentoring with Aboriginal firms. Canada:

The Conference Board of Canada.

Lozides, S., and Wuttunee, W. (2005). Creating wealth and employment in Aboriginal

communities. Canada: The Conference Board of Canada.

Manitoba Hydro. (2012-13). 62nd Annual Report . Winnipeg, MB, canada: Manitoba Hydro

Electric Board.

MB Hydro. (2002). A history of electric power in Manitoba. Winnipeg: Public Affairs

Manitoba Hydro.

95

MB Hydro. (2013). Needs for and alternatives to business case submission. Winnipeg: MB

Hydro.

Mitchel R., Agle. B. and Wood, D. (1997). Toward a theory of stakeholder identification and

salience: Defining the principle of who and what really counts. Academy of

Management Review, Vol. 22, No. 4.

Minnesota Public Utilities Commission (2006, July 28 ). Order approving Northern States

Power Company d/b/a/ Xcel Energy’s application for approval of its 2005-2019

resource plan. Pg 12-13, retrieved from

http://mn.gov/puc/documents/puc_pdf_orders/010457.pdf

OECD and Statisitics Canada. (2000). Literacy in the information age: final report of the

International Adult Literacy Survey. OECD and Statistics canada.

Parkouda M, Brichta. J. (2013). Realizing the potential, priority investments in

Saskatchewan's First Nations and Metis people. Conference Board of Canada.

Province of Manitoba, M. H. (1977, Dec 16). Retrieved from

http://www.hydro.mb.ca/community/agreements/nfa/preamble.htm

Putnam, R. (2000). Bowling alone: The collapse and revival of American community.

NewYork: Simon and Schuster: pp. 288-290

Sanglin-Grant, S. and Schneider,R. (2000). Moving on up? Racial equality and the

corporate agenda, . London: Runnymede Trust.

Schiff. (Apr. 1992). Social capital, labour mobility, and welfare: The impact of uniting states.

Rationality and Society Vol 4, 157.

96

Sharpe, A. Arsenault, J-F., (2010). Investing in Aboriginal education in Canada: An

economic perspective. Ottawa, Ontario, Canada: Centre for the Study of Living

Standards.

Shen, J., Chanda, A., D'Notto, B., & Monga, M. (2009). Managing diversity through human

resource management: an international perspective and conceptual frame work. The

International Journal of Human resource Management, Vol.20, No. 2, 235-251.

Sloan, P., Hill, R.,. (1995). Corporate Aboriginal relations: Best practice case studies.

Toronto: Hill Sloan Associates.

Sorli, G. (2006). DEPEST, Athabasca University, Faculty of Business. Athabasca, Alberta,

Canada.

Statistics Canada, (2013, May 8), Aboriginal Peoples in Canada: First Nations People,

Métis and Inuit. National household survey, 2011

Stewart, N., Lamontagne, E., (2014). Compensation planning outlook Canada: The

Conference Board of Canada.

Thibault, M. Hoffman, S., (2008, May 15), Power struggles: hydroelectric development and

First Nations in Manitoba and Quebec. University of Manitoba Press.

Thompson, S. (2015, January 23). Message from the president – We’ve come a long way

in Aboriginal relations. Retrieved March 1st, 2015 from MB Hydro intranet

http://mpower2.hydro.mb.ca/gol/Pages/Message%20from%20the%20President%20-

-%20We’ve%20come%20a%20long%20way%20in%20Aboriginal%20relations.aspx

Thompson Dorfman Sweatman LLP, (2005, May 6). Consultation with First Nations

stakeholders, building relationships. Retrieved Jan 20, 2015, from

97

http://www.tdslaw.com/knowledge-center/consultation-with-first-nations-

stakeholders/

Tiplady, T., Barclay, M. (2007) Indigenous employment in the Australian minerals industry.

Centre for Social Responsibility in Mining, The University of Queensland, Brisbane

Australia

Waldram, J. B. (1980a). Relocation and political change in a Manitoba native community.

Canadian Journal of Anthropology, 1(2).

Waldram, J. B. (1980b). Relocation and social change among the Swampy Cree and Me'tis

of Easterville Manitoba. Winnipeg: University of Winnipeg.

Waldram, J. B. (1985). Native employment and hydroelectric development in northern

Manitoba. Journal of Canadian Studies.

Waldram, J. B. (1988a). As long as the rivers run. Hydroelectric development and native

communities in western Canada. University of Manitoba Press.

Waldram, J. B. (1988b). Native people and hydroelectric development in northern

Manitoba,1957-1987:The promise and the reality. Manitoba History .

Waldram, J. B. (1992). The impacts of hydro electric dams on Aboriginal communities.

MRJBC.

Wheeler D., Colbert, B & Freeman, R., (2003). Focusing on value: Reconciling corporate

social responsibility, sustainability and a stakeholder approach in a network world.

Journal of General Management, Vol 28 No. 3.

98

Appendix 1

Figure 1

Manitoba Hydro facilities source: Manitoba Hydro

99

Figure 2

Energy Balance- Dependable Energy Showing Deficit by 2023 (Manitoba Hydro)

100

Appendix 2

MANITOBA HYDRO NORTHERN PURCHASING POLICY

POLICY STATEMENT: Manitoba Hydro will encourage participation in business and

employment opportunities for Aboriginal and northern communities

within the Northern Affairs Boundary through the following

measures:

• Information sharing

• Scoping

• Restricted tender or direct negotiated contracts

• Aboriginal and Northern Content provisions

• Prioritization of contract awards

Such measures may, with the approval of the President & CEO, be

extended to Aboriginal and other communities located outside the

Northern Affairs Boundary.

DESCRIPTION:

Information Sharing: Information will be provided to Aboriginal and northern communities

on upcoming Hydro contracts and work packages scheduled for their

vicinity.

Information may include presentations, seminars and discussions

with Northern Aboriginal Contractors and other Northern Businesses

to assist in the understanding of technical requirements of contracts

and Manitoba Hydro’s procurement processes and requirements.

Scoping: Contracts will be scoped where feasible to provide opportunities for

Northern Aboriginal Contractors and other Northern Businesses

provided any additional costs are acceptable to Manitoba Hydro and

there are no adverse effects on project schedules or the quality of

goods or services provided.

Restricted Tender or

Direct Negotiated

Contracts:

Tender calls may be restricted to Northern Aboriginal Contractors or

other Northern Businesses where such businesses are capable of

performing contract services at competitive rates.

In certain circumstances, where contract opportunities have been

identified for Northern Aboriginal Contractors or other Northern

Businesses, contracts may be direct negotiated with contractor

located in the vicinity of the project.

Aboriginal and

Northern Content

Provisions:

Tenders and contracts for northern work will, where schedule and

skill requirements permit, contain contract terms which provide for

Northern Aboriginal and northern worker participation including

employment and training.

101

101

Prioritization of

Contract Awards: Purchasing p r i o r i t i e s o n n o r t h e r n w o r k w i l l b e ap p l i ed

i n t h e following order:

1. Northern Aboriginal Contractor

2. Northern Businesses

3. Manitoba Businesses

4. Canadian businesses

5. Other

DEFINITIONS:

1. "Aboriginal and Northern Content" refers to the practice of developing tenders

incorporating requirements for bidders to include details of Northern Aboriginal or

Northern Business content including such items as labour, equipment rentals,

material purchases and service provided.

2. "Manitoba Business" is a business which is registered to do business in the Province

of Manitoba, and the firm, or its principals, maintains their facilities, equipment and

staff in Manitoba on a continuous basis.

3. "Northern Aboriginal" shall mean a First Nations, Non-status Indian, Metis or Inuit

person who has resided in Manitoba, north of the Northern Affairs Boundary for a

cumulative period of five years or more.

4. "Northern Aboriginal Contractor" is a Northern Business (including Aboriginal joint

venture, partnership or corporation):

• which is at least 51% owned and controlled by northern Aboriginals; and

• if the business has six or more full-time staff, at least one-third of them

are Aboriginal people.

5. “Northern Affairs Boundary” shall be designated as indicated in the link:

https://www.hydro.mb.ca/selling_to_mh/north_affairs_boundary_map.pdf

6. "Northern Business" is a Manitoba Business which is located within the Northern

Affairs Boundary.

7. "Scoping" is the breaking up of a normal contract package into smaller work packages

to suit the capability of community or businesses targeted to participate in the

opportunity. Scoping may result in incremental costs to the Corporation, (i.e., internal

administrative costs or additional mobilization/demobilization costs, etc.). In making

contract awards under the Northern Purchasing Policy, the aggregate additional cost of

all individual work packages arising from negotiation and restricted tendering will be

evaluated.

102

102

Appendix 3

IEE Tool Guidance Notes

Leadership

A company’s leadership commitment can be identified by:

Its public statements to shareholders and other stakeholders The resources it allocates towards funding Indigenous employment initiatives

Indigenous Employment Policy

Comprehensive Indigenous Employment policies make specific reference to:

Employing and training Indigenous people Providing career development opportunities Contributing to improvements in Indigenous education Promoting cultural diversity in the workplace Eliminating racism in the workplace Providing business development opportunity for Indigenous people

Depending on the structure of the company and the nature of its operations, it may be appropriate to develop separate policies for:

The company’s overall corporate operations Secondary level policies, e.g. site level An International policy Contractor policies

Site level policies have different names in different operations, e.g.

Community Policy Corporate Social Responsibility (CSR) Policy Australian Indigenous Policy

Some companies have their own Indigenous Policy that is in addition to, and complements, their Community Policy. Some operations have also developed site-specific Aboriginal Relations policies that support their Agreement commitments to local Indigenous groups.

ASPECTS AND IMPACTS REGISTER

An Aspects and Impacts Register identifies the key elements influencing Indigenous employment outcomes that are within the company’s sphere of influence.

Examples of Indigenous Employment Aspects include documentary evidence of:

103

103

Commitment Agreement reporting requirements, partnerships STEP and Corporate Leaders contracts. Promotional activities School visits Advertising Communication and promotion of Indigenous employment and training initiatives. Work readiness programs Details of work readiness, traineeship apprenticeship and cadetship programs Medicals Alcohol and other drug testing Security clearance Health Recruitment Size of pool of people ready for recruitment Work experience School based traineeships and apprenticeships Applications Selection Traineeships for site, departments and teams Apprenticeships for site, departments and teams

LEGAL AND OTHER REQUIREMENTS

Examples of other planning requirements are:

Records of systems, procedures, practices and employment levels Processes that encourage contractors to participate in the operation’s Indigenous

employment initiatives Closure plans that include Indigenous employment considerations

OBJECTIVES AND TARGETS

Companies should establish, implement and maintain records of Indigenous employment objectives and targets that reflect the commitments of their Indigenous Employment policies and Agreements. In achieving objectives and targets the company should establish a process that:

Ensures key stakeholders, including Indigenous groups are involved in setting targets

Designates responsibility for achieving targets Identifies a time frame for completion Establishes appropriate measures of performance

COMMUNICATION

Examples of formal communication channels:

STEP reports

104

104

Corporate Leaders reports Reports to Traditional Owners that are part of Agreement requirements Community visits Site monthly reporting.

Informal communication channels include:

Weekly newsletters Personnel performance conversations Managers meetings Site notice boards.

MONITORING AND MEASUREMENT

What are appropriate measures?

Measures that effectively capture the information needed for setting targets and objectives include a mix of current indicators, historical data and lead indicators.

Current indicators include:

Number of Indigenous employees Their gender and age Number of local vs. other Indigenous employees Number of Indigenous employees in each role type, namely:

o trainees o apprentices o operators/semi-skilled o trades o clerical/administrative o supervisor o technical o graduate o professional o specialist o superintendent o manager o executive

Number of Indigenous employees in each position type Permanent, part time, contractors etc Indigenous turnover rates.

Historical indicators

Track current performance in current indicators over time.

105

105

Lead indicators

Identify potential employees for the site. These include: Records of school, TAFE and University performance and attendance.

CORRECTIVE AND PREVENTATIVE ACTIONS

As part of an Indigenous employment management system, it is important to establish a procedure for managing instances of non- conformity or non-compliance. Examples of matters that need to be reported are:

Incidents of non-conformance or non- compliance with company policy Issues identified in the risk register Community complaints and expectations The outcomes of corrective or preventative actions Reviewing the effectiveness of corrective and preventative measures.

MANAGEMENT REVIEW

Examples of inputs for the management review:

Progress reports relating to Indigenous Employment management plans and programs

Results of internal audits and assessments of compliance with legislation, corporate policies, ILUAs and Community Standards

Communications from external stakeholders, including complaints Status of corrective and preventative actions Follow-up actions taken after a previous management review Identification of external changes that may influence company policies related to

Indigenous employment