Alberta
ECONOMIC RECONCILIATION IS A PRIORITY AT ENBRIDGE
ECONOMIC RECONCILIATION IS A PRIORITY AT ENBRIDGE
Building and maintaining relationships with Indigenous nations and groups over the lifecycle of our assets is essential to Enbridge’s continued success as a leading North American energy delivery company. An important part of how we do business is to work with Indigenous communities to help increase their capacity to participate economically in our projects and operations. Economic engagement ranges from providing training and employment opportunities that build transferrable skills, to the procurement of goods and services from Indigenous businesses. To tap into Indigenous communities’ growing capacity and desire to participate in contracting and employment opportunities, Enbridge has adopted a supply chain process that requires prospective contractors to include detailed Socio-Economic Plans that outline how they will include local Indigenous communities and businesses in their work for Enbridge’s projects and operations. This approach exemplifies our desire to build long-term relationships which create value for both Indigenous communities and our business.
Enbridge has long recognized that hiring Indigenous businesses supports local employment, gives us the opportunity to understand available services and talent, and helps build trust and relationships. We also appreciate the important contribution that Indigenous businesses make each year to the overall economy.
In 2019, we marked a major milestone, surpassing $1 billion in Indigenous spending since 2011 across our Liquids Pipelines and Gas Transmission businesses. This includes direct spend with Indigenous businesses as well as subcontracting opportunities for Indigenous businesses, suppliers and wages paid to Indigenous workers from our contractors.
Our Line 3 pipeline replacement project (L3RP) is an excellent example of how our supply chain is delivering on our commitment to maximize Indigenous participation. This supports our efforts to advance economic reconciliation in accordance with the Truth and Reconciliation Commission’s Call to Action #92.
At $5.3 billion for the Canadian segment alone, the L3RP was the largest capital project in Enbridge’s history. It also represented our largest and most successful community engagement effort – including more than 150 Indigenous communities from as far as 300 kilometres from the pipeline right of way.
As of late September 2019, Indigenous spending on the L3RP totaled approximately $440 million for contracting and wages, while more than 1,100 Indigenous men and women were employed on project construction, representing approximately 20% of the overall workforce.
Indigenous monitors provided environmental and cultural perspective to the project construction team.
“The economic benefits flowing to Indigenous communities from Line 3 pipeline construction are no accident or happy coincidence,” says Enbridge’s Dave Lawson, Vice President of Major Projects. “Rather, they are the direct result of our comprehensive and proactive engagement program and the joint commitments between Enbridge and numerous Indigenous communities and groups.”
The leaders of several First Nations located along the Line 3 route note that “this economic stimulus benefited more than just the workers, it benefited the families and the Nations we represent.” They worked with Enbridge and “found ways to ensure environmental protections, and ways to secure tangible economic benefits and career development commitments for the indigenous people we represent. Enbridge listened and we believe this project has been a success for our people.”
Another community benefitting from the L3RP was the Manitoba Metis Federation (MMF). David Chartrand, President of the MMF says, “In order to work on a pipeline you have to have certification, so we got our people all ready and trained a year before the pipeline went in. We were ahead of the game.”
“I can honestly say,” he adds, “that this is one of the true success stories that we can probably talk about. Enbridge has got a blueprint for other companies if they want to use it.”
This focus on engagement and inclusion led to 58 cooperative project agreements with Enbridge, representing the participation of 95 Indigenous communities or groups.
“From the outset, we made a concerted effort to ensure Indigenous communities understood our project, specifically how they might participate and benefit economically,” explains Kim Brenneis, Director of Community and Indigenous Engagement. “I think the positive results we’ve seen speak to Enbridge’s strong commitment to inclusion as well as to building mutually-beneficial relationships with Indigenous nations.”
Beyond successful engagement, there are three major reasons for the strong Indigenous project participation and spending profile, explains Barry Horon, Director of Supply Chain Management for Projects.
“First, we worked with Indigenous communities to help create the capacity needed to participate in meaningful pipeline contracting and employment opportunities; second, Enbridge adopted a proactive supply chain process that, among other initiatives, required prospective contractors to include detailed Indigenous participation plans in their bids; and third, we implemented a labour strategy to enhance connections between Indigenous job seekers and our primary construction contractors through an online portal and the use of Indigenous labour brokers,” says Horon.
Indigenous men and women, such as Kara Pooyak of Sweetgrass First Nation, made up 20% of the Line 3 construction workforce.
Included in the Indigenous workforce were 27 construction monitor and nine liaison positions that provided both Indigenous perspectives and advice to the Line 3 project team. This helped to ensure that Enbridge’s environmental mitigation strategies – which were approved by the National Energy Board – were implemented during construction.
Another key component of the labour strategy was the now-completed Line 3 Pipeline 101 training-to-employment program. Over three years, more than 260 Indigenous men and women graduated from the program, many of whom have secured work on the L3RP.
Justin McKinney of Swan Lake First Nation is building a career in pipelining, thanks to training and mentorship he received during the Line 3 project.
Our experience with the L3RP led to an assessment of how Enbridge’s Indigenous engagement practices had evolved over the past few years. An outcome of this process was the introduction, in 2019, of our Indigenous Lifecycle Engagement Framework, which now guides our approach to building and sustaining long-term relationships across our business going forward, including for enhancing Indigenous economic participation in our projects and operation.
The framework was shared with several Indigenous nations in Canada. We are now incorporating their feedback into our planning and we will continue to seek to seek their input to ensure that our approach remains in step with their interests and goals.
Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.
Click to read a foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President and CEO, Canadian Council for Aboriginal Business.
JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President & CEO, Canadian Council for Aboriginal Business
Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.
Jacob Irving, President of Energy Council of Canada
The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector. The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.
Click below to read more stories from Energy Council of Canada’s Compendium series.
PETER SUTHERLAND SR GENERATING STATION POWERS NORTHEAST ONTARIO
Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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