Economic development and human resources


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The Harvard Study has indicated the links between a community's economic development and its autonomy, its organizational infrastructure, including Human Resources. Learn how to build capacity at your organization to encourage success.

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  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc Doubling and tripling of qualified first nations workers
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc Source: AHRDCC
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc The Report of the Royal Commission on Aboriginal Peoples, 1996
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc First Nation Human Resource Development Agreements There are 47 First Nation Human Resource Agreements with HRDC to deliver both Employment Insurance and labor market initiatives, including youth, disability, childcare, capacity building and labor market programs. These agreements expire March 31, 2004. From a First Nation working age population of almost 500,000, approximately 30,000 Aboriginal participants participated in Aboriginal Human Resource Development Agreement ( AHRDA) interventions in 1999. The unemployment rate of First Nations is averaging approximately 70%. After allocation to the Metis and Inuit, First Nations receive approximately 80% of these funds or approximately $270 M but control less than $171 M. Approximately 20,000 First Nation people participate in a Human Resource Development training program every year. The current estimated First Nation working age population (16 +) is 490,000. Approximately 5.5 % of the total First Nation working age population received funding and/or participated in these HRDC programs. In 1995 approximately 10% of the First Nation working age population or 35,000 people had an income from Employment Insurance. Just under one half of the First Nation working age population who had an income from Employment Insurance were female. Currently, the average cost of training First Nation participants is $13,500/year. Over one half of the First Nation working age population live off reserve. The current initiative is called the Aboriginal Human Resource Development Strategy which evolved from the Regional Bi-lateral Agreement and Pathways to Success strategies. First Nations are currently developing a new First Nation strategy for 2004-2014.
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc Defined in Sec 2 of the Indian Act(“all monies collected, received or held by Her Majesty for the use and benefit of Indians and Bands”) – held in the Consolidated Revenue Fund
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc Calculations showed that the cost to produce electricity was more than the cost of purchasing electricity. Piikani FN had the land resources, it did not have the capital resources to finance the project.
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Effective Compensation Planning & Benefits Administration CG Hylton & Associates Inc
  • Economic development and human resources

    1. 1. Ec Dev Impact on HR StrategiesTREATY 7 HUMANRESOURCES CONFERENCE &EXPOMarch 21-24, 2006Deerfoot Inn & Casino, CalgaryChris HyltonCG Hylton & Associates Inc.chris@hylton.caTel. 800 449-5866403 264-5288 1
    2. 2. Agenda Some Myths What is needed for success – Harvard Project The Development Gamble Aboriginal Success Stories Your Questions Mississippi Choctaw Video 2
    3. 3. Your agenda – what doyou want? ________________________ ________________________ ________________________ ________________________ ________________________ 3
    4. 4. Some Myths aboutAboriginal Workers They are rural They are uneducated They are economically insignificant Numbers are small They are unwilling to work 4
    5. 5. Rural Myth ShatteredMost are within one hourof urban centre! 5
    6. 6. Myth: FewAboriginalsare educated 6
    7. 7. Myth: Aboriginals have little purchasing powerTripledFrom $4.5B to $11.35 BLand claims – 25% of Canada total area 7
    8. 8. Myth:Aboriginalpopulationsmall innumbers 8
    9. 9. SaskatchewanPopulation Pyramid, 1996 (%) 65 +55-64 Non-Aboriginal45-5435-4425-3420-2415-1910-14 Aboriginal 5-9 0-4 -10.0 -8.0 -6.0 -4.0 -2.0 0.0 Source: W Weir U Sask 6.0 2.0 4.0 8.0 10.0 9
    10. 10. Saskatchewan Population 1995 to 2045 Percentage of Aboriginal and Non-AboriginalBy 2045, People in SaskatchewanAboriginal People 100%will make up Non- 80%approximately Aboriginal Percent of Population 86.7 60% 80.0 AboriginalONE THIRD of 67.5 40%SK population 20%compared to 32.5 13.3 20.0approximately one 0% 2015 1995 2045tenth in 1995 Year Source: W Weir U Sask 10
    11. 11. The Challenge  Aboriginal working age population of 600,000  unemployment rate of 70%  Huge opportunities to create jobs to solve this problem 11
    12. 12. Harvard Project  Founded by Professors Stephen Cornell and Joseph P Kalt at Harvard University in 1987  Research shows Aboriginals with autonomy and control have far greater success 12
    13. 13. Looked at Success Stories Mississippi Choctaw (East Central Mississippi) 2nd largest employer in the US employing 100% tribal members and creating jobs for thousands of non-native workers Plastics/electronics manufacturing, automobile assembly, American Greeting Cards, construction and golf resort, casino & other projects generate 12K jobs & 170M in annual wages As a result of economic ventures, the tribe now invests in cultural heritage such as language Video 13
    14. 14. THE DEVELOPMENT GAMBLEThe odds are notpromisingThe required effort istremendousThe results are at best,uncertainAnd look at all theobstacles Aboriginalcommunitiesface….. 14
    15. 15. More Obstacles Lack of financial or human capital Lack of natural resources or lack of sufficient control over them Lack of capable governing institutions Outsiders control or confound tribal decision-making Aboriginal culture gets in the way 15
    16. 16. More Obstacles Community savings rates are low Entrepreneurial skills scarce Mainstream management techniques wont work on the reserve Cannot persuade investors to locate on reserves because of intense competition from mainstream communities Federal and provincial policies are counterproductive and/or discriminatory 16
    17. 17. More Obstacles Aboriginals have unworkable and/or externally imposed systems of government Aboriginal politicians & bureaucrats are inept or corrupt Factionalism destroys stability The instability or lack of governance & political institutions keeps outsiders from investing 17
    18. 18. More Obstacles The long-term effects of racism have undermined self-confidence Alcoholism and other social problems are destroying human capital Reserves are disadvantaged by their distance from markets and the high costs of transportation Any other obstacles you can think of? 18
    19. 19. What do you need for success? The first is political control  The power to make decisions about your own future Governance The second is institutions  Effectively exercise control  The third factor is a good Ec Dev strategy  Choose policies and specific development projects to pursue 19
    20. 20. For success also need HRJob descriptionsOrg chartCorporate strategyCompensation planTraining 20
    21. 21. Development Choices collective enterprise Private enterprise with member ownership Private enterprise with outside control Partnerships Any other choices? 21
    22. 22. Ec Dev TheoryCommunity Goal Performance – What Happened increase employment, # of businesses, new  increase # of members working, as % of workforceinvestment  4 new businesses sustain existing jobs where appropriate  supported 8 local businesses to get access to new investment support young people develop business skills  increase in jobs in forestry sector  youth skills training program launchedEmployment Rate Comments # members available to work has increased:  growth of community population 50 People employed  social assistance recipients have upgraded their skills and are now looking for work as a percentage of 30 available workforce increased from A major barrier is accessing capital investment to 31% in 1996 to expand existing businesses, and to create new ones. 10 40% in 1999. -10 1996 1998 22
    23. 23. Training is Key Skilled trades – Carpenters – Electricians – Millwrights – Plumbers / Pipefitters – Mechanics Require 4 – 6 years of training and on the job experience 23
    24. 24. Other occupations – Clerical – Catering – Labourer – Security – Maintenance – MarketingRequire up to 2 years of training andon the job work experience 24
    25. 25. Sample 5 Year Plan2006 2007-9 20010-11 New phase for current project or commence new project Expand or reorient project - New strategy Commence project Implementation Financing Seek partners, Business plan including human stakeholders & sponsors resource training and strategy Foster assets and expertise to exploit development idea Learning, Understanding, assessing internal & Support of community external strengths Political control 25
    26. 26. Ec Dev Success Stories Wind Turbine Project, Ab Construction Company, Ab Tourism / Casino, BC Tsuu Tina Nation, Ab Drilling rigs, Ab & Sk Kitsaki Investments, Sk 26
    27. 27. 1. Piikani (Peigan) NationWind Turbine Project(windy Lethbridge Ab)Vision: Construct a 100MWwind farm to harness power ofthe wind to generate greenelectricityIn 1980, Piikani FN wasapproached by ShinookProjects Inc. to develop a 9.9MW wind power project inpartnership 27
    28. 28. The Path to SuccessFirst Step: 1980’s - environmental assessment as well as approach local utilities to invest in the project A total of five (5) different Business cases were developed, to justify the economics of the project and secure joint venture partners Did not succeed 28
    29. 29. Second Attempt 1995, Piikani encouraged to make a second attempt Entailed seeking partners, searching for the best approach and developing a network of contacts in the fields of renewable energy/wind generation Discussions with Advanced Thermo Dynamics (affiliated with Batchewana FN, Ontario) who marketed Nordex turbines & NEG MICON a Danish Turbine Manufacturer 29
    30. 30. Choosing the site Local site-specific wind data was needed in order to choose optimum site Several anemometers were installed on reserve to collect data on wind speeds at various locations First site chosen was located on land designated to an individual band member, as a result, a second site was located on community owned land 30
    31. 31. Finding a Partner At the time, 50% of the development costs of renewable energy was tax deductible Piikani entered into a Joint Venture Partnership with EPCOR who was able to capitalize on tax incentives Piikani FN provided the land and the location, EPCOR provided the financial assistance Piikani FN formed the Piikani Utilities Corp. in order to move ahead with projects and joint venture partners 31
    32. 32. Joint Venture Partnership Piikani FN administered an opinion survey to over 280 nation members to gain support of project prior to initializing plans with ongoing public consultation Partnership had to ensure employment opportunities with Piikani FN, 10 FN members employed during construction phase of project Partnership also included training of 2 FN members who were trained in Denmark on the turbine, maintenance and development of future sites 32
    33. 33. Technology & Project Costs A 900 kW MICON wind turbine from Denmark was selected The wind turbine tower stands 72 meters high with installation area of 24 sq meters 20 yr contract with EPCOR purchase 80% of power produced Remaining 20% sold to the regional power pool at market prices 33
    34. 34. Success Ribbon Cutting Ceremony October 2002 Piikani Nation to construct future wind farm with 3 additional turbines Piikani Utilities Corp to buy back the transmission line which will improve the asset base and allow the Corporation to charge a distribution tariff Also looking at selling a portion of the electricity directly to homes in the community 34
    35. 35. Chief Strikes With a Gun &William Big Bull 35
    36. 36. 2 Construction CompanyAlexis Nation is located on the shores ofLac Ste. Anne, in Alberta. 36
    37. 37. Alexis Band ProfileThere are approximately 1400 Alexis Band Members, of which 800 members reside on reserve # 133. There are 600 members residing off reserve to pursue higher education or employmentThere is a high youth population between the ages of 16 to 30, which comprises about 45% of their population 37
    38. 38. Nakoda Construction CoOil field construction business in operation for 2 years. The business is run like a temp agency with 5 or 6 permanent employees and approximately 30 to 40 temporary finding work in the oil field for bands membersThe employee base is predominantly from Tsuu T’ina or Alexis Nation 38
    39. 39. 39
    40. 40. NCC Mission StatementNCC was established to initiate the participation of the Nation within the Construction industry. Our company is mandated to pursue the principle of self-reliance by promoting the core values of our peoples and NationWe believe that partnerships are integral to accomplishing our goal of building a profitable company, and pursue when feasible partnerships that benefit all parties involved.Returning customers is our ultimate goal 40
    41. 41. NCC Day RatesForeman (with 4x4 & cell) $500Supervisor On Site $40 / hourLabour $35 / hourEnvironment Impact Liaison (with 4x4 pick up /cell) $300Professional Fees $1,000Meals, Incidentals, Travel $150Subsistence $125 41
    42. 42. NCC Does not discriminate, and hires outside the band Revenues $1.5m, recently received a grant for more equipment from INAC Also have great online manpower plan of nation members! 42
    43. 43. 3 Tourism / CasinoRebirth of KootenayResidential School 43
    44. 44. 44
    45. 45. ChallengeBand guided by the vision of elder MaryPaul, who in 94 said“it was within the St. EugeneMission that the culture of theKootenay Indian was taken away,and it should be within thatbuilding that its returned” 45
    46. 46. St Eugene MissionChief Sophie PierreIn 2002, partnership between Delta Hotel, and the Ktunaxa Nation who had the location, valued heritage landmark, history & cultural features 46
    47. 47. Transformed to HotelConference Centre Casino & Golf Course 47
    48. 48. Went bankrupt in 2004Resurrected in 2005, with funds from other FNs who recognized a good deal 48
    49. 49. Other Tourism Efforts In Kelowna, FN’s have a 18 hole Stan Leonard designed course with adjoining condos In the early 70s Chief and Council from Tsuu T’ina Nation near Calgary, visited Kelowna 49
    50. 50. Tsuu T’ina Golf Courses Golf courses employs 10 FT and 20 PT ees Created careers for several members 3 of whom are now certified greens keepers 2 are now Pros 50
    51. 51. Other tourism effortsPlanned casino and hotel Will create 500 jobs initially Many more in the future 51
    52. 52. Other Tsuu T’ina EffortsOrdinance (Explosives) Removal Created 70 jobs – April to Oct for 10 years Nation has 6 members trained at the highest level of bomb removal for civilians in Canada Sent to Kosovo for mine removal 52
    53. 53. 4. Drilling Co - Western Lakota Energy Services Inc. One of fastest growing drilling contractors in Canada – Calgary basedAbout a dozen rigs in partnership with 6 Aboriginal communities Board of Directors includes Chief from Samson Cree Nation 53
    54. 54. Partnerships Apr 02 Dene Tha’ FN Apr 02 Métis Nation of Alberta Jan 03 Saddle Lake FN Aug 03 Samson Cree Nation May 04 Blood Tribe Sept 04 Duncan’s First Nation Feb 05 Horse Lake FN Source: Western Lakota Energy Services Inc. 403 214-5970 54
    55. 55. Drill RigTraining Program  Oil & gas industry experiencing record activity, shortage of quality workers  Western Lakota acknowledged that Aboriginal groups represent largely untapped labour source capable of learning skills in order to succeed  Many Aboriginals looking for oil & gas related jobs require education – both skills & personal empowerment training 55
    56. 56.  training program launched Oct 04 first class held at Samson Cree Nation also at Saddle Lake First Nation, Swan River First Nation, Duncan’s First Nation and others program has around a 90% completion rate. About 70% of graduates go on to employment within energy services industry or related fields 56
    57. 57. Mobile Rig 57
    58. 58. Trainee selection Trainees are screened by: a representative from their community, a Western Lakota Rig Manager or Driller, the Training Program Coordinator and a qualified representative from provincial government reps Trainees must pass a drug, alcohol and fitness test before entering the program and have a valid Class 5 drivers license. 58
    59. 59. Grad ProfileReady, willing and able to obtain & maintain employment with personal motivation and enthusiasmHave training in the basic fundamentals of drilling rig, possess the required safety certification and have a valid Class 5 drivers licenseCompleted Personal Empowerment and Job Readiness counselling designed for employment success (theory, safety and practical) 59
    60. 60. 5 Kitsaki Management Source: Kitsaki Management Limited Partnership Video Oct 03
    61. 61. Chief Harry Cook President 61
    62. 62. Lac La Ronge Indian Band The chief and council serve as our board of directors serve the 7,500 Band members who live in the six communities that make up the band. Kitsaki examines many potential business opportunities and selects only a few that meet appropriate profitability, risk, and employment criteria. Kitsaki has already won a number of awards for its success in the field of aboriginal economic development but our work is far from done. 62
    63. 63. Partners with local employers  Cameco  Uranium mine  Jobs  Related services  Trucking  Catering  Environment 63
    64. 64.profitable ec dev will ultimately lead to job creation and training opportunitiesIt takes many years to have an economic impact … Kitsaki seeks to create a portfolio of active business investments rather than the individual companiesWe try to obtain a majority interest in a business with a highly motivated entrepreneur / strong corporate partner. We then work to maximize profits, employment, and training opportunities 64
    65. 65. 65
    66. 66. Our offer to youPlease call if you have any HR, or workplace issue that you are overwhelmed withWe can help youWe also are pleased to do Free Workshops for your organization (some limits apply) Let us know what your needs are and we will make it happen! 66
    67. 67. CG Hylton - Services HR Consulting  Benefits, Pensions, Job Descriptions EAP Salary Grids  Strategic Planning Wellness at Work  Drug and Alcohol programs Staff Morale  Dept re-orgs Training and  Leadership Workshops compensation Tel 403 264 5288 67
    68. 68. Do you have any:Comments?Questions?Feedback?Chris Hylton800 449 68
    69. 69. Information Sources pub_120.htm Professors Stephen Cornell & Joseph P. Kalt Kitsaki Management Limited Partnership Statistics Canada Western Lakoda Drilling Carolynn Small Legs, Treaty 7 M C 69