Consultant appointed to review labour relations legislation for
the offshore oil industry fabrication sector and major construction projects

Environment and Labour Minister Oliver Langdon announced today that government has engaged the services of a labour relations consultant, Morgan Cooper, to begin a consultation process between all interested stakeholders involved in the fabrication sector of the offshore oil industry and major construction projects.

Minister Langdon stated the purpose of the consultations is to examine the current labour relations legislation in light of the emerging offshore fabrication sector in this province and Special Project Order legislation to determine if changes are required to ensure a safe, stable and productive workplace for offshore fabrication and future major construction projects.

"We have a new offshore oil and gas fabrication sector emerging in this province and it is prudent for us to take this opportunity to review our labour legislation to ensure that it meets the needs of stakeholders for the future," said the minister.

Minister Langdon stated that any changes to labour legislation arising from this consultation process would not affect projects currently underway. The minister emphasized the need to be proactive and determine the labour relations legislative needs of this new industry on a go-forward basis.

The Minister stated that the consultant will obtain input from stakeholders to ensure the province continues to maximize employment and economic benefits from offshore fabrication work and major construction projects.

"Effective labour relations legislation is a key factor in positioning this province to compete for fabrication opportunities offered by this emerging industry," he said.

"I have asked Mr. Cooper to meet with labour, management and other interested parties to discuss their views and suggestions as to how workers and management can work in partnership to continue to build Newfoundland�s reputation as a major player in the offshore fabrication industry," said the minister. "I expect the results from these consultations will provide government with the information it needs to continue to develop a positive labour relations environment for future major developments."

When this process has been completed, Cooper will review all submissions and presentations and offer recommendations to government.

Cooper has a long and extensive career as an arbitrator in the province, as well as a strong academic and vocational background. He is well qualified to take on this responsibility and the minister is confident that all stakeholders will support the department�s efforts in this regard.

ATTACHMENT: Terms of Reference

Media contact:
Sean Kelly, Director of Communications, Department of Environment and Labour, (709) 729-2575.

BACKGROUNDER

TERMS OF REFERENCE
REVIEW OF LABOUR RELATIONS ISSUES FOR
MAJOR CONSTRUCTION AND OFFSHORE FABRICATION PROJECTS

Purpose
The purpose of this exercise is to investigate and recommend measures that will create long-term labour relations stability and certainty for major construction and oil and gas fabrication projects in Newfoundland and Labrador.

Background
Special Project designations have been used by government in an attempt to ensure labour stability on large scale construction projects.

To date, few undertakings have been declared by government as Special Projects under section 70 of the Labour Relations Act. In the late 1960s, the Churchill Falls Power Project was designated as a Special Project. In 1990, the Lieutenant Governor-in-Council gave Special Project Order declaration for the Hibernia site and in 1997, the Terra Nova Project at Bull Arm was declared a Special Project.

These recent designations did not fully meet the intended purpose as both have been the subject of legal challenges. Most recently, workers at the Terra Nova site engaged in work stoppages despite the fact that a Special Project Order was in place.

Given these factors, confidence in the Special Project Order legislation has been eroded both from an operational and legal perspective. As such, there is a need to examine the Labour Relations Act accordingly with a view to legislative reform.

Statement of Work
The consultant will hold consultations and seek stakeholder input regarding the labour relations environment within large scale construction and oil and gas fabrication projects, including the effectiveness of the Special Project Order legislation and the appropriateness of creating a separate section in the Labour Relations Act addressing the offshore manufacturing and fabrication sector. All interested individuals and groups will be invited to make submissions and/or meet with the consultant.

In completing this work, the consultant will:

1. Develop and deploy an appropriate communications plan to ensure all interested stakeholders (individuals, groups, etc.) have an opportunity to make representation and recommendations;
   
   
2. Review the effectiveness of the existing legislative provisions of section 70 of the Labour Relations Act in addressing the interests of stakeholders with a view to recommending changes as required;
   
   
3. Complete a jurisdictional comparison of provincial, national, and international labour relations practices and strategies as they relate to special projects and offshore fabrication and manufacturing;
   
   
4. Give consideration to the benefits for maintaining harmonious labour-management relations under different models, including, but not limited to, individual employers, employer representation by a council of employers, employer representation by multiple employer councils, and union representation by a council of unions or single union concept;
   
   
5. Visit appropriate labour relations models as applicable to offshore fabrication and manufacturing; and/or special project order designations in the United Kingdom and Norway, to examine, first-hand, the experiences of these locations;
   
   
6. Develop a strategy to address labour-management relations in the offshore fabrication and manufacturing sector and/or on special project order designations. This will be based on the consultations and research, and will include, but not be limited to, the following:the effects of strikes, lockouts and jurisdictional disputes on specific projects and on the industry in general; the reaction of stakeholders to the recommended strategy; the potential for developing and maintaining positive labour-management relations; consideration for the need to maintain a harmonious labour-management environment and improved productivity;
   
   
7. Include in the report a list of all persons and groups who made representation during this consultation/research process.
   
   
8. Assist as necessary in finalizing legislative changes that may result from the review.
   
   

The consultant will meet with the Minister of Environment and Labour, or his designate, and such other persons as the minister may feel appropriate, during the course of this public consultation process:
        1.     For an initial briefing and discussion of the process;
        2.     For a discussion of progress, periodically;
        3.     For a review of the draft report (two weeks prior to submission of the final report);
        4.     For such other needs as the minister may deem necessary.

The final report will be presented to the minister no later than October 30, 2000.

2000 07 19                 1:55 p.m.