Kitimat | Northwest Coast Energy News

Why the media coverage of the Tim Hortons boycott is a double double failure

The headline on Thursday’s CBC.ca coverage of the sudden controversy over a boycott in British Columbia of Tim Horton’s over the Enbridge ads sums up everything that’s wrong about media coverage not only of the boycotts, but of northwest energy and environment issues overall.

“Tim Hortons yanks Enbridge ads, sparks Alberta backlash.” The anger at Tim Hortons across northwest British Columbia over those Enbridge ads, the calls for a boycott have been building for more than two weeks but no one in the media noticed despite widespread posts on Facebook and other social media.

As usual, the concerns of the northwest didn’t really become a story until Alberta got involved and the story has become the “Alberta backlash.” Now, there’s a backlash on social media to the Alberta backlash, with northwestern British Columbians tweeting and posting their displeasure, angry at the usual blinkered views of Alberta-centric coverage of energy issues.

Let’s make one thing clear– despite the outraged cries of the usual suspects like Defence Minister Jason Kenney, Conservative MP Michelle Rempel, who represents Calgary Centre-North and Kyle Harrietha, the Liberal candidate for Fort McMurray-Cold Lake that the boycott was aimed at Alberta’s entire energy industry and the province’s views of a manifest destiny as an energy super power, the doughnut boycott was really aimed specifically at Enbridge, and the company’s arrogance and incompetence.

This morning Wildrose party leader Brian Jean has joined the Alberta boycott and is demanding the Enbridge ads be reinstated. “I’ll pick up my Tim’s coffee again when they decide to apologize for taking jabs at our industry, which is so important to Albertans,” Jean is quoted on CBC.ca.

Of course Jean, like most Albertans, isn’t looking at the bigger picture. The question that Jean should really be asking, is the continuing unquestioning support for Enbridge actually harming the rest of the Alberta energy industry by increasing the resistance in northwestern BC to other energy projects? When are Alberta politicians, whether federal or provincial, ever actually going to show even a Timbit of respect for the issues in northwestern British Columbia?

Look at what Enbridge is doing

There is strong support (with some reservations) for the liquified natural gas projects. There is a level of support for pipelines that would carry refined hydrocarbons to the coast, something that the new premier of Alberta, Rachel Notley is seriously considering. But it is so typical of Alberta, the Alberta media and most of the Canadian media, to believe that the boycott was an attack on the entire energy industry.

Ask any executive of an energy company that wants to do business in northwestern British Columbia and they’ll come up with the a joke that is now so old and so often repeated that it’s become a cliché, “We look at what Enbridge is doing and then do the exact opposite.”

The fact is that Enbridge has been dealing with northwestern British Columbia for more than ten years and they still can’t do anything right. Shell, Chevron, Petronas (and before them Apache) and even TransCanada make more efforts to listen to the people, First Nations and non-Aboriginal residents alike, than Enbridge ever has or ever will (despite their claims in their PR campaigns).

While these energy giants may not agree with what they hear, they are respectful and depending on their corporate culture are making genuine efforts to come up with ways to make their projects work. After a decade of blunders, however, Enbridge still hasn’t shown that much respect for anyone here. Those touchy feely ads that appear on television and at Tim Horton’s are just another example of how not to run a public relations campaign.

There are those who oppose any bitumen sands extraction who signed the online petition, but the core of opposition, as always, comes from northwestern BC and the issue is an ill-conceived pipeline.

Enbridge has been successful in one area of its public relations strategy. They’ve convinced Albertans that Enbridge and the Northern Gateway pipeline is an essential part of not only the Alberta economy but Alberta culture. Any attack on Enbridge becomes an attack on Alberta. Hence the unreasoned anger when after Tim Hortons pulled the ads.

The big blame America lie

The other Big Lie we keep hearing from the Harper Government, is that this all orchestrated by American NGOs and activists. Again this shows Alberta-centric contempt for British Columbia. It’s very easy and convenient to keep believing that everyone in northern British Columbia are dumb and stupid and are being led by the ear by those nasty green Americans who have it in for the efforts to make Canada an energy superpower. That idea, promoted by the more conservative Canadian media has always been animal waste. The battle to protect the environment of northwestern British Columbia while at the same time attracting resource projects that have recognized and obtained social licence to operate has always and will always in BC on a case by case, community by community basis.

The only media that so far has managed to get it half right is Jason Kirby writing in MacLean’s who notes that the trouble began on May 18 when Enbridge put up the Tim Hortons ad on their own website. (Did I mention that Enbridge is both incompetent and arrogant?) and it was immediately noticed by those individuals and activists that monitor the Enbridge website.

A morning shock with your morning coffee and Timbits

Social media across northwestern British Columbia, mostly Facebook, began spreading the news within hours of the ads appearing in the local Timmys. There were angry posts from individuals who had walked in Tim Hortons and saw the ads.

Post in the Kitimat Politics Facebook group.

Why didn’t the media get the story?

So why wasn’t the story covered by the media at least ten days ago?

That’s because in this age of tight budgets, it’s considered easy and economical to try to all of northern BC cover from either Vancouver or Calgary; that means covering from far away both the coast where the pipelines and tankers may or may not operate to the east near the Rockies where the natural gas extraction is on going

If you look at map of northern BC, and the two federal ridings Skeena Bulkley Valley and Prince George–Peace River–Northern Rockies, the population is about 200,000 spread over an area about half the size of Europe. Both ridings in this region are supposedly vital to the future of the Canadian economy, but you wouldn’t know it from most of the media. (The Globe and Mail is an exception, with more ongoing coverage of northern BC than you will find in either The Vancouver Sun or The Province).

Elections Canada map showing just how big the two northern BC ridings are. (Elections Canada)

As for CBC, there are just eight radio staff, two in Prince Rupert and six in Prince George to cover all the apparently vital issues across half the province. ( Almost all the staff work mostly for the Daybreak North morning show which dominates the regional rates but it looks like with the latest CBC cutbacks that at least one of those positions will be eliminated). CBC TV and Global cover the region from Vancouver.

At least the Vancouver based media make efforts to cover the north from time to time. The Alberta media, however, especially the Calgary Herald, is hopeless, and so biased against British Columbia and so dismissive of the issues here, that the coverage across Alberta is completely unreliable about 90 per cent of the time—it’s no wonder that the majority of Albertans have no understanding of British Columbia culture and issues.

Then there are the punditi, pontificating from their cubicles in Ottawa and Toronto without a clue, without doing the basic journalism of picking up the phone (or writing an e-mail) to actually find out what’s going on.

Andrew Coyne, for example, made these rather silly two tongue-in-cheek tweets Thursday night. While Coyne’s tweets do often exhibit a sense of humour, his excellent coverage of the decline of our democratic parliament has to be compared with his blind, unchecked ideological assumptions about the issues of the northwest, which are simplistic, cubicle bound and far off the mark. The same can be said for Jeffrey Simpson in his occasional writing about this region. Neither the view from the Hill, where you can see as far as the Queensway, nor from Bloor Street, where you can see part of the Don Valley, are vantage points to understand what is going in northern British Columbia.

Update: Rex Murphy, writing in the National Post, has now joined the fray, no longer making a secret of his absolute disbelief in climate change and support for Enbridge. However, if you read his column, it is scathing in its contempt for the working men and women of British Columbia who want sustainable environmentally safe resource projects. It appears that to Murphy the only people in this country who actually work for a living in Canada are in Alberta and Newfoundland and no where else. Kitimat has been an industrial town since it was founded in the 1950s, Kitimat rejoiced when former Mayor Joanne Monaghan succeeded in bringing a Timmys to Kitimat and the majority of Kitimat residents voted in the plebiscite against Enbridge. But, of course, all those facts are irrelevant to Murphy and the other conservative pundits who never come within a thousand kilometres of northwestern BC, who believe we can’t think for ourselves and are easily misled by American environmentalists. No wonder journalism is in a death spiral.

Error checks

So let’s look at the specific errors in the media coverage of the Tim Horton’s story.

Both Shawn McCarthy in the Globe and Mail and Kyle Bakyx on CBC.ca seem to accept without question that SumofUs, was the instigator of the petition. Like many issues in northwestern BC, the Lower Mainland or US based activist groups follow the lead of northwestern BC and jump on the bandwagon, not the other way around. Jason Kirby in MacLean’s says the boycott movement began a week ago. Here in Kitimat, it began within hours of the ads appearing in the local Timmys and was picked up on activist social media groups before the SumofUs petition site.

McCarthy repeats the conventional wisdom: “The Conservatives and oil industry supporters have been waging a public relations war with the environmental groups that oppose expansion of the oil sands and construction of new pipelines.”

When is the media ever going to learn that opposition to Enbridge is widespread across most of northern British Columbia, from First Nations to city and regional councils to a plurality of residents? When is the media going to drop the stock phrase “First Nations and environmentalists”? Does anyone remember the vote in Kitimat last April against the Northern Gateway project?

CBC.ca quotes Alan Middleton of York University “Enbridge, of course, is not just pipelines and oilsands; they are a whole range of products including heating people’s homes. Tims should have thought about that.” Again a mistake. I lived in Toronto for many years. A company called Consumers Gas supplied natural gas to homes until it was taken over by Enbridge, so Enbridge does heat the homes in Toronto. But what has that got to do with northwestern British Columbia? Why didn’t CBC.ca call the University of Northern British Columbia? Easier to call York (which by the way is where I got both my BA and MA)

McCarthy quotes Rempel as saying, “One has to wonder whether head office talked to their franchise owners in Alberta before making the decision. I imagine those calls are being made this afternoon – certainly there are a lot of people voicing their displeasure.”

The question that should have been asked whether or not Tim Hortons consulted their franchise owners in British Columbia before ordering them to play the ads. People here were “voicing their displeasure” from the moment the first Kitimatian walked into the local Timmys for an early morning coffee and had to stand in line while being told how wonderful Enbridge is.

Of course, if Albertans force Tim Hortons into reinstating the ads, that will only trigger a bigger boycott in British Columbia. As Maclean’s asks, “what were they thinking?”

Jason Kenney, flying in, flying out

As for Jason Kenney, who is quoted by the CBC as tweeting: “I’m proud to represent thousands of constituents who work for Enbridge & other CDN energy companies,” if Kenney aspires to be Prime Minister one day, he had better start thinking about representing more Canadians than just those employed by the energy industry—a mistake that his boss Stephen Harper keeps making.

Jason Kenney did visit Kitimat for a just a few hours in February 2014 for a tour of the Rio Tinto modernization project and an obligatory and brief meeting with the Haisla First Nation council. If Kenney had actually bothered to stick around a few more hours and talk to the community, everyone from the environmentalists to the industrial development advocates, he might not have been so quick on the trigger in the Twitter wars.

Not one of the major media who covered this story, not The Globe and Mail, not CBC.ca, not MacLean’s, no one else, once bothered to actually call or e-mail someone who lives along the Northern Gateway pipeline route in British Columbia, the area where the boycott movement actually began to ask about Enbridge’s track record in this region. The media still doesn’t get it. This morning’s stories are all about Alberta. As usual, my dear, the media doesn’t give a damn about northwestern British Columbia.

That is why the coverage of the Tim Hortons boycott is a double double failure of the Canadian media.

Where else the media is failing northwestern BC

Full disclosure. Since I took early retirement from CBC in 2010 and returned to Kitimat, I have worked as a freelancer for CBC radio and television, Global News, Canadian Press, The National Post, The Globe and Mail and other media.

However, largely due to budget cuts, freelance opportunities, not only for myself, but others across the region have dried up. The media seems to be concentrating more on the major urban areas where there is larger population base and at least more of the ever shrinking advertising dollar. I am now told more often than I was a couple of years ago that “we don’t have the budget.”

Now this isn’t just a freelancer who would like some more work (although it would be nice). If the media these days actually had environmental beats for reporters the boycott of Tim Hortons in northwest BC would have been flagged within a couple of days, not almost two and half weeks and later only when Alberta got hot under its oily collar.

So as well as the Tim Horton’s boycott here are two major ongoing stories from Kitimat that the media haven’t been covering.

100 day municipal strike

-Kitimat’s municipal workers, Unifor 2300, have been on strike since February 28. Three rounds of mediation have failed, the union has refused binding arbitration, the pool, gym and community meeting halls have been closed since February, the municipal parks and byways are now returning to the wilderness. Only essential services are being maintained (but residents still have to pay their property taxes by July 2, taxes that are skyrocketing due to increased assessments for home values based on LNG projects that haven’t started) By the time most people read this the strike will have been on for 100 days. There is no settlement in sight and both sides, despite a mediator ordered blackout, are fighting a press release war on social media. Can you imagine any other place that had a 100 day municipal workers strike with no coverage in the province’s main media outlets, whether newspaper or television? Local CBC radio has covered the strike, as has the local TV station CFTK. (Update: District of Kitimat says in a news release that the mediator has now approved the DoK news releases.)

Of course, in the bigger picture the media concentrates on business reporting. There haven’t been labour reporters for a generation.

Kitimat air shed hearings

-The environmental hearings on the Rio Tinto Alcan proposal to increase sulphur dioxide emissions in the Kitimat Terrace air shed, after two weeks in Victoria, where there was no media coverage, are now continuing in Kitimat, where again there is little media coverage. CFTK is covering the hearings; otherwise the main coverage comes from the activist group DeSmog, hardly a credible or unbiased source. I made the decision not to cover the hearings either. I can’t afford any longer to sit around for two weeks, unpaid, no matter how vital the hearings are to the community.

So if most Canadians were surprised that there was a boycott of the unofficial national symbol, Tim Hortons, it’s because of that double double media fail and as the media continues to decline, as budgets are cut, as “commodity news” disappears, expect more surprises in the future. Oh by the way Kitimat is vital to the national economy but we can cover it from a cubicle in Toronto.

Final disclosure: I am not a coffee drinker. When I go to Timmy’s I prefer a large steeped tea and an apple fritter.

No FID on Kitimat LNG in 2015, Chevron tells investors

Chevron will not be making a final investment decision on the Kitimat LNG project in 2015, Pat Yarrington, the company’s vice president and chief financial officer told the first quarter earnings conference call Friday, May 1.

All FIDs for Chevron projects around the world, with one exception, are on hold for this year Yarrington said.

“In terms of other FID projects, part of the reduction that we took in our capital spending from 2014 to 2015 really did relate to the pacing of other major capital projects,” Yarrington said. “Kitimat is a primary one there, we moved spending on that out considerably. We are only limiting ourself to appraisal work and continuing to look at the design and the cost structure. “

Overall, in all aspects of the company’s operations, Yarrington said Chevron is “aggressively pursuing cost reductions” by reopening contracts with suppliers, resulting in $900 million in agreed reductions around the world.

Chevron Gorgon LNG project — Chevron says Gorgon Project in Western Australia is now 90 per cent complete. All Train 1 modules and 13 of 17 Train 2 modules are on their foundations. (Chevron)

Meanwhile, two of Chevron’s LNG projects in Australia have reached “key milestones,” she said. As for the Gorgon project in Western Australia, she said. “We’re on schedule for Gorgon startup in the third quarter of this year and first commercial cargo before the end of the year.”

The Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent) supplied by the Greater Gorgon Area gas fields. It includes the construction of a 15.6 million tonne per annum (MTPA) liquefied natural gas (LNG) plant on Barrow Island and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

“We’re on schedule for Wheatstone,” Yarrington said. “We’ve had seven of 24 major process modules delivered on site, the trunk line is installed and hydro tested, the dredging is complete, the piling has been completed, the roofs are on both of the LNG tanks. We continue to make good processs both on shore and off shore.”

The Wheatstone Project is an LNG and domestic gas operation near Onslow, in the West Pilbara region of Western Australia. The project’s initial capacity is expected to be 8.9 million metric tons per year of LNG.

Chevron promotional video showing Gorgon is one of the world’s largest natural gas projects and the largest single resource development in Australia’s history. (Kitimat residents note the cruise ship docked at the project)

As well, Chevron in Australia has announced new gas discoveries as a result of further drilling success in the Greater Gorgon Area located in the Carnarvon Basin, a premier hydrocarbon basin offshore northwest Australia.

In a news release, Chevron said:

The Isosceles-1 exploration discovery well encountered approximately 134 metres (440 feet) of net gas pay in the Triassic Mungaroo Sands in 968 metres of water (3,175 feet). The well fulfilled the second year work commitment in the exploration program. It is located in the WA-392-P permit area approximately 95 kilometres (60 miles) northwest of Barrow Island, off the coast of Western Australia.
“This discovery is a continuation of our exploration success and further positions our company as a key supplier for future liquefied natural gas (LNG) demand in the Asia-Pacific region,” said Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company

Overall Chevron (NYSE: CVX) reported earnings of $2.6 billion ($1.37 per share – diluted) for first quarter 2015, compared with $4.5 billion ($2.36 per share – diluted) in the 2014 first quarter. Foreign currency effects increased earnings in the 2015 quarter by $580 million, compared with a decrease of $79 million a year earlier.

Sales and other operating revenues in first quarter 2015 were $32 billion, compared to $51 billion in the year-ago period.

Silja Festival leaves Kitimat

Rio Tinto Alcan’s Kitimat Modernization Project floating hotel or “flotel” the Silja Festival, also known as the Delta Spirit Lodge, left Kitimat harbour at about 5 pm, this afternoon, April 28, 2015.

There was no advance notice from Rio Tinto Alcan to the media or the community. However, it is clear that the Kitimat Modernization Project is in its a final stages, as there is a new sign on the Alcan Highway, saying KMP is 90 per cent complete.

The Silja Festival is bound for Vancouver according to marine traffic tracking websites.

Silja Festival leaves Kitimat — A tug helps Kitimat’s “flotel” the Silja Festival turn around after leaving the old Eurocoan dock, on the afternoon of April 28, 2015. (Robin Rowland/Northwest Coast Energy News)

Silja Festival leaves in Kitimat — The departing Silja Festival passes Kitamaat Village, April 28, 2015. (Robin Rowland/Northwest Coast Energy News)

Kitimat strike goes to mediation

This story has been updated and corrected. On clarification Capilano mediation is not having a direct affect.

Earlier, Updated with profile of District lawyer Adriana Wills

The bitter dispute between the District of Kitimat and its striking municipal employees is going to mediation.

The news release from the District of Kitimat says the BC Labour Relations Board has set aside May 1 to 4 for preliminary talks.

April 13, 2015
On April 03, 2015 the Union ended negotiations with the District of Kitimat. The District extended another opportunity for the Union to accept the February 26, 2015 Final Offer by April 12, 2015. The Union declined that opportunity.
This morning the Union applied to the Labour Relations Board for the services of a Mediator. The District has agreed to participate in mediation.
The Mediator appointed today asked the parties to set aside May 01 – 04, 2015 as potential dates for initial meetings.

So far, Unifor 2300 has not commented on the announcement. However, Ron Poole said, District Chief Administrative Officer says both sides in the Kitimat dispute are making an effort with the Labour Relations Board to get things started faster, perhaps arranging a weekend meeting before the projected start on May 1.

The meeting of District of Kitimat Council on April 13, was much quieter than the rowdy meeting the previous week, which was packed by striking workers. (Robin Rowland/Northwest Coast Energy News)

Northwest Coast Energy News has confirmed postings on Facebook that said the District of Kitimat is using the services of a prominent Vancouver based employment firm, Harris and Co. If the two sides had not agreed to mediation, the law firm would have taken over the negotiations, Northwest Coast Energy News has confirmed.

The lawyer representing the District is Adriana Wills, who has more than 30 years experience in employment law including labour relations in municipal government.

Wills was hired by Prince George to serve as their chief spokesperson during collective bargaining with the Canadian Union of Public Employees locals 1048 and 399. Wills’ work helped by city to reach an agreement with CUPE after a year of negotiations. However, the city refused a request under for the Freedom of Information Act from the Prince George Citizen to find out how much Wills was paid. The Prince George budget says it pays Harris and Co. $25,000 a year.

According to Wills’ Linked In profile, she speaks fluent Portuguese.

The profile on the law firm website says:

Adriana represents a broad range of clients in both the private and public sectors. These include clients in the forest, manufacturing, service, chemical industries, local government, health care and, educational industries. She provides the full scope of legal services to those clients including: strategic planning; risk management; collective bargaining; policy development; training; and, advocacy. Adriana believes in providing practical solutions to the legal challenges faced by clients.

Wills has been with Harris and Co. since 1992. She is also an activist on mental health issues.

(Earlier Monday by Capilano University to also agreed to go to mediation Faculty at Capilano University have been on strike since last Wednesday, April 8.

After both sides in the Capilano dispute agreed to mediation, the Capilano Faculty Association agreed to suspend its strike action. The university will resume operations Tuesday. Exams will begin on Thursday, April 16 and end Friday, April 24.

The District of Kitimat employees walked off the job just before midnight on February 28. There is no indication whether or not Unifor 2300 will suspend the strike as the Capilano Faculty Association has)

Analysis: The earthquake in Kitimat’s labour relations. It’s time for cooler and expert heads.

Tuesday night’s District of Kitimat Council meeting, crowded with striking members of Unifor 2300 deteriorated to what became a shouting match between the bargaining committee and Mayor Phil Germuth.

If the hostility and anger continue, it is quite likely the strike will last for months. The fallout will last much longer. It is often said that the bitterness following a strike is directly proportional to its length and the repercussions can last for a decade or more.

That is not good for the future of Kitimat.

There’s talk of mediation, and that’s a good idea, but mediation only works when both sides are willing to sit down and actually listen and talk through the issues. So mediation doesn’t appear to be practical, at least for a few weeks, until both sides are feeling a lot more pain, which is unfortunate.

The Unifor 2300 bargaining team makes it case before District of Kitimat Council, Tuesday, April 7, 2015. (Robin Rowland/Northwest Coast Energy News)

Even if mediation isn’t possible at the moment, it’s time for both sides to stop and bring in some outside experts, experts with cool heads and no personal axes to grind, to guide each side in the negotiations.

Do they know what they’re doing? Unifor 2300, apparently not as stunt, but to get their point across, attempted a clause by clause negotiation of certain points at public meeting of council, in front of a partisan crowd. Negotiating in public seldom works, especially if the other side isn’t really listening.

Do they know what they’re doing? It appears that mayor and council didn’t bother to actually take a copy of the union offer and read it, at least so they would know what the District bargaining committee was doing. “Did anybody on council actually look at the whole document? No. We didn’t ask for it, we asked, give us an update,” Mayor Phil Germuth said. (Having been through the 2005 CBC lockout, I know that most union members do look carefully at the proposed changes in a contract, especially if there is trouble on the horizon. Management usually does the same. In this case, council is the responsible body and should have taken the time to actually read the proposals.)

There is too much confusion and contradictory statements from mayor, staff and council over the timeline of when they saw the offer from Unifor, even it was just a summary.

Mayor Phil Germuth listens to Unifor members at the council meeting (Robin Rowland/Northwest Coast Energy News)

The trouble with a small town like Kitimat is that this has already become too personal, and both sides are losing perspective. That’s why cooler, outside heads are needed.

UPDATE: Deescalation not Escalation

A few moments after this analysis was initially posted, Mayor Phil Germuth issued a open letter, threatening to withdraw the District’s offer:

If the Final Offer is not accepted by the Union by Sunday, April 12, 2015 at 4 p.m. the offer will be withdrawn. The District will then retain the services of an external negotiator who will have the mandate to conclude a Collective Agreement. That negotiator can make decisions on the best way to achieve this goal, including mediation or arbitration.

When this piece was written, our idea of bringing in outside experts was to deescalate the volatile situation, not escalating and making it worse. If the District of Kitimat brings in a hard ball “outside negotiator” that will be a long term disaster for the region, even if a settlement is reached (or forced), because as we say above the long term bitterness could last for a decade or more. When we said an outside negotiator respected by both management and labour, we meant just that, an expert in industrial relations that can deescalate the anger. One has to wonder just who is advising mayor and council on this issue?

In this analysis calling for Unifor 2300 to also bring in outside experts, we were hoping for deescalation, in a small town where the dispute has become very personal. If the District brings in that outside negotiator, Unifor 2300 will have to call headquarters and bring in the “big guns” and call for national support (which has happened in other labour disputes).

Unless there is immediate deescalation, the situation can only get worse.

Get on the phone

That means Unifor 2300 business agent Martin McIlwrath, Unifor Local 2301 President Rick Belmont who does have some experience, and the rest of the bargaining team should get on the phone to Unifor headquarters today and ask that an experienced negotiations facilitator and an experienced researcher get on a plane for Kitimat immediately and stay here for the duration. (McIlwrath has told reporters he has consulted with other labour leaders by phone. That’s not good enough. This situation needs experts here, on the ground).

For Unifor 2300 members, part of your dues goes to union headquarters, so that’s what you’re paying for. A “One Big Union,” which is what Unifor is, has bench strength for situations like this.

For Mayor Phil Germuth and CAO Ron Poole, that means immediately hiring an experienced industrial relations consultant, one who is respected by both management and labour, who can also tell the obviously dysfunctional negotiating team what works and what doesn’t.

A union researcher and the staff of the labour relations consultant could soon find out what (from their perspective) what is economically feasible given the uncertainty of Kitimat’s future.

The Immediate Problem: No picket line protocol

CBC managers and non-union staff spend their time waiting in line to enter the Toronto Broadcast Centre, August 28. 2005. (Robin Rowland/Northwest Coast Energy News) — CBC managers and non-union staff spend their time waiting in line to enter the Toronto Broadcast Centre, during the lockout, August 28. 2005. (Robin Rowland/Northwest Coast Energy News)

It was very clear at the council meeting on March 2, when there was a loud picket line at the meeting and now with the secondary picketing of the museum and the public library, that Unifor 2300 has failed to establish a proper picket line protocol.

Old time union activists may not like it, but the idea of “never crossing a picket line” is becoming obsolete in the 21st century, especially in situations where there is no longer one single plant gate. These days what usually happens where striking or locked out workers may be picketing office buildings where there are other businesses or where members of other bargaining units may still be working is to establish a picket line protocol.

The accepted procedure these days is to establish a waiting time before entering a location. Often this is even agreed between management and the union (where they are still on speaking terms) before a strike or lockout begins.

In 1999, the CBC management locked out the then technicians’ union, NABET/CEP. The Canadian Media Guild had settled and was bound by the no strike/lockout clause in the collective agreement. That meant everyone else; CMG, non-union staff and management crossed the NABET/CEP picket lines. The protocol was that everyone waited ten minutes before entering the buildings. At shift change the lines could be quite long and sometimes the wait was as long as a half hour (in Toronto, in January, in the snow).

By the time of the 2005 lockout, NABET at CBC had merged with the Canadian Media Guild and everyone was out. Protocols were put in place, management and non-union staff lined up for ten minutes before entering the building.

Similar protocols are put in place elsewhere. There have even been cases where truckers entering a multi-company facility wait for ten or fifteen minutes before being waved through. In some of the recent university disputes, students and non-striking staff have had to wait in line before entering campuses.

The other problem is the secondary picketing of the museum and library. Neither are parties to the core dispute, although they do receive funding from the District. Museum staff are non-union and library staff are members of CUPE. So the employees at both locations are not part of the dispute.

The other problem is that with the library there is collateral damage for the users, especially for students who may want to complete assignments as the school year comes to an end. Students have already been hurt by the teachers’ disputes and this is another burden on their education. Did the Unifor 2300 leadership think about that?

In addition, secondary pickets are usually information or leafleting pickets. If Unifor wants to continue to picket the library and museum, it should be clear that line is for information only. If Unifor continues to insist on picketing the two institutions, (which is unfair to those involved) there should be a wait time protocol. Unifor should call CUPE and agree on one. The museum non-union staff should follow whatever CUPE and Unifor agree to.

If, in the future, Unifor wants to picket council meetings, which is a democratic and elected body, even if it is party to the dispute, and should be free and open to the public, then a proper waiting time protocol should be either negotiated or, if the union moves unilaterally, they must make it clear what the protocol is.

Members of Unifor 2300 march to the District of Kitimat Council Chambers on April 7, 2015. (Robin Rowland/Northwest Coast Energy News)

Issues

The labour relations earthquake

As we found out this week, with the study of the Haida Gwaii earthquake, a tremor happens when locked in strain is suddenly released. So the Kitimat labour relations earthquake was caused when grievances going back 30 years landed on the table this year.

Why were the grievances, the strain, allowed to build up for three decades? There is obviously blame on both sides. At Tuesday night’s meeting, there were shouts of bring back Joanne Monaghan. Really? Monaghan was a member of council or mayor for most of those 30 years when the problem was building.

Why put all the blame on the current council, which only took office in December? Two members of Council, Larry Walker and Claire Rattée are brand new. Phil Germuth was on council for one term and only became mayor a few months ago. Other council members have been there a lot longer.

Both CAO Ron Poole and Deputy Warren Waycheshen are fairly new as well, but they should have been aware of the problems. As far back as early fall, the District’s senior staff told me they were expecting fairly smooth negotiations. My Unifor sources now tell me, at the same time, the union was conducting extensive research on other collective agreements to look for language to improve the poor work environment at the District of Kitimat.

The responsibility here lies with the line managers of the District. What did they know and when did they know it? Did they tell Poole, Waycheshen, mayor and council that there were problems escalating? If the line managers knew and didn’t tell, they should be fired. If they didn’t know, then their management of their departments is incompetent, or if they were ignoring the problems, as my union sources allege, then they are part of the problem. If everyone knew and did nothing about it, then that raises questions about management incompetence across the board. Again heads should roll. (And staff managers shouldn’t make snide comments in a public meeting about speakers before council, especially if those managers sit beside the media table. It shows they’re unprofessional and bolsters the union’s case).

Unifor 2300 business agent Martin McIirath makes his case to District of Kitimat Council, April 7,2015. (Robin Rowland/Northwest Coast Energy News) — Unifor 2300 business agent Martin McIlwrath makes his case to District of Kitimat Council, April 7,2015. (Robin Rowland/Northwest Coast Energy News)

There is also blame on the union. Labour relations were not an issue during the municipal election. If the problems have been building for 30 years, why wasn’t it an issue?

Members of Unifor 2300 can’t shout “Why did I vote for you?” If what the union calls “a poisoned work environment” has existed for years, why did it never come up during the election or the debates? In any situation where a labour dispute is building, the rumblings inside the shop and outside are obvious months in advance. If the line managers and senior managers were either ignoring the problems or were part of the problem, then it was the responsibility of Unifor 2300 to make it an issue in the election.

Salaries and management

Given the current situation in Kitimat, the current high salaries for senior staff are somewhat justified. Kitimat is not just a small town, it is a small town working with at least four major industrial projects, the Rio Tinto Alcan Kitimat Modernization Project, Shell-led LNG Canada, Chevron-led Kitimat LNG and the Altagas floating LNG project. This involves negotiations and meetings with both government and corporate officials with even much higher pay grades. There is also the ongoing issue of trying to mend the long history of poor relations with the Haisla Nation.

The workload for senior staff has been increased exponentially in the past four or five years. I am told by sources that burnout is becoming a factor and that staff, both management and union, involved in industrial development, infrastructure and related issues are taking lots of time in lieu, since most don’t get overtime. Some members of the professional staff are members of the Unifor 2300 bargaining unit. That means workload and burnout for those professional members should also be an issue, one that hasn’t, so far, been raised in union media releases.

District Chief Administrative Officer Ron Poole at Monday's council meeting (Robin Rowland/Northwest Coast Energy News) — District Chief Administrative Officer Ron Poole at Monday’s council meeting (Robin Rowland/Northwest Coast Energy News)

Here again we see a lack of leadership, both with current management and with the current and previous councils. Any competent manager would have understood that the high salaries for senior staff, however justifiable those salaries may be, would bring questions from the union rank and file and would be a factor in current contract negotiations. (If none of the LNG projects actually proceed, then the salaries for managers and professionals will have to be reassessed).

At Monday’s meeting, Phil Germuth said the District had decided to hire a health and safety manager? Why now? Why not years ago? This is a town that lives and breathes on health and safety briefings. Every time, as a member of the media, I visit the RTA Smelter, the Bish Cove site or any other construction or industrial site, I get a health and safety briefing. If you go fishing, whether it’s on a charter or with a friend, there is safety briefing before leaving the dock. This seems to prove the union’s contention that health and safety was a low priority with the District.

If the District is going to hire a health and safety manager, why not also hire a Human Resources Manager? The current HR staff at the District are “overworked payroll clerks” (to quote a union source). A qualified HR manager would take that burden off the administrative officers, be aware of proper industrial relations procedures and negotiations practices and be the manager who would implement and enforce anti-harassment procedures.

Summer students

The one group caught in the middle of all this are the summer students. Summer students are hired by many organizations to fill in for vacationing staff and to work on special projects. Summer students should not, as the union is claiming, be used to ensure that casual staff do not get enough hours to qualify for seniority. Reducing the number of summer students, however, is going to have a long term negative effect on the community. Jobs for young people are far too scarce, student loans are becoming such a burden that Millennials who have graduated and those who actually have jobs, can’t afford to buy houses. A lack of summer jobs in Kitimat would be an incentive for young people to leave town or if they are away at college or university, to stay away. Unifor is also not doing the future of the union movement any good by alienating a new generation of potential union members. The summer student program should be restored as much as possible.

Senior and youth health

In a larger community, youth counselling and medically necessary therapeutic pool or gym exercise for seniors and those with disabilities could move to other venues. In Kitimat that is not an option since there are no other locations, so an interim agreement to resume those activities should be high on the agenda—if both sides actually resume talking.

The future of Kitimat’s economy

Today Royal Dutch Shell, the main company behind the LNG Canada project, took over BG Group which had proposed an LNG project at Prince Rupert. The price of oil is bobbing around the $50 a barrel mark. That means David Black’s refinery project, which depended on high oil prices is “vital signs absent.” The long term prospects for the LNG market are good given the increased demand in Asia. The short term prospects are poor, given that the energy sector’s income from oil has dropped and that means those companies have less money to spend on new projects.

The council is being prudent in refusing to lock itself in to long term expenditures based on projects that may never materialize. At the same time, the cost of living in Kitimat, up until recently a mini-Fort McMurray, has skyrocketed. That means the union request for a salary increase should not have been unexpected. It also means that a large number of Kitimat residents, who are paying more for goods and services, many of whom do not have the higher paying project jobs, cannot really afford an increase in property taxes. A compromise on this is essential.

That’s why outside experts, with cool heads, research staff and no personal stake in 30 odd years of hostility, should be brought in to bring both sides to an agreement as soon as possible.

On the CBC picket line at the Toronto Broadcast Centre, August 28, 2005, As the union photographer I was on the line but with my camera not a sign. I did wear union buttons.

Disclosure: I am the current chair of the Board of Directors of the Kitimat Museum and Archives. My term expires at the end of May. I am a retiree member of the Canadian Media Guild/Communications Workers of America from my time at CBC. When I freelance, depending on whether or not the specific job is covered in a collective agreement (some are, some are not) I work under CMG jurisdiction for CBC and the wire services and under Unifor jurisdiction for Global TV and certain newspapers. In 2005, CBC management locked out employees from August 15 to October 10. During the period of the lockout, my assigned “picket” duty was as one of the CMG’s official photographers.

CORRECTION: This post has been corrected. The events took place on Tuesday, not Monday.

Another LNG shake up: Shell reported to be in talks to acquire BG Group

Numerous media sources are saying that Royal Dutch Shell is in talks to acquire the BG Group.

Shell is developing the LNG Canada project in Kitimat, while BG had been developing an LNG proposal for Prince Rupert. BG announced last fall it was delaying further development of the Prince Rupert project due to uncertainty in the liquified natural gas market.

An initial report came from Bloomberg, which said:

Buying BG would be Shell’s largest acquisition since the $60.3-billion (U.S.) merger of its Dutch and U.K. parent companies in 2005, according to data compiled by Bloomberg. It would unite the U.K.’s first- and third-largest natural gas producers….BG posted a record $5-billion loss in the fourth quarter, mainly due to writing down the value of its Australian assets as commodity prices fell.

BBC News quotes the Wall Street Journal as matching the report.

A Shell spokesman told the BBC: “We’re not making any comment.”
No-one from BG Group was immediately available to confirm or deny the WSJ’s report.

Last fall, when BG put the Prince Rupert project on hold, with a financial investment decision postponed until 2019, the Financial Post, quoted BG executive chairman Andrew Gould as saying, “We’re not abandoning Prince Rupert, we’re pausing on Prince Rupert to see how the market evolves particularly in function of total supply that will come out of the U.S.”

At the time, analysts noted that unlike Shell, Chevron and Petronas, BG had no gas extraction assets in Canada. BG is a privatized spinoff of the once nationalized British Gas company in the UK.

New Douglas Channel geological studies near completion

Three studies of the geology of Douglas Channel are near completion and publication, according to Natural Resources Canada. That news comes as studies, released today, warn of a major megathrust earthquake on the fault west of Haida Gwaii.

Northwest Coast Energy News asked the Geological Survey of Canada if there were any recent updates available after the agency said that a survey had located a “possible fault” on Hawkesbury Island during studies for the Enbridge Northern Gateway Joint Review Panel.

“Devastating megathrust earthquake” a “substantial hazard” for Haida Gwaii, Canada-US study warns

Is Kitimat ready for a “big one?”

Natural Resources Canada responded with a statement: “NRCan continues to conduct research studies in the area, including study of possible faults. Three scientific expeditions have been completed on board Coast Guard research ships. The first two reports are in the final stages of editing, and will be published in the coming months. The third expedition was just completed; therefore the third report will be available later.”

The initial joint survey by the Geological Survey of Canada and Fisheries and Oceans in September 2012, found a tsunami hazard and a possible seismic fault in Douglas Channel near Kitimat.

Fault zone map Douglas Chanel — A 2012 map from the Geological Survey of Canada showing the line of a possible seismic fault on Douglas Channel (Geological Survey of Canada)

The follow up study by Fisheries and Oceans, released about three weeks after the Haida Gwaii earthquake, in November 2012, identified two slope failure events on the southern end of Hawkesbury Island during the mid-Holecene period, between 5,000 and 10,000 years ago. That study showed that the tsunami from the slope failure reaching Kitimat would have been about 60 centimetres or 23 inches. Hartley Bay would have been hit by a wave height of 7.5 metres or about 25 feet.

More recently there were slope failures nearer to Kitimat. The first slope failure occurred on October 17, 1974, triggering a 2.4 metre tsunami at low tide. Then on April 27, 1975 there was a second slope failure near low tide on the northeast slope of the Kitimat Arm that generated an 8.2 metre tsunami. The 1975 tsunami destroyed the Northland Navigation dock near Kitimat and damaged the Haisla First Nation docks at Kitamaat Village.

Thomas James, of the Geological Survey told Northwest Coast Energy news about the team’s finding on the Haida Gwaii earthquake: “The studies focused on the Haida Gwaii and Craig earthquakes which happened at the Pacific and North American plate boundary, west of Haida Gwaii, so east of Haida Gwaii there’s no comparable plate boundaries that gives rise of historic sieismisticity.”

As well as the fact that recent studies say the mainland margin coastal zone has had very little historical seismicity, it adds no currently active faults have been identified. A study ten years ago identified some very ancient faults which have not been active since the Eocene, about 33 to 56 million years ago.
GPS studies show that in northwestern British Columbia coastal block is moving northeast at the rate of just 5 millimetres a year.

Afterearthquake Kitimat must immediately upgrade emergency communications

The earthshaking difference between Enbridge and LNG

DFO study on ancient Douglas Chanel tsunamis show minimal impact on Kitimat, devastation at Hartley Bay

Geological Survey of Canada identifies tsunami hazard, possible fault line on Douglas Channel

Scientists identify major Japanses style tsunami hazard for west coast

Is Kitimat ready for a “big one?”

Kitimat Emergency Coordinator Bob McLeod at the earthquake postmortem Oct. 29, 2012 (Robin Rowland/Northwest Coast Energy News)

Studies of the October 2012 magnitude 7.8 Haida Gwaii earthquake show that the region is vulnerable to a “major megathrust” earthquake along a newly confirmed fault line west of the islands.

That earthquake was felt in Kitimat and Kitamaat Village and a tsunami warning was issued within a few minutes.

So have the District of Kitimat, the Haisla Nation Council or Rio Tinto Alcan changed or upgrading their earthquake and tsunami plans in the past couple of years?

“Devastating megathrust earthquake” a “substantial hazard” for Haida Gwaii, Canada-US study warns

New Douglas Channel geological studies near completion

Bob McLeod, who recently retired as the District of Kitimat’s emergency coordinator, told Northwest Coast Energy News: “I think we’ve done quite a bit. One of the biggest issues in the first one was trying to get information out. We’ve come a long way on that. Whether you reach everyone or not, that’s another thing, because you never reach everybody. One of the critical things to me is getting the information out so you avoid all this Facebook, Twitter speculating and rumour. The communications aspect has improved a hundred fold.

“We did more work on the mapping and planning. Over the course of the last year, there were a lot of meetings with industry and various stakeholders, discussing emergency preparedness in general but touching on some of these other things as well.

“One of the things we did was to try to set up some shelter points. We have an agreement with the Baptist Church, the Catholic Church and the Seventh Day Adventists. They’re strategically located and could be gathering points for the various neighborhoods if necessary.

“We’ve also done quite a lot of work on Riverlodge as a group lodging centre, thinking in terms of an earthquake where there may be damage and you have to move people.

“We did look at the evacuation planning and we’ve had a couple of exercises involving that, looking strategically about how can you move people from certain neighborhoods, asking which neighborhoods would be at the most risk if you ended up with a tsunami situation.

As for tsunamis, McLeod said, “From everything we’ve heard and been told, tsunamis in extremely deep water like that is not going to be as dangerous as one in shallower water, but the possibility is still there.

“The thrusts are the killers when it comes to tsunamis, but there is a very good warning system on the tsunamis. We do get very very rapid feedback on the earthquakes.

“The only danger in that regard is if you have a severe earthquake and you have part of a mountain drop into the salt chuck, you’re going to get a massive wave and you’re going to get no warning whatsoever, like the Moon Bay collapse in the seventies.

“The emergency plan is in good shape. We scheduled a number of exercises last year through training programs.

“One of the things I personally push is personal preparedness. I think as a community, we fail greatly at that. That was evident even during the snowstorm. People are not just prepared to look after themselves, it’s unfortunate. You just have to keep chipping away.”

Last week, Northwest Coast Energy News asked Rio Tinto Alcan and the Haisla Nation Council if either could comment on updated earthquake or tsunami response plans. So we have received no answers.

After earthquake Kitimat must immediately upgrade emergency communications

The earthshaking difference between Enbridge and LNG

DFO study on ancient Douglas Chanel tsunamis show minimal impact on Kitimat, devastation at Hartley Bay

Geological Survey of Canada identifies tsunami hazard, possible fault line on Douglas Channel

Scientists identify major Japanses style tsunami hazard for west coast

Woodside, new Kitimat LNG partner, borrows $1 billion in new bonds

Woodside Petroleum, the new partner with Chevron in the Kitimat LNG project is raising US$1 billion through the issue of corporate bonds into the U.S. market “to fund its capital and exploration expenditure program.”

A news release from Woodside says “the bonds will be issued by Woodside Finance Ltd, a wholly owned subsidiary of Woodside Petroleum Ltd, and will consist of US$1 billion of 10 year bonds with a coupon of 3.65 per cent. The bonds will be guaranteed by Woodside Petroleum Ltd and its wholly owned subsidiary, Woodside Energy Ltd.”

Bloomberg notes that Woodside paid $2.75 billion to Apache for its stakes in the Kitimat LNG and the Australian Wheatstone LNG project.

Woodside agreed in December to pay $2.75 billion to Apache Corp. for stakes in two natural gas projects, and it expects to spend about $6.2 billion in 2015.

Even after its agreement with Apache, Woodside has a strong balance sheet that may allow the company to make another acquisition and take advantage of low crude oil prices, according to a Feb. 18 report from Goldman Sachs Group Inc. Woodside has $6.8 billion in cash and available debt facilities, the energy producer said in a presentation that same day.

Woodside said last week that full-year net income rose 38 percent to $2.41 billion, helped by its Pluto project. Brent crude oil prices have tumbled 44 percent over the past 12 months.

In January, Australian Mining reported that Woodside had reached an “non-binding contract… as an agreement between Woodside Petroleum and Adani Enterprises to cooperate in developing commercial initiatives for long-term supply of gas to the Indian market.”

Bish Forest Service Road reopens to the public on March 1, 2015

The Bish Forest Service Road will reopen to the public on March 1, 2015. With the upgrades created by the Chevron-led Kitimat LNG project, the single lane logging rough logging is now a high quality gravel “resource road.”

The first 12 kilometres of the road will be open “to provide public access to connecting roads, recreational areas and natural hiking trails,” Chevron says.

“In terms of Kitimat specifically we’ve completed a number of key projects,” said David Molinski, Chevron’s lead for Regulatory and External Affairs. “We’ve made the upgrades to the Forest Service Road, and the Early Works we’ve been doing on site at the Bish Cove site.

Bish FSR — A construction check point on the Bish Forest Service Road during a media tour, October, 2014. (Robin Rowland/Northwest Coast Energy News)

“So we’ve been for the past couple of years putting a lot of effort on advancing that part of the project. We’ve completed the key elements of the Forest Service Road upgrades over the past four years,” Molinksi said, “When we got there it was essentially a single track logging road and it was very difficult to access the Bish Cove site. So we wanted to make sure we had a road that would help support the project. That means having an all weather access all year round. That’s a very substantial development.

“It’s a public road, it’s always has been a public road, in fact it’s owned by the Crown.

“It’s time now for us to reopen that road. We had it closed for safety reasons. We wanted to make sure we completed the work on the road. There was blasting, moving rock, breaking down rock, stabilizing slopes.

“We had to make sure we could that work done in a safe way. Now that’s done, we’ve completed the road upgrades and we’re very happy to reopen it to the public. We look at it as being a long term legacy for the community.

Safety poster — Safety rules for travelling on the Bish Forest Service Road. (Chevron poster)

“The road is available for people in the community to use. There’s a number of recreation sites people in the community have used for many generations. So we’re pleased we can turn that road back into being publicly available and they can use it safely so they can get access to the areas they love around this community.”

In 2015, Chevron says, some work may continue on the road and “may include power line installation, paving and other construction activities.” There is also a need for the road to “stabilize” Molinksi said. “We’ll come back down the road and make a decision about what the right timing is to cap that road. Right now we don’t have a specific schedule It’s good for the road to stabilize and settle over the next couple of seasonal cycles.”

The decision about the future of the road will depend on the uncertain investment climate, due to the downturn in the energy industry.

In a panel at the open house on Feb. 24, Chevron said that projects like Kitimat LNG “are significant, very large and extremely complex with multiple moving parts that must all come together through hard work and perseverance in order to be successful.”

Chevron will continue to make a capital investment on the Kitimat side of the project but “the pace of field work in Kitimat at the LNG Plant will be decreasing as we focus capital spending on other aspects of the project.

For 2015, Chevron will concentrate on exploration in northeast British Columbia, Molinksi said, “That’s where the Liard Basin and the Horn River Basin are located and that’s where we’re developing the natural gas, substantial natural gas resources to support this project… This year we’re going to focus on getting additional data on the natural gas that we have a number of rigs that are running right now. We’re going to be drilling wells over 2015 and make sure we have a good understanding of those wells that are going to be supplying gas to this project. We have to know as much about that resource as this site here.”

“As a result there will be a decrease in site preparation work associated with the Kitimat LNG project and the Pacific Trails Pipeline during 2015,” the Chevron panel said.