Labour Market Monitor - Southern Nova Scotia
November 2011
The Labour Market Monitor is a monthly report providing a summary of labour market news events for the Southern Region. The Southern Region includes Digby, Yarmouth, Shelburne, Queens and Lunenburg Counties.
General Events
Le Village historique acdien de la Nouvelle-Écosse, located in Yarmouth County, received funding from all three levels of government to boost its on-site infrastructure and technology. ACOA contributed $57,652 for a one-kilometre boardwalk, a storage facility and interpretive panels. The project also received $36,000 from the provincial government and $2,000 from the local municipality. (Yarmouth County Vanguard - November 22)
Labour Market News By Industry
Agriculture, Forestry, Fishing and Hunting
Lobster season opened one day late in southern Nova Scotia due to high winds. Lobster Fishing Area (LFA) 33 (Eastern Passage to Queens County) and LFA 34 (Shelburne, Yarmouth and Digby counties) account for approximately 1,700 licence holders. Preliminary statistics from the 2010/11 season show a total of 19,770 metric tonnes of lobster were landed in LFA 34, worth over $194M. In LFA 33, 3,772 metric tonnes were landed with a value of close to $38.7M. Preliminary market indications are not positive at the start of the season with a fluctuating world economy, the high value of the Canadian dollar, strong lobster landings on both sides of the border and low prices being paid in LFA 35 (upper Bay of Fundy) and Maine. (Yarmouth County Vanguard - November 29)
Construction
The provincial government announced a $1M contribution to help build a new learning centre for the Ross Farm working museum in Lunenburg County. The funding matches ACOA's contribution in March 2010, for the $2.35M project. Construction is expected to begin in the spring. (Lunenburg County Progress Bulletin - November 2)
Manufacturing
AbitibiBowater made it known to the public in early November that they intend to shut down the Bowater Mersey Paper Co Ltd. mill if they can not find a solution to cut down on costs. The company is looking to reduce the cost to produce a tonne of paper from $535 to $480, starting on January 1. The company stated that they need to address labour and electrical costs, among others, to arrive at a solution. Labour costs are about $97 per tonne, and the company wants to reduce that to $80 per tonne. According to the provincial government, AbitibiBowater employs about 300 people, but more than 2,000 would feel an impact from the mill closing. (Queens County Advance - November 2)
The future of Lunenburg County's Bowater Oakhill mill will be tied to the final decision by Resolute Forest Products, the new parent company name of the former AbitibiBowater, on whether or not to close the Bowater Mersey Paper Co Ltd mill in Queens County. The Bowater Oakhill mill has the capacity to produce 150 million board feet of lumber per year and employs approximately 100 workers. (Lunenburg County Progress Bulletin - November 9)
Unionized workers at Bowater Mersey Paper Co Ltd. mill in Queens County voted 51.7% in favour of cuts proposed by parent company, Resolute Forest Products. Concessions include a reduction of 80 full-time and 30 part-time unionized positions from the payroll. The union also agreed to a wage freeze, contract extension and changes allowing temporary workers or managers to carry out unionized work. (Queens County Advance - November 16)
The Nova Scotia Utility and Review Board (UARB) announced a three-year load retention rate for the Bowater Mersey Paper Co Ltd. mill in Queens County, and the New Page Port Hawkesbury mill. Resolute Forest Products, the parent company of Bowater Mersey Paper Co Ltd., had stated their desire for a five-year rate but UARB indicated that the inability to predict fuel costs for Nova Scotia Power led to their three-year decision. The mills would pay 6.02 cents per kilowatt hour in the first year, 6.57 cents in the second and 6.78 cents in the third. NewPage Port Hawkesbury Ltd. and Bowater Mersey Paper Co Ltd, now pay 6.22 cents per kilowatt hour as a general rate. Without the new rate, the companies faced an 11.9% general hike next year, plus fuel costs. (Queens County Advance - November 29)
Composites Atlantic announced in mid-November that it would lay off 37 of its more than 300 employees. They stated that despite having a strong contract base with major airline manufacturers, unexpected delivery schedule changes will force the company to reduce their production rates. (Lunenburg County Progress Bulletin - November 16)
Terra Beata Cranberries began shipping their product to Sobeys Ontario in early October, after months of negotiation. Their four brands of pure juices are the company's first foray into Ontario, having worked with Sobeys Atlantic since 2006. (Lunenburg County Progress Bulletin - November 16)
High Liner Foods announced the acquisition of the Icelandic Group, one of the largest suppliers of value-added seafood to the American food service market. The transaction is valued at $230.6M and results in the Lunenburg-based firm becoming the leading value-added seafood supplier in North America. The acquisition is expected to be finalized by late 2011 and is subject to regulatory approvals. (Lunenburg County Progress Bulletin - November 16)
Health Care and Social Assistance
A South Shore Health spokesperson stated that there was concern about the lack of physicians in Lunenburg County. The Board estimates that there are about 5,000 patients without a primary health care provider, such as a family physician or nurse practitioner. They also noted that most new physicians would rather work in a collaborative practice as a member of a team. (Lunenburg County Progress Bulletin - November 2)
The Government of Nova Scotia is investing $1.5M towards renovations at South Shore Regional Hospital that will reduce overcrowding, improve patient flow and make the emergency department more comfortable for patients and staff. (Queens County Advance - November 29)
Accommodation and Food Services
Fire destroyed the main lodge at White Point Beach Resort in mid-November. The fire started in the lower levels and was deemed not suspicious in nature. The resort was to undergo renovations in the new year and employs approximately 175 people at this time of year. The owner stated that the resort will be rebuilt with an aim to make it a more viable year-round attraction. (Queens County Advance - November 15)
Note: In preparing this document, the authors have taken care to provide clients with labour market information from reliable sources that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of the department.For more information please contact:
David Doucette
Labour Market Information Analyst
david.doucette@servicecanada.gc.ca
or visit our website at: www.labourmarketinformation.ca