Ironworker Management Progressive Action Cooperative Trust

Expanding Job Opportunities for Ironworkers and their Contractors

Just wanted to say that Mark, Michael and Stuart from FMI and Trevor from PWC did an excellent job engaging the classroom in discussion each day, and had a great program format for teaching. The information they brought forward was extremely useful now as I'm sure it will be throughout my career. This was only my 2nd IMPACT course that I have attended, I would like to commend IMPACT on organizing these events for Ironworkers and contractors alike, IMPACT always put on an amazing program, and does a very good job at making these events comfortable and welcoming to attend. I plan to attend more IMPACT events as the information is always very useful and IMPACT does a great job of finding the right instructors for the occasion. I would like to thank everyone at IMPACT for the work they do to set these events up and providing the opportunity to attend these courses.

Regards,

Jacob Wicks
Chief Estimator
JCT Metals Inc.

News

NEWS(1)

Trade unions can help with critical worker shortages in the oil and gas industry

02/17/2019

By Lee Worley

We are in the middle of a great shale revolution. For the first time in decades, the U.S. is holding its own against OPEC and Russia, going from energy importer to energy exporter. Unlocking previously inaccessible shale reservoirs deep underground using hydraulic fracturing technology is becoming our nation's ticket to energy dominance. The impact of shale development has now propelled the U.S. to become the top producer of oil and natural gas in the world. Two decades ago, our nation was staring down a potential energy crisis, but now we are a world energy leader.

From the Barnett Shale, Eagle Ford and Permian Basin in Texas to Oklahoma's SCOOP (south central Oklahoma oil province) and STACK (Sooner trend Anadarko basin Canadian and Kingfisher counties) plays, the southern region tops the charts with the highest number of oil barrels per day and a huge supply of natural gas liquids to fuel manufacturing growth.

The shale revolution is entering a new stage of maturity, and we must be prepared. These massive projects are on a construction scale we haven't seen in generations.

Are we prepared for such massive scales of construction amid a skilled labor shortage, especially in the southern region? With a wave of baby-boomer retirements, workers who switched careers during the recession and a young generation that is not considering construction as a career option, contractors are reporting a severe skilled labor shortage in the South. Such a shortage could lead to higher prices and longer construction schedules. Three out of four construction firms are showing concern about finding hourly craftworkers over the next year. But is there such a desperate lack of skilled labor, or is the panic due to a disconnect somewhere between supply and demand?

In the South, contractors are scrambling to find skilled labor to man these energy projects, but they are overlooking the main source of skilled labor: the building trades. Many of them are facing delays and having to rework projects while the answer to their crisis is within reach. Can they afford it amid a tsunami of workforce demand?

Regardless of contractors' concerns about a lack of skilled labor, the building trades have always maintained a healthy supply of job-ready, skilled, safe workforce. They are equipped to face the challenge. While others struggle to meet the demand, they produce safe and skilled workers through comprehensive training, innovative diversity and worker retention measures, and fair wages. They invest in comprehensive training, including in-depth safety training, saving time and money for contractors and end users. A safe workforce reduces injuries, fatalities and costly delays, adding up to huge cost savings. For example, the Iron Workers training centers collectively spend between $80 million and $90 million a year in apprenticeship and upgrade training.

But the building trades cannot do it alone. They need support to sustain a healthy supply of skilled labor. They need continued support from the Department of Labor and the Trump administration for their apprenticeship programs.

President Donald Trump recently announced plans to make expansion of apprenticeship programs the center of his labor policy. We need the administration to keep that promise to fund apprenticeship programs, as they are the bread and butter of maintaining a healthy supply of skilled workers.

The biggest reason for the construction industry's skilled labor vacuum, which resulted from baby boomers exiting the workforce, is a lack of planning to build a pipeline of workers. First, we need to stop telling our young people their only path to success is a four-year college degree.

Regrettably, nontraditional career paths are not often presented as viable and lucrative alternatives to college for young people graduating from high school. According to the Labor Department, 87 percent of apprentices are employed after completing their programs, with an average starting wage above $50,000. Earn-while-you-learn apprenticeship programs in the trades allow high school graduates to make a decent living while being trained for a life-long career, as opposed to accruing college debt.

We need to change the narrative about careers in the skilled trades as well as retool the existing workforce. The clock is ticking to handle this coming tsunami of workforce demand. We must be prepared to meet the demand to keep the momentum going toward U.S. energy dominance.

Lee Worley is executive director of apprenticeship and training for the Iron Workers. He wrote this column for The Dallas Morning News

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