Shortage of skilled labor escalates training costs.

• Author: McDougall, Douglas
• Position: Includes related article on a Ontario Ministry of Skills Development report - Manufacturing Report

Shortage of skilled labor escalates training costs

Due to the lack of skilled labor in Northern Ontario, at least one manufacturer is forced to absorb the substantial added costs of training employees inhouse.

Ed Bayford, assistant manager of Henninger's Diesel of Sudbury explained that, on average, it takes approximately four years to train an employee and, during that time, costs are approximately doubled.

Bayford explained that Henninger's has been able to hire "one or two" (qualified) mechanics in the past but the majority of its staff were trained or re-trained on the job.

Because of the shortage of qualified skilled labor, Henninger's has also lost staff it has trained to much larger companies such as Inco and Falconbridge, adds Bayford.

He said that often after expending the time, energy and money required to train employees, "they jump to Inco or Falconbridge for $22 per hour."

Although admitting that Henninger's has a job-application file "3.5 inches thick," the company can't compete with the wages and benefits offered by the larger companies.

In an effort to attract and keep skilled employees, Henninger's, said Bayford, strives to keep wages as competitive as possible.

While the company attempts to match the benefits packages offered by the larger companies, Bayford admits that the dental and optical packages are difficult to match.

QUALITY ENVIRONMENT

To attract and hold qualified workers, Bayford said the company has also designed and reconditioned its building to maximize employee comfort.

"We try to provide a nice working environment by spending money on such things as proper ventilation," he said.

In addition, Bayford said he and other officials at Henninger's Diesel have a few ideas to solve the skilled labor shortage problem.

For example, Henninger's offers co-operative training to secondary school students. Students are given practical experience working at Henninger's while learning classroom theory at school.

Bayford said the students are encouraged to further their education at the post-secondary level.

He said the next logical step is to approach community colleges with the same proposal. Henninger's is currently discussing the concept with Sault...