NDP announces $40M in funding for coal workers

Calls on Ottawa for EI flexibility for those expected to lose their jobs in phase-out

We have committed the $40 million, we will continue to work to provide supports whether the federal government steps up or not.

EDMONTON The province is calling on the federal government for support after launching a $40-million fund for workers who are expected to lose their jobs as Alberta phases out coal-fired electricity.

The Coal Workforce Transition Fund, coupled with employment insurance (EI) benefits, will provide workers with income to help them transition into new jobs or head into retirement, said Labour Minister Christina Gray at a Friday news conference.

“We are asking the federal government for some policy flexibility,” she added.

The NDP have asked Ottawa to extend EI benefits so that workers can receive payments from the fund while also collecting full EI amounts. In all, workers would make up 75 per cent of their lost salaries, Gray said.

The province is also asking the federal government to extend EI benefits by 27 weeks for those planning to retire, on top of the 45 weeks of benefits they can already claim.

Before 2029, between 1,100 and 1,200 workers are expected to lose their jobs as coal-fired electricity is phased out across Alberta in favour of renewables and natural gas.

An average salary in the industry totals around $79,000 per year, though it can range from $38,000 to upward of $120,000, according to government estimates.

It’s good news for the 200 or so coal industry workers in Hanna, said Mayor Chris Warwick on Friday.

“They have felt in the past they’re overlooked,” he said, pointing to workers at the Atco Power and TransAlta Sheerness coal-fired generating station and mine.

“It’s a little relief for the workers.”

The NDP announced a community transition fund in September to encourage economic diversification in places affected by the coal phase-out.

Warwick said Hanna, an eastcentral Alberta town of 2,600 people, received $450,000 from the fund.

“We’ve been working very hard in coming up with a solution to bring more jobs to our region,” he added.

Cash for the workforce transition fund comes from Alberta’s carbon levy.

Additional supports — such as training, career counselling and education — will come from the Department of Labour’s existing budget.

“We have committed the $40 million, we will continue to work to provide supports whether the federal government steps up or not,” Gray said. “We expect that they will.”

The Alberta Federation of Labour echoed the government’s call for federal support.

“Many coal-fired units in Alberta are closing due to federal government regulatory changes. They have a responsibility to these workers to help ensure a just transition,” said president Gil McGowan in a statement.

Friday’s announcement followed the release of a commissioned government report that made 35 recommendations on supporting coal communities. An advisory panel recommended supports ranging from offering workers relocation assistance to prioritizing infrastructure projects in affected areas.

“We have heard from the compa- nies that there will be layoffs starting Jan. 1,” said Economic Development and Trade Minister Deron Bilous, adding that is when benefits will be available for affected employees. Next year, he expects between 100 and 200 people to be laid off.

The Coal Association of Canada called the government announcement a step in the right direction but urged the province to work directly with coal-mining companies.

“We are concerned that focusing all efforts on transitioning workers out of the industry could result in an under-supplied coal workforce and have potential negative impacts on the production and delivery of coal as a fuel source for generation,” said president Robin Campbell in a statement.

The NDP government has accepted all the report’s recommendations.