This document was prepared for discussion purposes for CLMPC's (now the Canadian Labour and Business Centre) Task Force on Adjusting to Environmental Change. It does not necessarily represent the views of the CLMPC Board of Directors or the members of the Task Force on Adjusting to Environmental Change.

The work of the Task Force on Adjusting to Environmental Change was made possible thanks to the financial assistance of Human Resources Development Canada.

This document is a companion to Greening Productivity: The Final Report of the CLMPC Task Force on Adjusting to Environmental Change and provides detailed descriptions of the cases referred to in that document. This compilation of case study research is intended to be of use to practitioners of environmental change by providing examples of good practices that have occurred at the workplace and sector levels. One of the important elements of responding to environmental change is the diversity of experience and options which is captured in the different case studies.

The environment is more and more important for both business and labour. Environmental issues are now an enduring concern across Canadian society. Moreover, environmental issues have achieved an increasingly global focus. Domestic and international customers are now more aware of environmental impacts and demanding more environmentally responsible production and products. Governments continue to change their approaches to environmental regulation as well as pushing initiatives for pollution prevention. The commonality between business and labour is that the environment has increasingly become part of a competitive armoury among firms in different countries. Good environmental practice at many times going beyond mere compliance with regulations has emerged as important determinant of the long term employment and investment prospects of many operations. Such trends are likely to continue.

The CLMPC project on Adjusting to Environmental Change examines ways in which business and labour have responded to environmental pressures and documents the policies and practices of greening productivity at both the workplace and sectoral levels. Funding of the project has been provided by Human Resources Development Canada (HRDC) who originally requested CLMPC to undertake the research. The project has been guided by a joint business-labour Task Force who have been involved at each step of the process, including selection of case studies, input on sector profiles and environmental pressures and reviewing the final report.

From the inception of the project it was clear that very little research on adjustment to environmental change at the workplace and sector levels had been done. One of the first tasks was to develop an acceptable methodology. After extensive consultation with business and labour groups the Task Force approved a case study methodology to obtain information on practices and responses to environmental pressures at the workplace and sectoral levels. The case study evidence would be supplemented by evidence on sector profiles and the environmental pressures they face. A further dimension to increase the available information was to provide examples of international practice and models of adjustment to environmental concerns.

It was also clear that certain sectors faced heavier environmental responsibilities than other sectors. After an initial development phase of the project, in which 23 business and labour organizations were consulted, the forestry and forest products, chemical and mining sectors were selected because they are generally recognized as being sectors where environmental costs and responsibilities were above average. Public opinion surveys also rank these industries as the three most likely to affect the environment.Angus Reid Report July/August 1995.

In selecting the cases presented in detail here it was necessary to specify appropriate criteria. The most important criterion was that both business and labour would be active participants in the case study, though the degree of involvement may vary among the differing cases. Cases should have significant economic and job impacts and there should be accessible data available on the specific nature of the responses. Furthermore, the cases chosen should provide a rich diversity of themes and issues relating to environmental change including enterprise issues, community issues and sectoral issues. The cases should, where possible, reflect both large and smaller enterprises and be located in different regions of Canada.

For each of the sectors a sectoral response has been identified in fact, in forestry and forest products two such responses have been studied. In addition, workplace examples of adjustment in these sectors are described in detail in this document. A summary description of the sector and workplace cases is shown in Table 1.

The primary data for the study is therefore practical experience. One of the uses of this report is the documentation of many of these practical steps for practitioners in the area of greening productivity. It should be stressed that, although the report highlights sectors with heavy environmental responsibilities, the conclusions its draws can be applicable to other sectors. This is especially true as the range of environmental concerns expands and as expressions of these concerns emanate from a greater diversity of sources.

The CLMPC researcher and writer of this report is Chris Parsley. Some of the case work was also done in conjunction with Bert Pereboom.

Finally, the complete set of recommendations from the Task Force that are contained in the final report Greening Productivity have been included at the end of this document. For a more detailed discussion of these recommendations the reader is directed to section V of Greening Productivity.

Case	Location	Type	Sector
National Forest Strategy and Forest Accord	National	Sectoral	Forestry
Government led process with multi-stakeholders, to develop a strategy for a sustainable forest eco-system.
B.C. Forest Renewal Plan	B.C.	Sectoral	Forestry
Government multi-stakeholder process to develop a long term plan for the sector.
InterFor & IWA	B.C.	Workplace	Wood
Joint process to seek alternatives to layoffs in environmentally threatened location.
Howe Sound Pulp and Paper & CEP	Port Mellon, B.C.	Workplace	Pulp & Paper
Sweeping modernization of plant; investment in new environmental equipment.
Whitehorse Mining Initiative	National	Sectoral	Mining
Government facilitated multi-stakeholder process to establish principles for the long term sustainability of the sector.
Brunswick Smelting & USWA	Bathurst, N.B.	Workplace	Mining
Joint initiatives to change work practices to improve environmental performance.
Quintette Operating Corporation	Tumbler Ridge, B.C.	Workplace	Mining
Joint Health, Safety and Environment committee; single industry community; improved communication and environmental awareness.
Highland Valley Copper & USWA	Logan Lake, B.C.	Workplace	Mining
Union-management initiative to reduce, reuse and recycle mining supplies and provide work opportunities for workers with limited injuries.
Responsible Care	National	Sectoral	Chemicals
Voluntary initiatives among companies to agree on codes of practices for chemical research, manufacture and handling.
Bayer Rubber & CEP	Sarnia, Ontario	Workplace	Chemicals
Environmental initiatives amid cost pressures through agreements with unions.
Uniroyal Chemical & USWA	Elmira, Ontario	Workplace	Chemicals
Crisis and shutdown of production following discovery of pollution of waste water and subsequent development of new environmental responsibility.

Background

The Highland Valley Copper mine is a vast open pit mining operation in the southern British Columbia interior so large, in fact, that it is one of the few human-engineering feats visible from the moon. In just about the centre of this massive operation stands the 6,000 square foot building housing the "Modified Work Centre", in its own way a monument to human creativity and joint problem solving. The Centre, the product of a joint initiative between Highland Valley Copper and Local 7619 of the United Steelworkers of America, resolves a number of issues that had developed at the operation. Today the modified work centre provides employment in a range of activities that focus on the three R's of environmental strategy: Reduce, Reuse and Recycle: for workers whose injuries or illness prevents them from working their regular jobs.

Highland Valley Copper is a partnership of four mining companies, with Cominco Ltd. holding 50%, Rio Algom 33.6%, Teck 13.9% and Highmont 2.5%. The company operates two large open pit mines, extracting more than 90 million tonnes of ore per year. It operates a mill and concentrator at the Highland Valley site which converted 43.5 million tonnes of ore into nearly 400 thousand tonnes of copper concentrate and 3 thousand tonnes of molybdenum concentrate. Though the workforce has been shrinking by about three percent per year over the last four years, the operation currently employs 1100 people, including 858 production and maintenance workers and 64 office and technical workers represented by the United Steelworkers of America.

The first link in the chain of events that led to the establishment of the Modified Work Centre was a wildcat strike conducted by the Union in the late 1980s. The reasons for the work stoppage are less important than a $250,000 court judgment against the union for damages suffered by the company as a result of the job action. This prompted the union to become creative in its search for ways to pay the debt. It was known that the company spent large amounts on safety equipment that was discarded once it became too dirty to use, and the union proposed that the savings generated by cleaning up and recycling some of this equipment could be used to fairly pay off the debt to the company. The only problem was that somebody would be needed to undertake the work.

At the same time, the company continued to deal with workers whose injuries kept them away from work and on Worker's Compensation or other wage indemnity programs. In the past, these injured workers stayed home until they were able to assume their regular duties, even if the injuries were not so extensive as to keep them from certain kinds of lighter duty work. But the longer workers are kept on WCB claims, the higher are the company premiums. Furthermore, such arrangements tend to deprive an injured worker from an opportunity to contribute and feel useful, as well as denying them the social interaction that is one of the benefits of holding a regular job.

The Response: The Modified Work Centre

Both the union and the company began to see an opportunity to devise a program that could meet several objectives of the parties. After the settlement of a collective agreement in 1991, union and management agreed to establish a Modified Work Committee to discuss the details of setting up a centre where injured workers could do light duty tasks. The purpose of the Centre was to provide an opportunity for on-site rehabilitation while engaging in an environmentally beneficial program of recycling and reuse of mining supplies.

The Modified Work Centre was established in 1991 in a garage that was moved on site. At any point in time, between two and eighteen people work at the Modified Work Centre, out of an operation that employs over a thousand people. The work varies, but much of it involves cleaning and refurbishing mining supplies that in the past would simply have been thrown away. Safety locks, boots, raingear, gloves, safety glasses, bolts, filters, valves, pipe couplings, and a host of other recyclable materials are collected in yellow bins at locations throughout the operation and brought to the work centre. Work stations have been outfitted with special equipment and adjustable chairs and benches that allow workers to stay within the limits imposed by their injuries. Workers in the centre clean and sterilize these items as required, and after repackaging, sell them to the operations warehouse for credits against the cost of running the centre.

Whenever practicable, the refurbished items are painted yellow to indicate to all workers that the materials have been recycled at the Modified Work Centre. By highlighting the work of the centre, workers throughout the operation are more aware of materials that could be recycled and reused, and that the work of the Centre is helping to control the costs of the operation. The yellow paint also reminds users to provide feedback to workers in the Centre if any of the refurbished products fail to meet the needs of the application. To date the recycled materials have met or exceeded the quality specifications provided by the original manufacturer.

The scope of the work conducted by the Modified Work Centre and eligibility for participation in the program has been negotiated between the company and the union, with some care taken to avoid diverting work from trades people and others employed in regular operations. For example, in refurbishing some equipment the parties are sensitive to people in the Work Centre doing the work of mechanics.

The Modified Work Program has expanded its operations nearby is a small building where workers can assemble wooden pallets and crates. The program has expanded to some tasks outside the Work Centre itself, to include light duty tasks with the worker's regular crew, or in other departments. Workers assigned modified work receive wages at the same rate as the job held before their injury or illness.

The concept of a modified work program has attracted the attention of other large companies (outside of mining) who are examining ways of reducing the costs of waste and injuries.

Results

For the Company and the Union, the Modified Work Programs have provided and will continue to provide a number of important benefits:

Supplies refurbished at the Centre produced a $140,000 credit from the company warehouse in 1993 and well over $200,000 in 1994.

180 workers or 17% of the workforce were accommodated through the program in 1993 for a total of 32,000 hours. Fully 75 percent of those helped were there as the result of a non-industrial injury or an illness.

The company's weekly indemnity fund generated an $82,000 surplus in 1993 through reduce use.

Days lost due to compensable injury were reduced by 25 percent in 1993.

The program has generated a far greater appreciation for the reduction of waste and the re-use of mining supplies throughout the operation.

The program has allowed workers to maintain links with the workplace rather than staying at home. Such links allow the worker to make a useful contribution to the tasks of the mining operation and provides access to the important social interaction of a work site.

Significance

The significance of this case is that there are innovative ways to address and link environmental issues to other concerns. The precise response was jointly agreed at the workplace level using the available physical and human resources. Such a response allowed for solutions to be tailored to the particular circumstances and with a minimum impact on financial resources.

Overall, the modified work program has served to meet a variety of objectives and has demonstrated the benefits of a willingness of labour and management to work together toward mutual interests. In the meantime, a very large mining operation is fostering a culture of environmental awareness, reducing waste, and generating jobs for those who would otherwise be forced to stay home.

Background

The Bayer Rubber (formerly Polysar) plant at Sarnia in south western Ontario is just one of several chemical producers that make up the large "Chemical Valley" at the edge of the city. The plant annually produces 200,000 tonnes of four types of synthetic rubber of which 75 percent goes to the auto sector for the production of tires, inner tubes, hoses and bands.The four products of the plant are butadiene rubber; nitrile butadiene rubber, butyl rubber and halogenated butyl rubber. Fully 80 percent of production is exported, with the United States accounting for the lion's share. The plant currently employs 1,300 people, both salaried and wage employees, who have an average age of 43. The Sarnia plant is organized by the Communications, Energy and Paperworkers Union (CEP) Local 914 and is one of Bayer's five rubber facilities throughout North America.

The Bayer Rubber plant at Sarnia, like other chemical plants, is facing increased competitive pressure. This pressure arises through both external competition from other rubber companies and also from within the Bayer group of plants who compete among each other for investment dollars. Environmental costs are one element of this cost pressure that is pushing productivity improvements and technological change.

One result of these different pressures has been the steady decline in employment at the Sarnia facility over the last ten years. Between 1985 and 1995 the number of employees at Bayer fell from 2000 to 1300. The long term continuing decline has occurred despite the fact that the industry has been through a complete economic cycle in this period. The facility has not hired any new personnel since 1987. Some of this decline in employment has been accomplished through attrition, which averages approximately 9 people per quarter, (though this rate has fallen in recent times) but much has been the result of periodic adjustments in the size of the workforce.

The most recent of these adjustments occurred in November 1994. An adjustment package was negotiated with the CEP local that sought to encourage voluntary severance among differing age groups. The union was assured that no layoffs would occur but a number of different options were developed to encourage workers to leave voluntarily. Older workers, aged 55 and over were given early retirement options whereby they would be entitled to a fully purchased pension at 55 plus an additional $10,000 lump sum. Other workers were provided with 2 weeks of pay per year of service up to a maximum of 86 weeks. Equally important, workers were given 60 days to exercise their option to accept the package. In the end 212 workers opted for voluntary severance or early retirement.

A further part of the adjustment was the reorganization of maintenance which included the decentralization of some personnel. The company sought to combine two trade groups instrument engineers and electrical engineers and cease fabricating some spare parts. The effect of these changes would have meant the loss of a further 85 jobs. After negotiation with the union a two year temporary agreement (i.e. outside of the collective agreement) was reached in January 1995 whereby the company agreed not to lay-off the 85 employees and the union agreed to some flexibility on union practices regarding trades and job classification. The two groups of trades workers were to be amalgamated and training was provided to workers in the areas in which they were deficient. The company developed a four year apprenticeship program for a control systems technician including one day per week during work time at on-site classes taught by instructors from nearby Lambton College. These education costs, including the wage costs are considerable but the company believes that it will provide for a better adapted and more productive workforce.

It is against this Background of cost pressures and periodic adjustment that the importance of environmental issues should be viewed.

Environmental Pressures

The environmental pressures the Sarnia plant faces are mainly related to water quality. This includes reducing the use of toxic substances in production, improved treatment of water that is to be discharged into the St. Clair River and practices in monitoring, preventing and controlling spills into the river. The company is a member of the Responsible Care program of the Canadian Chemical Producers Association and has signed off on the codes of the program to reduce emissions and provide better management of chemical substances. Among such substances the company has used is a carcinogen, benzene. Bayer has been phasing out the use of benzene and replacing it with cyclo hexane.

Part of the problems the plant faces with respect to water emissions results from the older design of the plant which originated in Sarnia as part of the war effort in 1942. Most notable in this is that there are five major water emission points at the facility, as opposed to one central emission point in more modern facilities. In addition the facility, like many in the Sarnia area of similar vintage, is built close to the river, making it difficult to procure sufficient space to treat water in one location before discharge. Such a system would allow the facility to reap some economies of scale in treatment operations.

Through the early 1980s water spills into the St. Clair River were a problem for the facility, with between 20 to 45 water spills annually throughout this time. This heightened concern among the farmers and residents in the surrounding communities, for whom water quality is vitally important.

One example of the intersection of environmental and cost pressures is to be found in the area of energy costs and the nitrogen oxide (NOx) emissions that are generated in the production of steam and power. This is also a general concern among other chemical companies, and in 1993 a joint venture between the Sarnia plants of Dow, Nova and Bayer was agreed to. As is described in the next section the major impact on workers was felt at the Bayer plant.

Responses

The response to each of these types of environmental pressures has been different. Issues surrounding water quality have required capital expenditures, training and environmental awareness. Where a labour impact has been evident, as in the co-generation venture, the manner in which adjustment is handled is an important ingredient of how successfully the transition is made.

To address the problems of water quality and use, the company spent up to $40 million between 1991 and 1994 on environmental measures and equipment. This included $10 million on a sludge treatment facility, a further $10 million on developing closed loop cooling together with a containment unit for the use of benzene, $4 million on closed loop cooling for the isobutylene extraction unit and $2 million on an outfall analyzer at 4 of the 5 outfalls on the site. The rest of the expenditure was due to a number of minor but environmentally benign improvements and new equipment. In addition a joint business-labour environment committee was established in 1990 to address the question of environmental performance at the site. The committee has been very active in improving the environmental performance of the facility. Originally the committee met on a monthly basis reflecting the priority of its work, but now it meetings are quarterly. However, the management and union co-chairs of the committee continue to meet on a weekly basis to discuss environmental concerns. Environmental awareness training was provided to workers to encourage better practices in the workplace in relation to the environment. A further impetus to greater responsibility for the environment was provided by the Ontario Ministry of Environment which decided in the late 1980s to charge employees for environmental accidents, rather than employers or the company. This has carried the environment issues directly to the place of operations. Two employees have been charged at the Sarnia site in one case the employee was acquitted, in the other the case did not proceed to trial.

The company has improved its community role through a Community Advisory Panel composed of community, native, environmental and company representatives. The panel provides for an exchange of information and discussion of environmental questions including air and water monitoring, notification of accidents and spills, and remedial measures for affected parts of the St. Clair river system. Advice has also been provided by company personnel on water treatment in local municipalities. This had led to a better appreciation by company representatives of local concerns, particularly with water quality, and a greater degree of trust and comfort among local residents and farmers.

The joint venture between Dow, Bayer and Nova of 1993 was an attempt to reduce energy costs and NOx emissions through the production of steam by co-generation. Energy would be produced mainly by Dow but also to a lesser extent by Bayer, and Nova would be the principal customer. Because of the vintage of the equipment at Bayer, the major labour impact of the co-generation deal was felt at this facility where three old boilers were closed down. In May 1993, the union was made aware of the impact of this joint venture on the 14 workers in the steam and power plant at Bayer. The company and the union then negotiated a package to avoid layoffs through shifting workers to other positions at the plant. The key issue was the pay classification, or rate code. Initially workers shifted to other positions would be paid at their previous rate code for nine months and then the rate code would be lowered at intervals of six months until the pre-existing rate code for the position would be reached. Positions were open to the 14 workers which would otherwise have normally be closed to these workers. Finally, workers were offered a $2,000 bonus if they remained at the steam and power plant until it was closed. This was designed to discourage workers at the steam and power plant from transferring to other positions that might become available while the steam plant was still operating.

Results

The Canadian chemical industry is increasingly being integrated into a North American context. One result is that investment decisions by the parent company are based on different parameters. At the same time greater integration has intensified competition and the pressure to keep costs contained, of which environmental issues are a significant portion. Part of the result of these pressures has in many cases been a stagnation of employment growth coupled with periodic adjustments within several companies. Jobs which used to be transferred from one generation to the next have disappeared and this can adversely effect morale within workplaces. One way to limit the damage of periodic adjustments may be to seek alternative means of transition to smaller employment levels rather than layoffs. Some chemical companies have closed whole divisions and the result on survivors' morale has been devastating. The examples of adjustments to the environmental and other pressures at Bayer demonstrate a willingness to negotiate change rather than unilaterally impose it. Although the workforce has declined by 700 people over 10 years, such reductions have been achieved by voluntary severance. Many of the packages have bought time for adjustment such as the 85 jobs in the maintenance department. While morale problems may still exist at the Bayer facility, the question is whether the approach at Bayer has a limiting effect on morale lost compared to other chemical companies.

Some evidence suggests that this is indeed the case. Labour relations are generally good. The last strike (which lasted only a few days) was in 1976 and there has not been a prolonged strike since 1959. The union and management are discussing a number of changes that would move the company towards a less hierarchical structure. Certainly the union believes that the good business-labour relations should be built upon further to encourage greater participation by both management and labour on a joint process of adjustment and continuous improvement.

In terms of the environment, the record of the company has improved on a number of fronts. The company was able to achieve a 73 percent reduction in emissions of benzene from 1989 to 1994 and is on track to eliminate benzene in use at the Sarnia plant by 1997. At the same time expenditures on water treatment have improved the quality of the water discharged into the St. Clair river. The record on spills into the river has also improved through greater employee awareness, joint environmental committees and proper awareness training. There have been no spills into the river in the last two years, compared to 20 to 45 spills in the 1980s. The work of the joint management union environment committee has been scaled back, reflecting the improved environmental performance generally. Finally, the co-generation joint venture has significantly reduced energy costs at Bayer and resulted in up to a 30 percent reduction in NOx emissions. The latter is an example of how a company can address environmental issues in an era of competitive pressure and reduced workforces, and minimize the impact of adjustment at the same time.

Significance

The case shows how environmental issues can be addressed in an atmosphere of continuing pressure on costs. Some of these solutions have been technological, some achieved through collective bargaining and better practices. Training has been an important part of adjustment in response to the general climate of change that is affecting the facility.

The case also shows that despite the pressures on costs, proper consideration of adjustment concerns of workers can be addressed. The various agreements and packages negotiated on adjustment have given workers both some time and some options. In essence, the benefits of greater productivity in one area such as the co-generation joint venture can provide the means for a more considered adjustment process and one that permits the impact to be more evenly distributed.