The supply of available workers has not kept pace with the increase in demand for passenger and cargo transportation over the past few decades. The situation may only worsen in the future if proactive measures are not adopted.

Canada’s population is expected to rise from 32.8 million in 2007 to 41.2 million by 2030.  Despite significant population growth, Canada’s aging population and low birth rates will mean that the share of working age persons will remain relatively unchanged, placing further strain on the trade and transportation industries that are already experiencing labour shortages.  While many countries are turning to immigration to solve labour shortages, the transportation industry cannot rely on immigration alone to solve this issue. 

In the first 11 months of 2008, employment increased by 0.8% (+133,000), a slower pace of growth compared with the 2.2% increase(+361,000) observed during the same period in 2007.

In November 2008, declines in employment were concentrated in Ontario (-66,000), where there was a large drop in full-time work. Nova Scotia (-4,400) also experienced a decline in November 2008, while employment remained relatively stable in the other provinces.  The transportation industry experienced a decline in employment over the same time period. 

This decline in employment affected most demographic groups, with the largest decreases among adult men and youth.

In November 2008, year-over-year growth in the average hourly wage was 4.6%, well above the most recent increase in the Consumer Price Index (+2.6%).

Transport Canada, with its partners and stakeholders, will want to explore how technology can be put to use to support demand management and help optimize the transportation network.

Looking ahead, technology adoption can continue to increase worker productivity. For example, the International Air Transport Association (IATA) envisages "simplified and secure passenger processing", a system that collects passenger information once and then allows electronic passenger processing with subsequent service providers, eliminating repetitive checks and freeing-up resources. Similarly, Intelligent Transport Systems (ITS) can reduce the need for more drivers and maintenance workers. “Smart” chips detect and warn of imminent part failure, reducing the need for periodic vehicle checks. Driverless trucks on wi-fi enabled highways could further reduce the need for truck drivers.

In Canada, transportation has always created opportunity – by connecting workers with jobs, products with markets and travellers with destinations.

As global commerce is increasingly driven by the rapid, reliable and secure movement of goods and people around the world in global supply chains, a safe and secure transportation system capable of serving cutting edge business models with minimal impact on the environment will make a direct contribution to Canada's competitiveness and economic success.

Asian and Big-5 (i.e. China, India, Russia, Brazil, Indonesia) economic growth is increasingly driving the global economic situation.  The slowdown of these economies would remove Canadian insulation from a US economic slowdown, resulting in a possible Canadian recession over the 2009-10 period.

The U.S.-led global recession is having profound impacts on our trade sector. This, coupled with faltering domestic demand, will drag the economy into recession in 2009. Starting in the fourth quarter of 2008, Canada’s economy is expected to contract for three consecutive quarters, resulting in a 0.5 per cent decline in real GDP this year.v

In February 2009, the Prime Minister announced changes in the structure of how we manage human resources in the Public Service of Canada.  These changes followed recommendations of the Prime Minister’s Advisory Committee on the Public Service, whose purpose is to support Public Service renewal and enhance human resources management in the Public Service.

First and foremost, Deputy Ministers, who are now responsible for leading the achievement of business goals, will have the primary responsibility for human resources management.  The new human resources management structure will achieve this by providing Deputy Ministers, their management teams and human resources professionals with the clear responsibility to manage their people fully and effectively, as well as the flexibility to do so.

Second, effective March 2, 2009, the Canada Public Service Agency and the parts of the Treasury Board Secretariat that deal with pension and benefits, labour relations and compensation, were consolidated into a new Office of the Chief Human Resources Officer.It is housed within the Treasury Board Secretariat, similar to the Office of the Comptroller General.

These changes will make the Public Service of Canada more effective by streamlining the way we do business and by putting accountablity for managing human resources in the hands of Deputy Ministers.  It is an essential element of renewal.

In 2008, the Public Service Population reached its highest point in the past 25 years. Between 2000 and 2008, the size of the public service increased by 23% returning to the size of the 1993 workforce. 

Program Review, changes in the structure of departments, health and safety, recruitment, retirement, devolution and privatization are all factors that have influenced the size of the workforce since 1983.
 
In 2008, 40 per cent of employees worked in the National Capital Region (NCR) and 60 per cent were located throughout the various regions of Canada:

• 14 per cent in Ontario (excluding the NCR);
• 12 per cent in Quebec (excluding the NCR);
• 13 per cent in the Prairies;
• 11 per cent in the Atlantic;
• 10 per cent in British Columbia or the North; and
• The remaining 1 per cent are employees stationed outside of Canada.

Approximately 22% of all public servants are under the age of 35 and 26% are between the ages of 35 and 44.  The average age is 44 years old and is beginning to decrease.

Departure rates have been increasing in recent years due to the increase in retirement rates.  Retirement rates reached their highest level in recent years (3.4% in 2007/08).  More employees are retiring at a younger age as a result of attaining full pension earlier.

In April 2008, the Clerk of the Privy Council tabled the Fifteenth Annual Report to the Prime Minister on the Public Service of Canada.  In this report, the Clerk reaffirms the necessity of renewal, continuing progress, and presents critical issues to be addressed in looking forward to the coming years.

Specifically, the Clerk highlights the need to deepen and extend renewal actions focused on Planning, Recruitment, Employee Development, and Enabling Infrastructure; the same four priorities stated in previous reports.

3.2.4 Management Accountability Framework (MAF)

The Management Accountability Framework (MAF) sets out the Treasury Board's expectations of senior public service managers for good public service management. The MAF is structured around 10 key elements that collectively define "management" and establish the expectations for good management of a department or agency. viii

The MAF impacts TC’s management practices as the department strives to meet its expectations. TC’s Integrated People Management Strategy is aligned with MAF elements 1, 10, 11, and 21 which are the areas related to HR practices.  As human resources planning is integrated with all aspects of management, the process is also closely tied to elements 8 (Change Management) and 9 (Risk Management).

3.2.5 Expert Panel on Integrated Business and Human Resources Planning

The Clerk of the Privy Council’s 2008-09 Public Service Renewal Action Plan committed that “a panel of experienced external and internal executives would review the 2007-08 integrated business and human resources plans prepared by departments and agencies and identify best practices by November 2008”.

The Panel identified some winning conditions for successfully linking people plans to business goals. The fundamental driver is leadership. Deputy Ministers must drive the push for clarity in their departments. Demand from the top with clear governance, accountability, and performance expectations is indispensable. In moving forward with implementation,the identification of a small number of strategic priorities brings focus to the organization and cross-departmental/cross-functional teams bring an integrated approach to planning. This plan, along with initiatives lead by the Integrated Planning unit, are clear indicators that TC is capitalizing on these drivers. ix

At all levels of the PS across Canada, there is a growing awareness of the democratic, professional, ethical and people values inherent in public service. These values are important not only to public service institutions and the daily lives of individual public servants, but to earning and keeping public trust. PS values underpin everything public servants do because they inform every management accountability requirement. Research shows that organizations with a strong values and ethics culture:

• Have more satisfied and committed employees;
• Attract and retain employees; and
• Are trusted and more productive and effective.

In response, the federal government has launched major values and ethics initiatives at both the departmental and central agency level to ensure a strong foundation of public service values and ethics. A Values and Ethics Code for the Public Service, which all public servants are expected to comply with and to exemplify, has been put in place. All federal entities must now assess and report on values and ethics. The PS has been moving from a rules-based to a values-based human resources regime. Many departments, including TC, have created, or are creating, dedicated values and ethics organizations.

TC’s values and ethics initiative aims at more than compliance; it aims to make values and ethics part of its mainstream management principles, daily decision-making and behaviour.

TC is the federal government department responsible for most of the transportation policies, programs and goals set by the Government of Canada to ensure that the national transportation system is safe, secure, efficient, and environmentally responsible.

To succeed, TC is committed to being a world-leader in developing and implementing effective policies, programs including legislative and regulatory frameworks; and works in partnership with other governments, industry and stakeholders.

TC is recognized as innovative, effective and accountable, with a healthy, stable and productive work environment that values professional excellence, teamwork, open communication, diversity, linguistic duality, continuous learning and mutual respect.

TC operates in a highly dynamic and complex business environment with shifting priorities and increased workloads. TC’s work and workload is greatly affected by:

• The significant growth of the transportation industry in today’s global economy;
• Increased horizontal linkages between transportation and priorities in other sectors (e.g. climate change);
• The continued threat of terrorism;
• The need to find new ways of doing business (e.g. safety management systems); and
• An increased focus on accountability.

i) Demographic highlights – calendar year 2008

In addition to trends in the business environment, trends in TC’s workforce demographics will influence HR strategies. The following points highlight some of the department’s key demographic observations and challenges. A more detailed analysis is provided in Appendice 10.2.

• TC’s workforce increased by 182 employees (+3.6 per cent) in 2007, with most growth in the indeterminate complement. On January 1, 2009, Transport Canada’s workforce totaled 5,304 employees, consisting of 5,120 indeterminate employees (96.5%) and 184 term over 3 months employees (3.5%).

Graph 1 - Transport Canada Population

• Most employees work in the technical inspection (TI), administrative services (AS), clerical & regulatory (CR), and aircraft operations (AO) streams. Employees work in each of the six regions across Canada, with the highest concentration of employees in the NCR.

• Nationally, employment equity representation for Women, Visible Minorities Aboriginal Peoples and Persons with Disabilities exceeds the 2001 labour market availability (LMA) statistics. The new LMA statistics based on the 2006 Census will be released in Spring/Summer 2009.

• In the area of official languages, TC’s indeterminate and term over three months complements are made of 3,683 anglophones (69.4 per cent) and 1,621 francophones (30.6 per cent). Some 46 per cent of TC employees are assigned to bilingual positions, with 96.1 per cent of them meeting the language requirements of their position.

• In 2009, TC employees averaged 45.9 years of age with 13.1 years of federal public service.  Their average age and average length of service decreased compared to 2008, by 0.3 and 0.7 respectively. This is an incremental positive change from the average age of 46.2 years and average tenure of 13.5 years in 2008.

Graph 2 - Indeterminate Age and Service Profile by Region - January 2009

• The number of indeterminate employees age 34 or younger increased by 174 in 2008. As of January 2009, the department had hired 103 post secondary graduates through recruitment initiatives.

Table 1
Age Profile - January 2009

• More than two indeterminate employees in five will be eligible for retirement by the end of 2016 (seven-year projection). However, of the 660 employees eligible to retire in 2008, only 191(29%) actually did.

• Compared to 2007, the number of people leaving TC in 2008 increased (+83 losses), and recruitment was higher (+104 recruits), with a 3.6 per cent increase in overall strength. The number of recruits exceeded the number of people leaving in all regions and business lines, except in the Quebec Region. Sixty-five per cent of the new recruits joined the NCR staff.

• The leading cause for departures in 2008 was transfers to other federal departments.  The number of transfers increased significantly by 85 (+51.8 per cent).  Retirements also increased, but only by 7.3 per cent.

ii) Workforce Characteristics

TC employees are versatile and professional. With over 30 occupational groups, the TC workforce has one of the most diverse skill sets in all of the PS. Much of the work described in the previous section requires employees to have strong technical skills and abilities, as well as sound knowledge of their respective fields.

More information on the minimum qualifications of employees in the major occupational groups mentioned in this plan can be found at:  http://www.tbs-sct.gc.ca/gui/squn02-eng.asp.

i)  Union-management relationship

TC has an effective union-management consultation framework in place, which clearly outlines the objectives, guiding principles and the existing union-management forums.  These include various ad hoc consultation forums and the:

• National Union-Management Committee (NUMCC)
• TC Consultative Committee on Human Resources Management (TCCCHRM)
• Regional Union-Management Committees
• Local Union-Management Committees
• National Policy Health and Safety Committee
• Regional Health and Safety Committees
• Local Health and Safety Committees

The NUMCC is co-chaired by the Deputy Minister and a senior bargaining agent representative.  The National Policy Health and Safety Committee is also co-chaired by a management bargaining agent representative and a TC senior management representative. 

ii) Public Service Employee Survey (PSES) results

The Public Service Employee Survey (PSES) was conducted for the fourth time from November 3 to December 12, 2008.  TC’s participation rate was 71.2% (as per the CPSA website), a favourable participation rate.  The results of this survey are expected in Spring/Summer 2009 and an analysis of the results will be conducted at that time. The national working group that coordinated participation in the survey, as well as the recently created Values and Ethics Advisory Committee will examine the results.  Action plans will be developed to address elements requiring attention and consultations with bargaining agents will take place.

iii) Use of alternative work arrangements

TC supports flexible work and leave based on employee needs and operational requirements. In total, 20 per cent (1041) of TC employees are on a compressed workweek, 1 per cent (68) work part-time hours and 2 per cent (111) use leave with income averaging. Providing flexible work arrangements is part of TC’s commitment to job accomodation (please contact Carl Leblanc if you wish to get more information on Job Accomodation at TC).

iv) Use of sick leave

A total of 4465 employees, representing 84 per cent of the overall workforce, reported sick leave in 2008. The vast majority (4,379) made use of uncertified sick leave for an average of 6.7 days per employee, while 1,039 employees reported certified sick leave for an average of 14.7 per claimant.  Compared to 2007, an additional 147 employees (+3.5%), more or less matching the increase in overall population, reported uncertified sick leave with average use inching up by 0.2 days to 6.7 days.  The number of employees that claimed certified sick leave is also slightly higher (+19 employees or 1.9%), however average use dwindled by 2.2 days, from 16.9 to 14.7 days.

v) Occupational health and safety

The health and safety of TC employees is of utmost importance. In addition to our legal obligations under the Canada Labour Code Part II, a new Occupational Health and Safety Policy (please contact Carl Leblanc if you wish to get more information on our new Occupational Health and Safety Policy), approved in May 2007, sets forth guidelines for a healthy and safe workplace.

vi) Values and ethics

More than ever before, values and ethics play a central role in developing policies, training, and making everyday decisions. The Federal Accountability Act, the Public Servants Disclosure Protection Act, and the Values and Ethics Code for the Public Service are the result of the public’s growing expectation for transparency, fairness, accountability, integrity, and protection of information in the PS.

Values are standards we set for our dealings with our clients and with each other, while ethics is how we put our values to work in actual decision-making – that is, in doing the right thing. Values and ethics are present in day-to-day activities and are very important in today’s PS and at TC.

The department has established a Values and Ethics Office strategically positioned in the Human Resources Directorate. This office serves as a centre of expertise for employees and managers in Headquarters and the regions for matters related to the Values and Ethics Code for the Public Service and to the upcoming Public Service and Departmental Codes of Conduct.

A Values and Ethics Advisory Committee, chaired by a member of TMX, was established in early 2009. It is an inclusive and representative committee responsible for reviewing and making recommendations on existing and proposed TC Values and Ethics policies, programs, strategies, initiatives, guidance and action plans. Members promote and assist the implementation of values and ethics across the Department in support of the Public Service Code of Values and Ethics and the Values and Ethics Results Framework.

vii) Overtime Use

A total of 3,425 employees recorded overtime in 2008 for an average of 93.4 hours per claimant.  Compared to 2007, overtime activity grew by close to 18,000 hours or 5.9% in 2008, essentially owing to a 5.3% increase (+172) in the number of recorded users.  This additional activity resulted in a 6% or $1M hike in the total estimated dollar value of overtime, reaching $18M.

Over the next three years, the nature of the work at TC will change to reflect the department’s plans and priorities. However, TC’s activities will continue to centre on developing and implementing effective policies and programs, including legislative and regulatory frameworks. Some details of future work are:

i) Increased consultations and collaborations

Many initiatives linked to strengthened security policies and programs, streamlined regulations, Safety Management Systems (SMS), and Security Management Systems (SeMS) will require greater international, interdepartmental, inter-modal, and industry consultations and collaborations.

Initiatives linked to borders, gateways and trade corridors will require engagement strategies and rely on consultations and partnerships. Infrastructure projects and related environmental assessments will require consultations with Aboriginal communities.

Most consultations and collaborations will strive to align or harmonize approaches across jurisdictions in ways that are meaningful to both industry and to the public. Linked to this will be the need to revise and update policies and programs and to monitor progress.

ii) Changing nature of the work

SMS and SeMS will bring gradual change to how TC regulates and monitors for compliance. These systems will change how inspectors carry out their oversight activities.

While SMS and SeMS will reflect the relevant laws governing each mode, the nature of the work will be similar. A significant action linked to implementing SMS will be the national reorganization and restructuring of Civil Aviation.

Over the next three years, Civil Aviation directorates in all Regions will change their work structure to address, in part, the changing nature of the work.

You can find more information on this new work structure on the National Organization Transition Implementation Project (NOTIP) (please contact Carl Leblanc if you wish to get more information on NOTIP).

Also, amendments to legislation such as the Railway Safety Act and the Transportation of Dangerous Good Act will increase the scope, nature and/or volume of activities performed by TC employees operating under these respective Acts. 

The increasing search for internal efficiencies and strengthened accountability focused on results-based reporting will:

• Change the nature of the work; and
• Put a greater focus on oversight activities in all areas of TC, particularly in the corporate functions.

iii) Increasing policy and program requirements resulting in increased workload

Workload is expected to increase across all program activities over the next three years because of:

• New focus on borders, gateways and trade corridors;
• New large infrastructure and capital investment programs;
• Environmental and climate change policies and programs;
• Regulatory and legislative changes and reviews;
• Transportation industry growth;
• An unpredictable security environment; and
• Increased planning and reporting requirements.

he increase of policy, program and operational workloads will translate into workforce shortages across the department and an increased workload for the corporate functional communities such as Human Resources, Finance, Technology and Information Management, Communications, Access to Information and Privacy (ATIP), and Legal Services. The latter workload pressures may be critical because of frequent staffing changes in these corporate functions, which are in high demand and in low supply across the PS.

iv) Focus on Integrated Planning aligned with the Program Activity Architecture

TC has renewed its Program Activity Architecture (PAA) (see section 4.1). Under the PAA, TC has four Strategic Outcomes with multiple Program Activities and sub-activities. As the department implements and reports against the PAA, it will monitor impacts on the work and workforce much more systematically than in the past.

v) Continued importance of bilingual linguistic requirements

The Official Languages Directive on the Linguistic Identification of Positions makes bilingual requirements of positions in bilingual regions and designated bilingual offices a primary management consideration. TC’s official languages priorities put all positions supervising bilingual positions in bilingual regions at the minimum BBB level by March 31, 2010. The department also needs to make sure it has sufficient bilingual capacity to provide quality service to the public.

vi) Increased administrative process automation

Technology will continue to impact the work of employees and managers.  Over the next few years, new systems such as the automated Human Resources Service Request (HRSR), the project management component of HRSR, more automated forms, and a Learning Management System (LMS) will be introduced and implemented.  These new systems will replace gradually paper-based administrative processes that have been in place for years.  While the expected outcome is to improve process efficiency, the transition period for managers and employees to learn how to work with the new technology may create process delays in the short-term.

i) Continued importance of technical knowledge and abilities

TC employees in all directorates will continue to have very strong technical and operational abilities and knowledge of their respective fields and of the transportation industry. Employees will rely on their strong technical skills and knowledge as they continue to develop and implement effective legislative, regulatory frameworks, policies and programs.

A good understanding of regulations will be essential for progress in the streamlined regulations initiative, whether it is in developing or modifying regulations and/or in having credibility with clients and business partners.

Under Safety Management Systems (SMS) and Security Management Systems (SeMS), how knowledge is applied may differ. Instead of using technical knowledge to prescribe a course of action to clients, “inspectors” will use their knowledge of the industry, regulations, safety/security concepts and tools to assess clients’ safety/security management systems and to identify any potential threats. In-depth knowledge of SMS, SeMS and risk management practices will be important for all Safety and Security employees.

Technical knowledge and abilities will be required for more than ensuring a safe and secure transportation system. Infrastructure and environmental initiatives will also require certain technical skill sets such as civil and mechanical engineering, urban planning and urban transit expertise, as well as a growing need for education and skills in environmental sciences and the ability to conduct environmental assessments.

TC expects that the number of employees and potential candidates with recognized credentials in these fields could be in short supply in the next few years.

ii) Increased focus on competencies

With the SMS and SeMS shift from inspecting and enforcing regulations to system level audits and interventions focused on results/performance, there will be greater focus on competencies such as analytical skills, strategic thinking skills, communication skills, and interviewing skills. The combined application of these skills will help “inspectors” effectively collect required information about client systems, procedures and operations, analyze trends, and build cooperative relationships.

Given the nature and complexity of the work performed in the department, these competencies will be required for all officer level positions, in all Groups and in all Regions.

The increase in consultation and collaboration, both with employees in different program activities and with industry representatives, will require engagement and cross-functional teamwork, as well as business partnering skills and negotiation skills.

iii) Focus on results-based management, reporting and writing skills

The implementation of the PAA and the new approach to managing resources nationally across organizations will require strong strategic thinking, action management, people management, and financial management competencies. These will be essential to effectively align program activities to strategic outcomes and to clearly articulate this alignment to colleagues and employees, in order to engage them in the collaborative achievement of these outcomes.

Additionally, the requirement to report against the new PAA, continuing reporting requirements by central agencies, as well as the need to produce comprehensive performance-based regulations, policies and documentation for the public and industry will further highlight the need for strong oral and written communication skills. These include skills in report preparation and in providing oral briefings.

iv) Increased importance of policy development and program management capabilities

The development of marketplace frameworks and investments in infrastructure, gateways and corridors will result in a greater demand for skills such as economic and environmental policy analysis, as well as project and program management. On-going landlord responsibilities will also require real property management skills.

i) The generation mix (x) (xi)

The workplace will see a greater mix of generations over the next three years. In fact, there will likely be four different generations present in the workplace, each with their own set of values, view of authority, work and communication style, and expectations of leadership, awards and recognition, and the work environment.

Younger workers will look for flexible work arrangements and organizations that encourage their professional development. In some cases, younger workers may turn down management positions to maintain their balanced lifestyle.  Growing numbers of younger workers could also mean an increase in maternity and parental leave. These expectations may contrast the working style of many seasoned workers (veterans and boomers) who believe that success comes through long hours and corporate loyalty.

Successful organizations and managers will respect and efficiently manage diverse working styles and recognize the value of pairing seasoned workers with younger workers.

x - www.hrpao.org:  Article originally appeared in the September 2004 issue of Benefits Canada – Allen, Paula, Why and How:  Managing Different Generations in the Workplace.

xi -Duxbury, Linda; Answering the call:  Who will fill the management void, Canadian, Government Executive, p16-18, November 2006

ii) Increasing demand for job accommodations

Job accommodation applies to all employees and covers a broad spectrum of services, equipment, policies and procedures. Needs that must be accommodated in the workplace result from factors such as disability, medical conditions, sex, age, family status, ethnic or cultural origin and religious belief.

As TC’s population becomes more diverse and representative of Canada’s population, there will likely be an increase in accommodation needs. Examples of such needs are given on TC’s Diversity Intranet Site (please contact Carl Leblanc if you wish to get more information on these examples).

With a growing workforce, office space shortages, the focus on work-life balance and the need to attract new employees, there will also be an increased demand for alternative work arrangements such as telework, compressed workweeks, leave with income averaging and flexible hours.

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In alignment with the PAA, groups and regions are now reporting against Strategic Outcomes. However, the current organizational structure and some current practices (i.e. Human Resources planning) do not reflect the multiple Program Activities and sub-activities that horizontally cross traditional regional and group boundaries.

Other types of planning activities, such as financial planning and reporting, are in line with PAA. This situation creates discrepancies between different practices, limits the organization’s planning and reporting capacity, and does not fully support integrated planning within the department.

The ongoing development and implementation of a PAA governance model also impacts the human resources planning process and how the department manages human resources.  A PAA governance model will further substantiate the need to renew the human resources planning process, as it will state clear accountabilities for planning and managing resources as well as for reporting on results.

Numerous factors reveal a gap in management capacity in all Groups and Regions. The biggest concern is that the aging workforce and regular attrition may result in shortages of supervisors, managers and executives. Many employees currently in these positions are eligible to retire within the next four years.

As described in section 5.2.3, the different goals and expectations of the younger generations are also contributing factors to this gap. In some cases, younger workers may turn down management positions to maintain their balanced lifestyle. On the other hand, certain individuals who have the desire to move to these positions might be hindered by the fact that they do not meet bilingual requirements, thus reducing the pool of candidates for management levels.

Finally, for individuals in certain occupational groups and levels, the financial incentives to apply for EX positions may be too small to interest them in taking on management responsibilities. Also, the requirement that candidates for EX positions must now be assessed against key leadership competencies may result in a smaller pool of available candidates, particularly if feeder groups are not well prepared/trained. Certain management competencies are not readily available throughout our workforce, which in turn heightens the need for renewal of management capacity.

A. Shortage of technical employees (TI, AO-CAI, EN-ENG, PC, and EG)

Increasing workload, changing and new work methods and technology, the labour market and internal demographic realities are the principle reasons why there will soon be a shortage of technical employees. The challenge is to fill vacant technical/operational positions when there are not enough available skilled workers either in the PS or the external labour market. This gap is mainly linked to the TI, AO-CAI, EN-ENG, PC, and EG occupational groups.

While retirements and regular attrition have been low in the past, the risk increases as employees eligible to retire continue to delay their departure. These employees could decide to leave at any time. A large-scale exodus of technical employees would cause great stress on TC’s capacity to fulfill its current mandate.

Adding to this challenge are the bilingual linguistic requirements of positions, as well as the standard requirement for imperative staffing. The complex nature of the work and the already scarce resources, combined with the requirement for employees to be bilingual, further reduces the pool of available candidates in these specialized fields.

However, the changing economic situation will create an uncertain labour market, which may impact employees’ personal career decisions and external workforce availability, thus possibly reducing the probability of occurrence of this gap in the short term.

While TC works to achieve its strategic objectives, it will also need to continue addressing ongoing work demands under the current safety and security framework.

B. Shortage of employees in ES, PM, PE, FI, and IS occupational groups

Demographic realities and the high demand for employees in the occupational groups noted above, right across the PS, have amplified a supply shortage at TC. Not only are these groups competing for talent within the PS and with the private sector, but also within TC.  This shortage is different than the one for the occupational groups listed in the previous gap because the external labour market is not depleted, however, demand is still higher than supply because it is increasingly difficult to recruit and retain employees at the working level in these categories.

Increased workload related to initiatives under Transportation Marketplace Frameworks, Gateways and Corridors, Transportation Infrastructure, and Transportation Innovation have increased the need for PM and ES employees at the working level in both the Programs Group and Policy Group.  Increased workload due to significant investments for infrastructure project announced in Budget 2009 will also accentuate the need for these employees.  Regional offices will also require staff in the PM categories for the environmental protection program.    

The workload for employees in some functional communities (i.e. PE, FI, and IS) is increasing because of:

• Shortages of fully qualified employees;
• An ever-increasing demand for replenishing the workforce;
• Changes to organizational structures;
• Financial pressures; and
• The extra burden of a work environment focussed on monitoring and accountability.

As with the shortage of technical employees, bilingual requirements further reduce the pool of available candidates in bilingual regions.

C. Challenge in retaining employees (i.e. AS and CR)

The AS and CR occupational groups are widely used by the general public as entry-level positions into the Public Service, which tends to trigger an overwhelming number of applicants. However, retention continues to be an issue, primarily in the NCR, because candidates with post-secondary degrees considered as “overqualified” for these positions, often apply and are appointed – only to seek internal promotional opportunities shortly after their arrival.  In other cases, merit criteria for these positions are set higher than the qualification standards which attracts candidates that will inevitably seek promotional opportunities more suited to their qualifications. These situations create major instability, as there is a constant rotation of staff in administrative/clerical positions. 

Another factor contributing to the retention of AS’s and CR’s is career progression. Although many developmental programs and/or career paths are outlined in the department, clear career paths and advancement possibilities for the AS and CR occupational groups are not communicated or developed to their full potential. Consequently, this can lower motivation and moral, encouraging these employees and to seek other opportunities elsewhere.

In summary, shortages in the occupational groups mentioned in sections 6.1.3 A and B are amplified by the challenge in retaining employees. While recruitment outpaced separations overall, attrition grew by 19% in 2008.  Voluntary departures to other departments grew by 51.8%, making it the foremost separation reason.  The indeterminate attrition rate for 2008 is calculated at 9.6%, up by 1.2% from 2007.

With the changing nature of the work, work methods, and technology, certain competencies and skills are becoming increasingly important. Competencies such as analytical skills, strategic thinking and planning, communication skills (oral and written), teamwork, business partnering, leadership, and negotiation skills are becoming increasingly important in the day-to-day activities of the department. 

The management of large infrastructure programs, among ongoing projects, as well as the new Treasury Board Policy on Investment Planning and Policy on Management of Projects also accentuate the need for project management skills in the department    

Coupled with the possible shortage of employees, is the additional risk that TC will experience a shortage of technical skills as well as corporate and industry knowledge required to undertake the work. Retirement and attrition play an important role in the loss of corporate knowledge. Numerous career opportunities allow younger workers to easily transfer from one job to another, and this places a heavy toll on industry and corporate knowledge. Employees will continue to require strong technical knowledge of their respective fields and of the transportation industry as they continue to develop, implement, monitor and enforce legislation, regulations, standards and policies. The changing nature of the work will also require knowledge of SMS, SeMSand risk management.

The lack of a sufficient number of employees who have achieved the working level in different occupational groups with a strong base of experience also contributes to the shortage of knowledge and competencies. As mentioned, employees are moving through career paths at a faster pace than ever before because of the tight labour market, strong competition for talent, and retention issues. Consequently, employees do not always possess the full competencies and skills required for their working levels, which adds to their workload burden and to that of others, slowing down productivity and affecting the ability to meet demands.

6.1.5 Workforce Gap 4  - Need for strengthening diversity initiatives to become more strategic in attaining level 4 on the Equity Continuum

According to the Diversity Climate Surveys taken in 2003 and 2006, TC has moved from 2.5 to 3.44 on the Equity Continuum, and is only a half step away from attaining step 4, where diversity is integrated into all aspects of the organization. The fourth step requires diversity to become a core value of the department and each of its employees.

It is clear that to effect a change in TC’s corporate culture, there must be more collaboration with different Human Resources programs to make greater progress in integrating Diversity, Official Languages, Values and Ethics, Learning, and Awards and Recognition.

As of March 2008, TC had closed the gap on representation of visible minorities. However, new workforce availability statistics will be released in Spring 2009 and the department will reassess its position and may need to readjust its targets as required.    While the department has made progress overall, important gaps still exist in all major employment categories. Particularly, greater gaps exist in the PC, AO, EG, EN-ENG, AS and PM occupational groups. Women are also under represented in the GT and TI occupational groups.

A representative workforce will be better positioned to understand the needs of the Canadian public and to offer services to address those needs. This gap will likely increase since immigrants will fuel the majority of labour market growth by 2010.

While Transport Canada’s Integrated People Management Strategy will address all the challenges identified in the Integrated HR Plan over the next three years, the Action of Importance for Public Service Renewal will focus on the shortage of Technical Inspectors (TI), Engineers (EN-ENG), Environmental Scientists (PC), Economists and Analysts (ES), and Program Management (PM) employees required to manage future transportation safety and security management systems and to strengthen the department’s capacity to support the government’s environmental agenda.

Action of Importance Main Components

Recruitment and Staffing is one of the major components of Transport Canada’s People Management Strategy.  As specified in the initiatives outlined for 2009-10, the department will establish and implement national, regional, and local recruitment and staffing strategies using a common template.  The PS Renewal Action of Importance described in the previous section will also be interrelated with Transport Canada Recruitment and Staffing Approach, as it includes a recruitment/staffing phase to address particular human capital shortages. 

The overall approach to recruitment and staffing to be implemented over the next three years will be aligned with the Program Activity Architecture and will strive to:

• Institute the use collective staffing and existing pools of qualified candidates as the standard, whereas unique processes will be an exception based on needs identified in staffing strategies;
• Address the Shortage of Human Capital gaps identified in this plan by increasing the intake of TI, EN-ENG, ES, PC, and PM over the next three years; and
• Support the department's Diversity and Official Languages action plans.

To effectively implement this approach, the department will undertake the following initiatives over the next three years:

• Establish national recruitment and staffing tools (by PA) such as generic statements of merit criteria and rating guides based on generic work descriptions;
• Establish and implement recruitment and development programs as per the PS Renewal Action of Importance; and
• Progressively undertake collective staffing based on national staffing strategies.

This approach sets national guidelines and sets our goals in terms of the direction of recruitment and staffing. It will also allow for monitoring and reporting on progress at the departmental level.  It encourages national dialogue, in light of the PAA and the national area of selection for external processes, and reinforces existing regional and local strategies that are more closely tied to the daily operations of the department.