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					            LABOUR MARKET INFORMATION



Labour Market Bulletin
Manitoba
February 2009




Highlights:
 • E.H. Price in Winnipeg Expands Manufacturing Capacity
 • Peerless Garments Obtains New Contract
 • Boeing Announces Layoffs
 • Ikea Coming to Winnipeg
 • Tolko in The Pas Announces Indefinite Layoffs
 • HudBay Minerals to close its Chisel North Zinc Mine in Snow
   Lake
 • Manitoba Hydro Negotiates Revenue Sharing Agreement With
   Northern Reserves
 • Prairie Forest Products in Neepawa Rebuilds After Fire
 • Tembec Employees in Pine Falls Return To Work
                                                                                                  February 2009
 SERVICE CANADA
                                 LABOUR MARKET BULLETIN


 ABOUT THIS BULLETIN

The Labour Market Bulletin offers a brief
overview of recent events and
announcements that have an impact on the
Manitoba economy, both at the local and
provincial level. These may include business
openings, expansions or closures;
investment announcements; and developing
trends in industry and employment.
This information is also available
electronically at
www.labourmarketinformation.ca. To
obtain a listing of current local events for
the area, simply click on 'About the Local
Labour Market' on the sidebar. Then search
the province and area that you are
interested in.
Information contained in the Bulletin comes
from a variety of sources, including
newspapers, television, radio, business
associations, industry associations, labour
associations, governments, and other on-line
information sources.
Please feel free to forward, reproduce and
distribute the information contained in this
document. Content is intended for personal
and public non-commercial use and should
be sourced to the Manitoba Labour Market
Information Team, Service Canada.




 WHERE TO FIND

Content in this publication is organized              MANITOBA ............................................ 3
according to five categories. Search one of the
four labour market areas for information about        WINNIPEG.............................................. 3
specific communities. For province-wide               NORTHERN MANITOBA .................... 7
information, browse the Manitoba section.             SOUTHERN MANITOBA................... 10
                                                      SELKIRK AREA .................................. 11


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  MANITOBA

Latest Labour Force Survey Release from Statistics Canada (January 2009)

Nationally there was a huge drop in employment from December to January, down 129,000 (-0.8%) pushing the
unemployment rate up 0.6 percentage points to 7.2% seasonally adjusted. This decrease in employment exceeds
any monthly decline, both in level and percentage, during the previous economic downturns of the 1980s and
1990s.

Employment fell in Manitoba by 1,900 (-0.3%). The Manitoba unemployment rate rose to 4.6% (but remained
the third lowest in the country after Alberta and Saskatchewan). Compared to January 2008 employment
increased in Manitoba, as did the unemployment rate.


Population Trends

In January Statistics Canada reported that as of July 1 2008 the median age of Canada's population
was 39.4 years. Almost one Canadian out of seven (13.7%) is aged 65 and over, while 16.8% of the population
is aged less than 15.

The population is younger in the three Prairie Provinces, notably as a result of higher fertility rates. Manitoba
and Saskatchewan are the provinces with the highest proportions of youth (19.0%). Due also to strong migration
inflows of young adults in the last decades, Alberta has both the lowest median age (35.7 years) and the lowest
proportion of seniors (10.4%) among provinces.




  WINNIPEG

Recent Developments in the Manufacturing Sector

E.H. Price, a Winnipeg manufacturing firm who manufactures air-distribution products and bus parts, has
purchased the former Wilson Auto Electric plant at 600 Golspie Street in East Kildonan. This three-phase,
three-year expansion will add 30,000 square feet of production space, expand product research and development
labs and consolidate their local manufacturing on two properties—the 5.1 acre location on Golspie and a second
property on Raleigh Street.




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Jeld-Wen Windows and Doors are temporarily laying off 316 workers at its production plant on Munroe
Avenue for one week starting January 19, 2009. The company reports the temporary layoffs are due to cold
weather in Western Canada that has prevented builders from completing or starting new homes. Laid-off
workers should be hired back once the company expands its vinyl window production business.

Peerless Garments has been awarded a new $32.5 million contract to make 74,000 rainwear sets for the
Canadian army. This latest contract will provide continued employment for 150 Winnipeg employees.

Standard Aero has received $4.2-million to install new micro-laser welding equipment for work on specialized
aircraft components, which will form part of the new Centre for Aerospace Technology and Training. This new
technology will be shared with students at Red River College. Funding of $3 million is being provided by
Western Economic Diversification Canada under the Western Diversification Program, and an additional $1.2
million is being provided under the Canada-Manitoba Economic Partnership Agreement.

Keystone Processors Ltd., a beef processing plant, is converting the old Maple Leaf pork plant at 663 Marion
Street and expects to begin small-scale operations in January. The company hopes to refurbish the facility into a
federally inspected cattle slaughter and processing plant by late 2010 or early 2011, requiring an additional
investment of $25-million.

Boeing announced that 150 Winnipeg aerospace workers will be laid off at the end of March. Twenty-seven
employees have taken voluntary buyouts and another 47 were handed layoff notices, while an additional 94
plastic and assembly technicians will be laid off in February and March. The150 layoffs are part of a cut of
4,500 positions or 3% of their workforce.


Recent Developments in Retail Trade
Sephora, a France-based chain of beauty stores with more than 750 locations in 21 countries has signed a lease
in Polo Park Shopping Centre to take over a 6,000 square-foot space recently vacated by Tommy Hilfiger. A
manager and 25 employees will be hired when the store opens in four months.

Ikea will build a $40-million retail and commercial building near Kenaston Boulevard and Sterling Lyon
Parkway that could include a 500-unit condominium building, a 100-room hotel and a 16-screen movie theatre,
with the 350,000 square-foot furniture store as an anchor. The private developer has committed themselves to
paying the upfront costs of widening roads, extending water and sewer services and providing traffic access and
signals. Taxpayers will eventually repay Ikea the upfront development costs.


Recent Developments in Transportation

CentrePort Canada Way expects construction of a new road and cloverleaf linking to the proposed inland port
to begin within two years. The new road is estimated to cost about $212-million, and was mentioned in the
recent Federal budget as an infrastructure project to be fast-tracked. The road will run between and almost
parallel to Oak Point Highway to the north and Saskatchewan Avenue to the south. CentrePort Canada Way is a
20,000-acre parcel of land north and west of Richardson International Airport, but governments and business



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interests hope that it will soon be home to manufacturing and transportation companies who relocate here
because of Winnipeg’s geographical advantage at the centre of the North American continent.

The Winnipeg Airports Authority has announced that the airport expansion which includes a new terminal,
parkade, utility building and groundwork will cost approximately $672-million. Construction crews have
completed the new parkade, most of the utility building, most of the groundwork, and about 35% of the new
terminal building. In addition to this expansion, Standard Aero is expanding its regional jet facility north of the
existing terminal. Canada Post is building a $40-million mail sorting plant to the south, and Greyhound Canada
is erecting a $6.3 million bus terminal to the east. A grand opening is expected in 2010.


Recent Developments in Information and Cultural Industries

The Free Press has announced that more layoffs from their five per-cent layoff target will begin in January. The
paper indicated that they were halfway to the target of twenty-four positions through attrition and management
restructuring.


Recent Developments in Real Estate

Canada Mortgage and Housing Corporation reported that there were 252 new housing starts recorded last
month in the Winnipeg Census Metropolitan Area, nearly doubling the 127 starts in December of 2007. This
area includes Winnipeg and 10 surrounding bedroom areas such as Headingly and East and West St. Paul.

Single and multi-family starts for 2007 totaled 3,000 units. This was an 11 per-cent decline from 2007’s total of
3,371 but was still was the second highest yearly total since 1989.

Winnipeg is no longer in the ranking as the cheapest place to buy homes. The fifth annual survey from the
Frontier Centre for Public Policy now ranks Winnipeg as the 80th most affordable city among 265 international
housing markets surveyed and tenth most affordable among 34 Canadian cities.

New home prices in Winnipeg increased 6% over a one-year period, when compared with the national average.
This rise was the third highest year-to-year percentage change in Canada. The city placed approximately in the
middle of the 21 Canadian urban centres surveyed.

The sale of high-end homes in Winnipeg valued at $300,000 or more increased 44 percent from 2007 to 2008.
1283 homes were purchased last year through the Winnipeg Realtors Association’s Multiple Listing Service
from 2007’s total of 898.

Recent Developments in Educational Services

The provincial government has awarded $34.9-million for basic campus repairs to two city Universities. The
University of Manitoba received $27-million in funding for campus improvement projects, which include
building structural improvements, insulation upgrades and fire-safety system upgrades. The University of




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Winnipeg will spend $7.9 million on security system upgrades and energy conservation for the all-glass
Centennial Hall.


Recent Developments in the Arts, Entertainment and Recreation

Sport Manitoba, a non-profit organization which represents approximately 100 amateur sporting groups, will
move its administrative offices into a five-story portion of the Smart Bag building on Pacific Avenue. The
provincial government will loan Sport Manitoba funds for the transaction (sale) and the office renovations,
which will also include a new museum for the Manitoba Sport Hall of Fame. No funding has been announced
for the field house development.

The University of Winnipeg is proposing a glass-walled field house that will extend from the Duckworth
Centre south to the bus loop and CBC. It would also border the west side of Spence Street and east side of
Young Street. The field house would house an athletics facility with an intended 200 metre indoor track, indoor
soccer pitches, tennis courts and possibly an ice rink and swimming pool. The university will welcome inner-
city children to this facility.

Recent Developments in Accommodation & Food Services

Oceana Restaurant on Pembina Highway closed the first week of January resulting in a layoff of 14 employees.
A smaller restaurant will be re-opened in a new Winnipeg location. The 6000 square-foot location became too
large to effectively run operations, cut operation costs and offer better service to customers.

A 200-seat restaurant on River Avenue has closed. The River Mandarin Restaurant will open a smaller 40-seat
outlet at another rental location on the Corydon Avenue retail strip.


Unions Merge

The Manitoba government and general Employees Union (MGEU) has gained 250 new members by absorbing
the Professional Paramedics Association of Winnipeg. The new Local will be called Local 911.


Methane Gas reduction planned at the Brady Road Landfill

The city of Winnipeg plans to spend $8.9-million in 2010 on a plan to capture methane at the Brady Road Land-
fill, the city's single largest source of emissions. Methane is 11 times more potent as a greenhouse gas than
carbon dioxide.




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  NORTHERN MANITOBA


Recent Developments in Agriculture, Forestry, Fishing & Hunting
Tolko, in The Pas announced an indefinite layoff of 70 employees on January 16 at its Manitoba Solid Woods
Division. In total, 115 production employees were working in the Solid Woods Division, and not all were laid
off. About 45 workers will continue processing wood chips to keep the pulp and paper mill going. The lumber
inventory is expected to take approximately two weeks to process, and layoffs are expected to begin February
1st. The layoffs will likely be in effect until at least spring. A weak market for lumber in the United States is
viewed as the main reason for the layoff. Workers will be called back as market conditions improve. The
logging and harvesting employees will continue to work through the winter months until at least early spring.

Recent Developments in Mining
Canadian Lithium Corp. has decided not to renew its 100 per cent purchase option agreement with Strider
Resources Ltd. for the Thompson Brothers Lithium project near Snow Lake. Lithium carbonate is an important
industrial chemical and is used as in ingredient in cement, ovenware, tile adhesives, aluminium processing,
lithium batteries and to treat manic states and bipolar disorder. The company has been acquiring and testing the
economics of several key spodumene lithium pegmatite deposits in Canada.

HudBay Minerals announced its Chisel North zinc mine in Snow Lake will close in late February and its zinc
concentrator will close by the end of May. The mine and mill will be placed under care and maintenance until
conditions warrant re-evaluation. The price of Zinc declined by almost 75 per cent in the last year.

Of the approximately 100 workers affected by the Chisel North closure, about 75 are unionized. It is not known
how many of them have seniority over HudBay Mineral’s Flin Flon workers, or how many would be interested
in jobs in Flin Flon. It is expected that the transfer of workers from Snow Lake could cause layoffs in Flin Flon
as Snow Lake workers with more seniority could potentially replace Flin Flon workers. As a result, workers in
Flin Flon may potentially be demoted or laid off.

HudBay Minerals was named the recipient of this year’s Bill Dennis Award from the Prospectors and
Developers Association of Canada for its exploration efforts of the Lalor Lake gold/zinc deposit near Snow
Lake. It will likely take four or five years for a mine the size of Lalor Lake to become operational. Further
exploration and drilling is continuing in the area.

Shareholders of Lundin Mining Corp. endorsed a takeover bid from HudBay Minerals with a vote of 99.7 per
cent in favour. The proposed takeover has generated opposition from HudBay shareholders since it was
announced last November. HudBay Mineral’s shareholder vote is to be held in March.




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Vancouver-based Canasia Industries has plans to drill at Reed Lake in February. The company is in the final
stages of pinpointing the highest priority drill targets, with the drill program to follow shortly. Next to Lalor
Lake Reed Lake is considered to be the top mineral discovery in the Snow Lake area.

Rockcliff Resources, an Ontario-based exploration company announced that it will commence a drilling
program on its Jackfish nickel property near Snow Lake within the prolific Flin Flon greenstone belt.

Vancouver-based VMS Ventures Inc. reported positive results from surveys conducted on the drill holes at the
western edge of Reed Lake, located in the Flin Flon - Snow Lake Volcanogenic Massive Sulphide (VMS) belt.
Copper-zinc as well as gold and silver, have been discovered in this belt.

Manitoba Hydro

Manitoba Hydro is negotiating an agreement with four northern Manitoba First Nations - Split Lake, Fox
Lake, War Lake, and York Factory for revenue sharing related to the proposed Keeyask dam.
The four First Nations bands will vote in the next couple of months. At least one-third of all band members of
all four First Nations have to vote for the referendum to be binding. There will be training, construction jobs and
permanent jobs for First Nations members, as well as annual compensation for flooding that is expected to
damage fishing and hunting grounds.

Recent Developments in Construction

Major upgrades of around $25 million over the next three years are budgeted for (PTH) 6 between Thompson
and Paint Lake. Increased vehicle counts, as well as pedestrian and cyclist activity between Thompson and Paint
Lake were cited as reasons for the upgrade.

236110 Manitoba Housing and Renewal Corporation plans to begin construction of up to 10 low-income
multi-family four and five bedroom townhouses and row homes in Thompson this spring. Construction is
pending approval of a development plan and zoning bylaw amendments. The construction of curbs, water,
sewer, roads and sidewalks are required. Technical assessments are to be done, in order to determine the
feasibility of geothermal heating and cooling for the project.

Canada Mortgage and Housing Corporation (CMHC) reported 51 housing starts in Thompson in 2008,
compared to 26 in 2007, representing a 96.2 per cent increase.
Single detached new home starts went from 24 in 2007 to 43 last year (an increase of 79.2 per cent). Multiple
family housing starts went from two in 2007 to eight in 2008. Thirty-three of the single detached homes were
started in the final three months of 2008.
In addition to the statistics reported by CMHC, the City of Thompson includes the installation of mobile homes
as housing starts.

Mayor Tim Johnston has said the city needs about 750 new housing starts to fix its housing crisis. In June 2008,
the City of Thompson entered into an agreement with Winn Can Properties Ltd., a Winnipeg group of
investors, working in conjunction, with Schickedanz West, a division of Calgary based Schickedanz Bros.
Construction. The developer expressed an interest, in developing approximately 110 new homes in the
Burntwood South subdivision by the end of 2011. Construction is expected to begin this summer and will


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proceed in three phases. Based on market demand, the agreement may lead to the development of more than 300
homes. In each of 2009, 2010 and 2011, Winn Can must develop and offer for sale no fewer than 30 serviced
lots, houses or townhouses.

Recent Developments in Manufacturing

Spruce Products Ltd. in Swan River has implemented a number of cost reduction strategies. The saw mill was
shut down for two weeks in January while new equipment was installed. The equipment will improve sawmill
production as well as increase the amount that can be recovered from each log. Another initiative of the
company was to create their own forest renewal company to promptly replant trees to ensure forests for the
future. The company has 60 employees.

Efforts to revive the Rancher’s Choice Beef Co-op are underway in the Swan River Valley. The proposed plant
would process up to 300 head of cattle a day.

HudBay Minerals is expected to make an announcement by the end of March when its copper smelter in Flin
Flon will close. The facility would ultimately be dismantled after its closure rather than mothballed. The smelter
employs between 200 and 300 people. The company will attempt to mitigate the impact of the closure on its
workforce. This will be more difficult with the impending influx of dozens of laid-off workers from the Snow
Lake mine and concentrator.

The Swan Valley Airport Commission (SVAC) met with Yorkton-based Good Spirit Air Service in hope of
seeing flight service for the Swan River Valley restored. Support would be required from the municipalities. Air
service would be a benefit to business travellers as well as for personal and medical events. Swan Valley has
been without air service for more than two years.

Recent Developments in Educational Services

Construction of the new University College of the North Thompson campus will consist of several
components including a teaching facility, housing units and childcare facility. The housing units are currently
in the design phase and soil testing is taking place. Construction on the units is planned to begin in the spring of
2009 and will provide 24 units of family housing in both Thompson and The Pas. The childcare facility is in the
pre-design phase; the selection process for the architect is underway and it is anticipated that construction will
begin in 2010. The teaching facility is proceeding through the pre-design phase; site selection has taken place.

A new two-year collective bargaining agreement was signed on January 13 for Thompson Teachers'
Association No. 45-3 of the Manitoba Teachers' Society and the Mystery Lake School Board. Teachers'
salaries have gone up three per cent plus $300 on grid for each of the two years. The starting salary for a teacher
with no experience is now set at $51,721. The contract also secured a parental leave top-up benefit for teachers.
The previous collective agreement expired last June 30.




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  SOUTHERN MANITOBA


Keystone Centre Upgrade in Brandon

On January 26, Dan Robertson General Manager of the Keystone Centre in Brandon announced a five million
dollar upgrade to the main arena. This upgrade includes the arena, dressing rooms as well as acquiring a video
scoreboard. The improvements were approved after the City of Brandon secured the hosting rights for the 2010
Memorial Cup.

The city and the Province of Manitoba have agreed to cost-share the five million dollars needed to improve the
Keystone Centre's main arena for the upcoming national junior hockey championship.

In order to accommodate the games and festivities of next year's Memorial Cup, seven luxury suites will be
constructed on the east side of Westman Place, Robertson confirmed, along with an additional press box, which
will fit in between the existing two boxes. A construction start date has tentatively been set for April 15.


Prairie Forest Products in Neepawa



                                                 A major fire at Prairie Forest Products lit up the sky in the
                                                 town of Neepawa on November 9, 2008. One building was
                                                 destroyed and another was heavily damaged, but firefighters
                                                 stopped the fire from spreading to the main processing facility.
                                                 Prairie Forest began construction of a new 11,200-square-foot
                                                 manufacturing building on Jan. 6. The first phase of
                                                 construction could be completed as early as mid-February.

The building will eventually house production of the company's signature Cedartone Classic pre-stained decking
and fencing line. In Phase two the construction of a 30,000- to 40,000-square-foot production building is slated
to begin in April once the final dimensions are decided upon.

The company's treatment plant is still fully operational, and approximately 26 employees are on active duty. The
remaining 65 to 70 employees will likely be called back to work once the manufacturing building is complete.

Between the burned-up equipment and the destruction of two of the company's three plant buildings, fire caused
$8 to $10 million in losses to the company.




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New Student Centre at Providence College

After nearly a year of construction the five million dollar Student Centre project at Providence College and
Seminary is now complete in Otterburne. The centre is home to a new kitchen and dining hall, two
multipurpose rooms, English Language Institute offices and classrooms, and a student lounge.


Redesign at Loewen Windows in Steinbach

Loewen, a manufacturer of high quality windows and doors, is redesigning its Steinbach factory to become a
model of lean manufacturing with the assistance of a $10-million secured, repayable, provincial interest-bearing
loan.

When the $30-million overhaul is finished, Loewen expects to double plant capacity and achieve a 30 per cent
improvement in labour productivity, as well as an increase in quality and customer satisfaction.




  SELKIRK AREA

Red River Floodway Expansion

Highways 15 and 44 bridges will now be replaced as part of the Red River Floodway Expansion, after being
postponed because of rising construction costs. The bridges, located in Lockport and Springfield, are included
with the rest of the floodway expansion because costs are now under budget. The cost of this addition will be
$47-million. Over 2,000 contractors and employees have worked on the Red River Floodway Expansion
Project.

Tembec in Pine Falls

Tembec employees in Pine Falls are returning to work after a two-week shutdown. The company cited excess
inventory for the temporary closure. The company employs about 270 unionized workers.

St George Library Moves

Bibliothèque Allard, serving St. George and the surrounding community has moved to new 4,000 square-foot
quarters along Hwy. 11, a historic site once occupied by the Bouvier family store. Before moving to its present
location, it was located in a small ground-level area at the St. Georges School. The library has a client base of
2,100 and is one of the province’s most-used public libraries.




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Building Permits increase in Woodlands

The RM of Woodlands showed an increase of over a $1-million value in building permits in 2008, with the
number of new dwellings rising to 66 compared to 53 in 2007. Part of the growth has been attributed to the
recently-launched Warren Business Park which is progressing on schedule, and is expected to be fully occupied
in 2009.




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