The Chilliwack Region is located in southwest British Columbia, approximately 100 Km east of the City of Vancouver. It includes the City of Chilliwack (pop. 101,512 in the Chilliwack CA) and is bordered by the city of Abbotsford to the west, the community of Agassiz next to the Fraser River to the north, the community of Popkum to the east and the United States to the south. Meat processing in the Chilliwack, British Columbia region consists of facilities for processing hogs, cattle and poultry.
Regional labour market analysis suggests that after accounting for labour requirements in other sectors, regional labour supply will exceed meat processing employment demand through 2025. Supply constraints will tighten during the latter half of the next decade as regional supply begins to decline. The inverse trend is anticipated for low-skill workers; regional supply is projected to fall short of meat processing employment demand in the near-term but will exceed demands beginning in 2021 as supply constraints loosen. Despite this trend, the availability of workers for meat processors will depend on competing employment demands from other sectors. Regional meat employment is expected to surpass 1,500 workers by 2020 and 1,700 by 2030, with average annual growth of 1.2%. Local processors will likely need to hire nearly 1,000 additional workers between 2017 and 2030, due both to industry growth and the need to replace workforce retirements. This figure does not include turnovers which can add significantly to total annual recruitment demands. The region’s population is expected to surpass 500,000 by 2020 and reach nearly 550,000 by 2030, with modest average annual growth of 0.8%. Additionally, while net in-migration of 60,000 individuals is expected to be a source of population growth in the region, it will be outpaced by natural population growth. Rising retirements will cause labour force growth to lag behind employment, resulting in a decline in the regional unemployment rate from 5.0% to 4.2% by 2030.
The labour market tightness, a measure calculated by estimating labour requirements in other sectors in the Chilliwack Region and subtracting those requirements from the total labour force estimates, reveals substantial challenges facing this industry.
1 = Meat processing employment demand is less than 50% of regional labour force at annual average employment levels
2 = Meat processing employment demand is between 50 and 100% of regional labour force at annual average employment levels
3 = Meat processing employment demand is greater than 100% of regional labour force at annual average employment level
As meat processors struggle to remain competitive and increase productivity, common challenges experienced by plants throughout the region include ongoing retention, absenteeism, vacancies, challenges with TWFP, and limited public transportation.
1 The number of establishments is based on 2016 data from Statistics Canada’s Business Register.
2 Meat processing employment is estimated based on 2016 Census data for the Lower Mainland-Southwest economic region.
This report is one in a series of 14 regional reports developed to provide detailed labour market information (LMI) for the meat processing industry in Canada. The regionally focused LMI is one component of a broader study undertaken by Food Processing Skills Canada (FPSC) in collaboration with the Employment and Social Development Canada, and various provincial and industry partners entitled Securing Canada’s Meat Workforce: Real Challenges, Practical Solutions and Fresh Perspectives.
The overall study aims to identify the scope of human resource (HR) challenges for the meat processing sector, and compile HR best practices that would help employers meet their labour force current and future needs. One important aspect of understanding HR challenges in the sector, some of which are region specific, was to gather detailed information and profiles of areas that rely heavily on meat processing for their local economies. Fourteen regions across Canada were selected for specific focus based on the amount of processing activity, and proportion of labour force working in the industry. Chilliwack Region on the British Columbia was selected as one of these regions for detailed focus.
The initial sections of this report provide overviews of the Chilliwack Region, meat processing overall in the province of British Columbia, and specifically in the Chilliwack Region. This is followed by sections that provide an overview of the region’s labour force, and the specific findings for the labour supply and demand, current and future. The final two report sections outline the HR challenges identified in the region and some of the promising practices and innovative solutions that employers and communities are trying to address labour supply issues.
The Chilliwack Region is located in southwest British Columbia, approximately 100 Km east of the City of Vancouver. It includes the City of Chilliwack (pop. 101,512 in the Chilliwack CA) and is bordered by the city of Abbotsford to the west, the community of Agassiz next to the Fraser River to the north, the community of Popkum to the east and the United States to the south.
The population of Chilliwack region is relatively young compared to British Columbia’s population and is expected to grow over the next decade due to in-migration and continued natural population growth. Compared to the province overall, the population has similar levels of immigrants, and non-Canadian citizens, but slightly lower proportions of people identifying as Aboriginal (according to Census definitions) and visible minorities.
The overall population for the region in 2017 was 493,042. According to Census 2016 profiles, the proportions of immigrants (20.2%), non-Canadian citizens (6.2%), visible minorities (19.6%) are lower to those overall for British Columbia (see Table 1). The proportion of the population that identifies as Aboriginal according to Census definitions (5.4%) is similar to the for the province.
TABLE 1: CHILLIWACK REGION POPULATION CHARACTERISTICS
| CHARACTERISTIC | CHILLIWACK REGION | BRITISH COLUMBIA |
|---|---|---|
| FEMALE | 241,845 | 2,369,815 |
| SHARE OF POPULATION | 50.7% | 51.0% |
| IMMIGRANTS | 94,365 | 1,292,670 |
| SHARE OF POPULATION | 20.2% | 28.3% |
| NOT CANADIAN CITIZENS | 28,805 | 421,940 |
| SHARE OF POPULATION | 6.2% | 9.3% |
| VISIBLE MINORITIES | 91,470 | 1,381,235 |
| SHARE OF POPULATION | 19.6% | 30.3% |
| ABORIGINAL IDENTITY | 25,090 | 270,585 |
| SHARE OF POPULATION | 5.4% | 5.9% |
According to projections, the population levels are expected to increase over the upcoming 13 years (493,042 in 2017 and then 549,724 by 2030). The population age is younger than the provincial median with the City of Chilliwack having a median age of 41.3 years compared to the provincial median of 43.0, but similar to the national median age of 41.2 (Census, 2016). Although the total population will increase, it will be an aging population with the proportion of the age cohort 65 years or older rising from 16.8% in 2017 to approximately 22.5% by 2030 (see Figure 1). While population growth will be negatively impacted by the continued aging of the population and increased number of deaths, this will be countered by a predicted continuation of a pattern of net in-migration of approximately 60,000 people by 2030 coupled with a continued number of births. This will result in a rise in population (see Figure 2).
The overall education level of the region’s residents is somewhat lower when compared with British Columbia overall (see Figure 3). In the Chilliwack region, 18% do not have a high school diploma (vs. 16% for the province), and 34% of the population have a high school diploma as their highest degree (vs. 29% for the province). Among the working-age population, 15% have a university certificate, diploma or degree (vs 25% for the province).
Total output for meat processing is forecast to expand at a relatively quick pace of 3.2% on average over 2018-21, then moderate to average 2.4% over 2022-26 and 2.0% over 2027-30. Growth will be sustained by some small increases in overall processed meat consumption from 0.7% on average over 2018-21 to 1.0% over 2022-26 to 1.2% over 2027-30 as chicken consumption continues to boost overall meat consumption.
International exports are forecast to expand at a strong rate over the projection period, averaging 4.3% over 2022-26, and 3.6% over 2022-30. There are broadbased gains in beef and veal, pork and poultry products. Meat of all types will benefit from the implementation of the Canada-EU CETA and the TPP with ten other Pacific Rim nations. BC’s exports to other provinces will gain from the overall rise in meat consumption in those provinces, with interprovincial exports expanding at a modest rate by 1.2% over 2018-21 and 1.4% over 2022-30. Interindustry demand is reliant on the demand for meat products by other industries, it is forecast to average a robust 3.1% over 2018-21, and 1.8% over 2022-26, then slow to 1.6% over 2027-30.
TABLE 2: BRITISH COLUMBIA PREPARED MEAT END MARKET GROWTH (ANNUAL AVERAGE % CHANGE)
| END MARKET | 2013-2017 | 2018-2021 | 2022-2026 | 2027-2030 |
|---|---|---|---|---|
| Consumption | -0.1 | 0.7 | 1.0 | 1.2 |
| International Exports | 9.6 | 4.3 | 3.6 | 3.6 |
| Interprovincial Exports | 1.0 | 1.2 | 1.4 | 1.4 |
| Interindustry Demand | 3.5 | 3.1 | 1.8 | 1.6 |
| Imports | 0.8 | 1.1 | 1.2 | 1.3 |
| Total End Market Demand | 4.7 | 3.2 | 2.4 | 2.0 |
Meat processing employment is expected to rise by 9% between 2017 and 2020, or by close to 500 jobs from 5,200. Total employment is expected to approach 7,000 by 2030.
Meat processing real GDP is forecast to expand at a strong pace over the forecast by 3.6% over the 2018-21 period, 2.8% over 2022-26 and 2.4% over 2027-30. Labour productivity (GDP per hour worked) is forecast to increase by 0.8% on average over the projection period. This means that the needed total hours of work will rise at a strong pace of 2.8% on average over 2018-30, 2.0% over 2022-26 and 1.6% over 2027-30. Average hours worked per employee is forecast to fall slightly over the projection period, which leads to the total number of jobs rising by 2.9% over 2018- 21, 2.0% over 2022-26 and 1.7% over 2027-30.
Taking account of both replacement and expansion demands, the industry will likely need to need to hire just over 4,350 new workers, or (80%) of the current workforce over the next 13 years (see Figure 4). These hiring requirements are net numbers of new workers and do not include annual hiring requirements due to turnover.
FIGURE 4: ANNUAL MEAT PROCESSING HIRING REQUIREMENTS (EXCLUDING TURNOVER), BRITISH COLUMBIA
The region hosts 14 processors ranging significantly in size.
Overall, there are fourteen meat processing establishments in the Chilliwack Region3, with focus on poultry, pork and beef processing.
The estimated total number of individuals employed by the sector in the Chilliwack Region in 2017 was 1,467 (see Table 3). Approximately one-third of workers are employed in the foundational level occupations (NOC 9617) (32%) with an additional one-quarter employed (24%) in occupations at an intermediate skill level (NOC 9461; 9462). Approximately 7% of the workforce is in the higher skill occupations of specialized meat cutters and master butchers
3 Number of establishments is based on the 2016 data from Statistic Canada’s Business Registrar.
TABLE 3: PROFILE OF WORKERS BY OCCUPATIONS FOR CHILLIWACK REGION – 2017
| AVG 2017 (#) | AVG 2017 (%) | |
|---|---|---|
| Total Employment | 1,467 | 100% |
| FOUNDATIONAL (NOC 9617) | ||
| Production Labourer | 244 | 17% |
| Poultry Production | 213 | 15% |
| INTERMEDIATE (NOC 9462; 9461) | ||
| General Meat Cutter/Knife Person | 218 | 15% |
| Machine Operator | 10 | 1% |
| Slaughter Person | 120 | 8% |
| HIGH (NOC 9213) | ||
| Master Butcher | 30 | 2% |
| Specialized Cutter | 79 | 5% |
| SUPERVISORY (NOC 9213) | ||
| Supervisors | 45 | 3% |
| MANAGEMENT (NOC 0911) | ||
| Management | 89 | 6% |
| OTHER CATEGORIES | ||
| Maintenance | 89 | 6% |
| Skill Trades | 127 | 9% |
| Quality Control Technician | 8 | 1% |
| Office Staff | 92 | 6% |
| Other Occupations* | 103 | 7% |
* this includes occupations in areas such as transport, logistics, material handlers that do not fall within the main NOC codes identified above.
Median hourly wages for labourers in food processing and industrial butchers and meat cutters are in line with the provincial average, and slightly higher than some other C and D level occupations available in the region.
The median hourly wage for labourers in food processing (NOC 9617) in the Lower Mainland Southwest Region of British Columbia in 2017 was $14.00/hour (see Table 4). The median wage for industrial butchers and meat cutters (NOC 9462) was slightly higher at $17.00/hour. These wage rates are equivalent to the provincial median rates for these occupations. To provide some context, the minimum wage in British Columbia in 2017 was $11.25/hour.
When compared with other C&D Level Occupations in the same region, the median wages for labourers in food processing were generally higher by approximately $4100/hour. The one exception was for a farm worker that provided a slightly higher median hourly wage ($15/hour).
TABLE 4: WAGE LEVELS FOR SELECTED OCCUPATIONS – 2017 ($/HOUR)
| Low Wage (10th percentile) | Median Wage (50th Percentile) | High Wage (90th percentile) | |
|---|---|---|---|
| Laborers in food processing (NOC 9617) | |||
| Lower Mainland Southwest Region (BC) | 12.65 | 14.00 | 22.00 |
| Vancouver Island and Coast Region (BC) | 12.65 | 13.50 | 21.00 |
| All British Columbia | 12.65 | 14.00 | 26.00 |
| Industrial butchers and meat cutters (NOC 9462) | |||
| Lower Mainland Southwest Region (BC) | 12.65 | 17.00 | 23.85 |
| Vancouver Island and Coast Region (BC) | N/A | N/A | N/A |
| All British Columbia | 12.65 | 17.00 | 23.85 |
| Other C&D Level Occupations Lethbridge-Medicine Hat (AB) | |||
| Farm Labourer (NOC 8431) | 12.65 | 15.00 | 25.00 |
| Retail Sales (NOC 6421) | 12.65 | 12.98 | 23.00 |
| Food Services (NOC 6711) | 12.65 | 12.65 | 17.00 |
Source: Employment and Social Development Canada – Job Bank – Labour Market Information
On a provincial level, the average hourly wage in food manufacturing ($19.43) is slightly higher than other forms of manufacturing ($19.40) and equal to the average hourly wage for all industries combined ($19.43) (see Table 5). The hourly wage in food manufacturing is higher than that found in retail ($12.81) and accommodation and food services ($12.81), but lower than other industries such as transportation and warehousing ($25.24), educational services ($25.65) and health care and social assistance ($25.99).
TABLE 5: AVERAGE HOURLY WAGE – CHILLIWACK, 2016-2017 – ($/HOUR)
| Avg. hourly wage | |
|---|---|
| All industries | $19.43 |
| Food Manufacturing | $19.43 |
| Manufacturing (Total) | $19.40 |
| Transportation and warehousing | $25.24 |
| Accommodation and food services | $12.89 |
| Retail trade | $12.81 |
| Health care and social assistance | $25.99 |
| Construction | $21.91 |
| Educational services | $25.65 |
Source: Job Vacancy and Wage Survey Q3 2016 – Q2 2017
The average unemployment rate for the region in 2017 was 5.0%.
The unemployment rate for the region in 2017 was 5.0% on average. According to Census data, approximately 5.5% of the population in the Chilliwack Region 15 years or older who had income received regular Employment Insurance (EI) payments at some point in 2016.
According to EI data provided by ESDC for the Vancouver region (Economic Region 52), there has been a declining trend in the number of workers from the food and beverage processing sector (not just meat processing) making EI claims (see Table 6). The highest number of EI beneficiaries has occurred among material handlers in the sector (4,162 EI beneficiaries in 2016 with an average annual 13% decrease between 2014 and 2016), followed by labourers in food and beverage processing (2,300 EI beneficiaries in 2016, decreasing by 29% on average annually since 2014). In 2016 the data indicates that there were 148 industrial butchers/meat cutters collecting EI benefits with an annual decrease in numbers of approximately 16% on average.
TABLE 6: EI BENEFICIARIES BY OCCUPATION – ECONOMIC REGION 52 (VANCOUVER)
| Occupation | 2014 | 2015 | 2016 | Avg. Annual % Chg. |
|---|---|---|---|---|
| Manufacturing managers | 938 | 1001 | 864 | -4% |
| Material handlers | 5700 | 4691 | 4162 | -13% |
| Supervisors, food and beverage processing | 509 | 488 | 391 | -12% |
| Process control and machine operators, food and beverage processing | 628 | 723 | 455 | -14% |
| Industrial butchers and meat cutters, poultry preparers and related workers | 216 | 308 | 148 | -16% |
| Labourers in food and beverage processing | 5455 | 4275 | 2300 | -29% |
Source: Employment and Social Development Canada 2017
Currently, recent immigrants and temporary foreign workers play a significant role in addressing labour supply issues in the meat processing industry in the Chilliwack Region.
While the proportion of immigrants in the Chilliwack Region is lower when compared with British Columbia overall (20.2% vs. 28.3%), the meat processing industry is reliant on recent immigrants and temporary workers working towards permanent residency in Canada. Plant managers interviewed indicated that the TFWP is a key source of workers (often workers who started as TFWs and are making their way through the immigration programs to permanent residency), but recently has become challenging from a cost perspective for continued use at $1,000 per application plus resources required to develop LMIAs, and extensive delays in application processing.
There is some limited outreach by plants to local Indigenous communities to recruit local Indigenous workers into the sector’s workforce.
In the Chilliwack region, 25,090 individuals identify as Aboriginal according to Census definitions, representing 5.4% of the population (Census 2016). One plant noted that they have partnered with a First Nations Band that offers manufacturing in the meat industry course and the plant offers employment to its recent graduates. Another plant noted that it places job ads in the local Band newspaper and job board.
THERE IS CURRENTLY A SUFFICIENT LOCAL LABOUR FORCE TO MEET THE REGION’S LABOUR REQUIREMENTS (FOR ALL INDUSTRIES). HOWEVER, THE MARKET IS PROJECTED TO BECOME TIGHTER AS OF 2018, LEAVING AN OVERALL POTENTIAL GAP WHICH WILL INCREASE THROUGH TO 2030.
TABLE 7: POPULATION AND LABOUR FORCE OUTLOOK SUMMARY – CHILLIWACK REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021-2025 | AVG 2026-2030 | |
|---|---|---|---|---|---|---|
| Total Population | 493,042 | 497,988 | 502,790 | 507,499 | 522,466 | 549,724 |
| Avg. Annual Change (%) | 1.0% | 1.0% | 0.9% | 1.0% | 1.0% | |
| Total Labour Force | 273,073 | 276,501 | 279,453 | 281,099 | 284,309 | 291,465 |
| Avg. Annual Change (%) | 1.3% | 1.1% | 0.6% | 0.4% | 0.5% | |
| Total Employment | 259,314 | 263,095 | 266,435 | 268,271 | 270,956 | 279,029 |
| Avg. Annual Change (%) | 1.5% | 1.3% | 0.7% | 0.4% | 0.6% | |
| Unemployment Rate | 5.0% | 4.8% | 4.7% | 4.6% | 4.7% | 4.3% |
The model projections indicate that taking into account the trends in migration and aging, the Chilliwack Region will experience population growth within the period under study (2017 to 2030) (see Table 7). These factors will also contribute to a growing labour force for the region, albeit at a slower rate than population growth given the aging population and anticipated retirements. As a result, unemployment rates are expected to decline from an average of 5.0% to 4.3% based on increased opportunities, but slower growth in the overall labour force.
Specifically, for this project, the analytic team developed an approach to demonstrate the “tightness” of the labour market in supplying the employment demands from meat processing in the identified regions. This was calculated by estimating labour requirements in other sectors in the region (nonmeat-processing labour requirements) and subtracting those requirements from the total labour force estimates. This difference results in an estimated “residual” labour force for the region from which meat processing needs to draw. Not all of the meat processing workers come from the residual pool, as the sector actively competes with other sectors for workers; however, the “tightness” measure indicates where shortages are likely occurring for not only the meat processing sector but likely other sectors drawing from the same labour supply. Using this approach, the current and future labour market tightness was calculated to determine the extent to which the region’s labour force can meet the labour requirements of all sectors (both non-meat processing and meat processing).
As illustrated in Table 8 and Figure 5, the Total Meat Processing Employment (Annual Average) is lower than the Residual Total Labour Force. This suggests that there is currently (2017) sufficient local labour force to meet all of the region’s labour requirements (for all industries) leaving an overall potential gap. This trend changes shortly after that, with the employment in the sector representing more than 50% of the residual labour force in the region. This tighter labour market is due to reductions in the residual labour supply coupled with continued projected increases in meat processing employment (i.e., labour demand for the sector).
The analysis outlined in Table 8 and Figure 6 describes the labour market context within which the meat processors in the Chilliwack Region are operating with respect to finding sufficient numbers of workers from the local labour supply. Within this competitive labour market, the industry employers have had success recruiting. For example, in 2017, the meat processing industry was able to recruit and employ 1,467 within a labour market that had a residual total labour force of only 2,990. This means that the meat processing industry was likely recruiting workers from other industries and from outside the local region. While the industry did experience vacancies, these would likely have been substantially higher had it not been successful in recruiting labour external to the region, and/or competing with other industries in recruiting workers.
TABLE 8: TOTAL LABOUR MARKET TIGHTNESS – CHILLIWACK REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021- 2025 | AVG 2026- 2030 | |
|---|---|---|---|---|---|---|
| Total Labour Force5 | 273,073 | 276,501 | 279,453 | 281,099 | 284,309 | 291,465 |
| Total Non-Meat Processing Labour Requirement6 | 270,083 | 273,551 | 276,521 | 278,166 | 281,158 | 288,628 |
| Residual Total Labour Force7 | 2,990 | 2,950 | 2,932 | 2,973 | 3,125 | 2,748 |
| Total Meat Processing Employment (Annual Average) | 1,467 | 1,486 | 1,504 | 1,522 | 1,576 | 1,672 |
FIGURE 5: TOTAL MEAT PROCESSING EMPLOYMENT AND RESIDUAL LABOUR FORCE – CHILLIWACK REGION – 2017-2030
5 The labour force includes all individuals who are either employed or unemployed and actively seeking work. The unemployed would include those on regular EI claims along with those receiving other sources of income (e.g., social assistance) who are actively looking for employment.
6 Non-meat processing labour requirement consists of employment demand from other sectors with an allowance for typical levels of sectorspecific unemployment.
7 The residual labour force is the difference between the labour force and the non-meat processing labour requirement.
As noted in the description of the occupations, approximately 63% of the positions in the industry in this region are in the “C” and “D” levels which are often referred to as “lowerskill level” occupations, not requiring post-secondary education. Given much of the focus is on the lower-skill level labour force, the study also analyzed the “tightness” of the lowerskill level labour market (see Table 9 and Figure 6). The tightness of lower-skill level labour market is higher than that observed for the overall market in the first few years projected. For example, in 2017, the meat processing industry was able to recruit and employ 993 workers within a labour market that had a residual total labour force of only 883. This means that the meat processing industry was likely recruiting workers from other industries, and from outside the local region. This level of tightness suggests that many of the industries that rely on a lower-skill level labour market are also experiencing labour shortages in this region.
TABLE 9: LOWER-SKILL LEVEL LABOUR MARKET TIGHTNESS – CHILLIWACK REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021- 2025 | AVG 2026- 2030 | |
|---|---|---|---|---|---|---|
| Lower-Skill Labour Force8 | 108,215 | 109,573 | 110,743 | 111,395 | 112,667 | 115,503 |
| Lower-Skill Non-Meat Processing Labour Requirement | 107,376 | 108,732 | 109,834 | 110,394 | 111,297 | 114,556 |
| Residual Lower-Skill Labour Force | 838 | 841 | 909 | 1,001 | 1,370 | 1,593 |
| Lower-Skill Meat Processing Employment (Annual Average) | 993 | 1,005 | 1,018 | 1,030 | 1,067 | 1,131 |
8 The lower-skill labour force is the portion of the total labour force with no education beyond a high school diploma
FIGURE 6: LOWER-SKILL LEVEL MEAT PROCESSING EMPLOYMENT AND RESIDUAL LABOUR FORCE CHILLIWACK REGION – 2017-2030
The overall summary of the labour market tightness as modelled for the Chilliwack Region (Table 10) demonstrates that the local labour force is likely insufficient to meet the employment requirements of employers in the area. This tightness is not as critical for the overall labour market, but it is demonstrated for the lower-level skill workers. The tightness of the overall labour market is projected to increase throughout study, while it is expected to decrease for lowerlevel skill workers throughout the period of study (2017 to 2030). These results assume similar industry employment demand (e.g., no new major employers arriving or leaving the area), and no major changes in net migration patterns.
1 = Meat processing employment demand is less than 50% of regional labour force at annual average employment levels
2 = Meat processing employment demand is between 50 and 100% of regional labour force at annual average employment levels
3 = Meat processing employment demand is greater than 100% of regional labour force at annual average employment level
Within a tight labour market, projections indicate that the Chilliwack Region employers will need to attract approximately 900 new workers to the meat processing industry by 2030. This is equivalent to approximately 61% of their current annual average workforce. This requirement is due to both anticipated industry growth and replacement of anticipated retirements over this period. Unfortunately, this recruitment will be occurring within the context of a tight regional labour market that is currently experiencing labour shortages which are predicted to continue during this period. This tightness in the labour market is contributing to the high number of current vacancies experienced by employers in meat processing (estimated at 5% in Western Canada), and to some degree the higher turnover rates in the industry as workers have more employment opportunities from which to choose, particularly in the lower-skill level occupations (estimated imputed turnover rate of 52% in British Columbia in meat processing industry). All of these factors contribute to the substantial challenges facing Chilliwack Region meat processors in their attempts to recruit enough workers to replace retirements, fill ongoing vacancies, work to address turnover rates, while also trying to grow, remain competitive and increase productivity
Overall, it is anticipated that as of 2017, there will be a need for increased numbers of new hires, due to both industry growth and the need for replacements due to anticipated retirements and deaths among the workforce (see Table 9). Overall, this results in the need to attract 901 new workers to the industry between 2018 and 2030. This equates to replacing approximately 61% of the 2017 average meat processing workforce in the region.
TABLE 11: HIRING REQUIREMENT OUTLOOK – CHILLIWACK REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | SUM 2021-2025 | SUM 2026-2030 | |
|---|---|---|---|---|---|---|
| Net Hiring Requirement9 | 69 | 67 | 67 | 67 | 341 | 359 |
| Industry Growth | 21 | 19 | 18 | 18 | 91 | 97 |
| Retirements and Mortality | 47 | 49 | 49 | 49 | 250 | 262 |
The employment outlook according to occupation is detailed in Table 12 (Annual Average).
9 Net hiring requirement does not include hiring required as a result of turnover (i.e. hiring workers to replace individuals who quit or are fired from their positions). The imputed turnover rate (total number of people workers hired as a share of the total number of workers) for British Columbia meat processors is estimated at 52%.
TABLE 12: EMPLOYMENT OUTLOOK (ANNUAL AVERAGE) – CHILLIWACK REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021- 2025 | AVG 2026- 2030 | |
|---|---|---|---|---|---|---|
| Total Employment | 1,467 | 1,486 | 1,504 | 1,522 | 1,576 | 1,672 |
| FOUNDATIONAL (NOC 9617) | ||||||
| Production Labourer (including Processor, Packer, Barn Worker) | 244 | 247 | 250 | 253 | 262 | 278 |
| Poultry Production Labourer (including Plant Production Worker, Poultry Worker, General Labourer) | 213 | 215 | 218 | 221 | 228 | 242 |
| INTERMEDIATE (NOC 9462; 9461) | ||||||
| General Meat Cutter or Knife Person/Poultry Cutter | 218 | 221 | 224 | 227 | 235 | 249 |
| Machine Operator (including Saw Operator) | 10 | 10 | 10 | 11 | 11 | 12 |
| HIGH (NOC 9213) | ||||||
| Master Butcher, expertise in multiple cuts (includes Butcher or Lead Hand of a shift) | 30 | 30 | 30 | 31 | 32 | 34 |
| Specialized Cutter, expertise in one cut (including Pull tenderloin, Drop (seam) Inside Round, Lead Hand, Specialized Meat Cutter) | 79 | 80 | 81 | 82 | 85 | 90 |
| SUPERVISORY (NOC 9213) | ||||||
| Supervisors (including Kill Floor Supervisor, Abattoir Supervisor, Production Supervisor, Raw Room Supervisor) | 45 | 46 | 46 | 47 | 49 | 51 |
| MANAGEMENT (NOC 0911) | ||||||
| Management (including Plant Manager, Director of Operations, Sales, Kill Floor Manager, Food Safety Managers) | 89 | 90 | 92 | 93 | 96 | 102 |
| OTHER CATEGORIES | ||||||
| Maintenance (including Janitors, Sanitation Workers, Cleaners) | 89 | 90 | 92 | 93 | 96 | 102 |
| Skilled Trades (including Millwright, Industrial Electrician, Truck Driver) | 127 | 129 | 130 | 132 | 137 | 145 |
| Quality Control | 8 | 8 | 8 | 8 | 8 | 9 |
| Office Staff (including Administrator or HR Manager) | 92 | 94 | 95 | 96 | 99 | 105 |
| Other Occupations* | 103 | 104 | 105 | 107 | 110 | 117 |
* this includes occupations in areas such as transport, logistics, material handlers that do not fall within the main NOC codes identified above
Interviews with plant managers in the region outlined various HR issues that they have experienced in the attempt to retain and recruit an adequate labour force. While issues and challenges vary from plant to plant, these are some of the common themes that were identified and may be characteristic of this region. Main themes include:
the main HR issues identified among the plants interviewed are with respect to retention. Some of the turnover rates quoted are extremely high (e.g., 20% within one month; 82% within an eight month period). Some of this turnover is attributed to the type of workers they are recruiting who are much more transient moving from job to job every 3-4 months, and the heavy reliance on students in some plants to supplement summer requirements. As well, given in some plants, many of the positions are part-time, it is noted as challenging to retain part-time workers, many of whom are looking for full-time positions.
In addition to retention issues, there are challenges with absenteeism in some of the plants interviewed. Employers are cautious to address absenteeism as they are concerned that the worker will quit which will put further pressure on recruitment for vacancies.
The plant interviewed noted that public transportation is a challenge for their workforces. The public transportation routes do not tend to coincide with the shift schedules which makes it challenging for workers as they have to try and supply their own transportation which can be challenging, particularly for part-time workers and those who are at starting wages.
Related to retention issues, the plants interviewed reported vacancy rates of 15 to 22%, many for full-time meat cutter and packing occupations. These rates tend to remain persistent as ongoing recruitment and onboarding are often only meeting the turnover monthly.
The plant representatives interviewed noted that while the TFWP was useful in supplementing their attempts to hire local workers, there are some challenges in working with the program in its current form. For some of the smaller plants, the costs associated with the TFWP applications are becoming cost prohibitive when the $1,000 application fee is combined with the resources required to develop the application and the necessary LMIA. The other main concern noted with the program is the delay that has been experienced in the processing of applications which can place considerable burden on companies as they wait for responses and try to plan recruitment drives, etc.
Employers in the region are trying various approaches to address the challenges with labour supply and retention. Some of those that were identified during interviews include:
Some of the managers interviewed noted that students were a key labour source for their operations. The plants indicated that in some ways they have seasonal-related demands given much of their distribution is local which tends to have greater demand during the summer BBQ months. As a result, students are able to fill in the vacancies and help meet peak demand periods.
Some plants described an employee referral program in which employees can refer others for employment at the plant. There are various levels of financial awards available for doing this depending on if the referral is hired and how long they remain at their position with satisfactory performance.
in interviews with plant managers and supervisors, it was highlighted that absenteeism is not an issue at one of the main employers, in part due to a significant attendance bonus (an additional $1 per hour for a two-week or one-month period with no absences). A bonus program for attaining quality and safety targets, also in the amount of an additional $1 per hour, was mentioned by one main employer. In addition, when there are concerns with attendance, the supervisor works closely with HR to identify the reasons and how to address them. To manage situations when a line might be running short, they ensure all supervisors and managers have good knowledge of their employees’ abilities, training and skills.
One plant described how they worked with a local provider to come into the plant and provide language training to temporary foreign workers during the last two hours of their shifts a few days per week. This increased their language skills and improved their chances of meeting the language requirements for permanent residency.
The Town of Chilliwack has housing that would be much more affordable in comparison to Vancouver or some of the surrounding suburbs. As a result, Chilliwack is often viewed as an attractive town for relocation among many of those struggling with high housing costs in Vancouver and environs.
Although, at the early stages, there is an ongoing attempt by one plant to connect with the training programs available in the area to offer employment to graduates. The training programs have challenges with sufficient enrolment. However the plant is trying to determine how they might be able to support the training efforts.
One plant has been working successfully with wage subsidy programming that targets workers with disabilities or particular challenges. They view these as “short-term” successes in that they are able to supply some work experience to participants, but those that they have hired do not stay with the company for very long. They will continue to participate in these programs and see if they can work to improve retention.
The plants noted various additional initiatives that they have attempted to try and improve retention including employee appreciation days, birthday/ gift cards, store discounts, coffee machines in the cafeteria, clothing allowances, health/wellness activity subsidization, and structured recognition programs that include attendance bonuses.