Oil price drop cuts Esso jobs at Cold Lake

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COLD LAKE - Recent drastic cuts in the world price of oil has caused a shake-up at the Cold Lake Esso Resources of Canada plants.

In an effort to reduce costs, the Calgary head office has issued a voluntary early retirement package to employees. Aimed at two separate groups, the program offers pension benefits to those employees 55 years old or over and who have a minimum of 10 years continuous employment with the company. This Pension Enhancement Program, says Esso external affairs spokesman Cassandra Milne, will affect perhaps 4 or 5 people only.

The second part of the package titled "Career Change Assistance Program (C.C.A.P.) is open to all employees who will qualify for lump sum payments if they voluntarily retire before June 1. "They're paying us to quit," is how employee simply described it.

Milne says the CCAP will appeal to those who may wish to travel, pursue a career change with another company, further their education, or even stay home and have a baby. Those employees with three years of continuous employment will receive six months wages in a lump sum if they retire. Those who worked less time will receive payment scaled accordingly. Employees will be laid off at the end of March if they accept the CCAP, and they have until June 1st to make up their minds.

"There's been a sharp decline in oil prices that has significantly curtailed our earnings and that has cut into our revenue," Milne explained. "There's a severe competition within the industry. Our corporate decision was to make some significant reductions in operating costs and when we do that obviously there has to be a reduction in staff."

"Our company," she said," has always had a reputation for being fair to our employees and our management is attempting to effect these staff reductions through voluntary retirement."

There are no Native people eligible for P.E.P., but the CCAP will be accepted by four female staff members at Esso Resources with varying lengths of time.

There are approximately 350 employees at the plant sites. "We'll look to see how many staff are remaining (after June 1) and what the price of oil is and then we'll know what our staff requirements are. We'll be reassessing in June.

Esso, Milne said, is not shooting for a target number of workers to quit at Cold Lake.

Esso Resources of Canada has a Native affairs advisor on staff at the Calgary office. Craig Barraclough works with Native groups and businesses to develop opportunities in the oilfield. Pimee Well Servicing from Kehewin Reserve is one group he has had dealings with. Mr. Barraclough has been in meetings the past two days and could not be reached for comment.

Melanie Janvier of Native Outreach, Grand Centre, said that have been 17 Native people placed at for on a training program for oil-related careers. Their program is not in jeopardy of being cut.

Janvier said the actual number of Native people who'd worked with sub-contractors on jobs related to Esso was high, but these jobs were short-term construction and not secure. Until last year, only two Native people referred by Outreach had been hired on permanent staff since the plant opened in 1978. The high grade required by

Esso to be eligible for employment left most Natives out in the cold. "Our clients have

on average grade of nine or ten," Janvier said, "but Esso requires Grade 12 or a 4th class Power Engineer certificate. The company will hire, but our people are frustrated when they see they have years of upgrading to do before they can even bother to apply."

Several Native women were recently hired on, Janvier pointed out, but their jobs will be finished March 31. Only one Native woman will qualify for the six-month lump sum payment. Vi March has been employed at Esso in various departments for eight years. She has stated she will likely accept the CCAP.