“Beyond 2000” — How we are changing

"IntroductionThe Cape Breton Development Corporation (CBDC) located in Cape Breton, Nova Scotia, in eastern Canada, was established in 1967. Its mandate at that time was to facilitate a phased downsizing of the coal industry and developing viable replacement industries. The oil crisis in the early 1970s changed CBDC’s mandate and focus was modified to increase coal production to support Nova Scotia Power Commission’s “off oil” policy for their power generators. In the late 1980s the mandate to develop viable replacement industries was eliminated and CBDC became primarily a coal mining company. CBDC presently operates two underground coal mines, Phalen Colliery and Prince Colliery, using a retreat longwall method of mining. Both mines operate beneath the Atlantic Ocean. CBDC also operates associated infrastructure — central workshops, a railroad, coal preparation plant, and international pier. The Need For Substantial ChangeOver the last few years, CBDC has been facing some challenging issues, including improving labour management relations and achieving financial self-sufficiency and profitability. Recent achievements with regard to human resource issues, especially in the areas of collective bargaining, absenteeism, and attendance, show noticeable improvements. All participants should be commended for successfully concluding the collective bargaining process with all four CBDC unions, CUPE; CAW; IAM&AW; and UMWA. However, although these changes are encouraging, even critical in the short term, they are not sufficient to ensure the long-term viability of the company. Market ForcesShort- and long-term financial realities are drawing the need for further substantive changes. The corporation has a mandate to achieve financial self-sufficiency by the year 1999. This goal can only be achieved through a combination of cost reductions and productivity gains, specifically, a reduction in the workforce of 658 and an increase in production of 800 000 tonnes annually. This increase in productivity requires CBDC to re-think the way it does things.In the longer term, CBDC faces even greater challenges. The energy market is becoming more competitive. The electrical utilities across Canada are anticipating deregulation and are positioning themselves for the resultant competition. As primary fuel supplier to Nova Scotia Power Inc. (NSPI), the corporation will have to become ever more competitive to stay in business."