Aboriginals threaten blockades if pipeline company doesn't hire native workers

September 16, 2008

By Jim Macdonald, The Canadian Press

EDMONTON - Aboriginal leaders from across Western Canada are threatening blockades if a major energy company doesn't hire more native workers on a $2 billion pipeline project.

Two dozen chiefs meeting in Edmonton Tuesday said Enbridge Inc. (TSX:ENB) has broken a promise to employ hundreds of aboriginal workers on the Alberta Clipper pipeline that will carry crude oil across the Prairie provinces into Wisconsin.

The meeting was organized by Chief Sheldon Wuttunee of Saskatchewan's Red Pheasant First Nation, who says he will make one last attempt to negotiate a settlement with Enbridge before they begin targeting the company's operations.

"We're fed up," he told a news conference. "Prior to this week, the issues of blockades and protests weren't as prevalent in discussion and now they are."

The situation came to a head recently as construction began on the 1,600 kilometre pipeline that will feed U.S. refineries. Wuttunee says it became apparent after Enbridge signed contracts for most of the work that the native community had been left behind.

Enbridge spokesman Morgan Yates confirmed Tuesday that there's a bilateral agreement with the Red Pheasant band, but he says the company has "fulfilled its terms and obligations."

There are 40 aboriginal communities located along the pipeline and other negotiations with First Nations have been more successful, said Yates.

Red Pheasant has had limited success in both quoting on available contracts and in submitting competitive quotes, he said.

"Particularly when we look at the successes achieved by other aboriginal communities, such as the nearby Poundmaker First Nation."

Poundmaker has been able to provide competitively priced equipment and services to the project, said Yates, adding that a number of Poundmaker band members have been hired by Enbridge.

Enbridge is eager to engage in talks with Red Pheasant leaders in hopes of avoiding any protest action.

But Chief Henry Kidney of Alberta's Beaver First Nation says he fully supports fighting Enbridge because band members' frustration in dealing with energy companies is now boiling over.

"It's past boiling. We don't have any water left (in the pot)."

Chief Barry Kennedy of Saskatchewan's Carry The Kettle First Nation says native people are being left out of lucrative energy projects and they're tired of broken promises.

"First Nations are very frustrated," said Kennedy. "They see the benefits of the boom in Saskatchewan and Alberta and we sit there seeing the other effects, the higher gas and food prices."

The chiefs are also calling on the federal and provincial governments to get involved. Wuttunee says it's no coincidence that they're taking this stand during the current federal election campaign.

"We feel it's important to press this issue in light of future developments or projects that are being proposed so that other first nations don't have the same problems."

Wuttunee says the Red Pheasant band is also preparing to file a lawsuit in Saskatchewan against Enbridge.