Suncor reducing contractor work force by 20% to improve safety, efficiency
Global News
Since 2014, there have been at least 12 fatalities at Suncor's oilsands facilities in northern Alberta, including five since 2021.
Suncor Energy Inc. is reducing the size of its contractor work force by 20 per cent as part of its effort to improve safety and performance at its oilsands operations.
Interim CEO Kris Smith told analysts on a conference call Thursday that more than half of the work force reductions have already been completed, with the remainder on track to be completed by the first half of 2023.
He said the decision to reduce the number of contractors working on Suncor sites was the result of “a thorough review of the make-up of our front-line work force” and aimed at reducing the number of exposure hours that put the company at risk for workplace injuries or fatalities, as well as improving efficiency and competitiveness.
“My priority has been to remove distraction from the organization and to focus our employees on safe, reliable operations in our biggest opportunities,” Smith said on the call.
Suncor’s safety record has been under the microscope in 2022, ever since U.S.-based activist investor Elliot Investment Management publicly called for change at the Calgary-based energy company.
Since 2014, there have been at least 12 fatalities at Suncor’s oilsands facilities in northern Alberta, including five since 2021. That’s more than all of its industry peers combined.
Smith — who stepped into the CEO role in July to replace Mark Little, who stepped down from the top job one day after a 26-year-old contract worker was struck by equipment and killed at Suncor’s Base Mine — said Suncor is also enhancing its contractor management processes, and partnering with experts to ensure managers in all departments and operations have the latest safety training and education.
The company is also installing collision prevention technology on over 1,000 pieces of mobile mine equipment to eliminate what it calls a “key risk” within its operations. Fatigue management systems will also be completed across all of Suncor’s mines by early 2023, Smith said.
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