Rig contractors highlight national face of the industry

One active drilling rig draws support from 135 jobs. 75 of these jobs are in oil and gas occupations, but the remaining 40 are in hospitality services.
In October, Members of the Canadian Association of Oilwell Drilling Contractors (CAODC) were in Ottawa to meet with federal Ministers of Parliament.
Drilling rig activity is a powerful indicator of economic activity.
“One active drilling rig draws support from 135 jobs. 75 of these jobs are in oil and gas occupations, but the remaining 40 are in hospitality services. These include local hotels, restaurants, gas stations and food markets,” said CAODC President, Mark Scholz, “The national impact of the rig industry is sometimes overlooked.”
Rig employees primarily live in Alberta, British Columbia and Saskatchewan, but some travel from as far as Newfoundland, Ontario or Québec to work a two-week ‘hitch’ at a location in western Canada.
“Rig activity spans from British Columbia to Manitoba,” says Scholz, “but the workforce is drawn from all over the country. A driller can make his home anywhere because a rig is always moving to new locations, and the work rotation for a rig crew needs to accommodate travel time.”
CAODC members were also highlighting the skill set of their workforce. Drilling and service rig contractors invest heavily in developing and advancing their employees. Senior field personnel draw on years of experience to keep a rig – a multi-million dollar business unit – and rig crews working efficiently and safely. The Rig Technician trade is apprenticeship training for senior crew members on drilling rigs. This Red Seal trade – offered in British Columbia, Alberta, Saskatchewan and the Northwest Territories – has been in place for nine years.
Canada is the only place in the world that offers drilling rig employees a traditional apprenticeship – a combination of on-the-job training and classroom-based training. “Thousands of journeymen and apprentices run Canadian rigs,” says Scholz. “Canadian rig workers are recognised as some of the most knowledgeable throughout the world.”
CAODC is the unified voice of the Canadian drilling and service rig sector and is committed to promoting a culture of safety excellence and to continuing the industry tradition of leadership and cooperation.
CAODC lists the job scale and camp and non-camp rates for rig workers on its website.
The camp rate is $50 per day and $140 non-camp, of which $17.50 is not taxable. (Non-taxable for payroll purposes if the individual employee maintains a principle place of residence and works 80 kilometres from his principle residence, for at least 36 hours.) Employers cannot claim Goods & Services Tax (GST) Input Tax Credit (ITC) on the meal portion of the subsistence rate if the rig is working within a 30-kilometre radius of a city of at least 40,000 people, which doesn’t include northeast B.C.
Drilling Crews Recommended Wage Schedule:
The Canadian Association of Oilwell Drilling Contractors recommends the following minimum wage schedule for hourly paid drilling crews.
Position          Base Wage  Premium
Driller               $43.70  +  $2.00
Assistant Driller $39.00 +  $1.50
Derrick hand      $37.00+   $1.50
Motor hand        $32.00 +  $1.00
Floor hand         $30.00       n/a
Lease hand         $27.50      n/a
All figures represent hourly pay rates.
Rates were updated in October, 2012

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