A new $351-million frigate upgrading contract -- the largest in Victoria Shipyards' 15-year history -- will create 110 new jobs and provide economic stability for 450 workers already at the Esquimalt site.
"What it really means is a real future in the shipbuilding industry again," said Bill Morrison, business agent for Local 191 of the Boilermakers Union, one of 11 trades working at Victoria Shipyards.
Long-term job security from the contract gives workers confidence in their futures, allowing them to make plans, take out mortgages and buy new cars, Morrison said yesterday.
He recalled the early days of the shipyard, owned by Washington Marine Group, when work was intermittent, often only a couple of weeks at a time. With government and private sector contracts, workers have been on the job steadily in the past three years.
Announcements of the 12-year contracts, worth a total of $900 million, to maintain and upgrade Canada's 12 Halifax-class frigates, were made in Esquimalt and Halifax yesterday. The contracts are part of a $3.1-billion military modernization program. Two more contracts will be awarded later this year.
Federal Public Works Minister Michael Fortier was in Esquimalt to confirm that the five CFB Esquimalt-based frigates, starting with HMCS Vancouver on May 5, will be modernized at Washington Marine Group's Victoria Shipyards.
National Defence Minister Peter MacKay was in Halifax, announcing that a $549-million contract for the seven frigates based on the East Coast is going to Irving Shipyards Inc. in Halifax. That contract is expected to maintain and create up to 600 jobs.
Fortier said the work is "great for the economy. It's great for the shipbuilding industry."
Opportunities are coming up for further work as well, he said.
Malcolm Barker, Victoria Shipyards general manager, said, "This is the single biggest contract ever awarded to the Victoria Shipyards."
The multiplier effect in the economy from these types of contracts is typically about two to three times the value of the contract, he said.
Maritime Forces Pacific commander Rear Admiral Tyrone Pile said plans for the ships will see them modernized and capable of dealing with the navy's needs in the future. "What it does is really set the foundation for the next 15 years."
Plans include installing modernized weapons and sensor systems and extending the life of the hull, said Pile.
The West Coast frigates are HMCS Vancouver, Regina, Calgary, Winnipeg and Ottawa. They patrol the Pacific coast and carry out overseas missions. HMCS Ottawa and Regina are on their way to the Far East to take part in training exercises and HMCS Calgary is headed to the Middle East for patrol duties. HMCS Winnipeg and Vancouver are at CFB Esquimalt.
Meanwhile, there's no news on a billion-dollar submarine maintenance contract for Victoria. In December, Natural Resources Minister Gary Lunn, MP for Saanich-Gulf Islands, said awarding of the contract was on track to be completed soon. Canadian Submarine Management Group of B.C. had been orally awarded the contract earlier, with work to be done at Victoria Shipyards.
But Fortier said yesterday that his officials are still negotiating with the group. "So when have a deal, if we have a deal, with that supplier, then obviously we will make that public."
Asked if a timeline had been set, he said, "No."
