albrico kaefer services ltd. · albrico kaefer was presented the award for exceptional with...

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06 2011

ALBRICO KAEFER Services Ltd.

KAEFER Group Award for Exceptional Performance 2010

Committed to excellence in all aspects of its core business, ALBRICO KAEFER has proven once again its strength and resilience in the midst of worldwide economic chaos.

During the 2011 IMM (International Managers’ Meeting) held in Bremen, Germany on May 20th, 2011,

ALBRICO KAEFER was presented with the award for Exceptional Performance 2010 by the General Executive Committee (GEC) of the KAEFER Group (see Message from the President).

2010 was the second full financial year as part of the KAEFER Group. Despite the economic downturn, ALBRICO KAEFER’s business strategy made it possible for the turnover to grow by approximately 65% from 2008 levels therefore making the year 2010 the most successful year in the company’s long history.

Inset – Seen above at the 2011 IMM Award Presentation from left to right: Arnaud Lejemble, CEO, Ray Brown, President and Norm Guindon, VP & CFO

Inside this Issue

Message from the CEO 2

Head Office

Message from the President 2 11218 – 89 Avenue Grande Prairie, AB T8V 5V8 Phone: 1-800-661-4088 Fax: 1-877-538-1699 www.albricokaefer.com

KAEFER Canada’s Sustainable Mindset 3

Safety Sense Program 5

Bonnyville Feature Jobs: CNRL Projects 6

Calgary “Large Projects” News 7

Edmonton Commercial and Industrial Features 8

Grande Prairie Construction: Pembina Musreau 9

Red Deer Feature Jobs: CNRL Horizon and Westeel 10

Head Office Bulletin: Payroll Policy Reminders 11

Financial Assistance for Apprentices in Alberta 12

K-FLASH INSUL-LETTER 06-2011

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MESSAGE FROM THE CEO

Arnaud Lejemble CEO, KAEFER Canada Inc.

Dear Colleagues,

During the past months KAEFER has strengthened its worldwide presence through acquisitions in countries like Brazil (Isobrasil and Doctor M Acustica); Australia with the painting company Novacoat; Ukraine (Antal); and Spain with a scaffolding company (Proyesur). In Canada, we are still working towards

gaining entry into the Central Market (Ontario) and we expect to develop and be present in this area through an initial acquisition of a small size company.

As the KAEFER Group aims to reach a turnover higher than $2 billion in 2015, we want to take part in this growth by taking every opportunity to develop our local business, not only in the core business of KAEFER Group – insulation and scaffolding – but also passive fire protection and corrosion protection.

It will be an excellent goal to continue developing our core competences, developing our people, our knowledge, and our local strategy and to find some synergies between the Canadian operations from West to East.

To follow, and in favor of this strategy, a new CFO, Steen E. Hansen has recently joined the KAEFER Group

Board of Directors in Bremen.

If the 1st semester is not in accordance with our expectations because of some projects being delayed or postponed after the financial crisis, some countries, just like us, will struggle to reach their budget. But we are very confident we will achieve 2011 in good shape by taking part of the huge potential of projects on which we are focusing in 2012-2015 - on the Atlantic coast with some new offshore investments (Hebron, Deep Panuke,…), in Alberta with several important oil sands investments (Suncor Firebag 4, Horizon, Sunrise, …).

Stronger with our experience, we have reinforced and renewed a part of our team, have developed new activities around our core business like glycol tracing, and are implementing some policies to insure a sustainable future.

Enjoy your reading!

MESSAGE FROM THE PRESIDENT

Ray Brown President

I would like to first thank Arnaud Lejemble, Darcy Myer, and Norm McIntosh for giving me the opportunity to fill the role of President. I look forward to continuing to build ALBRICO KAEFER, PARKER KAEFER and KAEFER Trace.

We have seen quite a few changes since the last newsletter!

Norm Guindon has been selected to fill the role as Vice President. Norm’s knowledge is going to be a real asset.

I would like to welcome Mark Trevors, General Manager of PARKER KAEFER and Rick Lambert, Area Supervisor of PARKER KAEFER, to the KAEFER

Group. Both Mark and Rick come to us with many years of experience. PARKER KAEFER will be our Union side and will open up a whole new opportunity for our future growth. We wish Mark and Rick the best in starting PARKER KAEFER up.

KAEFER Trace, our new Glycol Tracing Division will be headed up by Bruce MacDonald from Edmonton Industrial. Franz Kreisz will be the Supervisor for this division. Franz has years of experience, and brings with him a real opportunity to provide our clients with a service that goes hand in hand with insulation. The first major project awarded under the new trade name is for “Large Projects” in Calgary, and consists of a CH2M Hill contract for 70,000 lineal feet of tubing.

From KAEFER, we have brought in Paul Worrall who is now the Branch Manager for Grande Prairie. Paul has 20 years of experience and brings a vast knowledge of how it is done in other parts of the world. With Paul’s experience, we look forward to growth in the Grande Prairie area. We wish all the best to Paul.

ALBRICO KAEFER has come a long way

over the past years and this has only been possible because of loyal employees and teamwork. In Edmonton, I have always stressed the importance of teamwork and as a result, we have grown to become a recognized name in the area. Success in business comes from teamwork. Success is quite simply good old fashioned hard work and this is what I see as a real positive for the entire group. The acronym TEAM stands for “Together Everyone Achieves More”. Without a team approach most businesses would not grow, achieve profitability or be able to sustain it for very long. By working altogether, we are ensuring that there will be sustainability for the Company.

Arnaud, Norm G. and I recently attended the International Managers’ Meeting, which was held in Bremen, Germany. This meeting was attended by all Managing Directors from over 50 countries from all around the world. We had quite a surprise when ALBRICO KAEFER’s name was called out for an award. There were only a few awards given out and ALBRICO KAEFER was given an award for “Exceptional Performance”. It was an honour to accept this on behalf of the entire Company. Thanks to all of you that have worked hard to make this happen.


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KAEFER Canada’s Sustainable Development

Sustainability is a mindset at KAEFER. Following the strategy of the KAEFER Group worldwide, KAEFER Canada will think and act with a sustainable behaviour, while preserving choices to meet the needs of our employees and future colleagues.

The Directors, with support from Senior Managers, are committed to implementing 9 specific actions in 2011, based on the 3 pillars as defined in the KAEFER Group strategy: our employees, our clients and suppliers, our growth.

The following 3 key measures of our success demonstrate how we are doing with respect to our management practices:

1. Social and cultural - Implement a safe, healthy and rewarding workplace (training, internal promotion,) such as a new safety program for all employees, enrolment in Apprentice school and rewarding the ALBRICO KAEFER student who is highest in the class.

2. Environmental - Take each opportunity to implement the KAEFER Group strategy for a better environment and reduce our overall carbon footprint through methods such as installing a GPS in company trucks (Fleet) to reduce the gas consumption; installing the KAEFER thermal calculation program to offer our customers new insulation designs, materials and services that will reduce their CO2 emissions in the future.

3. Economic - Included with our strategic plan is good financial performance for long-term growth.

- Senior Management Group


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Rene Lemoine’s New Rubber Roof

In keeping with KAEFER Canada’s Sustainability Development, Rene found a company that installed rubber shingles that are manufactured of 80% recycled rubber from old car tires.

Each shingle weighs in at 11.8 kilograms (26 lbs for metrically challenged folks), and is 2.5 centimetres (1 inch) thick. The look is that of slate and is quite a dramatic change from the old, tired (no pun intended) asphalt roof.

The roof has a 50 year warranty and is impervious to hail storms. A typical roof keeps 60 to 100 tires out of the landfill!

Way to go Rene.

Companies are always coming up with new products, and the construction industry is no different!

After 25 years, the shingles on Rene Lemoine’s (Edmonton Commercial’s Senior Estimator) house were due to be replaced.

Everything Begins with an Idea The Award-Winning

It was announced at the IMM 2010 that KAEFER has a new promotional…... and it’s different!

Different, because it introduces KAEFER and our businesses in general. Each viewer will develop a greater understanding what insulation is and will get an overview of KAEFER.

Different, because it uses illustrations that explain our company, our services and our business. Rather than classically shot material. Due to out-dated and limited film footage available this was an attractive and cost-efficient solution.

Different, because it’s real hands that guide us from scene to scene, demonstrating cultural diversity and interacting with the elements in the film.

- Excerpts from CCM Info No. 2/2010: New KAEFER image film

KAEFER Image Film In just a few months after it was launched as a promotional material, the KAEFER Image Film won the prestigious Red Dot Design Award 2010 for its outstanding design. The Red Dot Design Award is one of the largest and most respected international design competitions. The film was selected out of 6,369 entries by a jury of 15 design experts from all over the world.

Earlier this year, the KAEFER Image Film was once again recognized for its marketing design in the 13th “Best of Business-to-Business” (BOB) Awards hosted by the Communication Association in Frankfurt.

Designed to impress, the KAEFER Image Film is a great resource and marketing tool for employees, clients and suppliers.

To obtain a copy of this material, please contact your branch manager.


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Safety Sense Program The Safety Sense Program introduced in January 2011 is a departure from the safety points program it replaces. Here is an opportunity for employees to check over the basics of the program for themselves. This program was developed by the ALBRICO KAEFER Group Senior Management; it can be changed, updated or terminated at any time at the Group’s sole discretion. As an incentive, and NOT part of an employee’s base wage structure, employees are eligible for $0.25/hour for working safely starting January 01, 2011. Safety Sense accumulates for total hours worked, not including travel time. Safety value will be calculated to December 31 and paid out within 2 weeks of the year end. Only hourly wage field employees are eligible to participate. If an employee is terminated for cause, or quits, all Safety Sense value will be lost. Proposed Penalty $ Penalties Include but are not limited to: [Note: Other situations may arise, and, at the discretion of the CSD, penalties may be from $50 up to the total value accrued to-date and for the rest of the year.] 1. Unsafe work practices (reliant on reporting from jobsite) - $50.00

a. Violation must be reported to and confirmed by the Supervisor b. Violations are exponential; any further violations the penalty doubles

The above penalties pertain to things such as working without required PPE, working in an unsafe manner, or not following proven safe work procedures. 2. Personal incidents (dependent on severity and whether repeated) - $100 up to the

total value accrued to date and forfeits all potential Safety Sense earnings for the remainder of the current year. a. Minor first aid penalty = $100 b. Medical Aid – anyone needing medical attention at a health care facility including

site emergency services penalty = $500 up to the total value accrued to-date c. Lost Time – anyone missing the next day after the incident due to the injury:

penalty is the total value accrued to-date and forfeiting of all potential Safety Sense earnings for the remainder of the current year.

3. Driving incidents a. Speeding tickets penalty for drivers = $125; for all other passengers in the vehicle

penalty $100 (determined by the CSD) b. Vehicle/Property damage - Depending on the amount of damage the penalty will

be from $250 to the total value accrued to-date and forfeits all potential Safety Sense earnings for the remainder of the current year.

4. Effect incidents have on other workers (# of workers and degree of injury) penalty = $25 up to the total value accrued to-date a. Each affected employee penalty = $25

Implementation: 1. All decisions are made by the CSD based on review of incident reports. 2. If employee is laid off, $ accrued to layoff date is paid after December 31. $ starts accumulating again immediately after rehire. 3. Employees starting work for first time, any time of the year, start to accrue $. 4. All payouts are subject to payroll deductions (including personal taxes) and are not deemed part of an employee’s wage. $ can be made back by worker proactive participation in: 1. Review of incident, in a positive manner (CSD to review situation and award up to 25% of lost $) 2. For personal incident only - personally developing and facilitating a branch or large jobsite meeting (size of meeting determined by CSD), and satisfactorily reviewing at that meeting the incident and the resolution (CSD to review performance based on minutes of meeting, or personal presence of CSD, and award up to 50% of lost $). 3. Fair and active participation in Modified Work Program combined with early return to full work (worker can earn back up to 75% of lost $). None of the above clawbacks (earned repayments) are cumulative. The maximum amount an employee can earn back is 75% of original penalty. - Rob Nicol Corporate Safety Director

Safety Reminder

Don’t Text and

Drive


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Bonnyville Feature Jobs: CNRL Projects

CNRL Wolf Lake MC1 Pad Modules and Lease Piping Approximately 2000 manhours. Project run by Marcel Patrie, on time and under budget. Project contractor: Flint

CNRL Primrose South 14-51 Pipeline Approximately 2000 manhours Project run by Willy Stremick, on time and under budget. Project Contractor: CNRL

CNRL S1B Lease Piping Approximately 1800 man hours.

Project run by Willy Stremick, on time and under budget.

Project contractor Strike Energy. Project had to be completed in 30 days!

Due to good management and workman-ship on this project, Bonnyville branch has been awarded the Aerial Cooler piping to be started at the end of June 2011.

- Mark Fischer Branch Manager

Bonnyville’s Oil and Gas Show 2011 Mark Fischer and Willy Stremick represented ALBRICO KAEFER at Bonnyville’s Oil and Gas Show 2011. The Show was successful in reminding Oil Companies and Maintenance Companies that ALBRICO KAEFER Bonnyville is ready to serve all their needs in the Insulation Industry. ALBRICO KAEFER booth: Pictured on the right are Willy Stremick, Area Superintendent (left) and Mark Fischer, Branch Manager (right).


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Calgary “Large Projects” News Branch 20 (Large Projects) has gone through many significant changes in the first quarter of 2011, from the retirement of ALBRICO KAEFER Vice President Norm McIntosh in January, to the hiring of a new Estimator/Field Project Coordinator Myles Bellefontaine, and a new Branch Superintendent Doyle Schmidt. Myles comes with trade skill and years of quality experience on project-based Insulation work. Doyle has been in the Insulation trade for more than 25 years with over 15 years in supervisory positions. Both bring tremendous talent and experience to our team.

In December 2010, Branch 20 moved offices to the South East Foothills Industrial Park in Calgary to modernize and expand the operations. We have started a full functioning shop and fabrication facility to help us prepare for

upcoming projects and also give the opportunity to start bidding more local work.

Branch 20 was awarded two projects in February 2011; both taking place in Fort Nelson, British Columbia. The first project will be with PCL/ Monad at a BC Hydro Water Treatment Facility during an up-grader shutdown and the second with CH2M Hill on a new Shale Gas Processing Facility.

The BC Hydro project consists of 5500 Lineal Feet (LF) of piping to be insulated towards the end of a shutdown as the water treatment plant upgrades to meet the Shale gas requirements in Northern British Columbia.

The CH2M Hill contract consists of 70,000 LF of Glycol Tracing, 55,000 LF of Insulation scope and an equipment package. The project is expected to last

until November 2011 with a crew size of 30 – 40 directs and 8 indirect.

In addition to the two new projects, Branch 20 has signed a contract extension with STATOIL at the Leismer Project until late 2011. We maintain a very healthy relationship with the client and we are constantly working to extend and expand our future with them. Another side of maintenance we are involved in is with RAT (Remote Access Technologies). We are supplying a steady crew of certified Insulators and Tubers at the Syncrude Site in Fort McMurray to install product using rope systems to propel up to the work locations. - Wheeler Boys Branch Manager

New Office and Warehouse Special Projects Men at Work

Pictured above from left: Cary Wood (FM), Doyle Schmidt (Area Supervisor), Alfredo de Lemos (Estimator/PM), Myles Bellefontaine (Estimator/Field Project Coordinator). Below: Stephane Lannen working for RAT – Kraft Plant, Port Mellon, BC

Rope Access System


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Edmonton Commercial Feature Job: Edmonton International Airport 2012 Expansions Nears Completion

Commercial work continues at a frantic pace at the Edmonton International Airport site to meet the October, 2011

completion date and the photos above give you a sneak peek inside the spectacular new terminal building. Are

you feeling privileged?! - Rene Lemoine Senior Estimator

Edmonton Industrial Project News

Edmonton Industrial has work on the books for Summer 2011!

The “Maintenance Services Facility” project for Imperial Oil at Kearl Lake, Fort McMurray, has been delayed due to evacuations as a result of fires in that area.

There is also a project lined up at

Cenovus Foster Creek.

Edmonton Industrial personnel are currently assisting Red Deer branch in the completion of Cenovus Christina Lake pipeline TK2.

Hyundai Engineering has approached Edmonton branch regarding a large project they are engineering in the vicinity of Edmonton. The branch is very hopeful that this inquiry will turn into a major project!

Fort Nelson is an active area these days, and many inquiries have been coming into Edmonton office for this area. Again, Edmonton Industrial is working hard to make some of these projects a reality for ALBRICO KAEFER. - Bruce MacDonald Branch Manager

Feature Employees

Another Generation for the Edmonton Commercial Office.

Meet Sister and Brother, April & Tate Logan. April & Tate both started their insu-lating careers be-cause of their dad Bill Logan. Bill worked in the Edmonton commer-

cial branch for several years, retiring just a few months ago. Prior to his retirement he made sure that April & Tate were

both trained in the commercial insulation field.

Both April & Tate have completed their first year of the NAIT Apprenticeship Program and are back working towards their second year.

Congratulations to both of you! From Edmonton Industrial, meet Godofredo (Toto) Lopez

Godofredo has been with ALBRICO KAEFER since the spring of 2010, receiving experience estimating industrial piping projects.

Recently, a vessel fabricator has been sending requests for various upcoming projects including: Kearl Lake for Imperial Oil, ConocoPhillips Surmount 2 project, and the CNRL Horizon expansion project; all in the Ft. McMurray area of Alberta. Godofredo is becoming well-versed on pricing vessels and equipment. Well done Godofredo!


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Grande Prairie Construction Feature Job: Pembina Musreau Deep Cut Project

The Pembina Musreau 4-25 Gas Plant Deep cut Train C project for Tradesman Enterprises started in April 2011 and is due to be completed by September 2011. At the end of May the project, with Mike Winterburn leading the charge, had been running for 6 weeks. The crew of 4 men at this time were working on repairs to the Demethanizer Tower (8” Foamglas), Molecular Seive Tower, Cold Separator (8” Foamglas), and Flare Knockout Vessel.

Cold (-128 degree) pipe insulation, with up to 6 1/2” thick Foamglas, adds up to around 5000 lineal feet. Hot piping requiring calsil and mineral wool insulation accounts for an additional 3000 feet.

- Dave Tretiak Area Supervisor

A Warm Welcome to Paul Worrall, Branch Manager

Paul Worrall has joined the ALBRICO KAEFER Group as the Branch Manager responsible for the business performance in Grande Prairie and British Columbia.

Although having spent the last 20 years or so in and around the construction industry servicing the oil, gas and power sectors, Paul is a relative newcomer to the Insulation business.

In the last 6 years Paul has been with the KAEFER group, holding several senior management positions in Australia, New Zealand, and for the last two years as the Manager of the Global Project Management Academy based at the corporate headquarters in Germany. Whilst there he was responsible for the roll-out of the corporate project management strategy.

Paul brings to the business a wealth of knowledge and experience in the areas of business and project management and much needed skills for the development of the business processes and the people within the group.

A professional manager, developer and mentor, Paul is eager to embark on the next part of his career in Canada and looks forward to further growth as part of the ALBRICO KAEFER team.

You can contact Paul at the Grande Prairie branch to discuss any issues and he always is keen to learn and assist as required.


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Red Deer Feature Jobs CNRL Horizon

A Red Deer crew is working at CNRL Horizon (North and West of Fort McMurray) on 36” and 52” diameter pipe. The small crew, led by Terry

Willerton and Tim Saunders, are doing “the best work he has seen in 12 years at that site”, says the E&I Supervisor. The client is Snamprogetti Canada, a client

with whom KAEFER has worked around the world. ALBRICO KAEFER now has the opportunity to build on that reputation and obtain more work for this company!

Westeel Rectangular Tanks

Two rectangular tanks have been delivered to Red Deer branch by Westeel. They both require fiberglass board insulation with an aluminum jacket.

- Eric Ludwig Branch Manager

And We Bid Farewell to Chris Witwer Red Deer’s Youngest Insulator

Elijah Aaron Didrikson, son of Aaron and Lynn Didrikson, born March 2, 2011.

Best Wishes to the “little insulator” from everyone at ALBRICO KAEFER!

Chris Witwer started working for Bonnyville branch 14 years ago. He progressed from a “new employee” quickly, and in 1998 became one member of the group that founded the Red Deer branch. In the year 2001 Chris was asked if he wished to become the “Field Supervisor” for what was then a very small group of men at Red Deer. As the years passed the group grew to as many as 75 men, and Chris grew in stature in keeping with the number of men.

Chris decided in 2011 that he needed to move on and has indeed done so, leaving the Insulation Trade behind.

Good luck, Chris, in your new position, and thanks for your participation at ALBRICO KAEFER!


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Head Office Bulletin Payroll Policy Reminders

1. VACATION PAYOUT CHANGE:

The new vacation policy went into place November 28, 2010. The policy was changed from “holding” the vacation dollars until requested or paid out once a year, to paying vacation pay every pay period to employees. This management decision was based upon the employees opting for this benefit. The change also saves time putting in requests for payouts and allows employees to manage their own vacation fund.

2. ADDRESS CHANGE:

Please remember when moving residences, it is important that you follow up with all services that you deal with to provide them with a change of address. Chances are there will be less of an interruption of services the sooner you advise these companies of your move. A few of the places you should advise:

− local post office

− your bank

− your family and friends

− your employer and any past employers if you will be receiving a T4 from them

− services you use (i.e. utility company, phone provider, internet, etc.)

3. DEPOSIT STUB EXPLANATION:

Please see below a copy of a deposit stub. When you receive yours, it is always a good idea to look it over. Did you receive your vacation pay? Did you get paid all the hours you worked in the pay period? Did you bank any hours and what is the total banked? How much vacation pay has been paid to date? All these questions and more have been addressed on the example below. When questions come up regarding your deposit stub, please contact your branch administrator for clarification.

- Terril Olson

Payroll Administrator


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Financial Assistance for Apprentices in Alberta

It is widely known by government leaders that fewer and fewer people are choosing the trades as a career. In the coming years the shortage of skilled tradespeople will increase as people reach retirement age. In an effort to promote and assist future tradespeople, governments have set up programs to financially assist individuals who choose a trade for their career. You may already be aware of some of these programs or this information might be new to you. If you have been weighing the benefits of the insulation apprenticeship program but have been hesitant due to the financial costs make sure to review all available grants and scholarships offered by the Alberta and Federal governments. Sometimes the chances of obtaining an award or scholarship may be higher than

you think as few individuals may be applying for some of the less known scholarships or awards.

A great starting place to learn about available scholarships and programs is the following government website: http://www.programs.alberta.ca/Living/Dynamic.aspx?N=770+126+535

called the Alberta Government program and services website and specifically under the apprenticeship training section. Under this portal you can gain information on numerous financial programs including EI support, grants and scholarships you can access as an insulator apprentice.

From this site you can review both Federal and Provincial programs and print off applications to various scholarships and awards.

A brief summary of available programs (many more are available):

• Apprentice and Occupational Trainee Scholarships

• RAP Scholarships

• WorldSkills Calgary 2009 Legacy Scholarships

• Alberta AIT Family Scholarships

• Employment Insurance (EI) benefits for Apprentices

DID YOU KNOW!?

> ALBRICO KAEFER will reimburse the base tuition for your apprenticeship upon confirmation of a successful passing grade.

> In addition to the tuition reimbursement a $500 cash award will be given to the ALBRICO KAEFER apprentice with top mark in his/her class.

> The ALBRICO KAEFER student with the second highest marks in his/her class will receive a $250 cash bonus.

For more information please contact your Supervisor.

- Norm Guindon Vice President and Chief Financial Officer

Member Insulator Scholarships

As an active member of TIAA, ALBRICO KAEFER employees are eligible to apply for Apprentice Scholarship with TIAA.

All scholarships are awarded annually, with the deadline for applications August 15th.

The scholarship application form is available for download at www.tiaa.cc or by contacting the TIAA office at 403-244-4487 or [email protected]

Please contact your Supervisor for additional information regarding the program.

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