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The Oil Sands in Alberta: Why is the pay so high?

Update:

I understand that the cost of living is also higher in those areas, but companies often pay for all your living expenses (food, accommodations, etc., and sometimes airfare) while you are there, and the workers tend to leave the area on their days off.

Update 2:

What am I missing?

5 Answers

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  • 7 years ago

    Qualified workers are needed but the locations are remote and not generally a person's first choice for living conditions. In order to offset the generally negative aspect of that, the pay is increased considerably.

    This is all part of the equation that an individual uses to decide whether to take a job or not. there or plusses and minuses and it is the net result that is the usual reason for a decision, rather than one particular aspect. Most people will take a pay cut if there are secondary benefits that may not even be job-related (proximity to family, say). the reverse is equally true; people will accept the loss of some benefits (that same proximity to family, say) if the monetary reward is large enough.

    Supply and demand at work.

  • Xlya
    Lv 4
    7 years ago

    you are not really exposed to chemicals up there. it is nice air. the oil sands are away from the major cities so they compensate for that. people take a bus into the campsite in the morning and a bus back. they do not allow people to drive in. they also have camps onsite for people to stay a a few weeks at a time. its often 12-14 hour days, so if you think of that compared to your normal 8 hour day, of course you are going to make more money. Also its more field work that you do up there which is harder so they pay a bit more. honestly, your base pay is not that much more compared to other places. but its the housing and food costs that you get supplemented for. called northern living expenses. these add up and thus make it seem like you are being paid more

  • 7 years ago

    Because it's hard to get workers with the right qualifications. The skill sets required range from skilled to highly technical. And, it's not exactly great living conditions. Ft. MacMurray, for instance, has very high costs of living, and is a pretty unpleasant place to live by virtue of its climate, remoteness and being just a bit of a hole. It's also not exactly the most popular place to raise a family. I know people who live in Edmonton but go up to Fort Mac to work, but that is gruelling in its own way given that it's a long drive over a two-lane, poorly maintained highway. And, they tend to work long rotations with about a week off in between, which on one hand gives them time to spend with their families, but can take a toll.

  • 7 years ago

    The work is hard with long hours in miserable conditions. You also agree you can't sue them for all the toxic chemicals you are exposed to.

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  • ?
    Lv 7
    7 years ago

    Google "supply and demand"

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