Tuesday, January 26, 2021

Testing, sick leave, enforcement needed to slow workplace spread in Ontario: experts

TORONTO — As Ontario struggles to beat back a dire wave of COVID-19, workplace spread has been singled out by public health experts, mayors and top health officials as a major source of infections.
© Provided by The Canadian Press

Experts and workers say government measures so far haven’t directly targeted the issue, but fairly simple practices would help track and reduce infections.

Epidemiologist Colin Furness at the University of Toronto’s Dalla Lana School of Public Health said there should be clear consequences for employers that don't take proper precautions at this point in the pandemic.

“We know from contact tracing data and outbreak investigations what some of the most risky environments are. We should be coming down on them like a ton of bricks,” Furness said.

Hundreds of people have been infected in recent outbreaks linked to workplaces, including at least 121 workers at a Canada Post facility whose cases were reported this week and more than 140 people at a Cargill-owned meat processing facility in Guelph, Ont., last month.

Hundreds of migrant workers tested positive on Ontario farms last summer, and more than 5,000 long-term care staff have been infected to date.

But observers said there isn’t consistency when it comes to penalties for employers, or even naming workplaces where outbreaks happen.

Traditionally, workplaces have been challenging for public health because harsh enforcement might mean future issues are covered up, Furness said.

There are some signs of change, however, led by Toronto Public Health. The health unit said this month it would name employers with significant outbreaks and enforce reporting of cases among workers, a move Furness called “revolutionary.”

Putting pressure on employers is also important to make sure other measures are effective, Furness said, including paid sick leave, which has become a prominent political issue in Ontario. Mayors from province’s largest cities have been calling for months for accessible, universal paid sick leave so workers don't come to work sick over fear of losing income – an argument supported nearly universally by public health experts.

Janice Mills, who has a job in auto manufacturing, said sick leave is the biggest issue at the Glencoe, Ont, plant where she works with about 50 other people per shift.

Workers can apply for the Canada Recovery Sickness Benefit introduced to support people missing work over a COVID-19 diagnosis or exposure, but they’re only eligible if they miss 50 per cent of the work week.

That's an issue for hourly workers at Mills' plant, she said, because if someone falls ill on Thursday or Friday, they can’t make use of the benefit until the following week.

“That's very difficult for people to wrap their heads around,” Mills said.

Labour Minister Monte McNaughton said Ontario isn’t looking to implement its own sick leave policy because there are still millions of dollars available through the federal benefit.

He said the program is sufficient, but workers may not know about it, and he’s asking federal ministers to ensure there isn’t a delay in getting money out to people.

“I feel strongly that we shouldn't duplicate this program,” he said in an interview.

Furness said sick leave is important, but it doesn’t guarantee workers won’t face repercussions for accessing it – so employers should be held accountable if people are pressured into working while sick.

Tim Sly, an emeritus professor of epidemiology at Ryerson University, pointed to regular asymptomatic testing as another key measure that would help assess workplace spread.

He noted other regions have made use of rapid tests to find the virus among people who may not know they're infected, but Ontario has until recently been reluctant to introduce the practice.

“Why we've delayed it so often, I have not a clue," he said. "It costs so little, it's easy to do, and if you repeat it, you're getting up to really good standards of screening.”

Some industries in Ontario, such as film and television production, are already regularly testing employees for COVID-19, and the government plans to ramp up asymptomatic testing in the coming months by sending rapid tests to hard-hit sectors like farms, manufacturing and long-term care.

McNaughton said an asymptomatic testing pilot has already begun on construction sites in the Greater Toronto Area, and he said there will be "huge emphasis" on testing workers going forward.

He also pointed to the government’s recent “inspection blitz” of big-box stores, which is expanding to more industries. Most fines have been relatively small, at less than $1,000 per infraction, but McNaughton said some larger investigations are underway, and employers should be aware of the potential for fines up to $1.5 million.

“I hope my message was clear to every big corporation out there, every shareholder, that if they're not having a safe work environment for their workers, and for customers, I won't hesitate to shut them down,” he said.

Meanwhile, frontline workers say appreciation for their work isn't often reflected in the province's official pandemic response.

Brittany Nisbett, who works at a group home for disabled adults in the Niagara Region, said new restrictions announced this month haven’t changed anything in her working life – in fact, she said new limits on store hours have made it harder to complete errands during time off.

She said it’s been an emotionally taxing year, especially when co-workers and clients have tested positive for the disease, but one silver living has been growing public acknowledgment of the work she does.

She’d like to see that reflected with a permanent wage increase, paid sick days and more staff for support.

“If you’re going to call us heroes, then I think that we need to be treated like heroes,” Nisbett said.

This report by The Canadian Press was first published Jan. 21, 2021.

Holly McKenzie-Sutter, The Canadian Press
Amazon seeks to halt union election at Alabama warehouse

(Reuters) - Amazon.com Inc has filed a motion asking the U.S. National Labor Relations Board to halt the union election at its Bessemer, Alabama warehouse, scheduled to start Feb. 8
.
© Reuters/BRENDAN MCDERMID FILE PHOTO: FILE PHOTO:
 The logo of Amazon is seen on the door of an Amazon Books retail store in New York

The company also requested a review of an earlier labor board decision to hold the election by mail due to the COVID-19 pandemic, according to a filing dated Jan. 21.

Amazon's first U.S. union election since 2014 was scheduled https://www.reuters.com/article/us-amazon-com-labor/amazon-union-election-to-start-in-february-u-s-labor-board-idUSKBN29K2BV 
to begin with the mailing of ballots in early February and a vote count starting March 30. The online retail giant, which is the second-largest private employer in the United States after Walmart Inc, has long avoided unionization and has trained managers to spot organizing activity.

The company alleged multiple gaps in labor board precedent, errors made by the acting regional director, and missed opportunities for mail-ballot improvements to back its motion.

The union declined to comment on the matter.

P.E.I. lozenge plant lays off 30 workers after weak cold and cough season


© Provided by The Canadian Press

CHARLOTTETOWN — A lozenge plant in Prince Edward Island has laid off 30 workers, citing an "almost non-existent" cold and cough season amid COVID-19 restrictions.

Island Abbey Foods said Friday sales of its Honibe cough and cold lozenges have declined in the first two quarters of 2021, forcing the Charlottetown company to cut 30 temporary positions from its production operation.

Measures aimed at curbing the pandemic such as masks, frequent hand washing, physical distancing and working from home appear to have lessened the prevalence of seasonal viruses.

The apparent drop in winter colds across the country seems to have weakened demand for medicine and natural remedies aimed at soothing sore throats and nasal congestion.

Both Metro Inc., which operates drugstores primarily under the Jean Coutu, Brunet, Metro Pharmacy and Drug Basics banners, and Loblaw Companies Ltd., which has a network of Shoppers Drug Mart and Pharmaprix outlets, have noted the weak cough and cold season.

Metro president and CEO Eric La Fleche told analysts during a conference call in November that it appeared to be a "much weaker cold and flu season," as the increase in sanitary measures due to COVID-19 appear to help curb the spread of seasonal viruses.

Loblaw president Sarah Davis also noted during a call with investors in November that the company was looking at ways to offset a declining trend in the cough and cold sector.

The Public Health Agency of Canada's weekly influenza report earlier this month said flu activity remains "exceptionally low" for this time of year.

The FluWatch report for the week of Jan. 3 to 9 said flu testing continues at seasonal levels but there is "no evidence of community circulation of influenza."

Dr. Lisa Barrett, an infectious disease expert and assistant professor at Dalhousie University, said respiratory viruses like the common cold, seasonal influenza or the coronavirus all spread in similar ways.

"If you take away the way we spread one virus from person to person, you do the same thing for another virus," she said, noting that measures to reduce COVID-19 transmission appear to be helping slow the spread of other viruses.

But Barrett said early indications that it will be a weaker cold and flu season this year is also about the reduction in international travel.

"In the beginning of every season, the virus comes from somewhere and that's related to travel," she said. "Different respiratory viruses circulate through the hemispheres. If there's less travel, there's also less bringing of the virus back to it's seasonal place."

For Island Abbey Foods, the decline in demand for its cough and cold lozenges comes on the heels of a "tremendous year" in 2020, said Scott Spencer, president and chief operating officer.

"We increased head count significantly across our company to meet higher than anticipated demand and position our company for success," he said in a statement.

The Charlottetown company has continuously adapted to the ever-changing business realities that COVID-19 is imposing on the world, he said.

Despite substantial gains with its digital retail strategy, Spencer said online sales have not replaced the volume the company projected for a regular cold and cough season.

The company said demand for its gummy products continues to be strong. It said planning is underway for a major expansion project, which includes state of the art equipment that will increase capacity to meet growing demand.

This report by The Canadian Press was first published Jan. 22, 2021.

The Canadian Press

Indigenous business coalition leader says Keystone XL denial will hurt communities

CALGARY — The cancellation of the Keystone XL pipeline by U.S. President Joe Biden is a major setback for Canadian Indigenous people, says the leader of a group promoting their participation in oil and gas development as a solution to poverty on reserves.

© Provided by The Canadian Press

The decision means fewer jobs in the short term for Indigenous people in constructing the pipeline and supplying goods and services for it, said Dale Swampy, president of the National Coalition of Chiefs.

It also implies more long-term unemployment for those who work in exploring and developing conventional and oilsands projects in Western Canada because it impedes investment in production growth, he said.

"It's quite a blow to the First Nations that are involved right now in working with TC Energy to access employment training and contracting opportunities," said Swampy.

"Within Alberta, First Nations are pretty closely entrenched with all of the activities occurring with the oil and gas industry. Any change, especially a big change like this, really affects our bands' ability to keep our people employed."

The demise of the pipeline means Natural Law Energy, which represents five First Nations in Alberta and Saskatchewan, will no longer be able to make an equity investment of up to $1 billion in Keystone XL, a plan announced by builder TC Energy Corp. in November that was expected to be extended to American Indigenous groups as well.

But the relationship with TC Energy is expected to continue, said executive director Brian Mountain, with Natural Law making investments as a partner in other projects including renewable energy.

"We don't know how many terms Biden is going to be in for, it might be for one or two," he said, adding his group met with TC Energy executives on Friday morning to talk about next steps.

"TC Energy has been around since (the 1950s) and, more importantly, our First Nations people have been around since time immemorial. This is just another point on the timeline in our economic recovery."

He said none of the proposed projects has been confirmed as yet but said the group is confident of getting bank financing for its role.

The impact on Indigenous people goes beyond direct equity investment, Swampy said, noting that four of his five sons normally work in oil and gas but one has been unable to find a job in the current downturn.

Swampy is a former CEO of the Samson band. The coalition he heads was created in 2017 by Indigenous equity partners in the cancelled Northern Gateway pipeline and has a membership of about 80 bands.

Grand Chief Stewart Phillip, however, said the threat of global climate change is of "paramount importance" and is the reason Biden was elected president.

"I absolutely believe the writing is on the wall for the oil industry. It's going downhill," the president of the Union of B.C. Indian Chiefs said in an interview.

He suggested that Indigenous people who depend on pipeline or oil production jobs should prepare for the future by getting work in renewable energy.

"Those jobs are transient in nature ... It's a myth that pipelines represent an economic boom for a particular area," he said.

Pipeline contracts for earth-clearing help her employees at Top Notch Oilfield Contracting feed their families, countered Judy Desjarlais, a member of the Blueberry River First Nation in northeastern B.C.

She said Biden's decision is a "kick in the teeth" for Canada and its Indigenous people.

In a report published in December, energy industry labour data firm PetroLMI said about 13,800 self-identified Indigenous people were directly employed in Canada’s oil and gas industry in 2019. That's seven per cent of total industry employment, compared to three per cent in other industries.

TC Energy approved spending US$8 billion in the spring of 2020 to complete Keystone XL after the Alberta government agreed to invest about US$1.1 billion (C$1.5 billion) as equity and guaranteed a US$4.2-billion project loan.

Alberta Premier Jason Kenney has said the province has about $1 billion at risk if the project were killed. Earlier this week, he called on Ottawa to demand talks with the U.S. about the pipeline and, if those prove unfruitful, to impose economic sanctions.

The 1,947-kilometre pipeline is designed to carry 830,000 barrels a day of crude oil from Hardisty, Alta., to Steele City, Neb., where it would connect with the company's existing facilities to reach the U.S. Gulf Coast refining centre.

This report by The Canadian Press was first published Jan. 22, 2021.

Companies in this story: (TSX:TRP)

Dan Healing, The Canadian Press
Ontario Teachers' Pension Plan to aim for net-zero greenhouse gas emissions by 2050


TORONTO — The Ontario Teachers’ Pension Plan Board is getting serious about climate change with a new commitment to achieving net-zero greenhouse gas emissions and ensuring their portfolio is more environmentally friendly.
© Provided by The Canadian Press

Canada's largest single-profession pension plan said Friday that in the coming weeks it will establish concrete targets for portfolio emissions and ensure companies it invests in report emissions annually.

It will also direct proceeds from a green bond offering towards climate-friendly investment opportunities and advocate for clear climate policies with the help of global organizations it will partner with.

"With co-ordinated action net zero by 2050 is an ambitious but achievable goal," said the plan's president and chief executive Jo Taylor.

"We are committed to playing our part alongside other organizations and governments around the world to effect significant, positive change.”

The promises come weeks after an environmental coalition — Shift Action for Pension Wealth and Planet Health, Fridays for Future Toronto and a group of working and retired Ontario teachers — launched a campaign encouraging the board to divest from companies that develop or transport fossil fuel products.

The coalition used a four-minute YouTube video featuring a group of students reading a letter to their teachers, asking them to push the pension plan to stop investing their retirement savings in oil, gas, coal and pipeline companies.

Chief Investment Officer Ziad Hindo said in an email that direct private assets in oil and gas make up about three per cent of the plan's portfolio and that it will continue to shift away from fossil fuels.

The Ontario Teachers' Pension Plan oversees the pensions of more than 329,000 active and retired teachers in the province and handles about $204.7 billion in net assets.

In recent months pension funds and other institutional investors have faced growing pressure to divest from fossil fuels and allocate funds into low or zero-carbon energy products.

Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, announced earlier this year that it plans to halt investments in Calgary-based Canadian Natural Resources Ltd., Cenovus Energy Inc., Suncor Energy Inc. and Imperial Oil Ltd. after concluding they produce unacceptable levels of greenhouse gas emissions.

This report by The Canadian Press was first published Jan. 22, 2021.

The Canadian Press
Opinion: Prairie premiers need to get with renewable program

© Provided by Leader Post Miles of unused pipe, prepared for 
the proposed Keystone XL pipeline, sit in North Dakota in 2014.


In one day, we saw two great examples of the antiquated mentality of the prairie premiers emerge and highlight the need for better leadership. Wednesday, with newly-elected American President Joseph R. Biden signing an executive order to stop the Keystone XL pipeline, Alberta Premier Jason Kenney suggested trade sanctions be levied against the U.S. Simultaneously in Saskatchewan, Premier Scott Moe admonished and threatened the Regina city council for their attempt at limiting fossil fuel companies from advertising city-sponsored initiatives. Moe’s specific threat? If city council isn’t careful, perhaps money received from SaskEnergy and SaskPower in municipal surcharges ($33.3 million) will no longer be provided, and boldly stated: “If these Regina city councillors have such a strong aversion to accepting money from energy companies, I assume they will no longer want to receive these funds, which could instead be distributed to other Saskatchewan municipalities.”

Gentlemen, read the room. Things are changing for the better, and I’m sad to say, they don’t support all your oil executive donors and cronies. Many are learning the truth about our current addiction to fossil fuels and the associated human health and ecosystem impacts, despite significant efforts by the oil industry to convince us everything is cool.

I use the word addiction intentionally and I ask that we reflect on it and its implications to us on a personal level. We are all oil addicts. Think about systems of agriculture and distribution, manufacturing and even the design of our cities. All currently rely heavily on fossil fuels. For the time being they are essential for life in the Prairies and those who personally work within the energy sector support themselves and their families through their hard work in that industry. It is not reasonable to say we must stop consuming fossil fuels, full-stop. In reality what is needed is a plan for transitioning away from fossil fuels and toward new ways of organizing and powering human enterprise, to create a more sustainable society (replete with jobs in a new energy industry). What is not helpful is further expansion of the fossil fuel industry through a massive investment in infrastructure (i.e. the Keystone pipeline). In short, yes we need oil, but we also need to transition away from it.

Returning to the addiction analogy, some of us are on the road to recovery, while some are fully in denial that there’s even a problem, ignoring the credible scientists who warn Earth is on the brink of catastrophe as a result of this addiction. It’s unfortunate the leaders of Saskatchewan and Alberta remain firmly in denial of our deeply problematic addiction and are utterly unwilling to help us move toward solutions to improve the situation. Instead, they support policies that enable the dealer. The $1 billion of taxpayers money which Jason Kenney pumped into the oil sands project is now gone. Truly unfortunate and a bad gamble on a doomed, economically-dubious prospect. That money could have been used to assist in the transition toward green energy sources and created sustainable green energy jobs. Instead, it enriched a few of his friends and jobs for Albertans will not materialize.

All we can hope for now is that it serves as a wake up call. Supporting the drug dealer is great in the short term: It comes with lots of money, power and prestige (of a certain flavour). But in the end you hurt people; the people you love and have vowed to protect.

Peter Oldridge is a Saskatoon registered social worker with a Masters in community policy, planning and organization.
Biden administration pauses federal drilling program in climate push


By Nichola Groom and Jennifer Hiller
© Reuters/Nick Oxford FILE PHOTO: Pump jacks operate at sunset in Midland

(Reuters) - U.S. President Joe Biden's administration has temporarily suspended oil and gas permitting on federal lands and waters in the latest of a series of rapid-fire orders aimed at fighting climate change and tamping down the U.S. fossil fuel industry.

The order appeared to be a first step in delivering on newly sworn-in Biden's campaign pledge to permanently ban new drilling on federal acreage. Federal leases account for close to 25% of the nation's crude oil output, making them a big contributor to energy supply but also to America's greenhouse gas emissions.

Biden's predecessor Donald Trump had sought to maximize production of oil, gas and coal on federal acreage, and routinely downplayed threats from global warming.

The suspension was welcomed by environmentalists but derided by the oil and gas industry, which is struggling to secure a future under a new administration that has vowed to make countering global warming a top priority.

The 60-day pause strips Interior Department agencies and bureaus from their authority to issue drilling leases or permits while the administration reviews the legal and policy implications of the federal minerals leasing program, according to a Department of Interior memo. The order does not limit existing operations, it said.

Shares of U.S. shale producers with federal lands exposure fell following the news on Thursday.

EOG Resources Inc and Cimarex Energy Co closed down 8.6%, Devon Energy Corp fell 7.9% and Occidental Petroleum Corp closed down 6.4% on the New York Stock Exchange.

"This is a frack ban," Anne Bradbury, chief executive of the drilling trade group American Exploration & Production Council, said in an interview. "Even just for 60 days, it's a really aggressive move."

 

Many of the largest onshore drilling companies had stockpiled permits https://www.reuters.com/article/idUSKBN29Q1S5 in anticipation of a change in federal policy ahead of Biden's election, insulating them from a ban.

The order came close on the heels of a raft of other executive actions aimed at fighting climate change, including re-engaging the United States in the Paris climate accord and canceling a permit for the Keystone XL oil pipeline from Canada.

JOBS VERSUS CLIMATE


Jesse Prentice-Dunn, policy director of the environmental advocacy group Center for Western Priorities, said "the Biden administration is rightfully attempting to take stock of the damage and make sure the agency is following the law."

But big industry groups American Petroleum Institute and Western Energy Alliance swiftly issued statements condemning the pause and framing it as a threat to the economy.

"With this move, the administration is leading us toward more reliance on foreign energy," API President Mike Sommers said.

Limits on federal drilling will have the biggest impact on major Western producing states like New Mexico and Wyoming, which depend on revenue from their share of extraction royalties.

In a statement, the New Mexico Oil & Gas Association said that restricting development "risks the loss of more than 60,000 jobs and $800 million in support for our public schools, first responders, and healthcare services."

White House officials did not immediately return a request for comment.

(Reporting by Nichola Groom, Editing by Richard Valdmanis, Aurora Ellis and Marguerita Choy
)

Big U.S. oil drillers have federal permits to mute effect of any Biden ban

By Jennifer Hiller and Nichola Groom
© Reuters/NICK OXFORD FILE PHOTO:
 A drilling rig operates in the Permian Basin oil and natural gas producing area in Lea County

(Reuters) - U.S. President Joe Biden's promised ban on new oil and gas drilling on federal lands would take years to shut off production from top shale drillers because they already have stockpiled permits, according to Reuters interviews with executives.

But smaller independent oil drillers without the resources of big corporations were more worried about Biden's vow to toughen regulations and stop issuing new permits on federal lands, part of his sweeping plan to combat climate change and bring the economy to net zero emissions by 2050.

Federal lands are the source of about 10% of U.S. oil and gas supply. Fossil fuels produced on federally managed lands and waters contribute nearly 25% of U.S. greenhouse gas emissions, according to government estimates, making them an easy target for the administration's climate agenda.

Biden's pledge would reverse former President Donald Trump's efforts to maximize drilling and mining on federal property. In an order dated Wednesday, the Biden administration suspended oil and gas leasing and permitting on federal lands for 60 days while it reviews the legal and policy implications of the mineral leasing program. But a freeze or ban will not end production in those areas overnight.

The seven companies that control half the federal supply onshore in the Lower 48 states have leases and permits in hand that could last years.

"We have always been very confident that we will continue to develop and drill on federal acreage," said David Hager, executive chairman of Devon Energy Corp, the biggest oil producer on onshore federal land in the Lower 48 states. "It's embedded into the rights we have in the leases and we're doing it the right way."

He said he expected the company's federal lands permits would last at least four years.

Other top producers on federal land include EOG Resources Inc, ExxonMobil Corp, Occidental Petroleum Corp, ConocoPhillips, and Mewbourne Oil Company.

Representatives at these companies did not comment for this article. But several have issued public statements saying they have solid stockpiles of federal permits and an ability to meet tougher emissions regulations expected under Biden. They have also said they can quickly shift drilling to state or private acreage once federal permits dry up.

EOG has said it has at least four years of federal permits. "When it comes to access to federal lands, that's one of the things we're not really worried about in our business. We have a lot of potential outside of federal land, too," Chief Operating Officer Billy Helms said during an investor conference last year.

Occidental said last year it had well over 200 federal drilling permits in hand and had requested another roughly 200 permits on New Mexico acreage, where some of the richest reserves lie beneath federally owned property.

Ameredev II, which produces about 10,000 barrels of oil per day in New Mexico's Permian, also has federal drilling permits to last at least four years.

"We're trying to maximize our value against an uncertain range of possibilities," said CEO Parker Reese. 

Energy consultancy Rystad said it saw stockpiling of federal lands drilling permits in the run-up to the November presidential election, with federal permit requests rising to a 31% share of all permit requests in the major U.S. oilfields from 18% in 2019.

Biden's team did not respond to several requests for comment.

Most onshore federal drilling happens in Western states like New Mexico, Colorado and Wyoming, which get a share of extraction royalties and depend on that revenue. 

As Biden takes office, U.S. shale drilling industry has already declined sharply due to weak prices.

Total U.S. shale output is expected to fall to 7.5 million barrels per day in February, the U.S. Energy Department said on Tuesday, which would be the lowest since June 2020.

Shale drilling accounts for roughly two-thirds of U.S. crude oil production, but output is expected to decline throughout 2021 as producers rein in spending.

'EXISTENTIAL THREAT'


A large swathe of the industry is made up of smaller firms that lack the deep pockets to squirrel away permits, get a jumpstart on installing new emissions control technologies or take their business elsewhere.

"The impact on the independent oilman is a heck of a lot greater than it is on Big Oil," said Don Law, owner of Denver-based Prima Exploration Inc, which produces about half of its 1,000 barrels of oil a day on federal lands, mainly in Wyoming, New Mexico and North Dakota.

Law called Biden's promised policy "an existential threat" unlike any he has encountered in 40 years in the oil business, echoing the rhetoric used by some climate activists about the threat posed by global warming.

Many smaller drilling firms operate in a single state or basin, according to trade group Western Energy Alliance, and would struggle to pack up and leave.

"I actually live here," said Mark Murphy, a third-generation oilman in New Mexico. His company, Strata Production Co, has 15 employees and operates 47 wells, mostly on federal acreage.

Western Energy Alliance, the oil and gas industry trade group most focused on public lands policy, has pledged to fight any efforts to impose a leasing ban in court. States that rely heavily on revenues from federal oil and gas drilling are also ramping up opposition.

Last month Wyoming officials issued a study that said a ban would cost eight Western states $8.1 billion in tax revenue and $34.1 billion in investment in the next five years. The state's governor, Mark Gordon, called the predictions "devastating."

New Mexico's Democratic Governor Michelle Lujan Grisham said in late 2019 that she would seek a waiver from any drilling ban imposed by a future administration. But she has not discussed the issue publicly since, and her office did not respond to several requests for comment.

(Reporting by Jennifer Hiller and Nichola Groom; editing by Richard Valdmanis and David Gregorio)

US government approves routes for Wyoming CO2 pipelines


CASPER, Wyo. — The U.S. government has approved routes for a system of pipelines that would move carbon dioxide across Wyoming in what could be by far the largest such network in North America, if it is developed.
© Provided by The Canadian Press

The greenhouse gas would be captured from coal-fired power plants, keeping it out of the atmosphere where it causes global warming. The captured gas would instead be pumped underground to add pressure to and boost production from oil fields.


In all, the U.S. Bureau of Land Management designated 1,100 miles (1,770 kilometres) of federal land for pipeline development through the Wyoming Pipeline Corridor Initiative, the Casper Star-Tribune reported.


Interior Secretary David Bernhardt signed the plans last Friday, days before leaving office with the rest of President Donald Trump's administration. The approval allows companies to begin submitting pipeline construction proposals.

Wyoming officials including Republican Gov. Mark Gordon have promoted carbon capture as a way to boost the state's struggling coal mining industry.


Utilities nationwide have been turning away from coal-fired electricity in favour of cheaper and cleaner natural gas and renewable energy.

Video: Study: Fossil fuel production set to exceed Paris agreement limit (Global News)

“The ability to have a CO2 delivery system, as made possible by the pipeline corridor initiative, helps make CO2 commercially viable,” Gordon said in a statement Wednesday.

Whether a large system of carbon capture for oil production is technically and economically feasible remains to be seen. One of two such systems in North America, the Petra Nova facility in Texas, has been offline since global oil prices plummeted last year.


The Petra Nova system moves carbon dioxide 80 miles (130 kilometres) from a power plant to an oil field in southeastern Texas. In southeastern Saskatchewan, Canada, near the U.S. border, the Boundary Dam carbon dioxide system connects a power plant with an oil field 40 miles (65 kilometres) away.

Energy markets drive development of carbon capture projects for oil development, said Matt Fry, state of Wyoming project manager for the pipeline initiative.

“We’re just helping to incentivize and provide some sort of a bridge for folks to help them move forward. Hopefully, this and future federal incentives will help get the ball rolling, and we’ll get some projects on the ground,” Fry said.

Environmental groups including the Western Watersheds Project have criticized the pipeline corridor plan, saying the pipelines would cross habitat of sage grouse — brown, chicken-sized birds that spend most of their time on the ground.

Sage grouse numbers have dwindled substantially over the past century and much of their habitat in Wyoming carries development restrictions.

The Associated Press
Deutsche Bank starts probe in relation to engagement with some clients

By Kanishka Singh M 
© Reuters/RALPH ORLOWSKI FILE PHOTO: 
Germany's Deutsche Bank headquarters are pictured in Frankfurt

(Reuters) - Deutsche Bank AG said on Sunday it began a probe in relation to engagement with some clients after the Financial Times reported earlier that the German lender was investigating the alleged mis-selling of investment banking products.

"We initiated an investigation in relation to our engagement with a limited number of clients. We cannot comment on details of the investigation until it is complete", a Deutsche Bank spokesman said in an emailed statement late on Sunday.

The Financial Times reported that the lender was probing if its staff mis-sold sophisticated investment banking products to clients in breach of European Union rules and then colluded with individuals within these companies to share the profits.

The internal probe was triggered by client complaints last year, the newspaper reported, citing people familiar with the process, adding that the investigation initially focused on the desk in Spain, which sells hedges, swaps, derivatives and other financial products.

An audit had found that the bank wrongly categorised client firms under the Markets in Financial Instruments Directive (Mifid) rules, which require banks to separate their clients by levels of financial sophistication, according to the newspaper.

Sources told the newspaper that the lender believes some of its staff knowingly sold inappropriate or unsuitable products to customers who may not have been able to understand and shoulder the risk they were taking with these positions.

The probe, called Project Teal, is also looking into accusations that there was collusion between the German bank's employees and staff at some of the clients who bought the inappropriate products.

The scope of the investigation was subsequently extended to the rest of Europe, but it was believed only Spain and Portugal-based clients were impacted, a source told FT.

The probe is drawing to a conclusion and the bank will have to soon make final disclosures to regulators, the newspaper said, adding that the bank's primary regulators, BaFin and the European Central Bank, have been informed.

(Reporting by Kanishka Singh in Bengaluru; Editing by Peter Cooney and Diane Craft)
VOLUNTARY SELF REGULATION
Investor payouts and job cuts jar with U.S. companies' social pledge

By Jessica DiNapoli, Ross Kerber and Noel Randewich
© Reuters/MIKE BLAKE FILE PHOTO:
 The AT&T logo is pictures on a building in Los Angeles

(Reuters) - When Randall Stephenson joined 180 of his peers leading many of the richest U.S. companies in signing the Business Roundtable pledge on the "purpose of a corporation" in August 2019, the then-chief of AT&T Inc promised to look out for the interests of all the wireless carrier's stakeholders, not just shareholders.

Two months later, the Dallas-based company outlined a plan for cost reductions that also prioritized dividends and stock buybacks for shareholders, succumbing to pressure from $41 billion hedge fund Elliott Investment Management LP.

Activist investor Elliott had said its proposals would deliver "substantial benefits" for shareholders, consumers and employees, but not everybody came out ahead.

By the end of September 2020, AT&T had eliminated 23,000 positions, or about 9% of its workforce, many of them during the pandemic. Already one of the corporate world's top dividend payers with $14.9 billion spent in 2019, AT&T had raised its common dividend by 2% and bought back $7.5 billion of its stock.

"We are the face of AT&T and we go out of our way to help customers communicate with their families," said Darren Miller, a 35-year-old technician whose job was cut last July. "But we are a dime a dozen to them. If they can get someone cheaper to do the job, they will do it."

Miller, who worked in Reseda, California, said he accepted a buyout offer after managers told him he might be laid off later on less generous terms, something he said his local union representatives told him happened to dozens of other employees in the state.

AT&T spokesman Jim Kimberly said most of the workforce reductions "were from voluntary departure offers and attrition" and declined to comment on individual cases. He added the company had for years practiced a "meaningful commitment to all stakeholders" through programs that include worker retraining and environmental and social justice efforts. AT&T also ended share buybacks once the pandemic hit, and has not increased its dividend since, Kimberly said.

Elliott declined to comment.


Some advocates of a socially-minded stakeholder capitalism say AT&T's case is representative of the hurdles they face in challenging the leverage investors have over U.S. companies.

The voluntary governance pledge signed by the CEOs didn't spell out specific actions, but had the stated aim of moving away from "shareholder primacy". https://s3.amazonaws.com/brt.org/BRT-StatementonthePurposeofaCorporationOctober2020.pdf

Yet while signatories subsequently reduced payouts to shareholders as companies put away cash to shield themselves from the financial fallout of the COVID-19 pandemic, they still give a greater share to investors than those companies that did not sign the pledge, according to a Reuters analysis of data compiled by financial information provider Refinitiv.

The analysis found that the 171 publicly traded companies that signed the pledge returned a median 60% of net income to shareholders during the first three quarters of 2020 through dividends and buybacks, versus a 50% return among the 355 S&P 500 firms that did not sign the statement.

By comparison, in the first three quarters of 2019, the signatories returned a median 73% of net income to shareholders versus a 68% return among the firms that did not sign the pledge, the analysis found.

Tim Gaumer, Refinitiv's director of fundamental research, said pledge signatories returned more to investors because they had the ability to do so. "It is easier to pay out dividends and buybacks with confidence if your income stream is less volatile," he added.

Business Roundtable spokeswoman Jessica Boulanger said the analysis didn't account for how companies spent money they did not return to shareholders, nor for "industry differences, company size and longevity and trends in shareholder returns over time." She added that signatories had upheld their commitment to work for all stakeholders.

Graphic: Roundtable signatory companies slash buybacks : 
https://graphics.reuters.com/USA-CORPORATIONS/STAKEHOLDERS/qmyvmymqnvr/chart.png

(Graphic: Roundtable signatory dividends hold up Roundtable signatory dividends hold up: https://graphics.reuters.com/USA-CORPORATIONS/STAKEHOLDERS/qzjpqmqaxpx/chart.png

'SIGNALING EXERCISE'


The CEOs signed the pledge without legally binding their companies and largely without approval from their boards. COVID-19 stress-tested their commitments, as large swathes of the economy were forced to shut down.

The pledge's lack of detail gave signatories wide discretion in deciding how the pandemic pain would be spread among shareholders, employees and other stakeholders.

"It's a political signaling exercise that doesn't mean very much," said Harvard Law School professor Jesse Fried, who is on the research advisory council of Glass, Lewis & Co which advises investors over how to vote on corporate governance.


Defenders of the Business Roundtable pledge say many contributions to society cannot be measured as easily as shareholder spending or layoffs. For example, JP Morgan Chase & Co pledged $30 billion to address racial injustices, and Apple Inc launched a $100 million diversity drive.

Indeed, some signatories have won praise from progressive-leaning organizations for standing by employees during the pandemic.

Among them, Target Corp raised its minimum wage to $15 an hour in July from $13, which was already well above the $7.25 national level.

Some executives and investors argue that unless companies are attractive to shareholders and keep their stock highly valued, they won't have the money to invest in their businesses for the benefit of all stakeholders.

"If you don't have access to capital, then you're not going to be around long enough to face tough societal issues like climate change," said Todd Ahlsten, chief investment officer for Parnassus Investments, a San Francisco-based firm with $40 billion under management.

EMPLOYEE REPRESENTATION


Less than two years after the signing of the pledge, key protagonists at AT&T moved on. Stephenson passed the reins to a successor, and Elliott sold what was once a $3.2 billion stake in the company.

AT&T's layoffs during the pandemic attracted the attention of Democratic senators Elizabeth Warren and Bernie Sanders, who wrote to the company last July objecting to "corporations using the pandemic as justification for continuing to make anti-worker decisions that are aimed at boosting share price."

"The long-term interests of our communities and employees cannot be met without attracting investor capital," AT&T executive vice president Timothy McKone responded in a letter.


BlackRock Inc and Vanguard Group Inc, whose CEOs also signed up to the pledge, were among the AT&T investors who voted down a proposal last April to have an employee representative on the company's board - a step its advocates argued would give stakeholders a voice. Both fund managers declined to comment.


SPENDING ON SHAREHOLDERS


Wharton School of the University of Pennsylvania researchers found that among signatories, the bigger share of profits companies subsequently returned to investors, the more likely they were to announce layoffs and furloughs.

A study from the London School of Economics and Columbia University found signatories violated environmental and labor-related rules and paid their CEOs more than similarly-sized peers.


Like AT&T, some companies that signed up continued payouts to shareholders even as they cut jobs during the pandemic.


Cisco Systems Inc bought back $800 million of its shares during the three months ended Oct. 24, 2020. The network equipment maker had announced a restructuring plan in August to cut $1 billion in costs annually, with the loss of about 3,500 jobs.


"Cisco believes in the Business Roundtable pledge balancing the needs of all of our stakeholders and fulfilling our own company's purpose of powering a more inclusive future for all," the company said in a statement.

Walgreens Boots Alliance Inc repurchased $522 million of its shares from April through July. That month, the pharmacy operator cut 4,000 jobs, some 7% of its headcount, bumped up its dividend and nixed its stock buyback program.

Walgreens did not respond to a request for comment.

The chairman of the Business Roundtable, Walmart Inc CEO Doug McMillon, downplayed the significance of the pledge in remarks to investors last February. He said "it didn't feel like news" because companies sought to balance the interests of all stakeholders anyway, and that "of course, our shareholders are our priority."

Walmart declined to make McMillon available for an interview. A company spokeswoman pointed to McMillon's previous comments on multi-stakeholder capitalism being "the answer to addressing our challenges holistically."

(Reporting by Jessica DiNapoli in New York, Ross Kerber in Boston and Noel Randewich in San Francisco; Editing by Greg Roumeliotis and Pravin Char)

US corporate buybacks are on the rise, lifting investor hopes

By Caroline Valetkevitch and Stephen Culp
© Reuters/Brendan McDermid FILE PHOTO: 
Traders at the New York Stock Exchange during the coronavirus pandemic

NEW YORK (Reuters) - U.S. corporate share buyback levels are slowly increasing after last year's pandemic-driven drop-off in spending, and investors are eager to see how much buybacks may support market gains.

Buybacks are not likely to return this year to pre-pandemic levels, but recent buyback talk from companies has lifted investor hopes that repurchase trends have turned the corner, thanks to optimism over the rollout of vaccines to fight COVID-19.

Netflix last week said it would explore returning excess cash to shareholders via share buybacks, and investors have cheered recent buyback announcements from some big investment banks.

"Companies are starting to put their foot back in the water," said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. "That's a good sign, ... it means cash flow is available."

S&P Dow Jones Indices projects share repurchases for S&P 500 companies to have totaled about $116 billion in the fourth quarter of last year, up from $102 billion in the third quarter.

That's still far below the $182 billion in the 2019 fourth quarter, and the record $223 billion in the last quarter of 2018. S&P 500 buybacks are projected to rise to $651 billion in 2021 from an estimated $505 billion last year, based on S&P's data.

Looking at buyback announcements from companies listed on U.S. exchanges, TrimTabs Research said U.S. companies became more bullish toward the end of last year and buyback announcements hit a 15-month high of $88.4 billion in December.

S&P 500 share buybacks reached a peak of $806 billion in 2018, according to S&P, when massive tax breaks for U.S. companies boosted cash levels.

Share repurchases are often cited as a key support for U.S. stocks, and investors are weighing the potential for support with U.S. stocks already at record highs this year. Buybacks decrease the number of a company's shares outstanding, boosting per share earnings and driving down the price-to-earnings ratio, a key benchmark.

"With the market being as expensive as it seems, share repurchases could drive the market that much higher," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

"It adds to the Street's belief that there's an underlying bid, we're not in this alone, and someone else is going to support the stock and that's the company," he said. "It turns out to be a good thing for share prices. But they run the risk of overvaluing stocks, and it speaks to the broader question about why companies are doing it."

In his firm's 2021 outlook, David Joy, chief market strategist at Ameriprise Financial, said the firm's base case is for corporate stock buybacks to gradually increase through 2021, while a more favorable scenario would be for buybacks to "accelerate back to pre-pandemic levels."

Banks in particular have come into the spotlight.

Following the Federal Reserve's second "stress test" of banks for 2020 - which measures banks' financial health and determines if they have sufficient reserves to protect against losses - the Fed in December relaxed restrictions on buybacks. That was quickly followed by announcements from some large firms, including JPMorgan Chase and Goldman Sachs, that they planned to buy back stock beginning in 2021.

JPMorgan's board authorized a share repurchase program of $30 billion.

The S&P 500 Buyback index has tripled in value since the end of the global financial crisis, and its rebound from the pandemic recession was as abrupt as its plunge.

Graphic: SP buyback index and GDP - 
https://graphics.reuters.com/USA-STOCKS/bdwvkyjlqvm/buyback.png

Silverblatt said not all industries will be prepared to increase buybacks at this point, most notably hotel, entertainment and other industries that have been hit particularly hard by the pandemic.

(Reporting by Caroline Valetkevitch; Additional reporting by Stephen Culp; Editing by Alden Bentley and Leslie Adler)