Thursday, October 20, 2022

'We are in the initial stages of funds flowing back into commodity-rich Canada': Portfolio manager

Canada stands to benefit from increasing investments in commodities, at a time when energy volatility and security challenges weigh on many countries, according to Rafi Tahmazian, senior portfolio manager and director at Canoe Financial.

In a note to clients Monday, Tahmazian said in the coming quarters he expects there will be a larger focus on countries with natural resources.

“This (energy security) has important investment implications, especially for countries such as Canada which have more than 30 per cent of their equity markets exposed to energy and materials,” Tahmazian said.

“We believe we are in the initial stages of funds flowing back into commodity-rich Canada.”

 

GROWING CONCERNS AROUND ENERGY SECURITY

Tahmazian pointed to energy security as the main reason for why he sees additional investments in Canada over the coming months.

“It’s becoming obvious to us that we’re entering a new era of higher-for-longer energy prices and ongoing energy security challenges,” Tahmazian said.

“We believe consumers will continue to be vulnerable to energy price spikes and some areas of the globe will even experience periods without energy.”

Energy security has become a big issue in Europe, as the European Union (EU) looks to reduce its dependence on Russia.

On Dec. 5, EU sanctions on Russian crude by sea will come into effect. On the organization’s website, it says “as the majority of the Russian oil delivered to the EU is seaborne, these restrictions will cover nearly 90 per cent of Russian oil imports to Europe by the end of the year. This will significantly reduce Russia’s trade profits.”

Many countries in Europe are also moving to stockpile fuel ahead of the winter in order to avoid shortages. This comes as the region faces its worst energy crisis in 50 years, with Russia cutting its natural gas deliveries after the EU placed sanctions on its crude.

“The region, with its dependence on Russian gas, will be extremely vulnerable to weather conditions over the next couple of winters,” Tahmazian said.

“We believe hoarding action like this is a sign of things to come as governments try to protect the lower- and middle-class consumer, but it comes at the expense of increased government debt, decreasing purchasing power, and reversing climate change agendas.”

Energy vulnerabilities came into focus last month after the Nord Stream 1 and 2 pipelines experienced four major gas leaks.

On Tuesday, Danish authorities reported “powerful explosions” that damaged at least 50 metres of underwater pipeline. A video shot by a Norwegian robotics company and published by Swedish newspaper Expressen shows a massive break in the Nord Stream 1 pipeline.

Tahmazian said there has been signs of a “developing energy crisis for years now that have been largely ignored until recent European developments brought to light the very real impact on energy consumers.”

“As Europe heads into winter, natural gas inventories there are significantly higher than historic averages as countries paid any price to replenish storage from extremely depressed levels in the spring,” he said.

“And what’s less talked about, are the ten-fold price increases consumers had to bear to rebuild storage or governments reversing coal closures in an effort to meet consumer need this winter.”

MINING IS NOT GREEN

Climate changed: Mining industry digs into alternative methods as risks rise

In the North, some mines risk leaking acid if the permafrost melts, while across Canada heavier rainfall will add strain to tailings dams and a lack of it could throw operations. 

While no strangers to extreme weather, the growing risks from climate change are forcing the mining industry to take a hard look at their methods, and how to prepare for the worst. Many of the most prudent actions to minimize risk are, however, also more costly, meaning that while some have taken them on, not everyone has followed suit.  

"This is a serious and emerging problem," said Jamie Kneen, Canada program co-lead at advocacy group MiningWatch Canada.

Kneen said his biggest area of concern is around how mining companies manage the waste they generate, and the dams they use to contain it. Companies are increasingly digging up lower concentrations of metals, meaning there is more waste to deal with after. And while many mines last less than a decade, the tailings they generate are a much longer-term problem.

"We've got, you know, tailings dams that are getting bigger and bigger at the same time as the climate risk is getting bigger," said Kneen.

Given the risks, companies are leaning more on alternative ways to manage the vast volumes of rock and contaminated water generated by extraction, said Bruno Bussière, a professor of mining at Université du Québec en Abitibi-Témiscamingue.

Some of those methods include removing much of the water from the waste so it can be piled dry to make it more stable. Companies are also more often pushing waste back into mine shafts and open pits to reduce the risks, he said.

"We have to see an open pit as an opportunity."

Moving millions of tonnes of rock back into a hole or adding a water removal step for tailings, however, doesn't come cheap, so it becomes in part a question of how much value a company sees in it, said Bussière.

“Clearly it adds costs, short term costs, capital costs, but you reduce the risk. So what is the price of the risk? That's what they have to decide.”

Climate change is changing that equation for some, as the uncertainties ahead mean that companies sometimes have to assume the worst possible scenarios. 

Companies are also shifting methods as they're pressured to improve their ecological profile more generally, while recent mining disasters, including the 2019 tailings dam failure at a Vale S.A. mine in Brazil that killed 270 people, and the 2014 dam breach at an Imperial Metals Corp. mine in B.C., have led to higher standards for dam management.  

For example, in Nunavut, Agnico Eagle Mines Ltd. has gone with dry tailings at its Meliadine mine, in part to improve resilience to future climate change, while it's already had to expand water storage at its northern mines because of more frequent extreme rainfall. It's also still working through the best way to cover a satellite deposit of its Meadowbank mine to make sure the waste rock doesn’t thaw and generate acid. 

“Dams (and) standards are evolving. So we need to make sure that we're ahead of it, because it's way more expensive to go back and fix a dam than to build it right the first time,” said Mohammed Ali, vice-president of sustainability and regulatory affairs at Agnico.

The company is looking at a range of adaptations elsewhere, such as to site access during wildfires, and  skeleton-crew scenarios for when staff with kids can’t make it to work because schools are closed due to extreme heat. It's also considering more automated underground machines as higher temperatures make for tougher working conditions underground. 

Other companies, such as Glencore at its Sudbury, Ont. operations, have already seen an increased number of down days because of rules requiring production to be halted when temperatures underground top 31 degrees.

The industry is doing more on adaptation as the data gets better, and as disclosure requirements increase, said Ali.

“The financial world is saying, I don't want to put money into a place where there could be a financial risk of some climatic event, and I lose my investment. So that's where the drive has come on adaptation.”

Disclosures show the wide range of actions companies are having to take on adaptation. Teck Resources Ltd. in its latest climate report noted that permafrost thaw is adding silt to the water at its Alaska operation that it needs to deal with, while in B.C. it is working on spring runoff management and flood mitigation projects. In Chile it's working on measures to use less water including the construction of a large-scale desalination plant at its QB2 project. 

BHP has also spent billions of dollars building desalination plants in Chile to manage both immediate and long-term water shortages. 

“Those were big investments at the time, but it was also looking ahead and seeing that’s where we needed to go,” said Caroline Cox, who oversees sustainability at BHP as chief legal, governance and external affairs officer. 

At its massive Jansen potash project in Saskatchewan that could last 100 years, BHP has gone with conventional mining rather than using hot water to extract the minerals. The decision, which carries more upfront costs, means it will use about 60 per cent less fresh water and will create half the emissions of other potash mines, she said. 

The growing push for adaptation is a contrast from only a decade ago when Natural Resources Canada started to ramp up consultations on the issue, said Pamela Kertland, a program manager in the department’s climate change impacts and adaptation division.

“There was a perception almost globally that adaptation was something in the future.” 

Along with growing acceptance and data are improved planning tools, such as a how-to guide for adaptation put out by the Mining Association of Canada last year with financial support from the federal government. 

Provincial governments have also started to catch up to the issue. Places like Quebec and Nunavut require companies to explain how they’ve taken into account how climate change might affected operations as part of environmental reviews, while Yukon has committed to getting such rules on the books this year.

Governments, however, are falling short on forcing some of the preparation needed, said Kneen at MiningWatch. 

“Governments are taking steps to regulate this, but they're very cautious, and the industry as well is trying to address this, but I think I would say that they're not going far enough fast enough to meet the challenge.”

He said there are some improvements, such as companies no longer proposing the most dangerous type of tailings dam, but that it’s still voluntary whereas other countries including Brazil and Chile have outlawed the practice. Provinces like British Columbia, unlike Quebec, also still allow mining companies to gradually pay into reclamation bonds, which raises the risk of taxpayers being left with the bill as climate risks increase. 

There’s also the concern that while big players can afford to splash out on best practices, smaller companies with shorter mine lives may not think climate adaptation is so important, and not worth the cost of doing it right, said Kneen.

“It's expensive, and part of what we've been trying to impress on industry and regulators alike is that if you have a higher standard, it's good, it may be more expensive. And if you can't afford it, if the market isn't justifying that, then you actually don't have an economical project.”

CALL AN ELECTION

'I'M NO QUITTER'

U.K.'s Truss quits after turmoil obliterated her authority

British Prime Minister Liz Truss resigned Thursday — bowing to the inevitable after a tumultuous, short-lived term in which her policies triggered turmoil in financial markets and a rebellion in her party that obliterated her authority.

Making a hastily scheduled statement outside her 10 Downing Street office, Truss acknowledged that “I cannot deliver the mandate on which I was elected by the Conservative Party.”

Hers is the third resignation by a Conservative prime minister in as many years and leaves a divided party seeking a leader who can unify its warring factions. Truss, who said she will remain in office for a few more days while that process unfolds, has been prime minister for just 45 days.

Just a day earlier she had vowed to stay in power, saying she was “a fighter and not a quitter.” But Truss couldn't hold on any longer after a senior minister quit her government with a barrage of criticism and a vote in the House of Commons descended into chaos and acrimony just days after she was forced to abandon many of her economic policies.

A growing number of lawmakers had called for Truss to resign after weeks of turmoil sparked by her economic plan. When it was unveiled by the government last month, the plan triggered financial turmoil and a political crisis that has seen the replacement of Truss’ Treasury chief, multiple policy U-turns and a breakdown of discipline in the governing Conservative Party.

Earlier, Conservative lawmaker Simon Hoare said the government was in disarray.

“Nobody has a route plan. It’s all sort of hand-to-hand fighting on a day-to-day basis,” he told the BBC on Thursday.

Truss quit after a meeting with Graham Brady, a senior Conservative lawmaker who oversees leadership challenges. Brady was tasked with assessing whether the prime minister still has the support of Tory members of Parliament — and it seemed she did not.

“It’s time for the prime minister to go,” Conservative lawmaker Miriam Cates said earlier Thursday. Another, Steve Double, said of Truss: “She isn’t up to the job, sadly." Legislator Ruth Edwards said “it is not responsible for the party to allow her to remain in power.”

Lawmakers' anger grew after a Wednesday evening vote over fracking for shale gas — a practice that Truss wants to resume despite opposition from many Conservatives — produced chaotic scenes in Parliament.

With Conservatives holding a large parliamentary majority, an opposition call for a fracking ban was easily defeated. But there were displays of anger in the House of Commons, with party whips accused of using heavy-handed tactics to gain votes.

Chris Bryant, a lawmaker from the opposition Labour Party, said he “saw members being physically manhandled ... and being bullied.” Conservative officials denied there was manhandling.

Rumors swirled that Conservative Chief Whip Wendy Morton, who is responsible for party discipline, and her deputy had resigned. Hours later, Truss’ office said both remained in their jobs.

Newspapers that usually support the Conservatives were vitriolic. An editorial in the Daily Mail was headlined: “The wheels have come off the Tory clown car.”

International Trade Secretary Anne-Marie Trevelyan, sent onto the airwaves Thursday morning to defend the government, insisted the administration was providing “stability.” But she was unable to guarantee Truss would lead the party into the next election.

“At the moment, I think that’s the case," she said.

With opinion polls giving the Labour Party a large and growing lead, the Conservative Party decided its only hope of avoiding electoral oblivion was to replace Truss. But they remain divided over who exactly should do that.

The party is keen to avoid another divisive leadership contest like the race a few months ago that saw Truss defeat ex-Treasury chief Rishi Sunak. Among potential replacements — if only Conservative lawmakers can agree — are Sunak, House of Commons leader Penny Mordaunt and newly appointed Treasury chief Jeremy Hunt.

Whoever it is will be the country's third prime minister this year alone. A national election doesn’t have to be held until 2024.

Truss' downfall was hastened by the resignation on Wednesday of Home Secretary Suella Braverman. She quit after breaching rules by sending an official document from her personal email account. She used her resignation letter to lambaste Truss, saying she had “concerns about the direction of this government.”

“The business of government relies upon people accepting responsibility for their mistakes,” she said in a thinly veiled dig at Truss.

Braverman was replaced as home secretary, the minister responsible for immigration and law and order, by former Cabinet minister Grant Shapps, a high-profile supporter of her defeated rival Sunak.

The dramatic developments came days after Truss fired her Treasury chief, Kwasi Kwarteng, on Friday after the economic package the pair unveiled Sept. 23 spooked financial markets and triggered an economic and political crisis.

The plan’s 45 billion pounds ($50 billion) in unfunded tax cuts sparked turmoil on financial markets, hammering the value of the pound and increasing the cost of U.K. government borrowing. The Bank of England was forced to intervene to prevent the crisis from spreading to the wider economy and putting pension funds at risk.

On Monday Kwarteng’s replacement, Hunt, scrapped almost all of Truss’ tax cuts, along with her flagship energy policy and her promise of no public spending cuts. He said the government will need to save billions of pounds and there are “many difficult decisions” to be made before he sets out a medium-term fiscal plan on Oct. 31.

Speaking to lawmakers for the first time since the U-turn, Truss apologized Wednesday and admitted she had made mistakes during her six weeks in office, but insisted that by changing course she had “taken responsibility and made the right decisions in the interest of the country’s economic stability.”

Opposition lawmakers shouted “Resign!” as she spoke in the House of Commons. But Truss said she would not.

Labour Party leader Keir Starmer accused the Conservatives of lacking “the basic patriotic duty to keep the British people out of their own pathetic squabbles.”

He said that amid a worsening a cost-of-living crisis, “Britain cannot afford the chaos of the Conservatives anymore. We need a general election now.”

H2 KEEPS ICE ALIVE

BMW Chairman Says Hydrogen Cars Will Be The Hippest Thing To Drive

The head honcho in Munich believes hydrogen will be the next trend after battery-powered EVs.



Oct 19, 2022 

By: Adrian Padeanu


It might come as a surprise, but BMW started hydrogen research back in 1978. However, it wasn't until 2000 that the E38 750hL arrived. A fleet of 15 cars was presented in Berlin with a V12 engine capable of running on gasoline and hydrogen. The vehicles were used as shuttles during the Expo 2000 in Hannover. The Hydrogen 7 followed in 2006 during the E68's life cycle – once again with a V12 - and was put into production, albeit in small numbers.

Fast forward to 2022, BMW has started in-house fuel cell production of the iX5 Hydrogen and plans to build a limited series of the hydrogen-fueled SUV. Sadly, there's no V12 around this time. Why is the Munich-based automaker insisting this technology has a future? Well, it'll apparently become trendy after the battery-powered EV craze dies down in an unspecified amount of time. At least that's what the company's chairman Oliver Zipse believes will happen.

















In an interview with Bloomberg, BMW's head honcho said: "After the electric car, which has been going on for about 10 years and scaling up rapidly, the next trend will be hydrogen. When it's more scalable, hydrogen will be the hippest thing to drive." He went on to say that having only one powertrain – namely battery-powered EVs – available in Europe in 2035 would be a dangerous thing:

"For the customers, for the industry, for employment, for the climate, from every angle you look at, that is a dangerous path to go to.”

BMW is not all alone in the hydrogen boat as Toyota also believes there is a future for fuel cell vehicles. In fact, the two automakers are collaborating on FCVs and will begin mass production as early as 2025. Earlier this year, BMW sales chief Pieter Nota told Asia Nikkei the Bavarian brand is working on "various projects" with the Japanese marque.

Both companies have been quite vocal against the rush to the widespread adoption of battery EVs. Aside from hydrogen tech, BMW and Toyota believe there's still a future for combustion engines, especially in markets where the charging infrastructure leaves a lot to be desired.

Of course, hydrogen stations are few and far between, and it's not up to the automakers to build them. On the other hand, the EV charging network is rapidly expanding, hence why most car makes are pouring billions into ICE-less cars. BMW will sunset the gasoline engine in Rolls-Royce models at the end of the decade, with Mini to follow suit in the early 2030s. The core brand has not set a cutoff date for the combustion engine.

Plug Power Cuts 2022 Hydrogen-Production Forecast as Two Plants Dropped

(Bloomberg) -- Plug Power Inc. is cutting its hydrogen-production forecast after abandoning plans for two plants and encountering permitting delays at a third facility. 

The company will be able to make about 50 tons of green hydrogen per day by yearend, down from an earlier forecast of 70 tons, Chief Strategy Officer Sanjay Shrestha told analysts and investors gathered Wednesday for Plug’s annual symposium. 

The Latham, New York-based company is building production plants across the US and Europe that will use renewable power to split hydrogen from water, creating a carbon-free fuel. Shrestha said Plug remains on track to hit its forecast of 200 tons per day by the end of 2023.

The company has abandoned plans for plants in Pennsylvania and Canada, and has experienced permitting delays for another site in New York state. However, Plug has other projects in Georgia and Texas, and on Wednesday announced a joint venture with Olin Corp. to build a 15-ton-per-day green hydrogen plant in Louisiana. 

The shares slipped 6.1% to $17.94 at 10:53 a.m. in New York. 

Norwegian company hopes to generate energy, capture carbon from Alberta garbage

Varme Energy wants to combine waste-to-energy with carbon capture in Edmonton area

A waste-to-energy plant that uses Aitos gasification technology is pictured in Stavanger, Norway. Varmes, an Edmonton company, is pitching to use Norwegian technology to make energy from waste and capture and store carbon from the process. (Submitted by Andreas Karlsen)

A Norwegian clean energy development company is betting big on Alberta as the place to combine its waste-to-energy technology with a method of capturing carbon and storing it underground.

Varme Energy, which was incorporated in Edmonton this summer, wants to set up facilities in Alberta that use Aitos gasification technology, a two-step combustion process owned by its parent company that's been used in waste-to-energy facilities in Norway for more than a decade.

Through this process, waste that was headed for landfill instead is converted into steam that can be used for district heating, industrial processes or put through a turbine to generate power. 

"You're literally diverting the [garbage] trucks, instead of going and dumping at the landfill, they come and dump into a facility like ours," said Sean Collins, CEO of Varme Energy, a subsidiary of Norway's Green Transition Holding. 

Varme hopes to make a profit while also making a dent in the growing piles of trash sent to municipal landfills, which are collectively responsible for about 23 per cent of the country's methane emissions and can be costly and time-consuming to build. 

Enerkem, a Montreal-based company with an Edmonton facility pictured here, turns waste into biofuels and chemicals. (Samuel Martin/CBC)

Garbage is already turned into electricity in other parts of Canada. Brampton, Ont., is home to the Emerald Energy From Waste facility, and both Burnaby, B.C., and Courtice, Ont., have waste-to-energy facilities operated by the New Jersey-based Covanta. In Burnaby, the facility takes in about a quarter of Metro Vancouver's trash. 

Others, like Montreal-based Enerkem, use waste to generate biofuels or chemicals, rather than energy. That company has a facility in Edmonton and another planned in Varennes, Que. 

But Collins says Varme's facilities would be the first in Canada to both generate energy from waste, and to capture the excess carbon and store it underground, a process that's been piloted in Norway, but has not yet been tested in Canada.

Carbon capture potential

The company decided to set up shop in Alberta in part because of the province's geology, which is some of the best in the world for storing carbon. It's a marked contrast from Norway, where carbon must be transported to the coast and piped underneath the sea bed, according to Andreas Karlsen. 

"I would call [Alberta] ground zero for carbon capture globally, and that's why we would like to focus a lot of our capital in building our plants in Canada," said Karlsen, who is head of energy from waste with Green Transition Holding, which owns Aitos gasification technology and a portfolio of other companies.

Sean Collins is CEO of Varme Energy, a Canadian subsidiary of Green Transition Holding AS in Norway. (Submitted by Rory Wheat)

Varme has its initial sights set on facilities in Edmonton, the nearby industrial heartland and Innisfail, Alta.

Jean Barclay, mayor of Innisfail, has signed a letter of intent with Varme in support of the company's work, though she said other municipalities would need to sign on to contribute waste to make the project work.

"We'll see where it goes, but I'm quite excited about seeing what comes of it," she said. 

Long-term push for waste-to-energy

Meanwhile, another group in southern Alberta has been slowly picking away at the process of building a waste-to-energy plant since 2009.

Tom Grant is the mayor of Vulcan, a town about 130 kilometres south of Calgary, and chair of the Southern Alberta Energy from Waste Association. He said landfilling has always been the default in Alberta and in many parts of Canada because "we've got so much land, and land is cheap and we can bury it, hide it." 

Vulcan County is a municipal district south of Calgary, Alta. (Elise von Scheel/CBC)

"But sooner or later, it's going to come back to haunt us," he said, noting that some municipalities have had to dig up their landfills after waste has leached into the groundwater. 

In the last decade, Grant's group, which includes about 50 municipalities, has spent about $1.5 million dollars on engineering studies and assessments, one of which involved digging through trash to get a better idea of what's piling up in the landfills. Now they've selected a location for the project, and are narrowing down which company will build and operate it.

"There's lots of regulations that we have to follow to build one that's proper and build one that's done correctly," he said. 

"We want to do it right and that's why it's taken so long."

A mock-up shows Varme Energy's design for waste-to-energy plants in Canada. (Submitted by Andreas Karlsen)

While Varme is not in the running (the company says it wasn't operational by the time the RFP process closed), Grant said he's glad to see more companies get into the field — as long as they can deliver what they promise. 

"In the past we have seen where companies come along and they promise you something and they sign you up and then they can't fulfil the promise, and then it makes it bad for everybody else that comes along that are legit."

Opinions vary on technology

The level of support for the waste-to-energy industry can vary within the country. 

Invest Alberta, a Crown corporation that helps attract international investors to the province, gives the sector a vote of confidence.

"Bringing innovative and proven waste-to-energy facilities to Alberta contributes to the growth of Alberta's clean energy sector and helps fulfil Canada's commitment to reducing methane and GHG emissions," said Stacie Lara, energy investment director with Invest Alberta. 

"There is significant potential to grow Canada's waste-to-energy market with innovations and partnerships that are starting right here in Alberta." 

Andreas Karlsen is head of energy from waste with Norwegian company Green Transition Holding, which owns a portfolio of companies in energy-from-waste, bio-energy district heating and carbon capture and storage. (Submitted by Rory Wheat)

For its part, Alberta's Ministry of Environment and Parks says it supports the process of turning waste into energy, though only in situations where materials have high heat value and there are no viable recycling options available. 

The federal government has a more measured opinion of waste-to-energy technologies. 

In a statement to CBC, a spokesperson for Environment and Climate Change Canada said while waste management decisions are generally made at a local or provincial level, the federal priority is first to reduce waste, then to recover value after the fact, to reduce the need for final disposal. 

"While waste-to-energy plays a role in plastic waste management, these processes are lower on the waste hierarchy," said the statement, which noted the government has commissioned a study of waste-to-energy technology that's expected to wrap up next March. 

For now, Collins said Varme's priority is to seek long-term waste commitments for its facilities, which aim to process between 100,000 to 200,000 tons of waste per year. He also noted the company sees itself as a complement to composting and recycling, such as an option for products that are contaminated, rather than as a competition. 

As for Grant, the mayor of Vulcan, he continues to push ahead with his long-time goal to build a waste-to-energy facility in southern Alberta. He hopes that once the first has been built, it will be easier for the second and third to get off the ground.

"My lofty goal would be to see no landfilling done in the province of Alberta," he said. 

Trudeau Minister Moves to Ban Scab Workers in Labor Disputes



Randy Thanthong-Knight
Wed, October 19, 2022 

(Bloomberg) -- Prime Minister Justin Trudeau’s government took a key step in fulfilling its promise to ban the use of replacement workers during strikes or lockouts in Canada.

Labor Minister Seamus O’Regan announced the start of consultations Wednesday on anti-scab legislation for unionized workers in federally regulated sectors, including international and cross-provincial transportation services, telecommunications and banks. The consultations will take place with both employers and unions.

The proposed law is part of Trudeau’s platform commitment as well as the prime minister’s confidence-and-supply agreement with the labor-friendly New Democratic Party. Struck in March, the power-sharing deal will likely stave off another election until 2025.

The use of replacement workers “pits workers against each other, it’s undignified and it’s dangerous,” O’Regan said at a news conference in Ottawa. “The best deals are made at the negotiating table.”

The legislation -- which applies to about 1 million Canadian workers -- will be contentious, coming at a time when businesses are already facing increased strike activity with unions ramping up wage demands.

To assuage business, the government will also hold separate but parallel consultations to ensure the new legislation doesn’t undermine companies’ ability to maintain core services during a work stoppage.

The legislation is the “latest evolution” of labor rights in Canada and the consultations will find “the best way to respect workers’ interest and employers’ interest,” O’Regan said.



Consultations begin on plan to ban replacement workers in federally regulated workplaces

Canada Post workers on strike outside the Federal Building. November 6, 2018
. (Photo by Colin Gowdy, BlackburnNews)


October 20, 2022 

The Canadian government plans to introduce legislation by the end of 2023 to prohibit the use of replacement workers in federally regulated workplaces during a strike or lockout.

Labour Minister Seamus O’Regan Jr. says this will make sure that all workers in federally regulated sectors continue to benefit from a meaningful right to strike.

“I’m opening tripartite negotiations with employers and unions on a replacement worker ban, on the best way to respect workers interests and employers interests,” said O’Regan. “This government will always protect free and fair collective bargaining, because collective bargaining is about good jobs. It’s about safe work. It’s about earning more when it’s time to earn more, and getting rest when it’s time to rest.”

“It’s about what workers deserve in return for their labour, and how employers can profit from a health and happy workforce. It’s about certainty, It’s about stability and predictability for business,” he added.

Consultations are now underway to hear from Canadians and stakeholders on this commitment. Employers, employer representatives, unions, workers, national Indigenous organizations and other key stakeholders and interested parties are invited to share their feedback on prohibiting the use of replacement workers and improving the maintenance of activities process by December 16, 2022. Following the consultation period, the feedback received will inform the development of legislation.

Part I of the Canada Labour Code governs workplace relations and collective bargaining between unions and employers. This part contains provisions related to replacement workers and maintenance of activities, as well as dispute resolution, strikes and lockouts. It outlines the labour relations rights and responsibilities of employers, trade unions and employees.

Part I of the Code applies to 985,000 employees and 22,100 employers in interprovincial and international transportation, banking, postal and courier services, telecommunications, grain shipping, Indigenous government on First Nations territories, and Crown corporations, among others.

FIFA World Cup: Human Rights Organisations label FIFA an ‘EMBARRASSMENT’ ahead of Qatar World Cup – CHECK OUT WHY 

 By  

 
FIFA World Cup: FIFA labelled an 'embarrassment' ahead of Qatar World Cup - CHECK OUT WHY

FIFA World Cup: FIFA World Cup LIVE – FIFA has been labeled an ‘Embarrassment’ ahead of the sport’s biggest spectacle next month. Human rights organizations across the globe have labeled FIFA an ’embarrassment’ for failing to commit to a compensation fund for migrant workers who have been treated badly or passed away amidst the preparations for the World Cup. FIFA has not provided any compensation yet to the workers and human rights groups feel it’s too late with the World Cup just a month away. Follow FIFA World Cup LIVE on InsideSport.IN.

FIFA World Cup: Human Rights Organisations FIFA labeled an ‘EMBARRASSMENT’ ahead of Qatar World Cup – CHECK OUT WHY 

FIFA World Cup: Qatar Makes PROGRESS in Worker Rights – Improvements seen in conditions of migrant labourers – CHECK OUT

Qatar’s treatment of migrant labourers has been a global issue in the recent past and there have been calls for boycotting the Qatar World Cup from various corners of the world. It is estimated that close to 30,000 migrant labourers have been used for several projects including building seven stadiums for the tournament in Qatar, as well as a new airport, new metro, and new roads.

According to shocking reports which came out last year, more than 6,500 migrant workers from India, Pakistan, Nepal, Bangladesh, and Sri Lanka have died in Qatar since it won the right to host the World Cup 10 years ago.

FIFA World Cup: Human Rights Organisations FIFA labeled an ‘EMBARRASSMENT’ ahead of Qatar World Cup – CHECK OUT WHY 


FIFA World Cup: Human Rights Organisations FIFA labeled an ‘EMBARRASSMENT’ ahead of Qatar World Cup – CHECK OUT WHY

According to shocking reports which came out last year, more than 6,500 migrant workers from India, Pakistan, Nepal, Bangladesh and Sri Lanka have died in Qatar since it won the right to host the World Cup 10 years ago.

Although the official reports suggested 6,500 deaths, the total death toll is significantly higher, as these figures did not include deaths from a number of countries that send large numbers of workers to Qatar, including the Philippines and Kenya.

FIFA World Cup: Human Rights Organisations FIFA labeled an ‘EMBARRASSMENT’ ahead of Qatar World Cup – CHECK OUT WHY 

FIFA World Cup: Human Rights groups urge FIFA sponsors to compensate Qatar workers after reports of deplorable working conditions, Check OUT

These shocking revelations led to a global agitation, with human rights from all over the world, calling for a ban on the tournament and the removal of Qatar as host. However, FIFA had no intention of postponing the World Cup or removing Qatar as host. Human rights groups like HRW, Amnesty, and FairSquare then called on FIFA to provide US$ 440 million as compensation, but the apex body has failed to do that.


FIFA World Cup: Human Rights Organisations FIFA labeled an ‘EMBARRASSMENT’ ahead of Qatar World Cup – CHECK OUT WHY

The deputy director of the Middle East and North Africa Human Rights Watch said: “It’s an embarrassment that despite prominent footballers, football associations, and sponsors supporting the #PayUpFIFA campaign and widespread popular support, FIFA has still failed to commit to calls for a remedy fund for many thousands of migrant workers who died, were injured, or had their wages stolen while making the World Cup possible.”

The pressure continues to remain high on FIFA and it will be for all to see what measures the global governing eventually decides to take.

FIFA World Cup: Human Rights Organisations FIFA labeled an ‘EMBARRASSMENT’ ahead of Qatar World Cup – CHECK OUT WHY 

Qatar: Labour reform unfinished and compensation still owed as World Cup looms



Amnesty International

NEWS  October 20, 2022

The Qatari authorities must re-commit to fully delivering on promised labour reforms now and beyond the World Cup, Amnesty International said today, as its final pre-tournament briefing on migrant workers’ conditions revealed that abuses remain rife across the country. With just one month until kick-off, the human rights organization again reiterated its call on FIFA and Qatar to establish a compensation fund for abused migrant workers.

Qatar’s overhaul of its labour system since 2017 has led to some noticeable improvements for the country’s two million migrant workers – hundreds of thousands of whom have been engaged in projects essential to the World Cup. However, a lack of effective implementation and enforcement continues to undermine their impact on migrant workers. Thousands of workers across all projects are still facing issues such as delayed or unpaid wages, denial of rest days, unsafe working conditions, barriers to changing jobs, and limited access to justice, while the deaths of thousands of workers remain uninvestigated.

“Although Qatar has made important strides on labour rights over the past five years, it’s abundantly clear that there is a great distance still to go. Thousands of workers remain stuck in the familiar cycle of exploitation and abuse thanks to legal loopholes and inadequate enforcement,” said Steve Cockburn, Amnesty International’s Head of Economic and Social Justice.

With the World Cup looming, the job of protecting migrant workers from exploitation is only half done, while that of compensating those who have suffered abuses has barely startedSteve Cockburn, Amnesty International’s Head of Economic and Social Justice

“With the World Cup looming, the job of protecting migrant workers from exploitation is only half done, while that of compensating those who have suffered abuses has barely started. It’s also imperative that Qatar commits to improving conditions in the long term. Progress must not grind to a halt once the World Cup roadshow leaves Doha.” Last month, a global poll commissioned by Amnesty International revealed overwhelming support among both the general public and football fans for the compensation of migrant workers who suffered during preparations for the 2022 World Cup. The findings back the #PayUpFIFA campaign launched by a coalition of human rights organizations—including Amnesty International—fans groups and trade unions in May 2022, which calls on FIFA and the Qatari authorities to establish a comprehensive remediation programme to compensate workers and prevent future abuses.

“Despite huge and growing support in favour of compensating migrant workers among fans, football associations, and sponsors, Qatar and FIFA are still not budging. With only a month to go, time is fast running out for them to do the right thing,” said Steve Cockburn.

“Turning a blind eye to the abuses suffered by thousands of migrant workers over the years flies in the face of their respective international obligations and responsibilities. They must come together to ensure that those who suffered so much to make this tournament possible are not left behind.”

Reforms enacted by Qatar since 2017 include a law regulating working conditions for live-in domestic workers, labour tribunals to facilitate access to justice, a fund to support payment of unpaid wages, and a minimum wage. Qatar has also ratified two key international human rights treaties, albeit without recognizing the right of migrant workers to join a trade union. Qatar’s World Cup organizing body, the Supreme Committee, also introduced enhanced labour standards for workers, but only on official tournament sites such as stadia, although these cover just a small proportion of workers on projects essential to the World Cup, and just 2% of Qatar’s workforce.


Despite huge and growing support in favour of compensating migrant workers among fans, football associations, and sponsors, Qatar and FIFA are still not budgingSteve Cockburn

While recognising the importance of these reforms, Amnesty’s briefing provides an action plan to address ongoing failings across ten areas. To this end, the organization urges the Qatari authorities to enforce and strengthen labour protections, empower workers, make work pay, and guarantee access to justice and remedy.

Forced labour and unexplained deaths

Migrant workers on both World Cup and non-World Cup related projects continue to face abuses on a significant scale in Qatar. Many workers, particularly in the domestic and security sectors, continue to be subjected to conditions that amount to forced labour, with domestic workers still typically working between 14 and 18 hours a day without a weekly day off, isolated in private homes.

Security guards are often also repeatedly denied their rest days and forced to work under the threat of penalties, such as having their salaries arbitrarily deducted or sometimes their passports confiscated, despite such practices being in violation of Qatari law. Joshua,* a private security worker from Kenya who recently left Qatar before the end of his contract due to the working conditions, told Amnesty International:

“It was unbearable to stay on in the company I was in due to the treatment and overload of work. In four months, you get just two days off. There’s late salaries and too many fines deducted unnecessarily…The company has withheld my visa such that I can’t go back [to Qatar] if I get a job with another company.”

The deaths of thousands of migrant workers over the past decade and beyond—on World Cup-related projects or otherwise—remain unexplained. At least hundreds of these fatalities were likely a consequence of working in the extreme heat. New heat legislation is an improvement but must be strengthened to bring it into line with international standards and adequately protect outdoor workers. Despite clear evidence that heat stress poses a huge risk to health, the Qatari authorities have done little to investigate, certify or remedy migrant workers’ deaths, contrary to international best practice.


It was unbearable to stay on in the company I was in due to the treatment and overload of work*Joshua, private security worker

It is not just the devastating emotional impact on victims’ families but also the loss of a family’s main breadwinner coupled with the lack of financial compensation that leaves many in even deeper poverty. Bhumisara,* whose husband’s death in Qatar remains unexplained, told Amnesty:

“Now everything is shattered… Life itself has become like a broken mirror…I have cried many times in emotion. Being alone is very difficult…I feel like I’m burning in oil.”

Migrant workers remain unable to form or join trade unions in Qatar, contrary to their fundamental right under international law to do so. Instead, Joint Committees formed and led by employers, cover only 2% of the workforce. These committees provide workers with some representation, yet remain beset with serious flaws, as they lack mechanisms for collective bargaining and fail to provide workers with crucial legal protections.

Extortionate recruitment fees and elements of kafala remain

The payment by prospective migrant workers of extortionate recruitment fees to secure jobs in Qatar remains rampant. Fees of between US$1,000 and US$3,000 leave many workers needing months or even years to repay the debt, trapping them in cycles of exploitation. While workers on some World Cup projects under the purview of the Supreme Committee, Qatar’s tournament organizers, are able to claim some reimbursement of these fees, this option is unavailable to the vast majority of workers in the country.

Crucial changes to the kafala system—which made workers entirely dependent on their employer—mean the vast majority of migrant workers are now legally able to leave the country and change jobs without permission. Migrant workers, however, still risk being arrested or deported if their employers cancel their visas, fail to renew their residence permit or report them as having ‘absconded’ from their job.

Despite the government saying that it approved more than 300,000 migrant worker job transfer applications since October 2020, Amnesty International has documented several cases over recent months in which unscrupulous employers used their powers to cancel visas, renew residence permits and report workers for ‘absconding’ to exploit and punish those who complained about working conditions or wanted to change jobs. For instance, in one case, Geoffrey*, a delivery driver who complained to the Ministry of Labour about withheld wages and a lack of food and sanitary accommodation, was detained by police on “runaway” charges and held for three weeks.

Background

*Real names not used

The briefing, Unfinished Business: Roadmap for Qatar to fulfil promises on migrant workers’ rights, is available here.


PHOTO Warren Little/Getty Images