Monday, January 15, 2024


Income gap between new immigrants and all Canadians shrunk by half in four years: PBO


The income gap between Canada's newest immigrants and other Canadian workers has narrowed significantly, a new report from the parliamentary budget officer said Friday.

The report found that in 2018, new immigrants — or those who have been permanent residents for only a year — had a median income about 78 per cent of that earned by all tax filers.

In 2014 it was 55 per cent.

The PBO said the trends coinciding with this change include greater Canadian work experience, more immigration from South Asia and greater family connections in the country.

The report also found new immigrants with professional jobs such as engineers and applied scientists made particularly significant gains.

The PBO estimated that if the income gap were to be completely eliminated, productivity growth in Canada could rise by as much as 0.21 percentage points. 

The Liberal government increased annual immigration targets and plans to welcome 500,000 immigrants in both 2025 and 2026, almost twice the number admitted in 2015.

The PBO said its report was intended to "inform expectations" regarding that policy change.

The report said the substantial increased in the immigration targets will grow the Canadian economy over the long term by increasing the workforce.

"Whether that translates into a benefit for the existing population is uncertain, especially over the short to medium term when the newcomers need to be integrated into the economy," the report said. 

This report by The Canadian Press was first published Jan. 12, 2024.

 

FAA will increase oversight of Boeing's manufacturing operations

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The U.S. Federal Aviation Administration said it will increase its oversight of Boeing Co.’s production and manufacturing operations, a day after it opened a formal investigation into the planemaker over last week’s accident on a 737 Max 9 jet.

The regulator is conducting an audit of Boeing’s 737 Max 9 production line and suppliers, according to an emailed statement Friday. The FAA will also increase monitoring of so-called “in-service events” on the Max 9, and will consider bringing in a third party to oversee the planemaker’s inspections and quality-control system. 

The moves suggest a further erosion of confidence in Boeing’s ability to build aircraft safely on its own, in light of the panel blowout on Alaska Airlines Flight 1282. Federal regulators had already stepped up oversight of Boeing since a pair of 737 Max crashes in 2018 and 2019 killed 346 passengers and crew. FAA inspectors are required to sign off on every 737 and 787 prior to delivery, work it had previously delegated to employees of the planemaker.

“It is time to re-examine the delegation of authority and assess any associated safety risks,” FAA Administrator Mike Whitaker said in the statement. “The grounding of the 737-9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk.”

Boeing had no immediate comment on the FAA’s announcement early Friday.

Shares of Boeing fell 1.9 per cent as of 8:45 a.m. in New York, before the start of regular trading in New York. The stock had already declined 15 per cent this year through Thursday, after the incident on Jan. 5. Spirit AeroSystems Holdings Inc., which makes the door panel for Boeing, slid 1.9 per cent premarket.

The safety of the flying public, not speed, will determine the timeline for returning the Boeing 737 Max 9 to service, the FAA said in the statement.

The regulator is taking a more aggressive stance after coming under fire for moving slowly to respond to other accidents, such as the eventual grounding of the 737 Max fleet following the two deadly crashes almost five years ago. 

This week, Wizz Air Holdings Plc Chief Executive Officer Jozsef Varadi called for stronger oversight from watchdogs, saying that it “almost feels like the manufacturers got married to the regulators.”

Boeing, which already is facing heavy scrutiny over a series of quality issues across its aircraft programs, is also under pressure from lawmakers following the incident. 

Senator Maria Cantwell of Washington, home to Boeing’s 737 operations, said the latest accident warrants additional scrutiny of both Boeing’s operations and its watchdog. In a letter to FAA Administrator Michael Whitaker on Thursday, Cantwell requested documents from agency safety audits of Boeing and Spirit AeroSystems over the last two years. 

In the accident last week, an almost-new 737 Max 9 saw a large panel of the left-side fuselage eject during flight, leaving passengers exposed to a gaping hole. Nobody was seriously injured and the plane returned safely, but pressure is building on Boeing and its senior management to explain the defect.

Regulators grounded 171 of the 737 Max 9 jets in operation after the Alaska accident to allow for inspections, prompting Max 9 operators to cancel hundreds of flights.

With assistance from Richard Clough and Ryan Beene.

 

Workers worried over AI robots on display at Las Vegas tech show

The barista tipped the jug of smooth, foamy milk over the latte, pouring slowly at first, then lifting and tilting the jug like a choreographed dance to paint the petals of a tulip.

Latte art is a skill that can take months if not years of practice to master — but not for this barista powered by artificial intelligence.

Robots of all kinds caused a stir on the show floor this week at the annual CES technology trade show in Las Vegas.

It’s innovations like this that worry Roman Alejo, a 34-year-old barista at the Sahara hotel-casino on the Las Vegas Strip, who can't help but wonder if the clock is ticking on hospitality jobs in the age of AI.

“It is very scary because tomorrow is never promised,” he said. “A lot of AI is coming into this world. It is very scary and very eye-opening to see how humans can think of replacing other humans.”

The world's largest tech show put those fears back under the spotlight just a little over a month after the casino workers union in Las Vegas ratified new contracts for 40,000 members, ending a bitter, high-profile fight that called attention to AI's threat to union jobs.

“Technology was a strike issue and one of the very last issues to be resolved,” said Ted Pappageorge, the Culinary Workers Union's secretary-treasurer who led the teams that negotiated new five-year contracts, narrowly averting a historic strike at more than a dozen hotel-casinos on the Strip.

Hospitality workers told The Associated Press in interviews over eight months of bargaining that they were willing to go on strike and take a cut in pay to win stronger job protection against inevitable advancements in technology. That includes technology already at play at some resorts: self check-in stations, automated valet ticket services and robot bartenders known as “tipsy robots."

Pappageorge said the emergence of robotics in the hospitality and service industry has been on the union's radar for years. The difference now, he told AP this week, “is the combination of artificial intelligence and robotics."

Experts say that breakthrough in AI technology has forced labour unions to rethink how they negotiate with companies.

Bill Werner, an associate professor in the hospitality department at the University of Nevada, Las Vegas, said unions now have to be “much more deliberate” in their negotiations for job security.

The types of casino union jobs at risk could look drastically different five years from now, for example, when the Culinary Union's contract ends.

“What is going to happen to these people and what rights do they have?” he said. “And what happens to them if they lose their job to a robot?”

In its latest contract, the union cushioned its so-called safety net for workers, winning US$2,000 in severance pay for each year worked if a job is eliminated by tech or AI, as well as the option to try to move to a different department within the company.

Pappageorge said they had to “develop new language” that protected workers both from today's technology and “technology that we don’t even know is coming.”

“This idea that technology, robotics and artificial intelligence is just running wild with no control at all can do incredible damage,” Pappageorge said. “So what we have to do is get ahead of the curve, and CES is where it’s at.”

More than 100 union members attended the trade show this week to scope out emerging tech that could put more casino jobs at risk.

And there was plenty new on the show floor: Friendly-faced robots that complete deliveries in hotels and restaurants. A robotic masseuse. Bots that can prepare and serve coffee, ice cream or boba. AI-powered smart grills that can handle tasks like broiling and searing without a human in the kitchen. And chef-like robots teasing a future with “autonomous restaurants,” as one company put it.

Meng Wang, co-founder of food tech startup Artly Coffee, one of the more than 4,000 exhibitors at CES this year, said he isn't in the business of eliminating jobs. Wang said Artly's autonomous barista bots can help fill a labour shortage in the service industry.

“Baristas have a hard job. It's very labour intensive, long hours. The pay is not that good," he said. “What we are doing is not replacing jobs. We are filling the need in the market and we are bringing specialty coffee to more places.”

But Werner said AI poses a real threat to casino union jobs that don’t require face-to-face interaction with customers — housekeeping, food preparation and cooks, for example.

“When the industry doesn’t have to worry about the effect on customer service, then that takes a lot of the risk out of automation,” he said. That's especially true for a people-pleasing tourist destination like the Las Vegas Strip, where customers expect top-notch service and experiences, including the latest trends in technology.

That makes Las Vegas “a good place to test these things and see how customers react to it," he said.

The Culinary Union and its members, like Alejo, the barista, acknowledge that the hospitality industry is ever-evolving.

“The innovations are incredible,” Alejo said. “But it is very scary that in today's world, everything seems to revolve around technology.”

Video producer James Brooks contributed to this report.





 

Korean battery maker Samsung SDI investing in Canada Nickel

Canada Nickel Co. Inc. says Korean company Samsung SDI Co. Ltd. has agreed to invest US$18.5 million in the company for an 8.7 per cent stake.

Samsung SDI makes rechargeable batteries for the technology industry, automobiles, and energy storage systems.

Canada Nickel chief executive Mark Selby says it's critical to form long-term partnerships with companies that understand how crucial its production will be for electric vehicle supply chains across North America and Europe .

Canada Nickel says it will also grant Samsung SDI the right to buy a 10 per cent stake in its Crawford project located north of Timmins, Ont., for US$100.5 million, exercisable upon a final construction decision. 

By exercising the right, Samsung SDI will have a right to 10 per cent of the nickel-cobalt production from the project over the life of mine and a right to an additional 20 per cent for 15 years extendable by mutual agreement. 

The investment by Samsung SDI follows an investment by gold miner Agnico Eagle Mines Ltd., which acquired a 12 per cent stake in Canada Nickel.

This report by The Canadian Press was first published Jan. 12, 2024.

 

Regulator approves Trans Mountain pipeline variance request

The imminent completion of the Trans Mountain pipeline expansion is more likely following Friday's decision by the Canada Energy Regulator to approve a request for a pipeline variance from the company building the project.

While the regulator imposed a number of conditions, including testing and documentation requirements for the pipe materials, it said Trans Mountain Corp. can begin constructing the variance right away. 

The regulator said it will issue the reasons for its decision at a later date.

The decision — issued Friday evening just hours after the conclusion of a hearing in Calgary — is significant for Canada's energy sector, which has been eagerly anticipating the startup of the massive pipeline project.

The Trans Mountain pipeline is Canada's only oil pipeline to the West Coast and its expansion will increase the pipeline's capacity to 890,000 barrels per day from 300,000 bpd currently.  

Its construction, which is more than 98 per cent complete, has been underway for more than three years. Canadian oil producers have begun ramping up production in expectation of the additional export capacity, which is expected to improve the prices Canadian oil companies receive for their production.

But Trans Mountain Corp., the Crown corporation behind the project, has been racing against the clock. Construction was expected to be complete in the first quarter of this year, but the company has run into difficulties drilling through hard rock in B.C.

Its initial request to use a different size of pipe for the location in question was denied by the regulator due to concerns around pipeline quality and integrity. 

Trans Mountain Corp. then asked the regulator to reconsider, saying in December that the project could face a worst-case scenario of a two-year delay in completion if it was not allowed to alter its construction plans.

At Friday's hearing, the Crown corporation urged the regulator to make a decision quickly on whether or not the company will be allowed to change the size, thickness and coating of a 2.3-kilometre stretch of pipe between the communities of Hope and Chilliwack, B.C. 

The company argued it can address all of the regulator's concerns around the sourcing and integrity of the alternate pipe size, and urged the regulator to avoid imposing conditions that would result in a "material" delay to the project.

Lawyer Sander Duncanson, who represented Trans Mountain Corp. at the hearing, said that for each week the project's completion is delayed, the pipeline company expects to lose $50 million in lost oil shipping revenue.

"The commission must be mindful that every day counts now," Duncanson said.

"An extra week of deliberations, or a condition that requires an extra week or two before Trans Mountain can start up the expansion, may not seem like a big deal. But it will have real, material impacts."

The company has said the pipeline can enter service within one month of mechanical completion of the project.

In a statement posted to its website Friday evening, Trans Mountain Corp. said it will now proceed in compliance with the order approving the variance.

"Trans Mountain appreciates the timely response from the CER," the company said in its statement.

The Trans Mountain pipeline is owned by the federal government, which purchased it in 2018 in an effort to get the expansion project over the finish line after it was scuttled by previous owner Kinder Morgan Canada.

The project's costs have spiralled through the course of construction from an original estimate of $5.4 billion to the most recent estimate of $30.9 billion.

Trans Mountain Corp. has blamed the ballooning costs on a number of things, including evolving compliance requirements, Indigenous accommodations, stakeholder engagement and compensation requirements, extreme weather, the COVID-19 pandemic and challenging terrain.

"When you operate in a technically challenging environment, sometimes things that are unforeseen happen," Duncanson told the regulatory panel Friday.

"I'm cautiously optimistic that this is the last (problem)."

This report by The Canadian Press was first published Jan. 12, 2024.

 

73% of pot purchases from legal (TAXABLE) sources, up from 37% in 2019: Health Canada

An annual survey from Health Canada shows 73 per cent of respondents are buying their cannabis from legal sources.

That number compares with 37 per cent in 2019, the year after Canada first legalized cannabis. Almost 70 per cent were using legal sources in 2022.

In addition to more Canadians buying cannabis from a legal source, the survey also found the most purchased kinds of pot were dried flower or leaves, edible cannabis and vape pens or cartridges.

People who used cannabis in the 12 months leading up to the survey said they typically spend close to $63 on cannabis each month, a drop from $73 in 2018.

This year's survey questioned 11,690 Canadians between May and July.

Industry experts have long warned data collected by government agencies on cannabis may be impacted by pot users who are still unlikely to report pot use or purchases from illicit sources to officials because of the stigma around the substance.

This report by The Canadian Press was first published Jan. 12, 2024.