'Product of USA' meat labels draw Canadian concern

The Canadian Press

Rows of fresh cut beef in the coolers of the retail section at the Wight's Meat Packing facility in Fombell, Pa. is shown on June 16, 2022. Canada's federal government as well as organizations representing some the nation's beef producers warn a decision south of the border about "Product of USA" labels on meat, poultry and eggs could disrupt supply chains. THE CANADIAN PRESS/AP, Keith Srakocic

Canada's federal government as well as organizations representing some the nation's beef producers warn a decision south of the border about "Product of USA" labels on meat, poultry and eggs could disrupt supply chains.

The United States Department of Agriculture announced Monday a final rule on conditions for when voluntary "Product of USA" or "Made in the USA" labels may be used, stating they will be allowed for meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States.

Agriculture Secretary Tom Vilsack says in a news release the rule, which takes effect in 2026, will ensure that when consumers see the label, they can know that every step involved, from birth to processing, was done in America.

But Canada's Agriculture Minister, Lawrence MacAulay, and International Trade Minister Mary Ng say in a joint statement they're disappointed the rule does not appear to take into account concerns they've raised related to the "unique and important trading relationship" between the two countries.

They say the "meat and livestock sectors in Canada and the United States work closely together" and that Canada intends to raise the issue during the agriculture ministers trilateral meeting with United States and Mexico scheduled to take place in Colorado later this month.

The rule is a sharp change from current policy, which allows voluntary use of such labels on products from animals that have been imported from a foreign country and slaughtered in the U.S., as well also on meat that's been imported and repackaged or further processed.

“Today’s announcement is a vital step toward consumer protection and builds on the Biden-Harris Administration’s work to bolster trust and fairness in the marketplace where smaller processors can compete,” Vilsack said in the news release after announcing the final rule Monday at the National Farmers Union Annual Convention in Phoenix, Ariz.

The USDA release said the final “Product of USA” rule is supported by petitions, as well as thousands of comments from stakeholders, and data from a nationwide consumer survey. It also said the “Product of USA” or “Made in the USA” label claim will continue to be voluntary. 

The joint statement from MacAulay and Ng said Canada is "reviewing the final rule carefully."

"Our indispensable relationship allows producers, processors and consumers on both sides of the border to benefit from efficient, stable and competitive markets, while ensuring a reliable supply of high-quality products," the statement said.

“Canada remains concerned about any measures that may cause disruptions to the highly integrated North American meat and livestock supply chains."

A statement from the Canadian Cattle Association, which represents beef farms and feedlots, called the rule "the most onerous standard in the world."

“It is crucial to address any issues that threaten or diminish cattle and beef trade between Canada and the U.S.,” CCA president Nathan Phinney said in the statement. 

“We are very concerned that the rule will lead to discrimination against live cattle imports and undermine the beneficial integration of the North American supply chain.” 

The voluntary labeling rules are different from country-of-origin labels, known as COOL, which required companies to disclose where animals supplying beef and pork are born, raised and slaughtered. That requirement was rolled back in 2015, after international trade disputes and a ruling from the World Trade Organization.

With files from The Associated Press

This report by The Canadian Press was first published March 11, 2024.

 

Most Canadians want Trudeau government to spend less, poll says

Brian Platt, Bloomberg News

(Bloomberg) -- A majority of Canadians want Prime Minister Justin Trudeau to reduce government spending, which many see as one of the primary drivers of inflation in recent years, a new survey finds.

Overall, about 63% of Canadians would prefer to see lower spending in Trudeau’s budget, according to the poll by Nanos Research Group conducted for Bloomberg. Some 38% of respondents want the money that would be saved to go toward repaying government debt, while 25% want tax cuts.

The survey underscores the difficulty Trudeau and Finance Minister Chrystia Freeland face in crafting a new federal budget, to be released on April 16. Higher spending is unpopular, but poll after poll also shows Canadians are frustrated about high housing costs. Trudeau’s government appears likely to introduce new measures to try to improve the housing situation — and at the same time, it’s under pressure to boost outlays on defense and industrial subsidies.

“Canadians by a large margin prefer spending reductions over increased spending,” said Nik Nanos, the polling firm’s chief data scientist. “As Canadians exercise their own economic restraint as they struggle to pay for housing and groceries, they likely expect the federal government to also exercise fiscal restraint.”

Just under 9% in the survey want to see increased spending, and most of that group say it could be paid for through higher taxes. Bloomberg reported last week that business groups are worried about this scenario, with one possibility being a tax raise on windfall profits to offset new government spending.

Nearly 2% of all respondents say they prefer to see increased spending funded by more borrowing, while a quarter say the government should simply continue as planned on its fiscal path.

Read More: Trudeau Eyes Boost to Canada’s Housing Supply With New Budget

The government’s budget update in November projected a C$38.4 billion ($28.5 billion) deficit in the fiscal year 2024-25, and C$38.3 billion the year after. Freeland has pledged to meet the guideposts laid out in the fall update, and to bring the deficit down to below 1% of gross domestic product by the fiscal year ending in 2027.

The Liberals are far behind Pierre Poilievre’s Conservatives in opinion polls due in large part to affordability issues, and the government is eager to see the Bank of Canada cut interest rates. Politically, Trudeau and Freeland can’t afford to produce a budget that is seen as inflationary.

Read More: Trudeau Hopes Bank of Canada Rate Cuts Will Come ‘Sooner’

A separate question in the Nanos poll found about a third of Canadians blame the government’s spending and deficits for the recent rise in prices and cost of living. That number is about the same as it was last summer, and is up slightly from the summer of 2022.

However, it found that 26% of Canadians place the blame for inflation on businesses — double the percentage who said that in 2022.

“Events like the Ukraine-Russia war and the pandemic are taking a back seat to a focus on business pricing practices and government spending,” Nanos said.

The Nanos poll surveyed 1,071 Canadians between Feb. 28 and March 2, and has a margin of error of 3 percentage points, 19 times out of 20. 

--With assistance from Jay Zhao-Murray.

©2024 Bloomberg L.P.

 

Quebec to present 'restrained' budget today amid economic stagnation

Quebec's finance minister says the budget he is expected to present later today will be "restrained" amid what he describes as a provincial economy in stagnation.

On Monday Eric Girard told reporters south of Montreal that the billions of dollars in wage increases recently negotiated with teachers and health-care workers have further restricted the government's spending ambitions.

Quebec's real GDP — which is adjusted for inflation — contracted in the second quarter of 2023 by 0.4 per cent and by 0.2 per cent in the third quarter.

Quebec Premier François Legault has signalled that today's budget will have a larger deficit than last year's forecast, and that the government will delay its original plan to balance the books by the 2027-28 fiscal year.

Girard and Legault, however, have stayed away from using the word "austerity" to describe the government's approach to getting finances under control.

Legault has promised the budget will not include tax increases or cuts to services.

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

 SWEATSHOP CORPORATE POLITICKS

Browning West sues Gildan over annual meeting

A U.S. investor looking to replace a majority of the board of directors at Gildan Activewear Inc. says it has filed a lawsuit against the clothing manufacturer and its board to ensure it holds its annual meeting "without delay and with the oversight of an independent chair" on May 28.

In a press release, Browning West says its application in Quebec Superior Court alleges Gildan and its board have pursued "a strategy of entrenchment, obfuscation and disparagement of dissenting shareholders" while prioritizing their own personal interests.

The investor says it believes the board’s "tactics indicate that the current directors will do anything to preserve their current positions."

Gildan has been embroiled in a fight over who should lead the company since it announced late last year that co-founder and then-CEO Glenn Chamandy would be replaced by Vince Tyra, saying the former had no credible long-term strategy and had lost the board's trust.

Browning West, with the support of Gildan's largest shareholder Jarislowsky Fraser, has been trying to replace eight members of the Gildan board in a move to reinstate Chamandy. It has said it would offer a slate of candidates for election at the company's annual meeting after initially seeking a special meeting of shareholders.

Chamandy has said he presented a comprehensive long-range plan in October that showed meaningful growth prospects for Gildan over the next five years.

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

 

Scholastic to buy kids' content studio 9 Story for US$185 million

Michelle F. Davis, Bloomberg News

Scholastic Book Fair banner outside Catholic school, Queens, New York. Photographer: Lindsey Nicholson/Universal Images Group/Getty Images , UCG/Universal Images Group via G

Scholastic Corp., the biggest publisher and distributor of children’s books, has agreed to acquire 9 Story Media Group, as it looks for ways to broaden the audience for its library of children’s stories.

Scholastic will pay US$185 million for 9 Story Media Group, which creates, produces and distributes television content for kids through an animation studio and a consumer products division. Scholastic said the deal will give it all of the economic interest and a minority of voting control rights in the content company.

The goal is to turn more of Scholastic’s books into television content and vice versa. 

“We know that a lot of kids first get exposed to characters on screens,” Scholastic Board Chair Iole Lucchese said in an interview. “It’s important for us to meet them there and ultimately lead them to reading. It’s about taking a look at all of the content that we have and bringing it back to life or [creating] new content as well.”

The two companies have collaborated previously on projects including the reboot of Clifford the Big Red Dog through an animated series.

9 Story’s animation studio Brown Bag Films is known for shows including Daniel Tiger’s Neighborhood, Doc McStuffins and The Magic School Bus Rides Again.

“We have strong capabilities in creating content, delivering it to audiences and taking the IP and extending it into merchandising and licensing,” Vince Commisso, chief executive officer of Toronto-based 9 Story, said in an interview. “Scholastic has an unmatched library of kids IP. Put those two things together and one plus one equals more than 10.”

 

National Bank of Canada weighs options for Cambodian unit

Elffie Chew and Manuel Baigorri, Bloomberg News

National Bank of Canada is exploring options including a sale of ABA Bank, which could be valued at more than US$2 billion in a deal, according to people familiar with the matter.

The Montreal-based bank has held initial discussions with advisers on a strategic review for one of Cambodia’s biggest lenders, said the people, asking not to be identified as the process is private. Other options include minority or majority stake sales, the people said.

Considerations are at an early stage and National Bank of Canada may still decide not to proceed with a deal, the people said. A representative for National Bank of Canada declined to comment, while ABA Bank didn’t immediately respond to requests for comment.

Founded in 1996 and formerly known as Advanced Bank of Asia Ltd., ABA Bank was Cambodia’s largest commercial bank by assets and deposits in 2022, according to its website. The lender has 94 branches with more than 1,600 self-banking machines.

National Bank of Canada first invested in ABA Bank in 2014, taking an initial 10 per cent interest as part of its plan to expand internationally. It raised its stake to 42 per cent in 2015 and to 90 per cent in 2016. The Canadian lender boosted its holding to 100 per cent in 2019 with an additional investment of US$63 million, according to a press release issued that year. Its investment in ABA Bank totals US$320 million.

ABA Bank posted net income of $343 million in 2023, National Bank of Canada’s annual report shows.

National Bank of Canada, established in 1859 by a group of Quebec City businessman, has grown to become the sixth biggest lender in Canada, its website shows. Its shares have risen about 12 per cent in the past year, valuing the company at US$28 billion.

 

Allied to buy Westbank’s stakes in Toronto, Vancouver towers

Thomas Seal, Bloomberg News

Allied Properties Real Estate Investment Trust agreed to buy stakes in towers in Toronto and Vancouver from Canadian property developer Westbank Corp., adding ownership positions in two major urban properties.  

The transaction includes a deal that values Vancouver’s 400 West Georgia at $395 million and one that values Toronto’s 19 Duncan at $525.7 million, according to a statement Monday. The Vancouver tower was developed and owned by Westbank, while the Toronto building was a joint venture co-owned equally by developer Westbank and Allied. 

The tower stakes bulk up the urban portfolio for Allied, which specializes in repurposing old downtown industrial and warehouse space for tenants in industries including the technology sector. Westbank has quickly become one of Vancouver’s best known property developers for the ambitious scale and designs of its projects, occasionally dividing opinion in the process.

Allied plans to convert $130.5 million of a $198 million secured mezzanine loan to Westbank into equity, giving it 90 per cent of 400 West Georgia, and it will acquire a 95 per cent interest in 19 Duncan by converting the remainder of the loan to equity, along with a $36.3 million cash payment to Westbank.

Allied’s payments will be partly funded by sales in Montreal and a previously announced restructuring of the Telus Sky Calgary tower, which Allied and Westbank also co-own. Allied said it would seek to sell properties deemed less strategically important for proceeds of as much as $200 million over the next two years. 

Westbank describes 19 Duncan, due to be completed this year, as “an important component to our practice’s expansion in Toronto.”

The Vancouver tower contains about 345,000 square feet of office space — 82 per cent leased to companies including Deloitte and Apple Inc. — with 5,525 square feet of retail. Toronto’s 19 Duncan has more than 154,000 square feet of office space — fully leased to Thomson Reuters Corp. — with about 15,400 square feet of retail and 464 residential units.

 

Equal education, unequal pay: Why is there still a gender pay gap in 2024?

BNN Bloomberg

Businessmen cast their shadows as they walk in Toronto's financial district on Monday, Feb. 27, 2012. A new report says the gender pay gap in Canada last year narrowed compared with 2021, but still stood at more than 20 per cent. (THE CANADIAN PRESS/Nathan Denette)

Not even education can close the pay gap that persists between women and men, according to a recent U.S. Census report.

Whether women earn a post-secondary certificate or graduate from a top-tier university, they still make about 71 cents on the dollar compared with men at the same education level, Census research found.

That difference is coming into stark view on Equal Pay Day, and in spite of the fact that women comprise more than half of college-educated workers and participate in the labor force at record rates.

Rather than comparing full-time working men to full-time working women, the Feb. 22 Census report juxtaposes men and women with the same education caliber: graduates of certificate degree programs and those who hold bachelor’s degrees from the most selective universities, explained economist Kendall Houghton, a co-author of the research. The report also includes graduates who may have opted out of the labor force, such as women taking on child care responsibilities.

“The main point here is that there’s a substantial gap at every single level,” added Census economist and co-author Ariel Binder.

Field of study, choice of occupation and hours account for much of the discrepancy, but not all. Field of study, for instance, contributes to the pay gap much more for top graduates (24.6 per cent), but for less selective degree holders accounted for only a sliver (3.8 per cent). And the number of hours and weeks worked affect the pay gap more for certificate earners (26.4 per cent) than selective bachelor’s degree earners (11.3 per cent), suggesting there is a bigger gender difference in work participation for certificate holders, Binder said.

At the same time, about 31 per cent of the gap for each education level remains unexplained, suggesting less easily measured factors such as gender stereotypes and discrimination may be at play.

Chantel Adams says she isn’t surprised that the gender pay gap persists even among men and women with the same level and quality of education, or that the gap is wider for Black and Hispanic women.

A senior marketing executive who holds an MBA from University of North Carolina’s Kenan-Flagler Business School, Adams said her qualifications aren’t enough to counteract the headwinds she faces in her career as a Black woman.

Despite taking on extra responsibilities and an undisputedly strong performance, Adams said she was turned down for a promotion because she was told that “I was so articulate and sharp that it was intimidating to some people.”

“I have nearly $300,000 of post-high school education. It would be surprising if I weren’t articulate and sharp,” said Adams, who is based in Durham, North Carolina.

She said her peers at the company — one of whom did not have an MBA — were promoted while she was held back two years in a row.

“It’s unreasonable and unfair to hold someone’s strengths against them,” Adams said. “I would consider that as something that is race-based.”

Broadly, younger women are closer to wage parity with younger men, according to Carolina Aragao, who researches social and demographic trends at Pew Research Center. But the gap widens between the ages of 35 and 44, which coincides with when women are most likely to have a child at home.

“That does not play out the same way for men," Aragao said, adding that there is actually an opposite phenomenon known as the fatherhood premium, in which fathers tend to earn more than other workers, including men without children at home.

Despite women making vast gains in C-suite and high-earning industry representation, wage gap improvement has stalled for about 20 years, Aragao said. Uneven child care and household responsibilities, falling college wage premiums, and overrepresentation in lower-paying occupations are all contributors to why the pay gap stubbornly remains.

For Adams, the best strategy to overcome them has been to keep changing jobs — six times in 10 years, across multiple states in her case.

“I knew that I needed to be intentional and move with urgency as I navigated my career in order to work against that headwind,” she said. “When those opportunities were not afforded me within one company, I’ve gone elsewhere.”

Adams said job coaching, mentorship, and support from Forte Foundation, a nonprofit focused on women’s advancement, have been instrumental to her success, while salary transparency laws — and even salary transparency within social circles — could help alleviate the significant pay gap challenges women of color face.

But corporate diversity initiatives have been subject to a growing list of lawsuits ever since the Supreme Court struck down affirmative action in college admissions. Adams said she worries that without affirmative action, corporate racial diversity could decrease, too.

"The big question that is looming over my head and probably many other executive leaders is: What does that do to the pipeline of diverse candidates that we may or may not have 10 years from now?" Adams said.

 

Atlantic newspaper owner Saltwire faces insolvency after lender files claim

The Canadian Press

A private equity fund has filed insolvency proceedings against Atlantic newspaper owner SaltWire Network Inc., claiming it owes tens of millions of dollars. The Chronicle Herald sign is seen in Halifax on Thursday, April 13, 2017.

A private equity fund is initiating insolvency proceedings against Atlantic newspaper owner SaltWire Network Inc., claiming it owes tens of millions of dollars after several years of mismanagement. 

In documents filed to the Supreme Court of Nova Scotia on Monday, Fiera Private Debt Fund said Saltwire and The Halifax Herald Ltd. together owe it $32.7 million, plus almost $600,000 of accrued and outstanding interest.

About three-quarters of that debt is owed by Saltwire, which owns a number of news publications across Atlantic Canada including Halifax's Chronicle Herald, the Telegram in St. John's, and the Guardian in Charlottetown. 

Fiera said in the filings that senior management of the company has mismanaged the business, used employee pension funds for operations and failed to remit HST, among other allegations. 

It said in the documents the companies are insolvent and “on the verge of a liquidity crisis.”

Fiera said it loaned money to Saltwire to help fund its 2017 acquisition of several businesses from Transcontinental Nova Scotia Media Group Inc. 

Fiera said the companies have been in default for more than five years, have made little progress in repaying the principal of their debt, and have no plan to do so. It said it provided “significant concessions” to the borrowers, which are refusing to meaningfully discuss the lenders’ concerns about the businesses and their debt. 

Recently, Fiera said, Saltwire and The Herald sought to find an investor or buyer for the business, but were unable to secure an acceptable offer. 

The documents note that The Herald was recently ordered to pay more than $2.6 million in outstanding pension liability, and Saltwire was recently ordered to post $500,000 as security for costs in litigation over its Transcontinental acquisition. 

They say that as of January 2, Saltwire and The Herald owe the Canada Revenue Agency a combined more than $7 million in collected and unremitted HST. 

The filings seek to appoint KSV Restructuring Inc. as the court-appointed monitor for CCAA proceedings, and appoint a chief restructuring officer. 

They also aim to position Fiera as the first lender to be paid back if Saltwire is sold or dissolved.

This report by The Canadian Press was first published March 11, 2024.

 RENT = INFLATION

Average asking rent prices reach $2,193 in February, up 10.5% from 2023

The Canadian Press

A new report says the average asking price for a rental unit in Canada was $2,193 per month in February, marking a 10.5 per cent jump year-over-year and the fastest annual growth since September 2023.

The data released Monday by Rentals.ca and Urbanation, which analyzes monthly listings from the former's network, shows the average monthly cost of a one-bedroom unit in February was $1,920, up 12.9 per cent from the same month in 2023.

The average asking price for a two-bedroom was $2,293, up 11.3 per cent annually.

The report says asking rents in Canada have increased overall by a total of 21 per cent, or an average of $384 per month, from two years ago, just before the start of interest rate hikes by the Bank of Canada.

Alberta maintained its status as the province with the fastest-growing rents, with total average asking prices up 20 per cent annually last month to reach $1,708.

British Columbia and Ontario posted the slowest growth in February, with annual increases of 1.3 per cent and one per cent, respectively. But the provinces remain Canada's most expensive for renters, with total average asking rents of $2,481 in B.C. and $2,431 in Ontario.

On a municipal basis, the largest cities in those two provinces also remain the most expensive major cities to live in Canada for renters. The average asking price for a one-bedroom unit in Vancouver last month was $2,653, down 1.1 per cent from a month earlier, though still 0.5 per cent higher than February 2023.

In Toronto, landlords were listing one-bedroom units for $2,495 on average, down 0.6 per cent on a month-over-month basis and 0.2 per cent from a year ago.

Traditional purpose-built rental apartments posted the fastest year-over-year price growth in February with a 14.4 per cent increase, as rents averaged $2,110. Condominium rentals, with an average rent of $2,372, and apartments in houses, at $2,347, had slower annual growth of five per cent and 5.3 per cent, respectively.

The report also highlighted a surge in roommate listings last month.

It says the number of listings for shared accommodations tracked in Canada's four largest provinces grew 72 per cent in February compared with a year ago.

The average asking rents for shared accommodations increased 12 per cent to $1,010, led by 13 per cent annual growth in B.C. to $1,186 and 12 per cent in Alberta to $873.

In Ontario, average roommate rents increased nine per cent to $1,099 and in Quebec by five per cent to $920.

This report by The Canadian Press was first published March 11, 2024.