Judge says construction on massive CN Rail hub can continue — for now

Christopher Reynolds, The Canadian Press

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The Federal Court of Appeal says work on a massive rail-and-truck hub in the Greater Toronto Area can go ahead — for the time being, as the future of the facility remains in limbo.

In a stay of a lower court ruling that had halted construction, the judge allowed Canadian National Railway Co. to continue to build the terminal in Milton, Ont., pending appeal of the earlier decision. 

The $250-million project aims to double CN's existing line of tracks in the area and construct a hub for containers to be transferred between semi trucks and freight cars.

Federal Appeal Court Justice George Locke said that while a halt to work would have no effect on CN’s long-term viability, any delay is "detrimental to the public interest."

"The harmful effects of construction emissions appear to be outweighed by the costs to CN of suspending its construction activities, and more importantly, the public interest in the completion of the project," the judge wrote earlier this month.

Final word on whether work can proceed will rest on a later ruling from the Federal Court of Appeal.

In March, a Federal Court decision set aside a green light issued by the federal government in January 2021 and sent the project back to Ottawa for reconsideration — a ruling that is now under review.

The lower court decision highlighted health concerns around air quality, pointing to the 800 diesel-powered trucks that would make daily round trips to the hub in Ontario’s Halton Region. Four freight trains hauled by locomotives that also run on diesel — the fuel contains toxic pollutants, the judgment noted — would also steam through the terminal each day.

CN stressed that the Greater Toronto and Hamilton Area (GTHA) comprises one of the fastest-growing regions in the country, upping the need for freight service.

"The Milton Logistics Hub is critical to handle the growing demand for household goods, consumer products and other necessities of day-to-day life. The hub will connect businesses in the GTHA directly with ports and markets, taking trucks off the road and powering local economic activity," said CN spokesman Jonathan Abecassis in an email.

The Montreal-based company also pointed out that federal authorization was subject to an extensive environmental review process, resulting in an approval that laid out 325 conditions to protect the community and the environment.

But prior to the government's thumbs-up, an expert review panel concluded that the rail facility would likely have a harmful environmental impact on "human health as it relates to air quality," Federal Court Judge Henry Brown said in his March ruling.

However, neither cabinet nor then-environment minister Jonathan Wilkinson considered or referred to that finding in their decisions — "inexplicably," Brown wrote.

The court case pits the federal government and CN Rail against Halton Region and its four municipalities as well as the Halton Region Conservation Authority.

"We are disappointed that the health of Milton and Halton residents was not made a priority," said Halton Region spokeswoman Holly Einboden of the latest ruling. She encouraged residents to contact legislators about their health concerns.

Milton Mayor Gordon Krantz said in a statement the terminal will cause "significant human health effects" to the 34,000 residents whose homes sit within a kilometre of the site.

"This project is unacceptable, and the health of our community should not be compromised for any business," he said.

This report by The Canadian Press was first published May 13, 2024.

'A steadfast champion of Atlantic Canada': Oil executive Arthur Irving dies at age 93

HIS FAMILY OWNS NEW BRUNSWICK; LOCK. STOCK AND BARREL 

Michael Tutton, The Canadian Press

Arthur L. Irving, the second-born son of New Brunswick industrialist K.C. Irving, has died at the age of 93 after a life spent growing the oil business that his father founded. Irving, then chairman of Irving Oil, takes to the podium during the grand opening of the Halifax Harbour Terminal in Dartmouth, N.S., Thursday, Oct. 20, 2016. THE CANADIAN PRESS

Arthur L. Irving, the second-born son of New Brunswick industrialist K.C. Irving, has died at the age of 93 after a life spent growing the oil business his father founded.

Irving Oil announced his death in a statement, saying he died Monday surrounded by his wife, Sandra, and daughter, Sarah.

Forbes Magazine listed Arthur Irving as being among the top 10 richest Canadians in 2023. At the time of his death, he had an estimated net worth of US$6.4 billion, which includes a Saint John, N.B., refinery that is Canada's largest, along with the Whitegate refinery in Ireland.

Born in 1930, Irving attended Nova Scotia's Acadia University before leaving to join Irving Oil in 1951, where he worked with his father and his two brothers.

"I had the choice to go on at Acadia or learn about business from the best teacher available anywhere — my father," he told author Donald Savoie in his 2020 book about Irving Oil. 

"I went with the best teacher."

Savoie wrote that Irving's first day on the job was a happy one: "He got a Ford, quickly slapped the Irving diamond on the door, and off he went. He was out to hustle business, meet existing customers, seek new ones, and beat the competition." He became president of the company in 1972 and was chairman emeritus when he died.

Prime Minister Justin Trudeau offered his condolences to Irving's family and friends in a statement Monday evening.

"Under his leadership, (Irving Oil) became one of Canada’s top employers and job creators – making Mr. Irving a symbol of Canadian entrepreneurship and success," Trudeau said.

Irving's death comes as the company's Saint John refinery is undergoing a "strategic review" to determine its future, as climate change is prompting a shift away from fossil fuels in many nations.

While his biographers have credited Irving with success in expanding the company, he also had a life marked by family difficulties, including a contentious 1980 divorce with his first wife and — more recently — his estrangement from his eldest son.

In his book, "Irving vs. Irving," published in 2014, journalist Jacques Poitras described a poignant scene from August 2013, when Irving stood at a Saint John news conference announcing that his company was officially launching a bid — which ultimately didn't succeed — to build a pipeline to carry crude oil from Alberta to the family's refinery.

Poitras noted that Kenneth, "his son and heir," was notably absent after a falling out led to his departure from the company in 2010. "Arthur, in his eighties, was surrounded by admirers, yet alone. His refinery loomed in the background ... but his family was torn asunder," Poitras wrote.

In the 1980s and '90s, Arthur Irving's business life and interests were tightly tied to his two brothers, J.K. and Jack, as they took primary responsibility for different segments of the interwoven business empire their father had created. The trucking firms ran on the companies' refined gasoline, the forestry and shipping interests used the Irvings' construction subsidiaries, and a chain of newspapers purchased the newsprint from a nearby factory.

Of the three brothers, Arthur was described by his father's biographers Douglas How and Ralph Costello as "thin and mercurial, the most abrasive against government and the most talkative." However, the biographers also noted his ability to turn on the charm and his capacity to act as the family's "super salesman," chasing down customers for the supertankers that docked at the company's Canaport terminal outside Saint John.

In late 2009, the three Irving brothers separated their business interests, with Arthur assuming control of the energy business and setting up a trust of his own — reportedly worth about $1 billion — with quarterly distributions going to himself and his children, along with provisions for grandchildren.

During a court battle in 2012, the Bermuda court's chief justice commented that Kenneth had come to feel estranged from his family after being dropped from the company's executive ranks. Poitras described the fallout as a "bitter schism."

For the author Savoie, a public administration professor at Université de Moncton, Arthur Irving's single-mindedness was key to the survival of the company over the past five decades.

He wrote that Irving guided the company to growth as other refineries faltered and laid off staff or closed around Atlantic Canada. "Rather than shutting down its refinery or laying off employees and contracting business, it expanded," he noted, referring to a $1.5-billion upgrade in 2000.

"Irving Oil is substantially larger than it was when Arthur took it over in all aspects of the business, from refinery operations to sales, number of retail outlets, market share, and size."

Atlantic Canadians and New Englanders experienced this style at the Big Stop gas stations and stores, which Savoie described as "customer-centric." The author also said he believed that while the businesses in the Irving empire went in different directions, Arthur remained close with J.K. and with his younger brother, Jack — who died in 2010.

Savoie's book noted that the three boys were encouraged from a young age to be entrepreneurs, selling magazine subscriptions door to door and buying a dozen hens and selling eggs to the neighbours in Bouctouche, N.B. They grew their business to the point there were 150 chickens.

"In summer months, they were expected to work in the field and pull their weight like all the others — in short, no special treatment because they were the Irving boys."

In its statement, the company described Irving as "a steadfast champion of Atlantic Canada and its people" and one of a kind. "In this immense loss, we know there will never be another like him," it said.

This report by The Canadian Press was first published May 13, 2024.

Finance executives help Canada's Conservatives crush Trudeau at the money game

Thomas Seal and Brian Platt, Bloomberg News

Canada’s corporate titans are helping the country’s Conservative Party build a financial war chest to oust Prime Minister Justin Trudeau, as frustration grows among business leaders about the country’s economic performance.

The Conservatives have raised $2.45 in donations for every $1 Trudeau’s Liberal Party has pulled in since the start of last year. Their support base is broad, but the donor lists include a roll call of executives from the upper echelons of Canadian finance and business — including telecommunications billionaire Edward Rogers, private equity executive Paul Desmarais III and Dan Daviau, head of brokerage firm Canaccord Genuity Group Inc. 

Political-party filings underscore how Conservative Leader Pierre Poilievre has cemented a huge financial advantage ahead of an election that’s due in 2025. Polls suggest he’s the favourite to win. 

A cabinet minister under former Prime Minister Stephen Harper who’s spent most of his adult life in politics, Poilievre, 44, became leader of the Conservatives in September 2022. Since then, he has relentlessly attacked Trudeau over taxes, budget deficits and the cost of housing, tapping into voters’ fatigue with the prime minister after more than eight years in power.

That’s helped build a double-digit lead for the Conservatives in national polls, which they’re converting into a commanding edge in donations. The party raised $46 million in the 15-month period ended March 31, compared with less than $19 million for the Liberals.

The influence of wealthy donors in Canadian politics is restricted by tight financing rules. Companies and unions are banned from giving to political parties; only individual donations are allowed under a strict limit — it’s $1,725 per person this year. 

Adam Breslin, a partner at Toronto-based private lender Penfund Management Ltd., said he believes Trudeau’s policies “have really been spectacular disasters across the board.”  

Breslin is critical of what he sees as too much government spending, a focus on wealth redistribution rather than growth, and a “reckless” approach to immigration. He said he was deeply offended by Trudeau’s “vague” response to the Israel-Gaza war and related protests in Canada, some of which have sparked safety fears among Jewish groups. 

Breslin said he’s a longtime conservative who has been getting more active in backing the party: he attended a Conservative event in Toronto recently, and he and his wife are now running fundraisers, too.

Canaccord’s Daviau, who gave the maximum amount to the party in February, according to party records, said he believes Canada needs “more accommodative policies that help make Canada a world-class destination for growing businesses.”  

Trudeau’s government has the most seats in Canada’s House of Commons but lacks a majority, so it relies on an alliance with the left-leaning New Democratic Party to pass budgets and legislation. The government has announced sweeping measures in recent months to boost housing supply, help renters and create a new program that covers the cost of insulin and contraceptives. 

To help pay for it, the government is raising the effective tax rate on capital gains, a measure it expects to raise almost $20 billion in tax revenue over five years. 

The prime minister has pitched the tax move as a matter of fairness, and one that will only hit the wealthiest. In a video posted Monday to the social media site X, Trudeau gives a hypothetical example of an investment banker who’s making $800,000 a year and who has assets he sells for a large gain. The current tax rates on those profits are too low compared with taxes applied to wages, he says, “and it’s not really fair.” 

Mary Throop, founder of Summerhill Capital Management and a former managing director at Canadian Imperial Bank of Commerce, said she’s supporting the Conservatives “because for all Canadians to prosper, we desperately need dramatic change.” 

The government’s policies are stifling innovation, discouraging investment and “leaving future generations with an enormous unproductive government debt burden to pay for,” she said. Throop contributed close to the maximum amount in the first quarter, as did Rogers Communications Inc. CEO Tony Staffieri. 

Election spending 

Somewhat unusually for a Canadian politician, Poilievre’s combative communications style and slick online videos have gone viral, and he recently won praise from Joe Rogan, Spotify’s most listened-to podcaster. Reaping extra donations — helped by sales of merchandise emblazoned with his slogans — allows him to further dominate the advertising war.

Although the amounts are minuscule compared with what’s raised and spent in U.S. political contests, the gulf in fundraising will allow the Conservatives to build a bigger campaign machine and mold Poilievre’s image through advertising ahead of the election. 

Canada imposes spending limits on parties during its relatively short election period. For the 2021 vote — the third straight win for Trudeau’s Liberals — the limit was about $30 million per party. 

But this far out from an official campaign, the Tories will enjoy a spending advantage, said Yaroslav Baran, a former communications strategist for Harper’s government who now works at consulting firm Pendulum Group.

“Right now, we are a year and a half before the election — you can run all the ads you want,” he said. That situation is already playing out, with the Conservatives running TV campaigns featuring Poilievre and his young family in an effort to soften his attack-dog image.  

A party with full coffers can pay for higher-quality public opinion research, including polling that helps parties understand key electoral districts and focus campaigning. And the extra cash can also pay for cross-country tours featuring not only the leader, but other high-profile members. “You tend to see things like this during the summer when Parliament isn’t sitting,” Baran said.

Liberal Party spokesperson Parker Lund said the party holds fundraisers in publicly available spaces and is more transparent about who attends, while Poilievre holds “closed-door fundraisers in private homes that bar media access.”

“The Liberal Party’s strong grassroots fundraising has propelled us to three straight election wins — and we will once again be ready to fight the next election, whenever it may arise,” Lund said in an email.

Sarah Fischer, a spokesperson for the Conservatives, said the fundraising gap shows Canadians are frustrated with Trudeau’s economic management. “Canadians across the country, and from all walks of life, are putting their support behind Pierre Poilievre and his plan to axe the tax, build the homes, fix the budget and stop the crime,” she said by email.

 

Canadian banks directed over US$100 billion to oil and gas last year: report

Ian Bickis, The Canadian Press

Canadian banks provided almost US$104 billion in fossil fuel funding last year despite the urgent need to reduce emissions, says the latest annual Banking on Climate Chaos report.

The report out Monday from a coalition of climate groups said the total includes US$28.2 billion from RBC to place it seventh globally and US$24 billion from Scotiabank to rank 10th. 

The top 60 banks together committed US$708 billion. 

For most of Canada’s five biggest banks, 2023 was among their lowest levels of oil and gas financing in the eight years since the Paris climate agreement. 

BMO had its outright lowest year of fossil fuel financing since 2016, with US$15.8 billion. CIBC, TD and RBC each had their lowest with the exception of pandemic year 2020, while it was the fourth-lowest year for Scotiabank.

While reduced, the numbers are still stark, said Richard Brooks, climate finance director at Stand.earth. 

"There's still massive amounts of money on the scale of, you know, tens of billions of dollars that are flowing into extreme forms of oil and gas, that are flowing into expansion projects that lock us in for a long time."

Canadian banks understand their important role in helping lead an orderly transition to a low-carbon future, said Canadian Bankers Association spokeswoman Maggie Cheung in a statement.

"Firm commitments are required to accelerate clean economic growth and that’s why banks are implementing climate action plans that set specific targets to meet the demands of this global challenge."

Bank climate targets are fairly long-term, including their net-zero emissions goal of 2050. Only BMO has set an absolute reduction target before then. 

The reduced fossil fuel funding last year could be due to shifts in the oil and gas industry. There are no major new oilsands projects on the horizon, while oil and gas companies have also been reaping major profits that help them self-fund costs and rely less on lenders. 

Funding levels could fall further this year as major projects like the Trans Mountain pipeline expansion and Coastal GasLink pipeline are now finished.

The report notes the companies behind the projects were among the top recipients of fossil fuel expansion funding globally. TC Energy Corp. raised US$15.3 billion from the 60 banks covered in the report, while Trans Mountain Corp. raised US$9.54 billion. 

Calgary-based Enbridge Inc. was ranked first with US$35 billion raised, though the report counts money it used for acquisitions as well as expanded pipeline capacity.

While the trends in the oil and gas industry could mean less funding is needed from banks, Brooks said it's still important for the institutions to put policies in place that will ensure they reduce financed emissions.

He said he was concerned that banks are instead walking back policy commitments, including BMO, which curbed restrictions on lending to coal producers.

"If there's no policy in place that limits financing intentionally, then when a new project comes up, who's going to be first in line to finance that project?"

This report by The Canadian Press was first published May 13, 2024.

 

Union application to represent Amazon warehouse workers in Laval, Quebec certified

The Canadian Press

An Amazon company logo is seen on the facade of a company's building in Schoenefeld near Berlin, Germany, on March 18, 2022. , THE CANADIAN PRESS/AP, Michael Sohn

A Quebec-based union says its application to represent around 200 Amazon.com Inc. workers has been certified by the province's Administrative Labour Tribunal.

It's the first time in Canada that employees have unionized at an Amazon warehouse, said the Confédération des syndicats nationaux in a press release on Monday.

Workers at the DXT4 warehouse in Laval will hold their first general assembly to adopt a constitution and bylaws and elect representatives in the coming days, the union said. It will then launch a consultation with its members to prepare a list of contract demands. 

Union president Caroline Senneville said the Laval workers "have given us all a lesson in courage."

"Over the past few months, Amazon has pulled out all the stops to block our unionization campaign, flooding the workplace with scaremongering messages," Senneville said. 

Amazon spokeswoman Barbara Agrait said in an email the company is challenging the labour board's decision on Friday to certify the union. 

She said the company takes issue with card-check certification, where a union application can be certified without a vote if a majority of workers at the workplace sign a union card. Not all provinces have card-check certification, but Quebec and British Columbia are among those that do. 

"We believe everyone should have the right to get informed and vote based on their current circumstances and beliefs – just like they do in any other type of election," said Agrait. 

Amazon employees have the right to choose whether or not to be in a union, but the company doesn't think unions are the best option for its employees, she said. 

The Confédération des syndicats nationaux represents 330,000 workers across a wide array of industries in Quebec and across Canada.

In April, Unifor filed applications to represent workers at two Amazon warehouses in New Westminster and Delta, B.C.

However, it subsequently withdrew its applications and accused the e-commerce giant of providing a "suspiciously high" employee count.

At the time, the company said it's confident it provided accurate and complete information. 

Unifor promised to re-double its efforts to unionize the two fulfilment centres. 

"Make no mistake: workers at Amazon in Metro Vancouver are closer than ever to successfully forming a union," said Unifor western regional director Gavin McGarrigle in an April 16 press release.

Unifor first announced the union drive for Amazon workers in Metro Vancouver last July, and said workers began signing cards in October.

This report by The Canadian Press was first published May 13, 2024.

 

ILA and Employers Confident as Master Labor Contract Talks Set to Begin

Master contract negotiations are expected to begin later this month for the ILA dockworkers agreement due to expire Sept. 30 (file photo)

PUBLISHED MAY 13, 2024 7:36 PM BY THE MARITIME EXECUTIVE

 

 

The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) issued the first joint statement on the upcoming contract negotiations expressing confidence that the process is proceeding on plan. This comes as there have already been calls for federal intervention to shepherd the talks for the contract that is set to expire on September 30.

The contract covers at least 45,000 dockworkers along the U.S. East Coast and the Gulf Coast ports. The union claims a total membership of 85,000 members with its reach extending to the Great Lakes ports, inland river ports, and south the Bahamas and Puerto Rico.

“We are confident that with tentative local contracts negotiations scheduled completed by the May 17th deadline, the ILA and USMX can begin full Master Contract talks with the goal of reaching an agreement on a new pact before the September 30, 2024, expiration of the current contract,” said ILA President Harold J. Daggett and USMX Chairman/CEO David F. Adam, in a joint statement.  

Daggett has already spoken of the possibility of a strike while making it clear that he would stand firm against port automation. The ILA last summer kicked off the process calling for a “generous contract package.” Observers at the time said they believed the union was targeting a similar increase to the more than 30 percent achieved by the West Coast International Longshore Workers Union. ILA leadership highlighted in July 2023 that the Great Lakes District of the union had secured a 40 percent increase in wages and benefits for its new six-year contract.

The union has set the end of this week as the tentative deadline for all its locals to complete negotiations. The idea was to resolve those issues so that they could begin work on the master contract without last-minute delays on local issues. 

In addition to a strong stance against automation that would cost jobs, the union is likely to be looking for significant pay increases. They will also protect what they have called a “premier” health care plan for members.

Business and industry fear a similar situation to the 2023 unofficial slowdowns and disruptions at West Coast ports as those talks dragged on for 13 months. ILA leadership as early as last summer told its members to prepare early for a strike saying it would not go past the September 30, 2024, deadline.

Six years ago in 2018, the ILA and USMX reached tentative terms in June 2018 well ahead of the expiration. Final ratification took place in early September with a signing ceremony four days before the end of the contract. Both sides are saying they are confident they can have the same success as in 2012 and again in 2018 where a contract agreement was reached without any disruption or delays at the ports. In 2018, the union called the agreement a landmark for members while the employers said the outcome was fair and equitable.

Trade groups have been looking for signs of progress on the contract with the National Retail Federation expressing its concerns over the impact of any uncertainties. As early as March of this year, the American Apparel & Footwear Association flagged the talks calling for the Biden administration to monitor progress and shepherd it to a satisfactory conclusion. Analysts however have noted that the expiration comes just weeks before the U.S. presidential election speculating that the union would not want to unduly influence the outcome with a strike. 

 

Video: Last Baltimore Bridge Section Removed With Explosives

C-Span / public domain

PUBLISHED MAY 13, 2024 4:14 PM BY THE MARITIME EXECUTIVE

 

On Monday afternoon, after several days of delay due to weather, contractors used an explosive "precision" cutting process to remove a large section of the Francis Scott Key Bridge's collapsed truss from the bow of the boxship Dali. The kinetic operation unfolded almost exactly as predicted by USACE in an earlier explanation of the plan: the charges cut the bridge into multiple pieces, and the structure fell away from the ship and into the water. 

The explosive clearance operation will take the last section of the bridge truss off the bow of the Dali at 1500 hours on Monday. The crew remained belowdecks aft, Rear Adm. Shannon Gilreath (USCG) explained, protected by thousands of containers and the hull's steel. As an additional precautionary measure, the command had firefighters on board, and set up a "water curtain" on the bow to reduce the (already slim) odds of a fire. 

Contractors place charges for the precision cutting operation aboard the Dali (USACE)

"It's not what you envision," clarified Colonel Estee S. Pinchasin (USACE) at a press conference Monday. "It's very small, linear charges placed into cuts. They will separate the metal with precision. It will be more like small puffs of smoke [than a Hollywood explosion]."

Once the wreckage comes down into the water in small pieces, it will be removed by the crane and grab in the same way as the rest of the bridge, she said. 

Contractors are making fast progress towards reopening the Baltimore shipping channel and removing the grounded boxship Dali.Since the start of operations in late March, commercial contractors for the U.S. Army Corps of Engineers and the Navy Supervisor of Diving and Salvage have removed almost all of the visible bridge wreckage above the water's surface, and are making tangible progress below the waterline. Using a grab claw on a giant crane, the contracting teams are pulling tangled pieces of the steel bridge truss out of the water, bit by bit. 

So far, they have cleared a temporary channel measuring 48 feet deep by 350 feet wide, and - once Dali is removed - they will swiftly restore the full federal channel of 50 feet by 700 feet, according to Coast Guard Rear Adm. Shannon Gilreath. 

The response process has moved with deliberate speed, putting safety first, Gov. Wes Moore said at the press conference. There have been no injuries reported on the project, and the command plans to keep it that way.  

"Some people said that this would take months, but we've done it in weeks," said Moore.  

 

Catalonia: end of cycle

Alex Colás analyses the results of Sunday’s regional election.

It is a commonplace of modern Spanish politics that peripheral regions play an outsize role on the national political stage. From casting lead actors like premiers Felipe González, Mariano Rajoy, or the dictator Francisco Franco, through to regional nationalists offering backstage “confidence and supply” agreements that buttressed successive national governmments, the uncomfortable truth for Madrid’s self-important, centralist political class is that their fate is all-too-often sealed at the geographical edges of the country.

Sunday’s Catalan elections delivered a decisive victory for national incument Pedro Sánchez’s Socialist Party, with 28% of the vote and 42 out of the regional chamber’s 135 seats, while  the right-wing nationalist formation, Together for Catalonia (Junts per Catalunya, JxCat), came second with just under 22% and 35 seats.

Other winners on the night were the right-wing Popular Party which, on 11% and 15 represenatives, obtained its best result in Catalan regional elections since 2012 – largely by absobring voters from the now-deceased centrist Ciudadanos. Note also the Spanish far-right Vox (8% of the vote, and 11 deputies) and the local anti-Muslim and xenophobic Aliança Catalana, with just under 4% of the vote, concentrated in the small town of Ripoll – birthplace of several jihadists responsible for terrrorist attacks of 2017 in Barcelona and Cambrils.

The green-left Comuns lost two deputies in respect of its previous incarnation as part of a coalition with the electorally defunct Podemos, and so can claim to still be treading water with six seats representing around 6% of the electrorate, drawn largely from the metropolitan Barcelona area. Catalonia’s ruling party, the Republican Catalan Left (Esquerra Republicana de Catalanunya, ERC) suffered a major debacle, losing 13 seats with just under 14% of the vote.

The majority of the Catalan electorate has thus for the first time in over a decade backed ‘unionist’ parties opposing Catalan independence, thereby also boosting a beleaguered left-wing coalition government in Madrid. The latter paradoxically mustered a wafer-thin parliamentary majority after last summer’s snap election only through the support of regional nationalists – including the six JxCat national deputies.

The cornerstone of Pedro Sánchez’s new parliamentary term has so far been an Amnesty Law aimed at putting behind the social polarisation within Catalonia, and the political antagonsim between central and regional governments triggered by the controversial 2017 Catalan independence referendum. Sunday’s contest was in large measure a plebiscite on the Amnesty Law and the conciliatory road-map it charts for the region, circumventing both Catalan secession and Spanish centralist repression. It has been widely interpreted as an endorsement by most Catalans of Sánchez’s détente strategy.

Yet the election leaves many indeterminate outcomes, and raises several new thorny issues. The parliamentary arithmetic and ideological alignemnt points to a left-wing regional government led by the Socialist Party in coalition with Comuns and support from the social democratic ERC.

However, in Catalonia in particular, the left-right split is overdetermined by the unionist-separatist divide in ways that fuel a rivalry between the progressive ERC and the Christian Democratic JxCat for the independentist vote, as much as between the latter two and their Spanish unionist opponents.

A stability-inducing ‘grand coalition’ between Socialists and JxCat is favoured by representatives of capital, both nationally and regionally, but would be a perverse representation of voters’ preferences. Meanwhile, JxCat’s exiled leader Carles Puigdemont is indulging in Bonapartist fantasies of returning to Catalonia to rekindle the independence process on the back of the Amnesty Law, with the six JxCat deputies in the Spanish Congress acting as kingpins for Sánchez’s narrow majority.

He is demanding fiscal concessions for Catalonia and the commitment to a new independence referendum in exchange for supporting Sánchez’s coninuity in Madrid and the formation of a Socialist-led regional governement in Catalonia. This calculus, however, is undermined by the fact that his amnesty is entirely reliant on Socialist admininstrations prospering both nationally and in Catalonia – fresh elections in either Spain or Catalonia would most likey bolster right-wing forces deeply anatgonistic to Puigedemont and what he represents.

The Catalan regional elections follow ballots for Galician and Basque assemblies in February and April respectively which, in contrast to Catalonia, have rewarded left-nationalist forces prioritising class and social inequalities over national or identitarian issues. Catalonian separatism has been one – if by no means the only – factor in the rise of the Spanish neo-Francoist Vox, and the electoral ascendancy of the Popular Party. As if imitating the worst of the rest of the country, Catalans now have their own racist and xenophobic representatives in Aliança Catalana, intent on fanning the flames of wider social polarisation.

The strikingly low turn-out – at close to 58%, far below the 70-80% participation in previous regional and general elections – signals a clear political disaffection with confrontational strategies of secession. It also reflects a political culture which has marginalised the already underepresented immigrant and urban working-class communities, most of whom remain uninterested in petty nationalisms, and who on Sunday voted overhwelmingly for left-wing ‘unionist’ parties.

These are lessons hopefully being absorbed by the Spanish left as one ‘populist-secessonist’ political cycle closes, and a new ‘class and social-progressive’ phase struggles to be born.

MAY 14, 2024

LABOUR HUB EDITORS

Alex Colás is a member of the Labour Party in Brent, North West London.

Image: Map of Spain with Catalonia highlighted. Source: File:EspañaLoc.svg, de HansenBCN. Modificada por User:Mutxamel. Author: Mutxamel, subido por Rastrojo, licensed under the Creative Commons Attribution-Share Alike Attribution-Share Alike 4.0 International, 3.0 Unported, 2.5 Generic, 2.0 Generic and 1.0 Generic license.