Rail workers reject binding arbitration offer as strike threat still looms: CN

Rail workers have rejected an offer from Canadian National Railway Co. to enter into binding arbitration, as the country's largest railroad operator tries to steer clear of a strike in a move the union called disingenuous.

The process, when agreed to, sees a mutually approved arbitrator settle a labour dispute by deciding the terms of a new collective agreement between the parties.

CN said Thursday it has put forward two proposals for those agreements: one looked to pay hourly wages to workers on a schedule in a change from the longstanding practice of pay per mile with no schedule; the other aimed to extend parts of the current arrangement.

"The TCRC (Teamsters Canada Rail Conference) has rejected all offers put to them and has now rejected a voluntary arbitration process," CN said in a statement.

Teamsters Canada has countered that the first offer involves "forced relocation" of workers for months at a time, while the second compels shifts of up to 12 hours — in line with regulations, but beyond the 10-hour ceiling currently available to employees. The latter change would also raise the risk of accidents, the union has claimed.

"The call for binding arbitration at this late stage of the bargaining process underscores the disingenuousness and failure of CN's negotiation strategy," said spokesman Christopher Monette in an email.

"We firmly believe that binding arbitration can be avoided if CN stopped demanding concessions that would negatively impact workers' quality of life and undermine rail safety."

Last month, employees at CN and Canadian Pacific Kansas City Ltd. authorized a strike mandate that could see some 9,300 workers walk off the job if they are unable to reach new agreements.

Labour Minister Seamus O'Regan, in an apparent move to delay a potential strike, stepped in by asking the country's labour board to review whether a work stoppage would jeopardize Canadians' health and safety.

The Canada Industrial Relations Board has extended a late-May deadline for replies to submissions to June 14, CN said Thursday, making a decision unlikely before mid-July, according to both railways.

This report by The Canadian Press was first published June 6, 2024.

Rail strike could cost manufacturers millions, industry says

Christopher Reynolds, The Canadian Press

A rail strike would raise expenses, lower sales and delay shipments for Canada's manufacturers, an industry group says, as various sectors grapple with looming uncertainty around a key cross-country transport link.

Two-thirds of respondents to a new survey of members from the Canadian Manufacturers & Exporters said the effects of a work stoppage would be "significant or severe," while more than three-quarters expect higher costs.

The organization cited the poll results, gleaned from 225 of its 2,500 member companies over the last three weeks, in a letter to cabinet urging the federal government to take action to prevent a strike or lockout later this year.

Last month, employees at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. authorized a strike mandate that could see some 9,300 workers walk off the job if they are unable to reach new agreements.

Labour Minister Seamus O'Regan, in an apparent move to delay a potential strike, stepped in by asking the country's labour board to review whether a work stoppage would jeopardize Canadians' health and safety. A decision is unlikely before mid-July, according to CPKC.

Manufacturers — from auto and chemical makers to propane exporters and brewers — are worried about the prospect of a work stoppage, said Dennis Darby, who heads the group.

"What we do now is make parts and pieces," he said of domestic industry. "We don't make washing machines anymore, but we have companies that make the motors in the washing machines. 

"That's why it always has a knock-on effect when you talk about supply chains, because Canada is part of that North American supply chain."

The possibility of a halt to freight traffic on the tracks has already had an impact, said Darby, whose organization counts Ford Canada, Maple Leaf Foods, Bombardier Inc., Cenovus Energy and Moosehead Breweries among its members.

"In some cases they're pre-ordering extra inventory," he said of manufacturers generally.

"In some cases they're trying to book space on other carriers ... but on transport trucks, prices are at a premium."

The cost of a rail traffic halt would average $275,000 per company each day, according to the 225 respondents. If accurate, that means the cost for a sliver of Canada's manufacturers alone would top $433 million per week.

The manufacturers group is just one of hundreds of organizations and companies that have made submissions to the Canada Industrial Relations Board over the impact of job action at rail lines that haul more than $28 billion worth of cargo each year.

The labour minister referred the issue to the board after receiving a letter from the Canadian Propane Association, according to two sources with knowledge of the matter. The Canadian Press is not naming the sources because they were not authorized to speak publicly.

O'Regan highlighted heavy fuel, propane, food and water treatment materials needed in remote communities "and throughout Canada," said tribunal spokesman Jean-Daniel Tardif.

Darby said that Ottawa can now use "moral suasion" to wring a deal out of the two sides. Longer-term, Ottawa should look to frame rail transport as "some kind of an essential service" in order to impose binding arbitration if necessary, he said.

Teamsters Canada rejected the call for binding arbitration — a process that follows back-to-work legislation unless the two parties enter it voluntarily — or any government move to "prevent a rail stoppage," in the words of the manufacturers' letter to cabinet. 

"Occasional labour disputes are a hallmark of a free and democratic society," said union spokesman Christopher Monette in an email. "It would be a step back to a time when workers had no rights."

Commuters could also feel the effects of a work stoppage.

Should one occur involving the 80 CPKC rail traffic controllers bargaining for a contract — distinct from CPKC's main group of engineers, conductors and yard workers — passenger trains that run on Canadian Pacific-owned tracks in Vancouver, Toronto and Montreal could shut down.

Thousands of riders could see major disruptions on TransLink's West Coast Express, GO Transit's Milton line and Exo's Candia, Saint-Jérôme and Vaudreuil/Hudson lines, according to the Montreal Economic Institute.

This report by The Canadian Press was first published June 3, 2024.

 

Carbon capture rollout lags as industry, Ottawa at odds over who shoulders risk

BIG OIL CARBON CAPTURE IS A SCHEME TO FRACK OLD WELLS

Amanda Stephenson, The Canadian Press

The question of who should bear the financial risk for pricey carbon capture and storage projects has become a stumbling block slowing the technology's adoption in Canada.

It has been half a year since privately held Entropy Inc. inked a deal with the federal government that saw Ottawa agree to underwrite much of the risk for the company's proposed carbon capture and storage project. 

Entropy said it would go ahead with its $49-million second phase of the project — located at parent company Advantage Energy's Glacier gas plant in Alberta — after the two parties signed the first-of-its-kind deal. Called a "carbon offtake agreement," or "contract for difference," the deal was hailed by many as an example of what needs to be done if Canada is to see a significant rollout of carbon capture and storage. 

But six months after the Entropy agreement, not a single other company has successfully negotiated a similar deal. And the bulk of carbon capture projects proposed for Canada still only exist on paper, with final investment decisions yet to be made.

Carbon capture, or CCUS as it is often called, traps harmful greenhouse gas emissions from industrial processes and stores them deep underground. Its deployment is widely seen as being key to successfully decarbonizing the energy sector.

So what's the holdup? It comes down in part to tension between government and industry over the perceived financial risk of CCUS investments, and differing opinions about how much of that risk should be borne by taxpayers.

"If you're the government, you want to make sure the money that taxpayers are paying is being spent wisely," said Entropy CEO Mike Belenkie.

He added not all carbon capture projects are the same. Their cost can vary widely based on factors like the intensity of the emissions being captured and whether the site has access to local underground storage or must invest in pipeline transportation.

“For carbon capture and storage to work, there has to be a relentless focus on picking the best projects," Belenkie said.

Captured carbon doesn't have any value on its own as a product, but can lower a company's own carbon tax expenses by reducing its overall emissions. In addition, companies that deploy CCUS can generate carbon credits to sell to big polluters looking to offset their own emissions.

But companies have said in order for carbon capture projects to make financial sense, they need some kind of assurance that a future government won't come in and eliminate the industrial carbon price, or that the bottom won't fall out of the carbon credit market 10 years down the road and remove the expected return on investment.

That's where carbon contracts for difference, or carbon offtake agreements, come in. 

The federal government, through the $15-billion Canada Growth Fund, has committed to reaching such agreements with emitters who deploy CCUS — essentially guaranteeing that if the price of carbon falls below a certain level in the future, the fund will pay the difference.

The sticking point, though, appears to be at what "strike price" these contracts will be triggered. Entropy's successful carbon offtake agreement saw the Canada Growth Fund agree to purchase up to 185,000 tonnes of carbon credits from Entropy for a 15-year term at an initial strike price of $86.50 per tonne. 

That means if the market price Entropy can expect to receive for its captured carbon falls below $86.50, the Canada Growth Fund will step in and pay the difference.

While that assurance was enough to convince Entropy it could make a go of its project, other proponents are likely seeking a significantly higher strike price, said Michael Bernstein, executive director of the non-profit organization Clean Prosperity.

"What the Canada Growth Fund has been trying to do is bespoke negotiations with various emitters, prioritizing projects that they think are particularly good value for taxpayers," Bernstein said.

"It means they could face disagreements with companies, as I believe they did with Capital Power around what the appropriate price was for that project."

Earlier this spring, Edmonton-based Capital Power cancelled plans for a proposed carbon capture project at its Genesee power plant, saying while the project is technically viable, the economics don't work.

The Pathways Alliance, a consortium of companies proposing to build a $16.5-billion carbon capture and storage network for Alberta's oilsands, also has yet to successfully negotiate a carbon offtake agreement with the Growth Fund.

In a February report, global consultancy Wood Mackenzie warned there is a real chance of the Pathways project being "delayed and potentially scuppered" if industry and the federal and provincial governments cannot come together to underwrite the risk that exists.

At a recent investor update, an executive for Pathways Alliance member Suncor Energy Inc. reiterated the industry's refrain that it needs more certainty before moving forward with "material capital commitments" for carbon capture.

For its part, the federal government has pledged to develop an expanded range of carbon offtake offerings tailored to different markets and their unique risks and opportunities. It has said the Canada Growth Fund — which still has $6 billion left earmarked for contracts for difference — will explore developing ready-to-go contracts for certain jurisdictions, so that each contract doesn't have to be negotiated from scratch one by one.

That would go a long way toward removing investor uncertainty, Bernstein said.

"There are various ways you could do this, but Clean Prosperity's recommendation is to have a standard strike price," he said.

"You would basically design a contract that says 'Come one, come all, at $100 a tonne' or whatever price you choose and then let everyone that’s cheaper than that come and fill it," Belenkie said. 

In an emailed statement, Carolyn Svonkin — press secretary to federal Natural Resources Minister Jonathan Wilkinson — said the government is already investing more than $90 billion to help Canadian companies decarbonize, so it's time for industry to step up and help carry the load.

"The federal government expects all companies who have committed to CCUS projects to move as quickly on these projects as the climate crisis requires," Svonkin said.

This report by The Canadian Press was first published June 4, 2024.

 

Oil CEOs tell House of Commons committee they support carbon pricing

THEY HATE EMISSION CAPS & CAP AND TRADE

Amanda Stephenson, The Canadian Press

The CEOs and executives of some of Canada's largest oil and gas companies told a parliamentary committee Thursday that they while they oppose an emissions cap on their sector, they do support carbon pricing as a tool to reduce their industry's environmental impact.

CEOs and senior executives from Cenovus Energy Inc., Enbridge Inc., Imperial Oil Ltd., Shell Canada Ltd. and Suncor Energy Inc. appeared by videoconference Thursday afternoon before the House of Commons standing committee on environment and sustainable development.

"My view is the (proposed) emissions cap is unnecessary regulation," said Suncor CEO Rich Kruger. 

"I do support a coordinated price of carbon across the economy, because I believe that will drive the innovation and the economic incentives on all of our parts to continue to improve our business.”

“A carbon tax can work to reduce emissions, but it has to be universally and ubiquitously applied, and it can’t target one particular industry or one particular segment of the economy," said Cenovus CEO Jon McKenzie.

The CEOs' appearance was the result of an April motion by NDP environment critic Laurel Collins, who called on the executives to explain what their companies are doing to address climate change.

One after another Thursday, the executives spoke of their goal to reduce emissions while also increasing Canada's oil output in the years to come.

"Every credible study shows that we will continue to need all forms of energy, including oil, to help meet the world's growing energy demand," said McKenzie.

"That oil will be produced somewhere, and it should be produced in Canada, where we have some of the strongest regulations and industry-leading ESG performance."

Just hours before Thursday's meeting, a group of Canadians personally affected by climate change called on the federal government to implement its proposed cap on emissions from the oil and gas sector. The small group of individuals spoke to reporters at a press conference on Parliament Hill organized by Climate Action Network.

The group included a woman who lost her Kelowna, B.C. home in last year's wildfires, a woman from Merritt, B.C. who lived through severe flooding in 2021, and a man from Tuktoyaktuk, N.W.T., who is concerned about the threat posed by rising sea levels to his Arctic community.

"I came to Ottawa to share my story because I think climate change is not an abstract concept," said Meghan Fandrich, a resident of Lytton, B.C., which is slowly starting to rebuild after more than 90 per cent of the village was destroyed in a 2021 wildfire. "It is not something that will affect us someday ... it is ongoing. 

"We need to do what we can, and one step we could take that would have a phenomenal effect is putting a really firm cap on carbon emissions."

The oil and gas sector is Canada’s largest source of greenhouse gas emissions, accounting for almost a third of the country's total emissions, and they continue to rise, largely because of increased production from Alberta's oilsands.

The federal government has proposed a legislated cap on emissions from the oil and gas sector, something the industry opposes. 

Under a proposed framework released last December, the government has suggested a cap that would require the sector to cut greenhouse gas emissions by 35 to 38 per cent from 2019 levels by 2030. The sector would also have the option to buy offset credits or contribute to a decarbonization fund that would lower that requirement to just 20 to 23 per cent.

The government has said the cap is intended to limit pollution, not oil and gas output, but the oil and gas sector has said the targets are too stringent and would result in companies cutting production.

The proposed emissions cap is also staunchly opposed by the province of Alberta, and business groups such as the Calgary Chamber of Commerce.

The oil and gas sector has said that rather than a legislated cap, it needs federal and provincial support to help it accomplish its own emissions-reduction plans. A group of oilsands companies — including Imperial, Cenovus and Suncor, all of whom are slated to testify Thursday — have jointly committed to getting to net-zero emissions by 2050.

The oilsands companies, which call themselves the Pathways Alliance, have proposed spending $16.5-billion on a massive carbon capture and storage network for northern Alberta. But the group has not yet made a final investment decision, saying more certainty about the level of government support and funding for the project is required.

Collins, the NDP MP, repeatedly asked the executives at Thursday's committee meeting to explain why their companies aren't moving faster to decarbonize. She said Canadians are concerned about the growing number of extreme weather events such as wildfire, drought and "heat domes" as the climate warms. 

Some Canadian oil and gas companies made record profits in 2022 as commodity prices soared in the wake of Russia's invasion of Ukraine, and the industry continues to generate healthy cash flows this year. Collins said companies can and should do more to mitigate the impact of the fossil fuel sector on the climate.

"We need an excess profit tax (on the oil and gas sector) to invest in climate solutions," Collins told reporters.

Clean energy think-tank the Pembina Institute said federal and provincial measures to support emissions-reducing investments — such as industrial carbon pricing and announced federal tax credits — are generous, even compared with some of the incentives that exist in the U.S.

In an email Thursday morning, Pembina's oil and gas program director MC Bouchard said it's urgent that companies take action.

"Today's hearing is another reminder that additional regulation is needed to make sure those promised investments and projects finally start to move forward," she said.

This report by The Canadian Press was first published June 6, 2024.

THEY HAVE PRICED IT IN SINCE TILLERSON WAS EXXON CEO

INFLATION

Average asking rents in Canada reach record $2,202 in May, says new report

The Canadian Press

A new report says the average asking rent for a home in Canada hit a record $2,202 in May, up 9.3 per cent compared with a year ago and 0.6 per cent from the previous month.

The report by Urbanation and Rentals.ca, which analyzes monthly listings from the latter's network, said it marks the first time average asking rents surpassed the $2,200 level.

Based on the report, the average asking rent for a one-bedroom unit in Canada was $1,927 in May, up 10.7 per cent from a year ago, while the average asking price for a two-bedroom unit was $2,334, up 12.1 per cent.

Overall, asking rents for purpose-built rental apartments in May increased 13.7 per cent compared with a year earlier to reach an average of $2,146.

That was four times the rate of growth for condominium apartment rents, which averaged $2,312, up 3.4 per cent.

All provinces recorded year-over-year increases in asking rents for purpose-built and condo rentals, led by Saskatchewan with a 21.4 per cent gain to reach $1,334.

That was followed by Alberta, where average rents rose 17.5 per cent to $1,787, and Nova Scotia, which saw a 17.1 per cent increase to $2,238. Rents in those three provinces drove the majority of annual rent inflation for apartments in Canada, the report said.

B.C. maintained the highest asking rents at an average of $2,526 in May, increasing 2.3 per cent from May 2023, followed by Ontario at $2,423, which was 0.6 per cent higher year-over-year.

Average asking rents in Quebec rose 6.7 per cent to reach $1,999, while Manitoba's 10.3 per cent increase brought its average to $1,623.

On a municipal basis, average asking rents in Vancouver and Toronto — Canada's two most expensive major cities — continued to decline but by lesser amounts than in April.

Vancouver rents were down 4.1 per cent from a year ago to an average of $3,008 in May, while Toronto rents decreased 0.9 per cent to an average of $2,784.

This report by The Canadian Press was first published June 6, 2024.

Average employee wage now almost $35 in Canada

(Alex Green / Pexels.com)


Reuters
June 7, 2024 

The Canadian economy added more jobs than expected in May, the jobless rate ticked up to 6.2 per cent, and the growth rate of wages accelerated to a four-month high, data showed on Friday.

The economy added a net 26,700 jobs, more than the 22,500 job gain forecast by analysts in a Reuters poll.

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The unemployment rate ticked up to a 28-month high of 6.2 per cent from 6.1 per cent in April, matching forecasts. The jobless rate, on an uptrend up over the past year, has risen 1.1 percentage points since April 2023, Statistics Canada data showed.

The employment gains in May were driven by part-time work, which more than offset full-time positions lost in the month, StatCan said. StatCan noted that the proportion of part-time workers who could not find a full-time job or who worked part-time due to poor business conditions was 18.2 per cent in May, the highest since December 2021.

The average hourly wage growth for permanent employees accelerated to an annual rate of 5.2 per cent from 4.8 per cent in April, Statistics Canada said. The wage growth rate - closely tracked by the Bank of Canada (BoC) because of its effect on inflation - was the highest since January's 5.3 per cent rate.

The average Canadian employee made $34.94 per hour last month, an increase of $1.69 over last year.

The acceleration in wages may be a point of concern for the central bank, which trimmed its key policy rate on Wednesday and indicated further easing would be gradual and dependent on data. The bank will have another month's job data before its next rate announcement is on July 24, when money markets see a 50 per cent chance of another rate cut.

In May, employment in the goods sector decreased by a net 20,700 jobs, mainly in construction, while the service sectors gained a net 47,400 positions, led by health care and social assistance as well as finance-related jobs.

(Reporting by Ismail Shakil in Ottawa; Editing by Dale Smith)

Canada's unemployment rate rises to 6.2% in May, economy adds 27,000 jobs

The Canadian Press

A "Now Hiring," sign is displayed on a business Tuesday, May 30, 2023 in Montreal. THE CANADIAN PRESS/Christinne Muschi

Canada’s unemployment rate ticked up to 6.2 per cent in May as the job market continued to show signs of weakness.

Statistics Canada’s latest labour force survey showed the economy added 27,000 jobs last month – too modest of a gain to keep the unemployment rate from rising by a tenth of a percentage point.

The report suggests the Canadian job market continues to soften as high interest rates weigh on consumers and businesses.

Of those who were unemployed in April, just under a quarter found work the next month, the report said. That’s below the pre-pandemic average of 31.5 per cent for the same months in 2017, 2018 and 2019.

“A lower proportion of unemployed people transitioning into employment may indicate that people are facing greater difficulties finding work in the current labour market,” the report said.

More Canadians are also finding themselves working part-time because they don’t have better options.

Statistics Canada says the involuntary part-time rate, which refers to the proportion of part-time workers who could not find full-time work or worked part-time because of weak business conditions – was 18.2 per cent in May. That’s up from 15.4 per cent a year prior.

Young people have also felt the consequences of job market slowdown. The report notes that for returning students aged 20 to 24, their employment rate was down 2.9 per cent from a year ago.

Meanwhile, wage growth remained strong in May as average hourly wages rose 5.1 per cent from a year ago, reaching $34.94.

Employment was up in health care and social assistance, finance, insurance, real estate, rental and leasing, business, building and other support services as well as accommodation and food services.

Meanwhile, employment fell in construction, transportation and warehousing and utilities.

The data release comes two days after the Bank of Canada opted to lower interest rates for the first time in four years, citing easing inflation and the weakening economy.

The central bank lowered its key interest rate by a quarter of a percentage point to 4.75 per cent and signalled that more rate cuts would be on the way, so long as inflation continues to slow.

This report by The Canadian Press was first published June 7, 2024.

Canadian border guards could strike 

Friday 4 PM, most required to work

Reuters
Detroit Free Press

Thousands of Canadian border guards at airports and land crossings with the U.S. were poised to strike Friday as they worked to reach an agreement with their employer, the federal government.

But with 90% of frontline border officers with the Canada Border Services Agency (CBSA) designated essential workers, according to the government, it was not clear what form that strike could take.

The U.S. is Canada's biggest trading partner, with an average of $2.63 billion worth of goods and services crossing the border in both directions combined in 2023, according to the Canadian Chamber of Commerce.


The two sides have been negotiating with the assistance of a mediator this week and talks were ongoing Thursday morning, a Public Service Alliance of Canada (PSAC) spokesperson said, with a strike deadline of 4 p.m. Friday.

Sticking points include wages, remote work, retirement benefits and workplace protections, according to the union.

"The border will remain open and safe," CBSA spokesperson Luke Reimer said in an email Tuesday.

He said about 4,870 of the agency's 5,400 frontline officers are designated essential, meaning they cannot legally stop working.

"Border services officers occupying essential services positions cannot work to rule and cannot intentionally slow down border processing," Canada's Treasury Board said in a statement Wednesday, adding that the CBSA "will take progressive disciplinary action or other measures" against essential workers "who engage in illegal job action."


But the discretion border officers have to stop, question and search travelers could slow cross-border traffic, said Carleton University associate professor of management Ian Lee.

"A slowdown where they really did work to rule would be just catastrophic at Pearson (Airport in Toronto) and Vancouver and Montreal," he said.

"The pressure that would be brought to bear on the government … will be so great they will have to intervene," forexample through binding arbitration or, as a last resort, back-to-work legislation, Lee said.

What it means for Detroit automakers

The Free Press reached out to several automakers for comment on the situation at the border.

Stellantis spokeswoman Jodi Tinson provided a statement noting that the company, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, is aware of a possible labor stoppage by border agents.


“We are closely monitoring the situation and working with our transportation providers to mitigate any production impact,” the statement said.

General Motors spokesman Kevin Kelly declined to comment on the situation.

"Contingency plans are in place to minimize any impact," said Lars Weborg, Ford manufacturing spokesman.

Laurie Harbour-Felax, president and CEO of the Southfield-based consulting firm Harbour Results, said a strike by border workers would be “very problematic” for the auto industry for a couple of reasons.

One issue, she said, is that much of the automotive industry’s mold building is done in the Windsor, Ontario, area.

“There’s a whole tool industry in Canada that makes injection molds, door molds and instrument panel molds. There’s very little left here in the States,” she said. “Most of the big automotive molds are coming out of Windsor.”

It would be especially problematic for any automakers trying to manage a major product launch, she said.

Automakers, including Ford, Stellantis, GM, Honda and Toyota, as well as Tier 1 suppliers also have major operations in Canada. And lots of parts cross the border daily. In some cases, parts on the same vehicle come from plants on either side of the border, Harbour-Felax said.

Although automakers have contingency plans for dealing with bottlenecks overseas, “there’s probably not a lot of contingency plans” connected to issues related to Canada, she said.

Michael Belzer, an economics professor at Wayne State University, studied the potential impact of a shutdown of commerce in Detroit in 2003. He said that shows how long concerns about these types of issues have been percolating. More recently, they arose in connection with a 2022 shutdown of the Ambassador Bridge by truckers said to be upset in part by vaccine mandates.

That situation had swift consequences for the auto industry, with reports of GM chartering cargo planes to move parts over the border.

Belzer’s work, following the Sept. 11, 2001 terror attacks, involved thinking about a “bad actor” targeting the bridge, one of the most important crossings in North America. That work didn’t anticipate a shutdown or slowdown of all crossings, however.

“The bottom line … for Detroit, there would really be a huge disruption for the auto industry,” he said of a shutdown or significant slowdown. “It would be a major economic disruption for the U.S. and Canada.”

Notably, Wayne State in Detroit has 350 Canadian students, according to spokesman Bill Roose.

The Free Press also reached out to several hospital systems in the area, including the Detroit Medical Center, Henry Ford Health and Corewell Health, seeking comment. A couple of spokespeople said they were checking into the situation.

Reporting by Anna Mehler Paperny; Editing by Rod Nickel.

Free Press reporters Eric Lawrence and Jamie LaReau contributed.

Planning to cross the border? Here's what to know about the possible strike

A Canada Border Services Agency officer speaks to a motorist entering Canada at the Douglas-Peace Arch border crossing, in Surrey, B.C., on Monday, August 9, 2021. (Darryl Dyck / The Canadian Press)

Christl Dabu
CTVNews.ca National Affairs Writer

Luca Caruso-Moro
CTVNews.ca Breaking Digital Assignment Editor

June 6, 2024 11

As the clock ticks on toward a strike at the Canadian border, a union spokesperson says the group remains in negotiations with the government.

They have until 4 p.m. Friday to make a deal.

"If a deal is not reached, a strike will take place." Pierre St-Jacques, spokesperson for the Canada Border Services Agency (CBSA) union, wrote in an email to CTVNews.ca on Thursday.


More than 9,000 Public Service Alliance of Canada (PSAC) members who work for the CBSA, including border guards, secured a strike mandate(opens in a new tab) at the end of May, threatening to slow traffic through Canada's national entry points.

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The union says it wants "fair" wages comparable to other law enforcement agencies in Canada, changes to its workers' retirement plans, and "flexible" online and remote work options.

"We are still hopeful that we can reach an agreement to avoid strike action, but the window is closing if the government wants to avoid any potential delays at Canada’s borders," wrote St-Jacques.

Claire Fan, an economist with the Royal Bank of Canada in Toronto, said in an interview with CTV's News Channel on Thursday that she expects the potential strike to have a spillover impact. She says auto manufacturers could see the biggest economic hit. Tourism and restaurants could also be hurt if travellers call off their trips as the travel season starts to ramp up.

Up to 60 per cent of goods trade across the border between Canada and the United States was done with trucks in 2023, she noted.

Despite the potential economic impact of a strike, it wouldn't be a full shutdown of the border since 90 per cent of front-line border officers are considered essential workers and can't stop working during a strike. "That in itself is good news," Fan said. "It means goods will still be able to move across borders for the most part."

Instead, border workers may implement work-to-rule efforts, which could cause delays with vehicles taking longer to pass through the border, Fan said.
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In 2021, the union carried out a work-to-rule effort, slowing traffic into long lines of tourist and commercial vehicles waiting to cross. A deal was reached after an extended 36-hour negotiation.

"While the government fully respects the right of employees to gather and demonstrate lawfully, unlawful job action(opens in a new tab) will not be tolerated," reads a Wednesday release from the Treasury Board of Canada Secretariat.

"Negotiation is a process of give and take. The government is prepared to make concessions, but there needs to be movement on both sides," it reads.

The latest GDP numbers(opens in a new tab) indicate many businesses are holding more inventories in anticipation of potential disruptions to supply chains, among lessons they learned over the last few years, Fan added.

"Businesses are precautionarily holding inventories so potentially that could offset some of the impact," she said.Sign up for breaking news alerts from CTV News, right at your fingertips

Jim Cooper, CEO of Canarm Limited(opens in a new tab), a ventilation company with its headquarters in Brockville, Ont., is worried about the impact of a strike. "The border is a critical link to us being successful as a manufacturer in Canada," Cooper said in an interview with CTV News. "We've got product crossing the border every single day of week.

The association of Canadian Manufactures and Exporters (CME) estimates that about $3.1 billion in goods cross the Canadian border each day. Last year, cross border trade totalled $1.6 trillion, it says.

“We need the federal government to take a proactive approach to preventing these disruptions,” wrote CME president Denis Darby in a Wednesday news release.

More than 9,000 Canada Border Services Agency workers begin job action Friday if agreement not reached


PSAC
June 4, 2024

The clock is ticking to avoid a nationwide strike at Canada’s borders by more than 9,000 Canada Border Services Agency (CBSA) employees. Members of the Public Service Alliance of Canada and the Customs and Immigration Union (CIU) will begin job action across the country starting June 7 at 4 p.m. ET if an agreement is not reached at the table with CBSA and Treasury Board this week.

“We are still hopeful that we can reach an agreement to avoid strike action and any potential delays at Canada’s borders," said Sharon DeSousa, PSAC National President. “But the clock is ticking for Trudeau’s Liberal government to get to work on a fair contract for our members.”

PSAC members in the FB bargaining group have been without a contract for over two years. Key issues in this round of bargaining include fair wages that are aligned with other law enforcement agencies across the country, flexible telework and remote work options, equitable retirement benefits for CBSA law enforcement personnel and stronger workplace protections.

Job action by CBSA personnel in 2021 nearly brought commercial cross-border traffic to a standstill, causing major delays at airports and borders across the country and a marathon 36-hour bargaining session to reach an agreement.

“Our members have overwhelmingly told us they are prepared to fight for fair wages, equitable retirement and to make CBSA a better place to work,” said Mark Weber, CIU National President. “It’s time for the government to step up for CBSA employees.”

The two sides remain in negotiations this week with the assistance of a mediator in a last-ditch effort to reach an agreement.

UNICEF: One in four children worldwide live in severe food poverty

By Rédaction Africanews
with AP

MALNUTRITION

Around 181 million children worldwide under the age of five – or one in four – are experiencing severe child food poverty, according to a new report by the UN children’s organisation, UNICEF.

In a new report, it says one in four children are experiencing severe food poverty, with 65 per cent of them live in just 20 countries of which about 59 million are in sub-Saharan Africa.

“Child Food Poverty: Nutrition Deprivation in Early Childhood” analyses the impacts and causes of dietary deprivation among the world’s youngest people in nearly 100 countries, and across income groups.

It warns that millions of children under the age of five are unable to access and consume a nutritious and diverse diet to sustain optimal growth and development in early childhood and beyond.



Children who consume, at most, two of eight defined food groups are considered to be in severe child food poverty.

Four out of five children in this situation are fed only breastmilk/milk and/or a starchy staple, such as rice, maize, or wheat.

UNICEF says meals for young children should include not only fresh fruits and vegetables, but also nutrient-dense foods such as eggs, fish, poultry, or meat.

Without a nutritious and diverse diet, they are 50 per cent more likely to experiencing wasting, a life-threatening form of malnutrition.

“Children living in severe food poverty are children living on the brink. This can have an irreversible negative impact on their survival, growth, and brain development,” said UNICEF Executive Director Catherine Russell.



The report warns that the effects of growing inequities, conflicts, and the climate crisis have pushed food prices and the cost of living to record high levels.

Nearly half of all cases of severe child food poverty are among poor households where income poverty is likely to be a major driver.

About 97 million children, or 54 per cent, live in relatively wealthier households, among whom poor food environments and feeding practices are the main drivers of food poverty in early childhood.

Several factors are fuelling the crisis, including food systems that fail to provide children with nutritious, safe, and accessible options, families’ inability to afford nutritious foods, and parent’s inability to adopt and sustain positive child feeding practices.

In many contexts, cheap, nutrient-poor, and unhealthy ultra-processed foods and sugar-sweetened beverages are aggressively marketed to parents and families and are the new normal for feeding children.

These unhealthy foods and beverages are consumed by an alarming proportion of young children experiencing food poverty, displacing more nutritious and healthier foods from their daily diets.

UNICEF is calling on governments, development and humanitarian organisations, donors, civil society, and the food and beverage industry to take urgent action to end child food poverty.

It wants them to transform food systems so that nutritious, diverse, and healthy foods are the most accessible, affordable, and desirable option for caregivers.

UNICEF also urges them to leverage health systems to deliver essential nutrition services to prevent and treat malnutrition in early childhood, including support for community health and nutrition workers to counsel parents and families on child feeding and care practices.

It also wants them to activate social protection systems to address income poverty through social transfers (cash, food and vouchers), in ways that are responsive to the food and nutrition needs of vulnerable children and their families.

Why a weakened Modi is good news for India's democracy

A stellar show by the opposition has forced the BJP into a coalition government. This means the party will have to curb its agenda of Hindu majoritarianism.

SMITA GUPTA


AP ARCHIVE
Prime Minister Narendra Modi talks to Rahul Gandhi, leader of India's main opposition Congress party. / Photo: AP Archive

India’s Narendra Modi will be sworn in as prime minister on June 8 for a record third time, but this time, his government will have to depend on two regional parties opposed to his Bharatiya Janata Party (BJP)’s Hindu majoritarian ideology to make up the numbers.

With the return of coalition politics, Modi will no longer wield absolute power, or be able to disregard the Constitution and other democratic institutions in the way he has for the last decade.

The famed Modi magic, clearly, has not worked this time–the magic that had, in the past, mesmerised unhappy voters into setting aside their own grievances, converting losing candidates into winners.

Modi’s BJP lost more than a fifth of the seats it had won in 2019, and though he was re-elected from his own constituency of Varanasi, his vote share dropped dramatically by around nine percentage points.

Across the country, the BJP won 240 seats, 32 short of the halfway mark of 272. With its National Democratic Alliance (NDA) allies, it touched 291, a far cry from the 400-plus that it had set its sights on.

And this was an election in which the Election Commission of India (ECI) was seen to have played an actively partisan role.

Not only that, the BJP had more resources than all other political parties combined, and it used all the instruments of the state against the opposition.

The opposition alliance, INDIA, won 234 seats, while the Congress virtually doubled its strength from 2019 by winning 99 seats in the lower house of Parliament, the Lok Sabha.

These numbers mean that the face-off in the next Parliament will be far more equal than it has been in the previous two Lok Sabhas in which the BJP-led NDA had an overwhelming majority. The BJP will now find it much harder to push through any legislation or amendments to the Constitution that it may have had in the pipeline.



Modi will no longer be able to ride roughshod over his cabinet colleagues, chief ministers, party members, and indeed, the opposition.

He will have to adopt a more consensual approach towards everyone, and he will not, hopefully, be able to browbeat the bureaucracy or arm-twist those who head critical institutions, such as the investigative agencies, the judiciary and the Election Commission.

Modi will also have to heed the wishes of his allies from the Telugu Desam Party (TDP), the Janata Dal-United, and the two splinter groups of the Shiv Sena and Nationalist Congress Party, which have also aligned with the NDA.

Indeed, on June 5, less than 24 hours after the results had come in, reports of the first post-election NDA meeting indicated that the allies had given their wish lists to Modi – the number of ministerial berths as well as the portfolios they expected to be given.

In addition, the TDP has demanded the post of Lok Sabha Speaker, a powerful constitutional functionary tasked with ensuring the smooth conduct of the lower House.

If the last goes through, there will be a sea change in the way the Lower House is run, with the BJP no longer able to silence opposition voices.

Modi will also have to make peace with the Rashtriya Swayamsewak Sangh (RSS), from which it draws ideological inspiration.



Its members traditionally work for the BJP elections, but this time, reports suggest that they have stayed aloof in many places. BJP president JP Nadda made things worse when he said in a recent interview: “In the beginning, we would have been less capable, smaller and needed the RSS. Today, we have grown and we are capable. The BJP runs itself.”

For the Congress that–after leading a United Progressive Alliance (UPA) government for a decade (2004-2014)–shrank to a paltry 44 seats in 2014 and climbing to a mere 52 in 2019, winning 99 seats this time is a sign of a revival.

Ahead of the elections, the Congress’s Rahul Gandhi undertook two yatras – journeys – on foot across the length and breadth of the country. This helped to revive the base of an increasingly defunct party and gave Gandhi the opportunity to personally convey his message to thousands of people.

In the process, his personal popularity has risen. This was evident in his convincing victories in both the seats he contested – Rae Bareli in Uttar Pradesh and Wayanad in Kerala.

Indeed, he has earned his spurs in this election and now has the stature of a national leader.


The Congress and the regional parties that comprised the opposition INDIA bloc campaigned on a range of issues: they flagged economic distress, caused by high unemployment and rising prices, and the agricultural crisis; they simultaneously highlighted the possibility that if the BJP and its allies crossed 400, as the party had boasted, they might amend the Constitution to end the system of quotas for the Scheduled Castes, Tribes and Other Backward Castes.

Finally, they spoke of the dangers of authoritarianism, hate speech and anti-minority actions. The opposition–disparate and disorganised as it was–managed to make its narrative resonate with the people, if not everywhere, certainly in Maharashtra, Rajasthan, Uttar Pradesh and West Bengal, which together account for 195 seats out of 542.

The biggest shock for the BJP came in Uttar Pradesh where it had hoped to better its 2019 record of 64 out of 80 seats; instead, it ended up with just 33 seats.



The Congress-Samajwadi Party (SP) combine played their cards well to win 42 seats. The SP, often viewed as a party that derives its strength from Muslims and the backward community of Yadavs, acquired a new look this time, with party president Akhilesh Yadav’s caste arithmetic in candidate selection giving his party the inclusive look it needed.

It paid off, with the SP winning 37 seats, making it the third-largest party in Parliament.

The message of 2024 is clear: the Modi citadel can be breached. The numbers may still favour the BJP-led NDA but the way they eventually panned out, has given the opposition the air of the victor as the heroic defenders of democracy.

Political competition is back, and the BJP can no longer take the liberties it has been taking with democratic institutions.

SOURCE: TRT WORLD

Smita Gupta
Smita Gupta, a prize-winning journalist and political commentator, was, till recently, Senior Fellow, The Hindu Centre for Politics and Public Policy and, before that, Associate Editor at The Hindu. She has also worked for other mainstream newspapers, including the Hindustan Times, Indian Express and The Times of India.
@g_smita

The Indian Election and the Country’s Economic Future
RAGHURAM G. RAJAN worries that the country will squander its massive potential by trying to emulate China's growth strategy.

ONLY DAYS AFTER THE ELECTION

Indian court grants bail to Rahul Gandhi in latest defamation case

The case arises from advertisements published by Gandhi's Congress party alleging the BJP's corrupt involvement in infrastructure projects in Karnataka state.

Critics have accused Modi and his party of using the justice system to target political rivals.

US think tank Freedom House said the BJP had "increasingly used government institutions to target political opponents."

REUTERS

Gandhi is one of several top opposition leaders to face criminal proceedings in cases they claim are politically driven by Modi's government. / Photo: Reuters


An Indian court has granted bail to opposition leader Rahul Gandhi in the latest of several defamation cases brought against him for accusing Prime Minister Narendra Modi or his party of corruption.


Gandhi, 53, has faced numerous legal cases brought by members of the ruling Bharatiya Janata Party (BJP) and was last year briefly disqualified from parliament after a criminal libel conviction.


He is one of several top opposition leaders to face criminal proceedings in cases they claim are politically driven by Modi's government.


The latest case stems from advertisements published by Gandhi's Congress party accusing the BJP of corruptly taking commissions from infrastructure projects in southern Karnataka state.


Gandhi, 53, has not spent any time in custody over the charge.


He was granted bail in a five-minute procedural hearing held to determine if he should remain at liberty, Congress spokesperson Randeep Surjewala confirmed.


Two other senior Congress figures in Karnataka state had already been bailed last week, neither of whom were in custody beforehand.


Gandhi was sentenced to two years imprisonment last year in 2023 in a separate case in Gujarat but was not jailed after appealing with India's top court.


The sentence did, however, force his brief disqualification from parliament until the Supreme Court suspended his conviction.

Targeting political rivals


Friday's case came days after Modi and the BJP won nationwide elections, albeit with a reduced majority forcing them to rely on coalition partners to govern.


Critics have accused Modi and his party of using the justice system to target political rivals.


US think tank Freedom House said the BJP had "increasingly used government institutions to target political opponents."


Delhi chief minister Arvind Kejriwal, whose party is a member of a broad opposition alliance led by Congress, was jailed this year in connection with an ongoing graft investigation.


Kejriwal was briefly bailed last month, allowing him to campaign in the election, but returned to custody once voting concluded.

SEE

HINDUTVA IS FASCISM

Dozens remain trapped after a gold mine collapses in northcentral Nigeria

Miners work at an illegal tin mining site in Jos, Nigeria, Wednesday, April 3, 2024. -
Copyright 

© africanewsSunday Alamba/Copyright 2024 The AP. All rights reserved

By Rédaction Africanews


NIGERIA

Rescuers searched Thursday for dozens of workers who were trapped when a gold mine collapsed in northcentral Nigeria, authorities and residents said.

The pit collapsed on Monday in Niger state’s remote Shiroro district after heavy rains softened the soil. State emergency services said one person was confirmed dead and at least 30 others were missing. Residents, however, said as many as 44 remained trapped.

Much of northern Nigeria is rich in minerals, but corruption, illegal operations and poor working conditions are common in mining operations because the deposits are mostly in remote areas with a minimal government presence.

First responders “had to run for their lives as the mine kept falling inside,” Abdullahi Arah, head of the Niger State Emergency Management Agency, said in a preliminary report.

Rescue operations soon resumed, but expanding the deep pit to locate the trapped workers has been challenging, emergency services spokesperson Ibrahim Hussaini said.

“When you have something almost as tall as a three-story building down into the ground, how will an excavator get to that place?” he said.

On Thursday, distraught families watched as rescuers worked to remove the remaining debris.

The mine collapsed on Yakubu Galkogo’s first day of work, and his wife and two children are very worried, his brother, Auwal Suleiman, said.

Suleiman urged the government to deploy more workers and equipment for the rescue. “There is a lot of tension here,” he said.

Sugar mill strikes put Australia's cane harvest at risk

Sugar cane and other crops can be seen on farms near the town of Bundaberg in Queensland, Australia,

JUNE 07, 2024 


CANBERRA — Industrial disputes at factories that produce more than half of Australia's sugar could cause cane to be left unharvested if they are not resolved soon, threatening production and exports, people in the industry said.

Strikes over pay at eight mills owned by Singapore's Wilmar International that produce over two million metric tons — worth around US$1 billion (S$1.34 billion)— of sugar a year have delayed the start of cane crushing operations by between two and 13 days, the company's Australian subsidiary said.

A ninth mill, owned by Chinese conglomerate COFCO said it had also delayed its start due to strikes and adverse weather.

Australia is the world's fourth-largest sugar exporter, shipping around 3.5 million tons a year to markets mostly in Asia. A small reduction in Australian production would tighten supply in Asia but likely have little impact on global prices.

But the hold-ups are worrying growers who lined up labour to deliver cane but do not yet threaten overall sugar production in a crushing season that lasts from June to around November, when rains dilute the cane's sugar and make it difficult to harvest.

However, longer delays could shorten the processing season and the time available to bring cane from fields.

"Everyone's worried about it," said Greg Beashel, CEO of exporter Queensland Sugar. "The cane has to be crushed in a fixed window otherwise you lose sugar content and have weather risk at the end of the year," he said.

Start-of-season delays are not unusual and buyers should not yet be alarmed, Beashel said. "But it needs to get resolved pretty soon," he added.

Spokespeople for Wilmar Sugar and Renewables, also a major generator of renewable energy from biomass, and for COFCO's Tully Sugar said long strikes would disrupt the crush but hoped pay deals could be struck before that happened.

"I am hopeful," a Tully spokesman said. "We need to kick off as soon as possible."

Unions at Wilmar are asking for an 18 per cent pay rise over three years and those at Tully want 21 per cent, union officials said.

They said they had lowered their requests to help reach deals without disrupting the crush and workers deserved the rises after a period of high inflation and high sugar prices.

A former Wilmar worker employed for decades at a mill just south of Townsville said many mill workers did 12-hour shifts in a hot and humid environment, where boilers ran 24 hours a day for most of the crushing season feeding heat and energy to machinery.

"There's hot water everywhere. It's hot, noisy and steamy," he said, adding that workers would hold out for higher pay. "People have had enough," he said.

Wilmar has offered its workers 14.25 per cent over three and a half years with a signing bonus and Tully 14.25 per cent over three years, the companies said.


Unions at Wilmar have suspended industrial action until a vote on June 10-11, when they say the offer will be rejected. Wilmar said it has been informed that strikes will resume after the ballot.

Tully said its workers would ballot in the week of June 17. The unions, which oppose Tully's offer, have announced work bans next week, the company said, adding that it intended to suspend employment of any worker who takes part in such actions.

Tully plans to start crushing next week and Wilmar will start its first mill on Monday, the companies said.

Meanwhile, the sugar industry watches and waits.

"It's a headache," said Owen Menkens, a farmer and chairman of the Canegrowers industry association. Every mill around Menkens' farm near Townsville is owned by Wilmar.

"We've got harvesting crews, casual labour coming in," he said. "The whole community revolves around the mills."

"If the delay gets any longer, it's going to be difficult. When the harvest isn't happening, there's no money coming into the district. Every day is crucial."