Workers in Michigan could lose up to $51 million in wages this week because of trucker protest, group estimates
By Vanessa Yurkevich, CNN Business - Yesterday
Workers in the Michigan auto industry could lose up to $51 million in wages this week, due to the trucker protest at the US-Canada border, according to Anderson Economic Group.
The lost wages are a result of the shutdowns of the Blue Water and Ambassador bridges coupled with shutdowns at identified plants in Delta, Michigan and Ingersoll, Brampton, Windsor, Oakville, Cambridge and Woodstock Ontario. The shutdowns on the Canadian side affect the operation of part plants in Michigan. The calculation of lost wages also takes into account the impact on suppliers and transit workers -- many who work on hourly wages.
"This is a serious disruption with significant human impacts," said Patrick Anderson, CEO of Anderson Economic Group. "With the industry already short-handed and production lines awaiting parts, any further interruption is very costly."
Canada does not have its own auto industry. Instead, US automakers like GM, Ford, and Stellantis run the plants there. Anderson Economic Group, which specializes in auto industry analysis, also factored in affected workers from Honda and Toyota and warned that if the border crossing remains blocked for longer than this week, the $51 million in direct lost wages would, "climb at an accelerating pace."
Ford announced it was running its factories at reduced capacity in Oakville and Windsor, Ontario, while General Motors canceled shifts at its Lansing assembly plant. Stellantis also reported cutting shifts short this week. But both GM and Stellantis said all plants opened normally Friday.
US automakers have been plagued by supply chain shortages -- in particular the elusive semiconductor computer chip -- which is needed in all cars. Therefore, fewer new cars have come to market, driving up costs. This disruption could only exacerbate that issue.
'The consequences are becoming more and more severe,' Freedom convoy warned
Ryan Tumilty - Yesterday
National Post
Doug Ford declared a state of emergency in Ontario Friday and pledged more resources for police and new penalties for protesters blocking streets in Ottawa and the Ambassador Bridge in Windsor.
At a morning press conference, the Ontario premier said he understands people are tired of the pandemic and ready to move on, but the blockade of the Ambassador Bridge was costing the economy millions of dollars a day and leading to job losses at manufacturing plants.
“While I appreciate the right to protest, that right can not, it must not, extend to cutting off that lifeline,” Ford said.
He said the ongoing protest in Ottawa had made its point, but it was time for protestors to go home.
“We are now two weeks into the siege of the city of Ottawa. I call it a siege because that is what it is. It’s an illegal occupation,” he said. “Your right to make a political statement does not outweigh the rights of one million people in Ottawa to live peacefully, free of harassment and chaos in their own homes.”
The state of emergency would include new orders to make clear that blocking critical infrastructure like airports, highways, ports and bridges was illegal and that blocking municipal roadways, preventing ambulances of public transport was also illegal.
Ford said fines would be severe with penalties up to $100,000 per day or up to a year’s jail time and the possibility of suspending commercial and personal drivers licences.
City officials in Windsor were successful in securing a court injunction to clear protesters who have been blocking the Ambassador Bridge for days. The bridge closure shuts down hundreds of millions in cross-border trade every day and has already forced at least six auto plants to close or eliminate shifts.
It went into force at 7 p.m. on Friday evening, but it was unclear when it would be enforced. The city of Ottawa also announced it would be seeking a court injunction against the protesters there.
Prime Minister Justin Trudeau spoke with U.S. President Joe Biden Friday as concerns grow that the trade disruptions caused by the bridge closure would spread. Trudeau said the U.S. president spoke about American influence on the protest including with funding through crowdfunding sites.
“President Biden and I both agree that for the security of people and the economy, these blockades cannot continue,” Trudeau said.
A senior government official, speaking on background because they were not authorized to speak publicly about the call, said Trudeau assured Biden the protests would come to an end soon.
Biden also acknowledged it was a shared problem, pointing to the possibility of similar protests in the U.S. soon and the U.S. financial support the protest had received. The U.S. has offered tow truck help if needed to clear the streets in Windsor.
Trudeau also added to Ford’s warnings at a press conference of his own Friday afternoon.
“If you’re still participating in illegal blockades it’s time to go home. Especially if you have kids with you,” he said. “If you joined the protests because you’re tired of COVID you need to understand you’re breaking the law. The consequences are becoming more and more severe.”
The protests have been seeking an end to all vaccine mandates, lockdowns, mask requirements and other restrictions. Some provinces have started to reduce their restrictions and Trudeau said the government would have news on some easing of travel restrictions next week.
He stressed, however, that rules requiring people to be vaccinated to travel, to cross borders, or to work for the federal public service would not be changing anytime soon.
“We know this pandemic doesn’t end because we cross our arms and decide that it’s over. This pandemic will end by following science, by supporting each other, by being there for each other as Canadians have done throughout these past two years,” he said.
In a letter sent to both Trudeau and Ford earlier this week, Ottawa Mayor Jim Watson asked for 1,800 more people, mostly police officers, to help end the occupation of the downtown core.
Trudeau insisted his government was helping provide those resources, but declined to provide specific numbers of RCMP officers that have been provided. Earlier this week the RCMP said 275 officers had been loaned to Ottawa Police and an unspecified additional number of officers had been provided since.
“We have been supporting the Ottawa police force and the province of Ontario with any resources they need to keep public order to ensure that they’re able to move forward on any of these blockades,” he said.
He rejected the idea Ottawa Police had not been provided with enough help to end the blockades.
“I don’t accept the contention that the City of Ottawa has exhausted its tools and its resources. The Ottawa police force has been given resources from both the OPP and the RCMP.”
Coun. Dianne Deans, who chairs the Ottawa Police Board, said she was disappointed in those comments. She said the city had been clear it needed more resources than it had to end the disruptions.
“I thought his comments this afternoon, we’re a little unfair. I just think that when our chief of police has been saying quite clearly we need more resources, if he believes we have enough you should point to how that is in fact, the case.”
Ottawa Police Chief Peter Sloly has said repeatedly that he needs more resources to clear the entrenched protest. He said he welcomed the new provincial powers, but also needed more cops.
“Our team is on standby and as soon as the new provincial orders are in effect, we will brief our officers and begin enforcing the new laws to the fullest extent that our resources allow.”
– with additional reporting by Bryan Passifiume
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