Liberals table 'sustainable jobs' bill to back up pledge to help workers transition

The Canadian Press

The federal Liberals introduced new legislation today that would require the government to develop and share a plan every five years to help workers transition to a clean-energy economy.

It would hold the government to account for its promises to help workers retrain and create new jobs as Canada shifts away from its current reality as a combustion-energy powerhouse.

The government says a clean-energy economy could create as many as 400,000 new jobs before the end of this decade alone.

The Liberals are calling Bill C-50 the Canadian Sustainable Jobs Act.

The pragmatic-sounding name belies the political fight ahead as energy-dependent\
provinces in Western Canada accuse Ottawa of trying to overstep its bounds.

Alberta Premier Danielle Smith has said her province would provide additional cash to help cut emissions from oil and gas production only if Ottawa scrapped the sustainable jobs bill.

PREMIER PROMOTING ALBERTA MADE PLASTIC

This report by The Canadian Press was first published June 15, 2023.

Trudeau clean grid plan has Alberta 

leader pledging defiance

Robert Tuttle, Bloomberg News   Jun 13, 2023

Alberta Premier Danielle Smith vowed to fight Canadian Prime Minister Justin Trudeau’s environmental initiatives with “every power that we have,” including by having the oil-rich province defy federal legislation.

A federal goal of zeroing out the emissions from the nation’s power grids by 2035 and a plan to slash emissions from oil and gas companies by 42 per cent this decade are unachievable for Alberta, Smith said Tuesday at an energy conference in Calgary. If necessary, the province will use the Alberta Sovereignty Within a United Canada Act that was passed last year as grounds to disregard federal laws, Smith said. The act’s constitutionality has been widely disputed, and its use may provoke a court case.  

“The constitution is very clear that we have the authority to develop our electricity grid, we have the authority to develop our resources,” Smith told reporters. “That’s what the Sovereignty Act is all about, making sure that we defend our areas of jurisdiction.”

Smith’s United Conservative Party won 49 of 87 seats in the provincial legislature in elections two weeks ago to form a majority government, defeating the left-leaning New Democratic Party. Smith is a vocal critic of Trudeau, and promises to push back against federal intervention in Alberta were a central theme of her campaign.  

Alberta Premier Danielle Smith vowed to fight Canadian Prime Minister Justin Trudeau’s environmental initiatives with “every power that we have,” including by having the oil-rich province defy federal legislation.

A federal goal of zeroing out the emissions from the nation’s power grids by 2035 and a plan to slash emissions from oil and gas companies by 42 per cent this decade are unachievable for Alberta, Smith said Tuesday at an energy conference in Calgary. If necessary, the province will use the Alberta Sovereignty Within a United Canada Act that was passed last year as grounds to disregard federal laws, Smith said. The act’s constitutionality has been widely disputed, and its use may provoke a court case.  

“The constitution is very clear that we have the authority to develop our electricity grid, we have the authority to develop our resources,” Smith told reporters. “That’s what the Sovereignty Act is all about, making sure that we defend our areas of jurisdiction.”

Smith’s United Conservative Party won 49 of 87 seats in the provincial legislature in elections two weeks ago to form a majority government, defeating the left-leaning New Democratic Party. Smith is a vocal critic of Trudeau, and promises to push back against federal intervention in Alberta were a central theme of her campaign.  

A federal goal of zeroing out the emissions from the nation’s power grids by 2035 and a plan to slash emissions from oil and gas companies by 42 per cent this decade are unachievable for Alberta, Smith said Tuesday at an energy conference in Calgary. If necessary, the province will use the Alberta Sovereignty Within a United Canada Act that was passed last year as grounds to disregard federal laws, Smith said. The act’s constitutionality has been widely disputed, and its use may provoke a court case.  

“The constitution is very clear that we have the authority to develop our electricity grid, we have the authority to develop our resources,” Smith told reporters. “That’s what the Sovereignty Act is all about, making sure that we defend our areas of jurisdiction.”

Smith’s United Conservative Party won 49 of 87 seats in the provincial legislature in elections two weeks ago to form a majority government, defeating the left-leaning New Democratic Party. Smith is a vocal critic of Trudeau, and promises to push back against federal intervention in Alberta were a central theme of her campaign.  

Indigenous kept from economic opportunities from pot legalization: Senate committee

Tara Deschamps, The Canadian Press 

Jun 15, 2023

A Senate committee says the current cannabis market and legislation has kept Indigenous Peoples from sharing in the economic opportunities that the legalization of recreational pot created.

The standing Senate committee on Indigenous Peoples said Thursday that it wants the country to shift its approach to cannabis to help Indigenous communities and entrepreneurs better benefit from the pot market.

A review the committee undertook left members "severely disappointed but not surprised" to hear that Indigenous Peoples found themselves often shut out of or facing additional barriers in the cannabis market.

"Once again, Indigenous Peoples have been excluded from participation in the economic prosperity of the country," said Brian Francis, a P.E.I senator hailing from Lennox Island First Nation, at a press conference in Ottawa.

"And once again, little regard has been given to how our lives have been impacted."

The committee he sat on found the Indigenous community's difficulties in fully taking advantage of cannabis legalization stem from legislation around the sale and distribution of cannabis, licensing and even the regulation and policing of the substance.

Many problems the community faces were identified before legalization happened in October 2018 in consultations that were "inadequate at best" and "could and should have been addressed five years ago," Francis said.

"This oversight, to put it as charitably as I can, cannot readily be corrected," he said.

"The cannabis market is now largely saturated. First Nations entrepreneurs will have to work twice as hard to gain a foothold in this market."

The committee found some First Nations are completely blocked from participating in the cannabis market because the federal government set the scope of the legal sale and distribution of pot, but left regulation of legal activity to provinces and territories.

This meant some First Nations groups had to enter into regulation and sale agreements with provinces and territories 

While agreements have been reached in British Columbia, Ontario and Saskatchewan, Indigenous communities told the committee Quebec and the Northwest Territories have not made similar moves.

Thus, the committee would like the Minister of Health to amend the Cannabis Act to permit First Nations to regulate the possession, sale and distribution of cannabis on their lands. It is also recommending a meeting be held with First Nations, federal, provincial and territorial governments to solve jurisdictional challenges they face.

Legislation has also left few Indigenous communities with the licenses from Health Canada and the Canada Revenue Agency (CRA) that are necessary to operate in the cannabis industry.

As of last September, the committee counted 55 Indigenous-affiliated applicants for commercial cannabis licenses, with 12 of those located in First Nations communities. Some 47 Indigenous-owned or affiliated businesses have received commercial licenses, including six in First Nations communities.

The committee feels this number is small and indicates Indigenous cannabis entrepreneurs may face additional barriers in the licensing process, so it would like the CRA to review the licensing process.

The committee also turned its attention to the excise tax, which is imposed on cannabis products when they're delivered to buyers and shared between the federal, provincial and territorial governments.

For dried and fresh cannabis, plants and seeds, the tax amounts to the higher of $1 per gram or a 10 per cent per gram fee.

For edibles, extracts and topicals, it's a flat rate based on the number of milligrams of total THC in the product. There are additional duties in Alberta, Nunavut, Ontario and Saskatchewan.

First Nations communities do not receive a portion of the tax, but the committee wants the government to look at how they could share in the levy.

Rounding out the recommendations were suggestions around the policing, research and medical insurance related to cannabis, along with the committee urging the government to hear from the Inuit and Métis communities, which it did not reach because of the COVID-19 pandemic.

"There's certainly some work that still has to be done, but I would say this is a golden opportunity for the government to act," said David Arnot, a Saskatchewan senator, at the same conference as Francis.

"We've given them clear recommendations and if they follow those recommendations, that will really set the stage for a reconciliation, certainly, economic reconciliation."

Former Conservative leader Erin O'Toole steps into top role at global strategy firm

The Canadian Press

Conservative MP and former Conservative leader Erin O’Toole is given a standing ovation as he delivers his final speech in the House of Commons on Parliament Hill in Ottawa, Monday, June 12, 2023. THE CANADIAN PRESS/Sean Kilpatrick

Former Conservative leader Erin O'Toole has been named as the president and managing director of risk advisory firm ADIT North America.

The firm provides services to companies, investment funds and agencies that operate or invest globally.

It describes itself as specializing in strategic intelligence, business diplomacy, due diligence, security and compliance. 

The regional branch of the Paris-based firm that O'Toole will helm encompasses operations in both Canada and Mexico. 

O'Toole, who served in the cabinet of former prime minister Stephen Harper, announced in March that he would not return to the House of Commons after the summer break.

He was leader of the Conservative party from August 2020 until February 2022, when the Tory caucus voted him out after a disappointing result in the last federal election. 

This report by The Canadian Press was first published June 15, 2023.

ALIENATION

Financial stress is impacting the mental health of Canadians: Survey

Daniel Johnson, BNN Bloomberg 

Jun 15, 2023

Canadians are increasingly stressed about their financial situations, as the cost of living weighs on many people’s mental health, according to a new report. 

FP Canada released its 2023 Financial Stress Index Thursday highlighting that for the sixth consecutive year, money continues to be the main source of stress for Canadians, impacting 40 per cent of respondents. 

Results come amid elevated levels of inflation coupled with high prices for gas and groceries, the report said.

“Canadians continue to struggle with their financial picture, and financial stress can have a significant impact not only on financial well-being but also on mental health,” Tashia Batstone, the president and chief executive officer of FP Canada, said in a news release. 

The survey also found that 36 per cent of respondents experienced mental health challenges, like anxiety or depression, associated with their financial stress. 

Additionally, 48 per cent of respondents reported losing sleep over their finances this year, an increase from 43 per cent last year. 

The survey found that inflation, specifically elevated gas and grocery costs, were key factors adding to the financial stress of those surveyed. 

“As Canadians struggle to afford groceries, gas and other goods and services, nearly half (48 per cent) have less disposable income compared to a year ago, a substantial increase from 2022 (39 per cent),” the press release said. 

The survey also found that Canadians are struggling to save, as 35 per cent of respondents reported concerns regarding retirement savings and 32 per cent stated concerns about saving for a major purchase. 

“Younger generations are also more likely to feel the pinch, and Canadians aged 18-34 are the most concerned about saving for major purchases (50 per cent),” the release said. 

ABOUT THE SURE

The Financial Stress Index is conducted each year by FP Canada and Leger, a Canadian market research and analytics firm. Results were compiled between March 29 and April 7 using online responses from 2,004 Canadians. 

Recent rain may not be enough to halt the shrinking of Canada's cattle herd

Amanda Stephenson, The Canadian Press

Anxious Alberta ranchers praying for rain got their wish this week, but it may not be enough to stop the ongoing decline in Canadian cattle production.

The moisture that fell on parts of drought-parched Alberta came as a welcome reprieve to the hundreds of cattle farmers who have seen their pastures wither and their water supplies dry up this June.

But a few inches of rain won't be enough to cut it in much of Canadian cattle country, which is still trying to dig its way out of a significant moisture deficit.

"I think this is the driest I’ve ever seen it," said Bob Lowe, a rancher and feedlot operator from the Nanton area of southern Alberta.

"The grass started this spring, and came up a little bit, and then it just turned around and died. It’s supposed to be green this time of year, but it's just grey-brown."

According to Agriculture Canada's Drought Monitor, 82 per cent of the agricultural regions of the three prairie provinces were either "abnormally dry" or in "moderate to extreme drought" as of the end of May.

Some ranchers have been spending hours every day this spring hauling water by truck or trailer to their cattle after their watering holes completely dried up, said Ryder Lee, general manager of the Canadian Cattle Association.

"Or they're filling dugouts from other places with pipelines and pumps," Lee said.

"There's lots of creativity and ingenuity in the industry, but all of that takes a toll on people."

It also takes a toll on an industry that has already been steadily shrinking for years. Last year, the size of the Canadian cattle herd fell to 12.3 million animals — the lowest level recorded since July 1, 1988.

The 2.8 per cent year-over-year reduction was in large part due to the after-effects of an extremely harsh drought on the prairies in 2021. As crops withered and feed prices skyrocketed, many ranchers sold their cattle for slaughter rather than holding onto them for breeding.

That could happen again this year, and at an even larger scale, said Rob Somerville, who has a cattle farm in east-central Alberta, near the town of Innisfail.

"There is a train of thought that people who may have hung on last time, this time, will sell," Somerville said.

He added that some producers might have hesitated to sell in 2021 because cattle prices at the time were low. But as cattle numbers in North America have continued to shrink, prices have increased, hitting all-time records this spring.

"Just about everybody I've spoken to has already prepared a list of the cows they're going to sell. These people won't be leaving the industry, but they're certainly planning a herd reduction."

South of the border, U.S. cattle inventory is also down four per cent year-over-year due to increased heifer slaughter. According to a report by the U.S. Department of Agriculture, roughly 69 per cent of the U.S. cattle herd as of December 2022 was located in drought-stricken areas, leading to the largest contraction of the North American cattle herd in a decade.

Other catastrophes in the last two decades — including the BSE (mad cow) crisis and the 2009 financial crisis — also led ranchers to downsize their herds or exit the industry entirely.

As a result, according to Statistics Canada, there are 25 per cent fewer beef cows in Canada now than there were in 2005.

 "After a while it's not just an individual farm-by-farm thing, it's an industry issue. And that has far wider implications," Somerville said, adding that fewer cows could cause ripple effects all the way down the value chain — potentially leading to lost jobs at feedlots, at meat-packing plants and more.

"This is a big contributor to the economy that we're talking about."

Winnipeg-based cattle markets analyst Jerry Klassen said he believes one or two good rains could save the industry from wide-spread liquidation of herds this year.

"You can still get one good hay crop in Alberta if you get timely rains from now moving forward," Klassen said.

"And you've got these high prices. If the farmer can maintain or increase his herd, he's going to reap the rewards over the next two or three years."

But Somerville said multiple years of dry conditions have left some ranchers feeling that they're "running out of tricks they can pull out of the hat."

"There's a lot of producers who have been hanging on as long as they can and they may decide now is the time to get out of the industry," he said.

"It's just been too many struggles, for too long."

This report by The Canadian Press was first published June 16, 2023.

WORKERS CAPITAL

Luxury Banff resort bought by Ontario pension for US$128M

Ari Altstedter, The Canadian Press

One of Canada’s biggest pension funds bought a luxury resort in the Rocky Mountains as tourism’s recovery continues to defy predictions of an economic slowdown.

Oxford Properties, the real estate arm of the pension representing municipal workers in Ontario, has purchased the Rimrock Resort Hotel in Canada’s Banff National Park, according to a statement seen by Bloomberg News.

The firm is paying $170 million (US$128 million) for the property, said a person familiar with the matter, who asked not to be identified citing private information. An Oxford spokesperson declined to comment on the price.

After grinding to a near halt during the COVID-19 pandemic, global tourism has rebounded as consumers prove eager to spend savings on long-delayed experiences and travel. That pent-up demand has so far helped many owners weather historic increases in interest rates over the past year by central banks trying to tamp down inflation. 

Many forecasters had expected the surge in borrowing costs to throw the global economy into a recession, and some still see that as a possibility as signs emerge that growth may be starting to slow.  

“We’re a longer-term investor,” Tyler MacDonald, Oxford’s head of hotels, said in a phone interview on the timing of the Rimrock purchase. “If you look at global travel, it has grown consistently for almost 75 years and we just believe deeply that’s going to continue.”

Built on a site that has hosted visitors to the nearby hot springs since 1895, Rimrock is perched on the tree-lined slopes of Sulphur Mountain in Banff, about a 90-minute drive west of Calgary. The park is one of Canada’s main tourist destinations, known for world-class skiing and snowboarding in winter as well as golf, hiking and cycling in the warmer months, with views of snow-covered peaks and pristine mountain lakes year-round.

Oxford said it plans to spend as much as $100 million renovating the resort, which will be operated by French hospitality group Accor SA. 

“We have high conviction in this particular lodging market, which is Banff,” said MacDonald. “It has extremely high barriers to entry, it doesn’t have many significant properties, and this one just happened to come availab

Temporary foreign workers need more paths to immigration, experts say

Rosa Saba, The Canadian Press

Jun 16, 2023

As hotel and restaurant owners increasingly turn to temporary foreign workers to fill labour gaps, there are growing calls to give those workers more paths to permanent residency.

“If there are particular occupations where there's a real need and we’ve become dependent on temporary foreign workers ... we should include them in a permanent system,” said Naomi Alboim, a senior policy fellow at Toronto Metropolitan University.

While the COVID-19 pandemic has worsened the labour picture for the accommodation and food service industry, the use of temporary foreign workers in the sector has been rising for years. According to Statistics Canada, their share of the workforce more than doubled from 4.4 per cent in 2010 to 10.9 per cent in 2020.

That share is expected to keep rising as companies struggle to fill tens of thousands of jobs amid record low unemployment, pandemic-accelerated early retirements and workers leaving for other sectors, said Adrienne Foster, vice-president of policy and public affairs for the Hotel Association of Canada.

Around 90 per cent of the association’s member employers have increased wages to try and attract more workers domestically, and many have increased benefits, development opportunities and other perks, but they’re still struggling to attract applicants, she said.

“COVID did kind of precipitate a decreased appetite for those types of jobs,” said Foster.

“I think at the end of the day … the demographics of the Canadian workforce mean that we have to work internationally,” she said.

To address these gaps, the federal government rolled out temporary measures in April 2022, allowing employers in the accommodation and food service sector, among other sectors facing labour shortages, to hire up to 30 per cent of their workforce through the Temporary Foreign Worker program for low-wage positions. The temporary measures were extended in March 2023 until the end of October. 

But as use of the TFW program becomes more common, so is criticism of what some call an over-reliance on temporary foreign workers, with concerns about the risks these workers may face. 

Temporary foreign worker permits are usually tied to the employer that brought them into the country, making workers reluctant to report abuses, said Derek Johnstone, special assistant to the national president of the United Food and Commercial Workers Union.

“It puts the entire onus on the migrant,” said Johnstone, though he said the union has had some success in helping workers demonstrate employer abuse and get open work permits as a result. 

Alboim said a dependence on temporary foreign workers can also disincentivize employers from increasing wages and benefits, improving working conditions, and even automating more. 

At the same time as the government opens the door to more temporary foreign labour, it’s also ramping up immigration, mainly in higher-skilled sectors, said Alboim, a former Ontario Deputy Minister of Immigration. And because many temporary foreign workers are entering the country for what are considered lower-skilled jobs, they have fewer opportunities to transition to permanent residency, she said. 

“We have developed, in my view, a really bifurcated system,” she said. “High-skilled, permanent. Low-skilled, temporary. And I don’t think that’s healthy for the economy, and I don’t think that’s healthy for the country.”

Recent changes to the selection system for economic immigrants include a few more occupations from categories considered lower-skill, which is a good start, she said.

The restaurant sector needs to increase hiring of domestic workers and hiring through immigration, while also having the option of temporary foreign workers to fill in gaps or seasonal demand, said Olivier Bourbeau, vice-president of federal affairs with industry group Restaurants Canada.

“We don’t only need temporary foreign workers, we need a real immigration strategy,” he said. 

The current system is two-tiered, Bourbeau agreed, saying he’d like to see changes made to create more mobility for temporary workers within companies and in the industry to potentially help them become eligible for permanent residency. 

Foster at the Hotels Association is also supportive of more paths to permanent residency for temporary foreign workers in the hospitality sector, such as through the Express Entry program. 

“I think the biggest challenge we have right now with our immigration system is that it really favours education,” she said. “There's a huge mismatch between the people who are coming in and the job vacancies that are available.” 

Instead of the current patchwork of difficult-to-navigate federal and provincial programs and pilots, the federal economic immigration system should be expanded to include these workers, who are filling ongoing labour market needs, said Alboim. 

“If the temporary workers coming in are truly doing temporary work ... we need that flexibility in our system,” she said. “But to fill ongoing jobs? I think it’s unconscionable.”

This report by The Canadian Press was first published June 16, 2023.

Live Nation and SeatGeek say you'll see true costs up front

The Associated Press

U.S. President Joe Biden highlighted progress in chipping away at hidden junk fees tacked on to ticket, lodging and other prices as a “win for consumers” as major company executives meeting with him at the White House announced they'll start showing customers the real cost up front.

Live Nation, which is based in Beverly Hills, California, said Thursday that it will provide customers with upfront all-in pricing — meaning the actual purchase price including service charges and any other fees — for its owned venues by September and that Ticketmaster will give consumers the option to view all-in pricing up front for other venues on the live-entertainment tickets platform. SeatGeek, based in New York, will unveil features to make it easier to browse for tickets with the true cost displayed.

Biden, who met with those and other companies that have taken steps to embrace more transparency, including Airbnb, prioritized the effort to combat surprise or undisclosed fees in his State of the Union address and has called for legislation, regulation and private sector action to end them. The Democratic president, at Thursday's event, praised actions by companies that have eliminated or plan to eliminate those surprise fees.

The consumer advocacy push is part of Biden's pitch to voters in his 2024 reelection bid that government can help improve their lives in big and small ways.

Besides the moves by Live Nation and SeatGeek, San Francisco-based Airbnb rolled out its all-in pricing tool in December, after Biden first called on companies to stop hiding fees.

“These are just the latest private sector leaders who are responding to my call to action," Biden said, saying junk fees "can add hundreds of dollars a month and make it harder for families to pay their bills.”

“I’m asking their competitors to follow suit and adopt an all-in pricing as well," Biden said. “These actions matter and it’s inspiring companies to change their practices."

National Economic Council director Lael Brainard said in a statement that the president “has been working to lower costs for hardworking families by bringing down inflation, capping insulin prices for seniors, and eliminating hidden junk fees.”

"More companies are heeding the President’s call so that Americans know what they’re paying for up front and can save money as a result,” Brainard said.

TC Energy restarts Alberta compressor stations after wildfire-related shutdown

Holly McKenzie-Sutter, BNN Bloomberg

TC Energy has restarted compressor stations that were shut down this week due to wildfires in Alberta, and is ramping up other affected gas operations.

The company said Friday that employees and families who were evacuated from the Edson, Alta., area on June 9 are returning home. It said operations are now starting up again at the affected compressor stations on its NOVA Gas Transmission Ltd. (NGTL) System.

“As part of the return to the Edson area, we have been able to complete the safe and controlled restart of compressor units at all locations that were shut down due to wildfire precautions,” the company said in a written statement.

“Plans will be developed for a safe return to service of our gas storage facility over the coming days.”

The company said it is continuing to support wildfire response in the region and working with local authorities on the matter.

The 24,631-kilometre NOVA pipeline system connects most of western Canada’s natural gas to market, according to the company’s website.

TC Energy had previously shut down three compressor stations in May as a precaution due to the wildfires raging in Alberta.

Will wildfires have an impact on Canada's lumber industry?

Iva Poshnjari, BNN Bloomberg

Jun 14, 2023

Canada is battling numerous wildfires that are burning down a considerable amount of forests, which experts say will inevitably hurt the country’s lumber industry. 

Parts of Quebec and Alberta have been engulfed in wildfires that have caused evacuations and temporary shutdowns of natural resource infrastructure. Though the extent of the damage has not yet been determined, the impact will weigh on Canada’s lumber production, timber analyst John Duncanson of Corton Capital, told BNN Bloomberg in an interview on Wednesday.

“These fires are pretty serious. Forest area wise, we’re seeing the fires burn 15 times more than the 10-year average and we’re not even in fire season,” he said.

Duncanson added that lumber producers are powerless over these fires that put their resources at risk.

“The Canadian lumber industry is already suffering from a supply issue. Timber has been impacted by disease and manmade policies that already put pressure on available supply. These wildfires will only make this worse,” he added.

The producers are also unable to stock up supply as a future coping mechanism to wildfires as there are annual lumber cut limits in place, Duncanson explained.

He believes these pressures on supply will ultimately drive lumber prices higher.

One lumber producer operating mainly in Quebec said they’ve been forced to suspend operations amid the fires, which are the worst they’ve seen in decades, he told BNN Bloomberg.

“We’ve had to shut down sawmills in Quebec as some areas have been evacuated and our employees physically cannot be there to operate the machinery. It’s the worst I’ve seen in 30 years,” Louis Bouchard, director of public affairs and government relations at Resolute Forest Products, told BNN Bloomberg on Wednesday.

Quebec is the second-largest producer of lumber in Canada and responsible for 20.1 per cent of national softwood production. It follows British Columbia as the top provincial lumber producer.    

He agrees that the situation calls for political intervention when it comes to how Canadian forests are managed to help alleviate the issues.

“We need to change the way we manage, harvest and create biodiversity in our forests in order to help protect them from future forest fires,” he said.

Bouchard added that the government will also need to clear producers back into forest-burned areas as quickly as possible so they can recuperate any wood that may be salvaged.

Forest fires are just an addition to the already existing challenges that the lumber industry faces, one expert explained.

“Any sort of fire activity adds incremental strain on Canada’s lumber industry,” John Cooney, equity research analyst at ERA Forest Products Research, told BNN Bloomberg on Wednesday.

Wildfires, among other factors, will result in a continued downsizing of the industry, he added.

“Unfortunately, we’re looking at death by a thousand paper cuts for the lumber sector,” Cooney said.

Wildfires force some forestry companies to pause operations: Industry association

Rosa Saba, The Canadian Press

Jun 13, 2023

Wildfires across Canada are forcing some forestry companies to pause operations, particularly in Quebec. 

Close to five million hectares have been burned so far, and workers in some forestry communities have been evacuated, said Derek Nighbor, president and CEO of the Forest Products Association of Canada. 

"The impact is significant," he said, adding, "it's really varying across the country." 

Some mills and woodlands operations across the country are unable to operate right now for safety reasons, he said.

One of the companies forced to suspend operations is Montreal-headquartered Resolute Forest Products Inc. 

"For Resolute, we are particularly impacted by the boreal forest devastation in Quebec, where 2023 is already shaping up the be the worst year in over three decades in terms of the extent of area affected," spokesman Seth Kursman said in an email. 

"Although wildfire is a natural part of forest regeneration, the unseasonal heat and lack of rain has prompted many fires to erupt at the same time, making them very difficult to manage."

Kursman said the company last week suspended all woodlands operations across Quebec, and suspended operations at its Senneterre and Comtois sawmills in the Abitibi and Nord-du-Québec regions. The company also suspended operations at the Girardville and La Doré wood products facilities in Lac-Saint-Jean as well as the Outardes sawmill in the Côte-Nord region, but was able to restart the Outardes operations shortly after suspending them thanks to cooler temperatures and rain. 

Quebec has so far seen the biggest impact in recent weeks when it comes to forestry companies' operations being affected by wildfires, said Nighbor. The association is also particularly concerned about the fire outside Edson, Alta., he said. 

Lumber prices are also rising as the fires continue, with lumber futures for July up 6.8 per cent Tuesday evening compared with a week earlier. 

In a note last week, RBC Capital Markets analysts Paul Quinn and Matthew McKellar said forest fires can contribute to higher lumber prices, likely due to either constrained supply or the fear of constrained supply leading to buyers increasing inventories. The analysts noted at the time that lumber futures had ticked higher, attributing that to the current fires, and also noted that significant fires can affect longer-term timber supply. 

Nighbor said that even once the fires are under control, it won't be business as usual for companies that have paused operations, as they have to assess the impact of the fires on supply. 

"The next question is, what forests have been impacted? And how bad have they been impacted?" he said. "We'll then be able to assess the impact on timber supply, and what needs to be done to either salvage or get some of the dying or dead or decayed stuff out of the bush so it doesn't become kindling for the next fire season."

Resolute's infrastructure appears to be intact so far, said Kursman, but the company expects that some of its woodlands contractor partners will have lost critical equipment. 

The company is in the process of planning the harvest of burned trees as soon as the province gives Resolute the green light to resume woodlands operations, said Kursman. 

"This must be done as quickly as possible before insects infest and further degrade the trees," he said. 

This report by The Canadian Press was first published June 13, 2023.

 

Andrew Iacobucci named new RONA Inc. CEO one day after company announces job cuts

The Canadian Press

A Rona store is seen in St. Eustache, Que., Nov. 5, 2018. RONA Inc. says Andrew Iacobucci is taking the helm as the company's new CEO. , THE CANADIAN PRESS/Ryan Remiorz

RONA Inc. says Andrew Iacobucci is taking the helm as the company's new CEO.

The announcement comes one day after the retailer announced it was eliminating 500 jobs across the country, saying it needed to adapt to reflect new market realities amid a slowing economy.

The Boucherville, Que.-based home improvement retailer says in a press release that Iacobucci brings almost 30 years of experience to the role, most recently as executive vice-president and chief commercial officer at distribution company US Foods.

Iacobucci also previously worked at Loblaw Co. Ltd.

RONA says Iacobucci will reside in the Boucherville area to work at the company's head office.

It says interim CEO Garry Senecal will stay with the company until the end of the year to ensure a smooth transition.

The company says while Iacobucci learned French during his studies, by the time his nomination comes into effect in July, he will have completed a four-week French immersion program with a language school in Quebec City.

In November, Lowe's announced it was selling its Canadian retail business, including RONA, to New York-based private equity firm Sycamore Partners.

The retailer says it operates or services around 425 corporate and affiliated stores under different banners across the country. It says it has 22,000 employees.

RONA INC. GETTING RID OF 500 JOBS

ACROSS CANADA, CITING 'NEW MARKET

REALITIES'

The Canadian Press

Jun 15, 2023

RONA Inc. says it's eliminating 500 jobs across Canada in a bid to simplify its organizational structure.

The Boucherville, Que.-based home improvement retailer says in a press release Thursday evening that it needed to adapt to reflect new market realities amid a slowing economy. 

The Canadian economy has been showing some signs of weakness amid higher interest rates as the central bank seeks to quell inflation. 

However, GDP grew at an annualized rate of 3.1 per cent in the first quarter, beating expectations. 

The Canadian consumer has proven resilient amid tightening conditions, with household spending helping to buoy the economy's growth in the first quarter. 

In November, Lowe's announced it was selling its Canadian retail business, including RONA, to New York-based private equity firm Sycamore Partners.  

RONA says it operates or services around 425 corporate and affiliated stores under different banners across the country. It says it has 22,000 employees. 

The company says decisions like these are never taken lightly, and it will support affected employees throughout the transition.