Alberta on track for surplus despite wildfires, lower oil prices, fiscal update shows

The Canadian Press

The Alberta government says it's on track for a $2.4-billion surplus by the end of the fiscal year, despite slightly lower oil prices and wildfires that have burned through most of its contingency fund.

The figures were released in the government's first-quarter fiscal update today. 

Wildfires have consumed nearly $1 billion so far this fiscal year. 

Together with other events, that's taken up about three-quarters of the money the United Conservative government has set aside for emergencies.  

Officials say the government is looking at increasing that fund in coming years as extreme weather events are not expected to let up.

Elsewhere, a population boom of 4.4 per cent has helped boost tax revenues.

Oil royalties have shrunk due to lower-than-forecast prices.

But that impact has been softened by a smaller discount oilsands producers receive for their product compared to conventional oil.

Now Showing 

Alberta filing its first-ever charges against a carbon offset firm 5:09

Canada's Oil and gas sector says new data shows it can both hike output and lower emissions

JUST LIKE MAGIC

The Canadian Press

Canada's oil and gas sector is pointing to new government numbers that it says proves the industry can increase production and lower emissions at the same time.

The analysis by industry group Canadian Association of Petroleum Producers (CAPP) of the most recently available federal production and emissions data shows emissions from the country's conventional oil and natural gas sector fell 24 percent in the last decade.

For natural gas, methane emissions fell by 38 per cent between 2012 and 2021 although production rose by 35 per cent.

Conventional production refers to all oil and natural gas production outside of Canada’s oilsands.

The CAPP analysis did not examine oilsands emissions, but a report by S&P Global earlier this month showed absolute greenhouse gas emissions from Canadian oilsands production were flat in 2022 even as total production grew.

S&P Global said that marks the first year total emissions from the oilsands sector did not rise, excluding any major market disruption resulting in a decline in production.

This report by The Canadian Press was first published Aug. 31, 2023.

Intact Financial estimates Q3 losses at $570 million from wildfires

Ritika Dubey, The Canadian Press

Intact Financial Corp. in a report Thursday estimated that its catastrophe losses due to wildfires and other weather events totalled about $570 million for the third quarter so far.

The property and casualty insurance company said that amounts to about $2.40 per share, but noted the wildfires continue to burn and actual losses may differ from its estimate.

Intact says it will issue an update in early October if its catastrophe losses increase materially by the end of the quarter. The company's shares ended the day down $3.09, or 1.6 per cent, at $190.50. 

Nadja Dreff, head of Canadian Insurance at DBRS Morningstar, said although she expected to see a high estimate of damages from Intact, it does not affect the firm's estimate for the overall insurance industry.

She said the evacuations in Yellowknife and Kelowna, B.C. earlier this month will drive up the wildfire losses going forward.

"But we also note that it is an ongoing situation," she said.

This year has seen the worst wildfire season in Canada on record, with thousands of residents displaced from British Columbia and the Northwest Territories in recent weeks. 

DBRS Morningstar estimated earlier this month that the insured losses due to wildfire in the third quarter would be between $700 million and $1.5 billion for the Canadian insurance industry, which they called "manageable" for insurers. 

Insurance employees across Canada are supporting customers by providing confirmation of coverage and funding for additional living expenses, and are on the ground where possible to offer assistance, said Intact chief executive Charles Brindamour in a statement. 

Insurance companies in general plan ahead to protect against unforeseen circumstances, Dreff said. 

The industry is prepared and has sufficient resources to deal with ongoing natural disasters, she said. 

"In other words, it might be affecting the net income for the next quarter but nothing beyond that."

Craig Stewart, vice-president of federal affairs with the Insurance Bureau of Canada, said it is not surprising to see Intact disclose that wildfires this summer are having a material impact on its company. 

Insurers are looking to the federal government for signals on future climate-related changes, he said. 

"The government should prioritize climate adaptation because it is only through concerted investments in defending communities that insurance will remain available and affordable across the country," said Stewart. 

This report by The Canadian Press was first published Aug. 31, 2023.

Now Showing

Impact of the wildfires on BC’s tourism industry   4:53

 

Air Canada slashing routes out of Calgary in face of ongoing pilot shortage

Amanda Stephenson, The Canadian Press

Air Canada is slashing six major routes out of Calgary this winter, in part due to an industry-wide pilot shortage that the carrier says threatens its "overall operational stability."

The country's biggest airline confirmed Wednesday it will no longer offer non-stop flights from Calgary to Ottawa, Halifax, Los Angeles, Honolulu, Cancun, or Frankfurt as of the end of October due to ongoing fleet and crew constraints.

"The industry-wide shortage of regional pilots is expected to have a prolonged impact on Air Canada’s regional network," said Air Canada spokesman Peter Fitzpatrick in an email. 

"This has resulted in resource pressures as Air Canada has been required to operate certain routes with mainline aircraft that are normally served by its main regional partner."

Fitzpatrick added the Montreal-based airline is also facing pressure due to supply chain challenges that are making it more difficult for the airline to obtain parts and complete airplane maintenance on time.

"This has led to a review of the network schedule to ensure resources are deployed most efficiently and productively against these current, ongoing industry considerations," Fitzpatrick said.

A pilot shortage has been brewing across the continent for several years due to a variety of factors including an aging workforce and the rapid proliferation of new discount airlines that are putting pressure on the labour supply.

The COVID-19 pandemic exacerbated airlines' already existing labour challenges, delaying and disrupting pilot training across the country while also driving experienced pilots to exit the industry in favour of more job stability elsewhere.

International consultancy firm Oliver Wyman has estimated that the North American aviation industry could be short 30,000 pilots by 2032 if nothing changes.

Air Canada said Wednesday it remains fully committed to Calgary — population of about 1.4 million — and the western Canadian market. The airline said it will continue to offer direct service to London-Heathrow from Calgary, as well as to destinations throughout Canada and the U.S.

But the move is the latest evidence that Canadian airlines are still struggling to find their footing in the wake of the pandemic. It's also the latest development in an ongoing turf war between Air Canada and its main competitor, Calgary-based WestJet.

Last year, WestJet announced a new strategy that would see it concentrate the bulk of its future growth in Western Canada. The airline removed a number of routes from the Ottawa-Toronto-Montreal triangle as a result.

Air Canada has been adding service to its main Toronto, Montreal and Vancouver markets, and has recently eliminated a number of regional routes in Western Canada as well as direct service to some larger western Canadian cities, such as Regina and Saskatoon.

"I understand that it's frustrating to see that we are adding new routes from our hubs while suspending services from Calgary, but in the current landscape these service suspensions are the right decision," said Air Canada executive vice-president Mark Galardo in a memo sent to the airline's Calgary staff on Tuesday and viewed by The Canadian Press.

As each airline retrenches to focus on the areas of the country where they have the most market strength, concerns have been raised about what that means for competition.

The Saskatoon Chamber of Commerce, for example, filed a complaint earlier this year to the federal Competition Bureau over Air Canada’s decision to stop flights from Saskatoon to Calgary — a move the Chamber suggested gives WestJet an "anti-competitive monopoly" in Saskatchewan's largest ci

Also this year, WestJet acquired Sunwing Airlines and folded it into its main operations, a move some critics have said will mean less service and higher fares to sun destinations from Western Canada.

Charlene Hudy — who is the lead voice for Air Canada pilots within their union, the Air Line Pilots Association — said the recent developments by Canadian air carriers are worrisome.

"It's a concern for the everyday Canadians who are losing these services. Our pilots share these concerns," Hudy said.

"I know as someone who lives in Saskatoon, I can’t fly from my own airline to Calgary or Edmonton anymore. Or from Regina to those cities."

Air Canada's move to cut service from Calgary comes as the airline's pilots negotiate a new agreement with management. The clock is ticking down on the current deal, which expires on Sept. 29. Its provisions will remain in place after that date as bargaining carries on.

“We want to have a stable aviation network in Canada. You have to compensate pilots appropriately to make sure that we have that," Hudy said.

Air Canada said Wednesday that since August, it has reduced its previously planned winter flying network-wide by 4.6 per cent and reduced the amount of its planned winter seat capacity by two per cent. 

But the carrier said its planned winter flying for 2023-24 still represents a 12 per cent year-over-year increase.

In an email, WestJet spokeswoman Madison Kruger declined to say whether the airline would increase its service offerings in Calgary as a result of Air Canada's move. But she said the Western city remains "central" to the airline's growth strategy.

"WestJet is unwavering in our commitment to ensure Calgary remains the most connected city in North America with under two million residents," Kruger said.

Now Showing

Air Canada pilots move ahead with contract talks following deals between United, WestJet and pilots  6:23

Unifor BIG Three autoworkers vote for strike mandate, mirrors U.S. counterpart

Ritika Dubey, The Canadian Press 

Aug 28, 2023

A strong strike mandate from the Canadian auto workers, adding to the simultaneous autoworkers' negotiations south of the border, is making for an exciting time for the automotive industry in North America, says Steven Tufts at York University. Supporters for Unifor, the national union representing auto workers, attend a rally within view of General Motors headquarters, background, in Windsor, Ont., Friday, Jan. 11, 2019. , THE CANADIAN PRESSAP-Carlos Osorio

Canadian and U.S. autoworkers are both negotiating with the Detroit Three carmakers simultaneously for the first time in 25 years, creating the potential for a co-ordinated strike against one of the major producers.

Workers at the Canadian arms of Ford, General Motors and Stellantis this past weekend voted between 98 per cent and 99 per cent in favour of allowing Unifor to call a strike if bargaining committees fail to secure the collective agreements.

York University associate professor Steven Tufts says the strong strike mandate signals that the workers may not be happy with the current offers and are willing to strike and make gains. 

"They do have a mandate that strong," he said of the union representing 18,000 autoworkers.

"(The workers) may push the employer a little bit harder, not only to expand the investments but also to secure wage gains that a lot of workers want now, especially in a period of high inflation and higher interest rates."

effort to improve pensions, increase wages, and secure good, union jobs in the EV future

Along with a wage boost and commitments for electric vehicle production, Unifor wants to improve workers' pensions. When automakers were on the brink of bankruptcy during the financial crisis of 2008-09, employees made significant pension concessions, including a shift toward defined contributions. Payne has said Unifor will be fighting to restore some of what was lost. 

Detroit Three workers' contracts, for Unifor in Canada and United Auto Workers south of the border, are set to expire days apart in September making it an interesting time for bargaining. 

Tuft said while Unifor and UAW are bargaining at the same time, both unions have separate goals for their workers.

He said the Canadian Auto Workers are looking to secure and expand investment, with a focus on the transition to electric vehicle-related production. 

"We've been focused in recent years on securing investment because the footprint in Canada was shrinking," he explained.  

He added that getting investments in electric vehicle manufacturing would secure jobs in Canada for years to come.

Daniel Ross, senior manager of automotive industry insights at Canadian Black Book, said the deal could be foundational for Canada's electric vehicle industry.

"(This) could make us a definitive new car production powerhouse for the next generation of vehicles," he said. "We need to have that foundation built down."

The U.S. auto counterparts are focused on securing higher cumulative wages, pushing for a 40 per cent hike, which Tuft says is an attempt to make up for the lost territory in wages over the years.

Members of the United Auto Workers union also handed down a strike mandate with 97 per cent of members in favour.

Tuft said the strong mandate for strikes on both sides of the border could possibly lead to a continental shutdown of the auto sector if Unifor and UAW go out days or weeks apart.

Unifor is expected to announce their target company after the Labour Day weekend. 

The union usually picks one automaker with which to concentrate bargaining. Whatever terms are agreed to with that target company general carry over to the other two.

Unifor will likely focus on Ford Motor Co. over General Motors or Stellantis as the lead automaker during this round of three-year contract talks, Unifor leader Lana Payne has said. Ford is most advanced and forthcoming on its electric vehicle transition plans and other negotiations, she said, but the union hasn't announced a final decision.

Tuft said if the unions on both sides pick the same auto company, despite having different priorities, they could have a greater affect bargaining.

A potential strike could add to the COVID-19-induced supply chain issues that the industry is still recovering from.

Ross said if the union and employers fail to come to agreeable terms, it would affect the production of new vehicles, further dampening the automotive industry. 

"As we know, the scenario is not perfect," he said. "This is just going to be an insult to injury."

 

Unifor targets Ford Motors as lead company in auto contract talks

Unifor has picked Ford Motor Co. as the lead company for negotiations with the Detroit Three automakers as it works to hammer out new contracts.

The bargaining with Ford will serve as a blueprint for workers at General Motors and Stellantis, the union's national president said Tuesday, as it focuses on securing electric vehicle production investments.

Lana Payne said she is encouraged by Ford's transparency with the union in key areas, but warned workers are prepared to strike if necessary.

"Ford Motor Company articulated to us its own vision and framework," she said during a press conference. 

"Although there are certain areas of disagreement, there were also areas of alignment and this is important."

Unifor members at Ford voted 98.9 per cent in favour of a strike if the bargaining committee fails to secure a new collective agreement.

Payne said the strike mandate puts the union in a good position.

"We're feeling strong, supported and ready to bargain," Payne said.

The union kicked off negotiations with the major auto companies earlier this month as the contract for 18,000 autoworkers at the Detroit Three is scheduled to expire on Sept. 18.

It will now pause its discussions with GM and Stellantis while it focuses on Ford.

"We will approach these talks with Ford to secure the best possible contract for our members. That is our goal," Payne told reporters and union leaders in Toronto. 

"The tentative settlement we present will be the one that our committee can stand behind, an agreement that our members can be proud of," she said. 

"And if that can't happen, then there will be no deal. And if anyone thinks that I'm bluffing right now, just follow what our union has been doing this past year, these past weeks."

Payne may have been alluding to ongoing action by Unifor members at 27 Toronto-area Metro grocery stores, who have been on strike since July 29. The union has said it wants a strong deal with Metro that it hopes to repeat in contracts with other grocers, a tactic borrowed from auto negotiations.

Steven Tufts, an associate professor at York University, said the strong strike mandate "turned up the heat in this round of bargaining."

Tufts said Unifor's choice to target Ford shows the strong push for more investments in the transition to electric vehicles. 

"If Unifor is serious about increasing the investment dollars, then what you're seeing is potential of some production shifting to Canada," he said.

Although, he said, the wage gains likely won't be as strong as what the U.S. auto union is pushing to get. 

In the U.S., members of the United Auto Workers are bargaining simultaneously for the first time in 25 years as their collective agreements expire days apart in September. The union south of the border voted in favour of a strike with 97 per cent mandate if the terms aren't met.

Tufts said the two unions could exert more pressure on the Detroit Three if they were to target the same company.

While UAW has not announced their pick, Tufts said they are likely to target Stellantis, which is more profitable than GM and Ford.

"If UAW targets Stellantis, they're going for huge wage gains," he said. The union in the U.S. is pushing for a cumulative wage increase of 40 per cent. 

"There was an opportunity, perhaps, to do some coordinated bargaining," he said. "That's not happening.

"The question then becomes, is it an opportunity lost?"

Payne said Unifor has maintained open communications with UAW but the priorities remain different.

"We are bargaining our own collective agreement here," she said. "We have our own strategy and we have our own members to deliver for and their expectations are high."

This report by The Canadian Press was first published Aug. 29, 2023.

Metro says tentative deal reached with striking grocery workers in Toronto

The Canadian Press

Metro Inc. says it has reached a tentative agreement with Unifor covering striking workers at 27 Metro grocery stores across the Greater Toronto Area.

Details of the tentative deal were not immediately available.

In a statement Wednesday, Metro called the agreement fair and equitable, adding that the deal was unanimously recommended by the union's bargaining committee and will put an end to the labour dispute if ratified.

The company said the agreement will be submitted to the employees for a ratification vote, which is expected to take place shortly. 

"This tentative agreement acknowledges the economic struggle that many of our members face,” Gord Currie, Unifor Local 414 president, said in a statement.

“I am very proud of these members and their determination.”

The employees went on strike on July 29 after rejecting an earlier tentative agreement that the union described as their best in decades. 

During the weeks-long dispute, Metro workers began secondary picket lines at two distribution centres, preventing stores from receiving fresh products, a move for which the grocer was granted a temporary injunction. 

Metro and Unifor went back to the bargaining table on Tuesday, a month after the strike began and the same day the injunction was granted. 

Since their last contract, the workers have endured a global pandemic, skyrocketing inflation and rising interest rates.

The Metro employees have been asking for higher wages as well as better working conditions and more full-time jobs. Some workers have said they struggle to afford groceries at their own stores.

The union had said workers want a bigger share of Metro’s profits, which have risen in the past couple of years, with some workers saying they want their pandemic "hero pay" — an extra $2 an hour — reinstated.

A recent study from the Competition Bureau found that the country’s three largest grocers, Metro included, collectively reported more than $100 billion in sales and $3.6 billion in profits last year.

This round of bargaining was the first for Unifor in a two-year stretch of negotiations for more than a dozen collective agreements with the major grocers. The union has said it hopes the Metro deal will help set a precedent for those upcoming talks.

This report by The Canadian Press was first published Aug. 30, 2023

UNIFOR Pres Lana Payne: 'New order' in labour market gives workers an edge

Daniel Johnson , BNN Bloomberg

As Unifor makes headlines over negotiations with automakers and grocer Metro Inc., the president of Canada’s largest private sector union says the country’s workers have a window opportunity to seek better working conditions. 

A tentative deal between Metro and Unifor suggested a possible breakthrough Wednesday in the month-long strike by employees in the Greater Toronto Area. A day earlier, Unifor said it selected Ford to serve as the lead company in negotiations with the Detroit Three automakers, which also include General Motors and Stellantis. 

Lana Payne, Unifor’s national president, said in a Tuesday interview with BNN Bloomberg that there is always a sense of urgency in labour relations – but Canada’s current demographic structure gives workers extra leverage.

“If you look at our demographics, we are going to have a tighter labour market for a long period of time,” Payne said.

“There is a new order to these things right now and corporations in Canada need to make sure that they are paying workers well and have good quality jobs in order to attract and keep people.”

AUTOMAKER TALKS

Payne said the union has four key priorities in its contract talks with Ford – which will serve as a blueprint for negotiations with the other two big auto companies.

Those priorities include pension improvements, wages, implications of the electric vehicle (EV) transition and attracting more investment into Canada’s automotive industry. 

“Our members have not seen a pension improvement since 2007, just prior to the great financial crisis of 2008 to 2009, so we have some ground to make up there,” she said. 

“Wages (are) critically important, as they are at every bargaining table right now, given the state of the cost of living. But also (there is) this whole issue of what happens in the (EV) transition.” 

Payne said that the union made “good progress” in negotiations with Ford last week and has made “some progress” with other automakers. She said Ford has been transparent with Unifor about its plans for Canada and its timeline for its EV transition. 

“This was a very good foundation for us to work from,” Payne said. 

On the transition to EVs now playing out in the automotive industry, she said the union has been informing automakers that “this transition does not work without our members.” 

“There's billions and billions of dollars riding on this transition,” she said. “Our members are geared up to be able to make it successful.”

GROCERY WORKERS

Metro said it had reached a tentative agreement with Unifor on Wednesday. While workers still need to ratify the deal, the development could mark the end of a strike across 27 Metro grocery stores in the Greater Toronto Area that began in late July.

Workers had also started picket lines at Metro distribution centres to prevent stores from receiving deliveries – a move that saw Metro receive a temporary injunction on Tuesday before the two sides returned to the bargaining table. 

While details of the deal weren’t immediately available, Unifor Local 414 president Gord Currie said the tentative agreement “acknowledges the economic struggle that many of our members face.”

Striking Metro workers told the Canadian Press earlier in the labour action that they could not afford to buy food from the grocery stores where they worked.

Before Wednesday’s developments, Payne argued that grocery companies have posted good profits and their CEOs are highly paid, so the grocery chains’ workers should be paid enough to get by, too.

“For grocery store companies, they've been doing very well through the pandemic, and post-pandemic, their profits have increased every quarter,” she said. 

“They have plans, they have money and what we're saying is, we have members who also have needs. They have to live in this very expensive city.” 

With files from the Canadian Press. 

 

Black Montreal family removed from Air Canada flight alleges racial profiling

Sidhartha Banerjee, The Canadian Press

Keith Wright, second left, is flanked by his daughters Kelsey Smith-Wright, left, and Jodi Smith-Wright, and CRARR executive director Fo Niemi, right, at a press conference in Montreal, Tuesday, Aug. 29, 2023. The family has filed a complaint to the Canadian Human Rights Commission for racial profiling against Air Canada after the airline forced nine members of their family off a flight to Orlando on July 28, 2023. (THE CANADIAN PRESS/Christinne Muschi)

A Black Montreal family alleges they were victims of racial profiling by Air Canada when they were removed from a Florida-bound flight last month after raising concerns their bags hadn't been loaded on the plane.

Members of the Wright family called for accountability on Tuesday as they told a news conference their version of how things unfolded on July 28 at Montréal-Trudeau International Airport.

Keith Wright said his daughter raised concerns to a flight attendant that the family's bags were still visible on the rain-soaked tarmac. The 7:30 p.m. flight had been delayed due to inclement weather, and the pilot had announced that some luggage would be left behind because the plane was over its weight limit.

After the Wright family spoke out, the plane returned to the gate and staff said they would find a remedy.

Wright, 55, said a white passenger who had complained about the delay and demanded to leave was asked to disembark with his young son. But to Wright's surprise, he and his daughter were also asked to leave the plane and were allegedly not told why. 

His daughter, Jodi Smith-Wright, 31, insisted that neither she nor her father raised their voices, swore or were otherwise impolite.

"I couldn't believe that asking a question could lead to what happened to us and I do believe it was (racial profiling) because there were other people that were definitely concerned about their things when they overheard my complaint and nobody else was asked to get off the plane," she said.

Her father said being escorted from the rear of the craft created a deep embarrassment. "Completely, deeply hurt as a human being that this was happening to me."

Seven other members of the family — ranging in age from five to 60 — were also removed from the flight. Wright said another Black family was also asked to leave the plane but was finally allowed to stay when they said they weren't travelling with the Wrights.

Wright said that after his family left the plane they were met by six officers, including Canada Border Services Agency agents and Montreal police.

"I couldn't believe what was happening here just for asking for the service that Air Canada says they provide," Wright said.

The family had to scramble to find an alternate flight for nine people after an Air Canada official said they would be banned from flying with the carrier for 24 hours. They ended up with a sleepless night driving three personal vehicles to Syracuse, N.Y., to catch a last-minute morning flight, almost missing their cruise, which itself cost nearly $12,000. 

"By the grace of God, we were able to make the cruise with 20 minutes to spare," Wright said.

Before getting on a return Air Canada flight after the cruise, he said he had to speak with an airline agent. "They were asking me if I was going be quiet, and I had to tell the person, 'Yes, I'm going to be in compliance,' like if I had committed some sort of major crime," Wright said.

The family said Tuesday it intends to file racial profiling complaints with the Canadian Human Rights Commission, assisted by the Montreal-based Centre for Research-Action on Race Relations.

In an emailed statement, Air Canada confirmed that a group of passengers were deplaned following "an incident on board the aircraft."

Christophe Hennebelle, vice-president for corporate communications, said the airline would not discuss what led to the decision, adding that the carrier deals with customers directly.

"However, these actions were taken only for the safety and well-being of our other customers and crew," Hennebelle wrote. "Should a complaint on this matter be filed with the competent authorities, we will take the opportunity at that time to explain our decision."

Fo Niemi, executive director of CRAAR, said each family member could seek up to $10,000 and that the commission's investigation will shed light on the alleged safety concern.

"We hope that this incident will compel not only Air Canada, but the airline industry, to come up with clear policy against racial profiling in commercial air travel," Niemi said.

This report by The Canadian Press was first published Aug. 29, 2023.

Non-permanent residents in Canada undercounted by one million: CIBC

The Canadian Press

A new CIBC Capital Markets report says the official number of non-permanent residents in Canada often cited by policymakers could be vastly underestimated.

The report says the actual number could be off by one million, meaning any policies around housing or those aimed at capping the number of non-permanent residents might be more urgent than previously thought.

Benjamin Tal, deputy chief economist at CIBC, says the significant gap is in part because the federal government does not have a system to track people with expired visas who continue to stay in the country.

While forecasting is difficult, population estimates are crucial because cities and provinces use them to inform their budgets and plan future housing and infrastructure projects. 

Canada's population hit a milestone of 40 million earlier this year. 

With the underestimation of non-permanent residents, the report says from a housing perspective, it's the equivalent of more than two years of building capacity. 

This report by The Canadian Press was first published Aug. 30, 2023.