Blockades set up by anti-pipeline protesters have forced Canadian National Railway Co. to shut down its entire network in Eastern Canada and Via Rail to cancel passenger service across the country.
CN said Thursday that the company must initiate a “disciplined and progressive” shutdown in the East and stop and safely secure all transcontinental trains across its Canadian network.
Via Rail said it has no other option but to cancel all service on CN track in Canada. There were no more departures as of 4 p.m. eastern and all trains en route were brought to the closest major train station.
“We understand the impact this unfortunate situation has on our passengers and regret the significant inconvenience this is causing to their travel plans,” Via said in a news release.
Protesters across Canada say they’re acting in solidarity with those opposed to the construction of the Coastal GasLink pipeline, which would cross the traditional territories of the Wet’suwet’en First Nation in northern B.C.
CN said its shutdown may lead to temporary layoffs for eastern Canadian staff.
It has sought and obtained court orders and requested the assistance of enforcement agencies for blockades in three provinces, but while blockades have been dismantled in Manitoba and may be ending imminently in B.C., a court order in Ontario has yet to be enforced.
More than 400 trains have been cancelled over the last week, said JJ Ruest, CN’s president and chief executive officer, in a news release.
“This situation is regrettable for its impact on the economy and on our railroaders as these protests are unrelated to CN’s activities, and beyond our control. Our shutdown will be progressive and methodical to ensure that we are well set up for recovery, which will come when the illegal blockades end completely.”
He said while Via service will be discontinued across CN’s network, commuter rail services such as Metrolinx and Exo can keep operating as long as they do so safely.
Railway shippers called on the prime minister to “act decisively” to prevent a complete shutdown of Canada’s rail system.
Delays caused by the blockades will have immediate, unintended consequences for farmers across the country, said Grain Growers of Canada chairman Jeff Nielsen.
“We are an industry that relies on export markets in order to survive and thrive. Without access to these markets via rail, we risk compounding further losses on top of what has already been a harvest from hell,” he said in a news release.
Canada’s forest products sector is responsible for 10 per cent of total tonnage moved along the country’s railway lines.
“Some companies are now in a position that they can’t guarantee delivery dates to customers – a massive business risk and a dark cloud over Canada’s reputation as a reliable trading partner,” said Derek Nighbor, president and CEO of Forest Products Association of Canada.
Teamsters Canada, the country’s largest union in the transportation sector, also called on the federal government to intervene.
“Hundreds of our members have been out of work close to week. Now up to 6,000 of our members risk not being able to support their families or make ends meet this month, and they are powerless to do anything about it,” said National President Francois Laporte.
Transport Minister Marc Garneau did not immediately respond to requests for comment.
The B.C. and Alberta chambers of commerce, Canadian Manufacturers and Exporters and Fertilizer Canada also said the blockades are devastating the economy.
The blockades began last week after RCMP enforced an injunction against Wet’suwet’en hereditary chiefs and their supporters, who were blocking construction of the Coastal GasLink pipeline, a key part of the $40-billion LNG Canada export project.
Coastal GasLink has signed agreements with all 20 elected band councils along the pipeline route. However, Wet’suwet’en hereditary chiefs assert title to a vast 22,000-square-kilometre area and say band councils only have authority over reserve lands.
Passengers dealing with cancelled Via Rail trains at Toronto’s Union Station were disappointed but calm on Thursday evening. Ethan Sun and Angi Xhang, a Toronto-based couple, were headed to Montreal for a Valentine’s Day getaway. That route has been down for days, unbeknownst to them.
“We’re obviously very frustrated and disappointed, because we have our entire trip planned and we’re very excited for it, and it’s a long weekend,” said Xhang.
The federal and provincial governments worked Thursday to set up meetings with Indigenous leaders in an effort to halt the blockades.
B.C. Indigenous Relations Minister Scott Fraser and Crown-Indigenous Relations Minister Carolyn Bennett are set to meet with Gitxsan and Wet’suwet’en hereditary chiefs to discuss a blockade near New Hazelton, B.C.
Gitxsan hereditary chief Norm Stephens said the blockade will be dismantled during the talks but if the province doesn’t agree to cancel Coastal GasLink’s permit then it may go back up.
“They got that permit by consulting with the band council. They have no authority on the hereditary chiefs’ land,” he said.
Marc Miller, the federal Indigenous services minister, sent a letter to three Indigenous leaders requesting a meeting to halt a blockade near Belleville, Ont.
“As you well know, this is a highly volatile situation and the safety of all involved is of the utmost importance to me,” Miller said.
Tyendinaga Mohawk Chief Donald Maracle, one of the three recipients, said he expects the meeting will proceed but he can’t comment on the blockade because it wasn’t initiated by his council.
In Manitoba, protesters dismantled a blockade on an east-west CN Rail line near Winnipeg due to a court injunction but insisted that there would be more action to come.
Protesters in B.C. planned mass demonstrations at numerous government buildings on Friday, days after hundreds blocked the entrances to the B.C. legislature and chanted “Shame.”
However, a B.C. Supreme Court judge granted the province an injunction on Thursday afternoon authorizing police to arrest and remove anyone blocking entrances at the legislature.
TransLink, Metro Vancouver’s transit authority, also said all West Coast Express commuter trains heading eastbound from downtown Vancouver to Mission were cancelled due to protesters blocking Canadian Pacific tracks.
– With files from Chris Purdy in Edmonton, Ross Marowits in Montreal, Nicole Thompson in Toronto, David Reevely in Ottawa, Camille Bains in Vancouver and Dirk Meissner in Victoria.
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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
