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CN railway blockades would have a huge impact on Manitoba economy

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Ongoing protests in support of pipeline opposition on a northern British Columbia First Nation could start to have a significant impact on the pocketbooks of Manitobans, .according to one expert.

Dozens of rail line blockades across Canada have effectively shuttered Canadian National Railway service, stranding passengers and freight, which are causing a real-life train-wreck effect, and every waiting day is costing Manitoba farmers money, says University of Manitoba economics professor Fletcher Baragar.

As a new growing season is set to begin, producers are looking to empty elevators and silos, but there is nowhere for the grain to go.

“There’s ships waiting [to pick up grain] in harbours, and every day they’re waiting, it’s going to cost suppliers money and that’s going to feed back to farmers,” Baragar explains.

It’s another tough blow for an industry that was already affected this season by the CN strike, but it’s hardly the only one.

 

Baragar adds the construction industry is another large sector that could face a slowdown if the protests continue.

“We need wood and steel girders, which are brought in by rail. If this continues any longer, existing stocks will be depleted and we could see some significant spinoffs.”

Those spinoffs could mean the loss of jobs due to a drop in production, either permanently or in the form of temporary layoffs.

The union representing CN’s 16,000 employees, Teamsters Canada, said on Friday up to 6,000 could face layoffs.

Baragar says many people are calling on Manitoba’s huge trucking industry to pick up the slack, but they work together as much as they compete against each other.

“On a per-capita basis, we’re a leading province in terms of trucking activity, but that’s dependent on the rails bringing in the containers and bringing out the old ones,” he says.

“They (rails) are the arteries the economy relies heavily on, considering the vast geographic distances in Canada, as well as how most goods in the country lend themselves to container transport. Then they’re loaded on to trucks and distributed regionally.”

A meeting between Indigenous protesters and the federal Indigenous Services minister was scheduled Saturday to seek a solution to the blockades.

Members of the Mohawk First Nation agreed to meet Marc Miller at the CN rail crossing near Belleville, Ont., which has been blocked for days.

Speaking to media on Saturday, Miller said the situation is “very tense” and “very volatile,” but that the meeting offered a chance to have a “real discussion.”

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Minimum wage to hire higher-paid temporary foreign workers set to increase

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OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.

Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.

The change is scheduled to come into force on Nov. 8.

As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.

The program has also come under fire for allegations of mistreatment of workers.

A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.

In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.

The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.

Temporary foreign workers in the agriculture sector are not affected by past rule changes.

This report by The Canadian Press was first published Oct. 21, 2024.

— With files from Nojoud Al Mallees

The Canadian Press. All rights reserved.

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Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

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OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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Economy

Statistics Canada says levels of food insecurity rose in 2022

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OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

The Canadian Press. All rights reserved.

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