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Shipbuilding delays force Ottawa to spend $187M to extend lease on navy supply ship

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Ottawa is forking over another $187 million to add two years to its lease of a converted civilian ship the navy has been using as a temporary supply vessel while it waits for permanent replacements to finally arrive.

The federal government announced the amended deal with Quebec-based Chantier Davie shipbuilding on Friday, months after revealing the navy will have to wait an extra two years for the delivery of new support ships.

Officials said in June that the first of two new support ships being built by Seaspan Shipyards in Vancouver will not be delivered until at least 2025 — two years later than the most recent estimate, and six years later than originally anticipated.

Canada has been without a permanent supply ship since 2015, when the navy was forced to retire its existing two vessels earlier than expected after one caught on fire while at sea and excessive corrosion was discovered on the other.

The government initially relied on allies to fill the gap before agreeing to lease a converted civilian container ship from Davie named MV Asterix.

The initial five-year lease agreement between Ottawa and Davie for the Asterix was launched in January 2018 and valued at $620 million, before the government added another $70 million in 2020 because it was being used more than expected.

The new deal will see the government pick up two of five one-year options that were included in the original contract.

Documents obtained by The Canadian Press in 2020 showed the navy expects to continue relying on the Asterix and allies to help resupply Canada’s fleets at sea even after the two joint support ships are built.

Canada originally planned to buy three new navy support ships when it launched the project more than a decade ago, but cost overruns saw the order cut down to two.

Navy officials continued to indicate that two support ships were not enough to meet the maritime force’s long-term needs, as the government’s policy requires the military be able to operate two fleets at sea at the same time.

The fear is that the navy will be hamstrung whenever one of the two so-called joint support ships is out of commission, either for repairs or for some other reason.

Parliamentary budget officer Yves Giroux estimated in November 2020 that the price of buying MV Asterix and another converted container ship from Chantier Davie would be around $1.4 billion.

That compares to around $4.1 billion to build two brand-new joint support ships.

But when asked in June whether the government was looking to purchase the Asterix outright from Davie, senior officials said no, in part because it is not designed for high-threat environments.

The initial deal between Davie and the government was at the heart of the failed prosecution of retired vice-admiral Mark Norman.

The military’s former second-in-command was accused of leaking cabinet secrets about the leasing agreement with Davie, but the breach-of-trust charge against him was stayed in 2019 when Crown prosecutors concluded that they had no reasonable chance of securing a conviction.

The Crown also dropped its related case in June against a federal public servant, Matthew Matchett.

Both men had maintained their innocence.

This report by The Canadian Press was first published Aug. 26, 2022.

 

Lee Berthiaume, The Canadian Press

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Canada’s Denis Shapovalov wins Belgrade Open for his second ATP Tour title

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BELGRADE, Serbia – Canada’s Denis Shapovalov is back in the winner’s circle.

The 25-year-old Shapovalov beat Serbia’s Hamad Medjedovic 6-4, 6-4 in the Belgrade Open final on Saturday.

It’s Shapovalov’s second ATP Tour title after winning the Stockholm Open in 2019. He is the first Canadian to win an ATP Tour-level title this season.

His last appearance in a tournament final was in Vienna in 2022.

Shapovalov missed the second half of last season due to injury and spent most of this year regaining his best level of play.

He came through qualifying in Belgrade and dropped just one set on his way to winning the trophy.

Shapovalov’s best results this season were at ATP 500 events in Washington and Basel, where he reached the quarterfinals.

Medjedovic was playing in his first-ever ATP Tour final.

The 21-year-old, who won the Next Gen ATP Finals presented by PIF title last year, ends 2024 holding a 9-8 tour-level record on the season.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



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Talks to resume in B.C. port dispute in bid to end multi-day lockout

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VANCOUVER – Contract negotiations resume today in Vancouver in a labour dispute that has paralyzed container cargo shipping at British Columbia’s ports since Monday.

The BC Maritime Employers Association and International Longshore and Warehouse Union Local 514 are scheduled to meet for the next three days in mediated talks to try to break a deadlock in negotiations.

The union, which represents more than 700 longshore supervisors at ports, including Vancouver, Prince Rupert and Nanaimo, has been without a contract since March last year.

The latest talks come after employers locked out workers in response to what it said was “strike activity” by union members.

The start of the lockout was then followed by several days of no engagement between the two parties, prompting federal Labour Minister Steven MacKinnon to speak with leaders on both sides, asking them to restart talks.

MacKinnon had said that the talks were “progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved” — a sentiment echoed by several business groups across Canada.

In a joint letter, more than 100 organizations, including the Canadian Chamber of Commerce, Business Council of Canada and associations representing industries from automotive and fertilizer to retail and mining, urged the government to do whatever it takes to end the work stoppage.

“While we acknowledge efforts to continue with mediation, parties have not been able to come to a negotiated agreement,” the letter says. “So, the federal government must take decisive action, using every tool at its disposal to resolve this dispute and limit the damage caused by this disruption.

“We simply cannot afford to once again put Canadian businesses at risk, which in turn puts Canadian livelihoods at risk.”

In the meantime, the union says it has filed a complaint to the Canada Industrial Relations Board against the employers, alleging the association threatened to pull existing conditions out of the last contract in direct contact with its members.

“The BCMEA is trying to undermine the union by attempting to turn members against its democratically elected leadership and bargaining committee — despite the fact that the BCMEA knows full well we received a 96 per cent mandate to take job action if needed,” union president Frank Morena said in a statement.

The employers have responded by calling the complaint “another meritless claim,” adding the final offer to the union that includes a 19.2 per cent wage increase over a four-year term remains on the table.

“The final offer has been on the table for over a week and represents a fair and balanced proposal for employees, and if accepted would end this dispute,” the employers’ statement says. “The offer does not require any concessions from the union.”

The union says the offer does not address the key issue of staffing requirement at the terminals as the port introduces more automation to cargo loading and unloading, which could potentially require fewer workers to operate than older systems.

The Port of Vancouver is the largest in Canada and has seen a number of labour disruptions, including two instances involving the rail and grain storage sectors earlier this year.

A 13-day strike by another group of workers at the port last year resulted in the disruption of a significant amount of shipping and trade.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



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The Royal Canadian Legion turns to Amazon for annual poppy campaign boost

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The Royal Canadian Legion says a new partnership with e-commerce giant Amazon is helping boost its veterans’ fund, and will hopefully expand its donor base in the digital world.

Since the Oct. 25 launch of its Amazon.ca storefront, the legion says it has received nearly 10,000 orders for poppies.

Online shoppers can order lapel poppies on Amazon in exchange for donations or buy items such as “We Remember” lawn signs, Remembrance Day pins and other accessories, with all proceeds going to the legion’s Poppy Trust Fund for Canadian veterans and their families.

Nujma Bond, the legion’s national spokesperson, said the organization sees this move as keeping up with modern purchasing habits.

“As the world around us evolves we have been looking at different ways to distribute poppies and to make it easier for people to access them,” she said in an interview.

“This is definitely a way to reach a wider number of Canadians of all ages. And certainly younger Canadians are much more active on the web, on social media in general, so we’re also engaging in that way.”

Al Plume, a member of a legion branch in Trenton, Ont., said the online store can also help with outreach to veterans who are far from home.

“For veterans that are overseas and are away, (or) can’t get to a store they can order them online, it’s Amazon.” Plume said.

Plume spent 35 years in the military with the Royal Engineers, and retired eight years ago. He said making sure veterans are looked after is his passion.

“I’ve seen the struggles that our veterans have had with Veterans Affairs … and that’s why I got involved, with making sure that the people get to them and help the veterans with their paperwork.”

But the message about the Amazon storefront didn’t appear to reach all of the legion’s locations, with volunteers at Branch 179 on Vancouver’s Commercial Drive saying they hadn’t heard about the online push.

Holly Paddon, the branch’s poppy campaign co-ordinator and bartender, said the Amazon partnership never came up in meetings with other legion volunteers and officials.

“I work at the legion, I work with the Vancouver poppy office and I go to the meetings for the Vancouver poppy campaign — which includes all the legions in Vancouver — and not once has this been mentioned,” she said.

Paddon said the initiative is a great idea, but she would like to have known more about it.

The legion also sells a larger collection of items at poppystore.ca.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



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