Striking International Longshore and Warehouse Union Canada workers march to a rally as gantry cranes used to load and unload cargo containers from ships sit idle at port, in Vancouver, on July 6.DARRYL DYCK/The Canadian Press
The threat of automation looms over B.C. port workers on strike as the union and employers clash over how much money to set aside in a retirement fund designed to compensate employees for modernization and mechanization.
Known as M&M payments, the fund earmarked for union members has grown over the years to the current lump-sum payout of $81,250, allowing a worker with at least 25 years of service to receive the payment within 30 days of retirement, according to two sources familiar with the situation.
What the union calls a “retiring allowance” is over and above benefits and pension. In the past, the payment has been a crucial part of keeping labour peace on the waterfront, with employers seeking to address concerns about job security amid waves of technological change over the decades.
The Globe and Mail is not identifying the sources because they were not authorized to speak publicly on the matter.
About 7,400 members of the International Longshore & Warehouse Union Canada (ILWU) went on strike on Canada Day at the Port of Vancouver and smaller regions, affecting at least 30 terminals across British Columbia. Contract talks stalled on Tuesday.
The ILWU is seeking to increase the retirement payout to $91,250 in its two-year proposal, with $5,000 extra in the first year and another $5,000 in the second year.
The B.C. Maritime Employers Association agrees with $5,000 extra in the first year, but is proposing an increase of $2,500 in each of the following three years to raise the total to $93,750 at the end of its four-year proposal.
In April, the federal government approved the Vancouver Fraser Port Authority’s proposed $3.5-billion Roberts Bank Terminal 2 project, or RBT2, to be located near the Vancouver suburb of Delta.
The ILWU and environmental groups oppose the plans to build the terminal, which would be semi-automated. The union has warned that RBT2 could produce a ripple effect at existing operations, with semi-automated sites operating with 50 per cent fewer employees.
A wide range of terminals at the Port of Vancouver alone handled an average of $835-million a day of cargo last year.
To be eligible for the retirement payment, ILWU members need at least 15 years of service, including five consecutive years prior to applying for retirement. Payments vary, depending on credited service. For example, a worker with 24 years of service would have been eligible to receive $73,864 under the previous contract that expired on March 31.
In the 1960s, forklifts were the norm, but even back then, workers and employers recognized the potential adverse effects of modernization and mechanization on how many unionized members would be needed to load and unload cargo.
Today, after reusable steel containers steadily gained popularity over the decades, it’s standard practice for ship-to-shore cranes to place one container after another onto a steady stream of rugged trucks with trailers, as drivers shuttle the steel boxes within sprawling terminals.
ILWU president Rob Ashton accused employers of engaging in a “smear campaign” with “dirty tricks” designed to discredit port workers.
“The reality is, our people do hard work under difficult, often dangerous conditions, and they kept Canada’s economy moving through the worst of the pandemic,” Mr. Ashton said in a statement. “That’s a long ways from the picture the employer wants to paint. It can be a good living, but it takes years of sacrifice to get there, and it’s still hard work.”
A coalition of business groups including the Canadian Chamber of Commerce, Greater Vancouver Board of Trade, B.C. Council of Forest Industries and Canadian Manufacturers & Exporters has been urging the federal Liberal government to recall Parliament to introduce back-to-work legislation. But Labour Minister Seamus O’Regan has consistently said the focus must be on finding a resolution at the bargaining table.
About 6,000 of the ILWU’s members are in the Vancouver region, 1,000 in the Prince Rupert area in northern B.C. and the rest on Vancouver Island. The union has listed three main concerns at the bargaining table: automation, contracting out and cost-of-living wage increases.
The ILWU has sought a wage raise of 11 per cent in the first year and 6 per cent in the second year, as well as an $8,000 signing bonus as an “inflation adjustment allowance,” according to the two sources familiar with the situation. The union’s proposed two-year deal would result in a hike to the general base rate, which is $48.23 an hour for the day shift.
The BCMEA is proposing a four-year pact, including wage increases of 5 per cent in the first year, 3.5 per cent in the second year, 3 per cent in the third year and 2.5 per cent in the fourth year.
In a statement, the ILWU said it’s time for employers to share some of their wealth. “A waterfront worker spends many years waiting on call to get one-off shifts at very short notice,” the ILWU said. “Their income is sporadic, and the unpredictability of shifts makes it hard to supplement it with other jobs. Turnover is high in this period, as many workers can’t stick it out.”
The BCMEA has cited a median annual income of $136,000, plus benefits and pension, for longshore workers last year.
Union officials have pointed out that port, terminal and shipping executives earn much more money than the rank and file.
Soren Skou, who headed international shipper Maersk until the end of last year, had compensation equivalent to $8.5-million in 2022.
Robin Silvester stepped down on June 30 as president and chief executive officer of the Vancouver Fraser Port Authority after more than 14 years at the helm. Mr. Silvester had $1.68-million in compensation last year.
Victor Pang, the port authority’s chief financial officer, took on the role of interim president and CEO on June 30. Mr. Pang collected $851,000 in his pay packet last year.
Judy Rogers stepped down as the port authority’s chair on July 1 after five years. Catherine McLay has replaced Ms. Rogers, who received $180,000 in pay last year.
The port authority reports to federal Transport Minister Omar Alghabra.
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.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
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