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.
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.
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