The B.C. port strike, which entered its fourth day on Tuesday, is already having ripple effects across the economy, with trucking companies grounded and fears that consumer prices will soar as supplies dwindle.
Economy
B.C. port workers strike will have ripple effects across the economy
Groups representing Canadian businesses want the federal government to intervene in the strike
More than 7,400 members of the International Longshore and Warehouse Union Canada, who load and unload cargo at more than 30 B.C. ports, have been on strike since Saturday. Talks between the union and the B.C. Maritime Employers Association have stalled.
Ports in Metro Vancouver and Prince Rupert are “critical infrastructure” that handle a quarter of Canada’s international trade, said UBC Sauder School of Business prof. Werner Antweiler.
Businesses that rely on products shipped from Asia, for example, will quickly run out of inventory, forcing them to reroute products from ports in Seattle or other suppliers, Antweiler said. That will make the product more expensive and the cost will be passed to the consumer, he said.
Sandhar said someone recently asked him what is in the shipping containers.
His reply: “Everything. Wherever you’re sitting right now, look around you. Your sofas are in the containers, the tables are in there, your rugs are in there. Your produce is in there. Your seafood, and all types of food and beverages, electronics appliances,” he said. “It’s a huge impact and some people don’t fully recognize how much of an impact (the strike) has on raising the cost of these goods.”
Groups representing Canadian businesses want the federal government to intervene in the strike, with one organization calling for legal changes that would discourage future disruptions.
Canadian Manufacturers and Exporters says designating ports and rail lines as essential infrastructure, and limiting when and where labour and other disruptions can occur, would provide manufacturers the stability they need.
The group, which says its members account for about 82 per cent of total manufacturing production and 90 per cent of Canada’s exports, estimates that $500 million worth of goods is being disrupted every day.
In 2021, the federal government passed back-to-work legislation that forced the Port of Montreal’s 1,150 dock workers to end their strike at one of Canada’s busiest ports.
Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade, said in a statement “a labour disruption at west coast ports will fuel inflation and damage already-fragile supply chains that were impacted by the COVID-19 pandemic, heat domes, and catastrophic flooding in recent years.”
B.C. ports move $800 million worth of cargo every day, Anderson said, and those goods are vital for manufacturing, retail, agriculture, automotive, and energy industries across Canada.
Anderson urged the federal government to work with the union and employers “to reach a fair and expedient resolution to ensure Canadians have access to essential goods and protect Canada’s reputation as a reliable trading partner.”
The Mining Association of Canada on Tuesday expressed “serious concern” about the “damaging effects” the port strike could have on the mining industry and the broader Canadian economy.
The mining sector is a major user of Canada’s ports and is the largest single shipping sector by volume by both rail and marine modes, according to the association. The majority of the mining products are shipped to international customers, accounting for 22 per cent — or $127 billion — of the total value of Canada’s exports in 2021.
Representatives for the B.C. Maritime Employers Association and the International Longshore and Warehouse Union Canada negotiated over the long weekend, before the association issued a statement saying it didn’t think more bargaining would produce a deal.
The association said Tuesday that negotiations were “paused, pending further discussion with the federal mediators.”
The union has meanwhile accused the association of changing its position on a key issue at the last minute to “muddy the waters.”
Federal Labour Minister Seamus O’Regan said in a tweet that federal mediators “continue to support” both sides in the negotiations.
“We encourage both parties to immediately return to the bargaining table and remain there until a deal is reached,” he said. “Collective bargaining is hard work, but it’s how the best, most resilient deals are made.”
— with files from Canadian Press
Continue Reading
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.
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.
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.
Health2 hours ago
Polio is rising in Pakistan ahead of a new vaccination campaign
Health2 hours ago
White House says health insurance needs to fully cover condoms, other over-the-counter birth control
Sports2 hours ago
Forward Jade Kovacevic is the first player signing announced by Northern Super League
Investment5 years ago
dynaCERT Inc. Invites You to Join Us at the Vancouver Resource Investment Conference | INN – Investing News Network
Sports5 years ago
AP source: Bears acquiring quarterback Nick Foles from Jaguars – Sportsnet.ca
Media1 year ago
12 Bizarre Things People Did Just To Make Social Media Content
-
News17 hours agoCalmer weather helps contain Oakland, California, fire that forced evacuations
-
News17 hours agoIsrael says it will target Hezbollah’s financial arm and begins striking Beirut
-
News23 hours agoBC NDP, Conservatives in tight fight to the finish, with no clear winner in B.C. election |
-
News2 hours agoHarris raises $633 million in the third quarter but spends heavily in final push
-
Health2 hours agoWhite House says health insurance needs to fully cover condoms, other over-the-counter birth control
-
Politics23 hours agoHarris tells Black churchgoers that people must show compassion and respect in their lives
-
Sports2 hours agoForward Jade Kovacevic is the first player signing announced by Northern Super League
-
News17 hours agoIn one portrait, an AP Photographer tells the story of how difficult the job of a miner is
