U.S. President tells striking workers to ‘stick with it,’ signals support for 40 per cent raise
U.S. President Joe Biden greets striking United Auto Workers on the picket line, in Van Buren Township, Mich., on Tuesday. Labour historians say they cannot recall an instance when a sitting U.S. president has joined an ongoing strike. (Evan Vucci/The Associated Press)
U.S. President Joe Biden joined United Auto Workers strikers on their picket line Tuesday as their work stoppage against major automakers hit day 12, a demonstration of support for organized labour apparently unparalleled in presidential history.
“You deserve the significant raise you need,” Biden said through a bullhorn while wearing a union baseball cap after arriving at a General Motors parts distribution warehouse located in a suburb west of Detroit.
He walked along the picket line, exchanging fist bumps with grinning workers.
He encouraged them to continue fighting for better wages despite concerns that a prolonged strike could damage the economy, saying “stick with it.”
He said “yes” when asked if UAW members deserved a 40 per cent raise, one of the demands that the union has made.
“No deal, no wheels!” workers chanted as Biden arrived. “No pay, no parts!”
Biden says striking autoworkers deserve a ‘significant’ raise
U.S. President Joe Biden visited the United Auto Workers picket line in Detroit on Tuesday, saying the workers deserve a significant raise after sacrifices made during the 2008 financial crisis. Auto companies are doing ‘incredibly well,’ Biden said, ‘and you should be doing incredibly well, too.’
Biden was joined by UAW President Shawn Fain, who rode with him in the presidential limousine to the picket line.
“Thank you, Mr. President, for coming to stand up with us in our generation-defining moment,” said Fain, who described the union as engaged in a “kind of war” against “corporate greed.”
“We do the heavy lifting. We do the real work,” Fein said. “Not the CEOs.”
Unprecedented presidential support
Labour historians say they cannot recall an instance when a sitting president has joined an ongoing strike, even during the tenures of the more ardent pro-union presidents such as Franklin Delano Roosevelt and Harry Truman.
Theodore Roosevelt invited labour leaders alongside mine operators to the White House amid a historic coal strike in 1902, a decision that was seen at the time as a rare embrace of unions as Roosevelt tried to resolve the dispute.
Biden arrived one day before former president Donald Trump, the front-runner for the 2024 Republican nomination, goes to Detroit to hold his own event in an attempt to woo auto workers even though union leaders say he’s no ally.
Lawmakers often appear at strikes to show solidarity with unions, and Biden joined picket lines with casino workers in Las Vegas and auto workers in Kansas City while seeking the 2020 Democratic presidential nomination.
Joe Biden, then a U.S. presidential candidate, gives a thumbs-up on a picket line with culinary workers in Las Vegas on Feb. 19, 2020. His visit to Michigan on Tuesday is thought to be the first by a sitting president to a picket line. (Patrick Semansky/The Associated Press)
But sitting presidents, who have to balance the rights of workers with disruptions to the economy, supply chains and other facets of everyday life, have long wanted to stay out of the strike fray — until Biden.
“This is absolutely unprecedented. No president has ever walked a picket line before,” said Erik Loomis, a professor at the University of Rhode Island and an expert on U.S. labour history.
He says presidents have historically “avoided direct participation in strikes. They saw themselves more as mediators. They did not see it as their place to directly intervene in a strike or in labour action.”
Time to pay back workers, Biden says
Biden has previously vocalized support for unionization efforts at Amazon facilities and in 2021 passed an executive order that promoted worker organizing.
Biden is also leaning in on his union support at a time when labour enjoys broad support from the public, with 67 per cent of Americans approving of labour unions in an August Gallup poll.
But private sector union membership rates have plummeted since the 1980s because of deregulation and anti-union legislation at the federal and state level — just six per cent of U.S. workers belong to a private sector union, compared to 33 per cent of public sector workers.
‘Tremendous strain’ on automotive parts suppliers as UAW strike continues
Supply chain expert and Gravitas Detroit founder Jan Griffiths tells the CBC’s Chris Ensing some automotive suppliers are in a tough position with ongoing strike action in the United States, a tight labour market, and thin cash reserves. Griffiths, who was a global lead at a tier one supplier for decades, said open communication between suppliers could help companies survive.
During the ongoing UAW strike, Biden has argued that the auto companies have not yet gone far enough to satisfy the union, although White House officials have repeatedly declined to say whether the president endorses specific UAW demands such as a 40 per cent hike in wages and full-time pay for a 32-hour work week.
“I think the UAW gave up an incredible amount back when the automobile industry was going under. They gave everything from their pensions on, and they saved the automobile industry,” Biden said Monday from the White House. He said workers should benefit “now that the industry is roaring back.”
White House officials dismissed the notion that Trump’s visit, announced earlier, forced their hand. They noted that Biden was headed to Michigan at the request of UAW president Shawn Fain, who last week invited the president.
EV transition concerns
The UAW strike, which expanded into 20 states last week, is not without challenges for a Biden administration that has pushed for domestic clean energy jobs, since a part of the workers’ grievances include concerns about a broader transition to electric vehicles.
The shift away from gas-powered vehicles has worried some autoworkers because electric versions require fewer people to manufacture and there is no guarantee that factories that produce them will be unionized.
Carolyn Nippa, who was walking the picket line Monday at the GM parts warehouse in Van Buren Township, Mich., was ambivalent about the president’s advocacy for electric vehicles, even as she said Biden was a better president than Trump for workers. She said it was “great that we have a president who wants to support local unions and the working class.”
“I know it’s the future. It’s the future of the car industry,” Nippa said. “I’m hoping it doesn’t affect our jobs.”
Jeffrey Thomas, president of UAW Local 2406, speaks to the media in Tennessee on Sept. 22 as the Memphis ACDelco parts distribution centre and bulk centre joined national UAW strikes. (Chris Day/The Commercial Appeal/The Associated Press)
Dave Ellis, who stocks parts at the distribution centre, said he’s happy Biden wants to show people he’s behind the middle class. But he said the visit is just about getting more votes.
“I don’t necessarily believe that it’s really about us,” said Ellis.
In Canada, Unifor and General Motors begin contract talks on Tuesday.
Ford Motor Co. of Canada workers represented by Unifor approved a new contract over the weekend. Unifor talks with Stellantis will follow the General Motors of Canada negotiations.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
