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Biden set to make ‘unprecedented’ presidential visit to autoworkers’ picket line

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U.S. President tells striking workers to ‘stick with it,’ signals support for 40 per cent raise

U.S. President Joe Biden, wearing a blue sweater and a black ball cap emblazoned with the words 'union yes,' bumps fists with a man in a red t-shirt and a Chicago Bulls hat holding a United Auto Workers sign.
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.

A man is shown in the middle of a crowd in a demonstration that includes signs, one which reads 'Teamsters Local 986.'
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.”

A man is shown standing in front of several microphones, with several more people behind him on a grassy area holding up signs that say, 'UAW on strike.'
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.

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Canada Goose to get into eyewear through deal with Marchon

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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