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Canada Bread says Maple Leaf used it as ‘shield’ in bread price-fixing case

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Canada Bread is accusing Maple Leaf Foods of using it as a “shield” to avoid liability in the alleged bread price-fixing scheme that’s the subject of two class-action lawsuits and an ongoing Competition Bureau investigation.

In filings in an Ontario court as part of one of the class action cases, Canada Bread alleges Maple Leaf broke the law and breached its management agreements.

Maple Leaf was the controlling shareholder of Canada Bread up until Grupo Bimbo bought the company in 2014.

Canada Bread is so far the only company to be fined by the Competition Bureau in relation to the alleged scheme, taking a $50-million hit in 2023 after pleading guilty to four counts of price-fixing bread products under the Competition Act.

Canada Bread admitted to arranging with Weston Foods, then a George Weston subsidiary, to increase prices on a variety of packaged bread products, resulting in two price increases.

Canada Bread has previously denied participating in a “lengthy, wide-ranging conspiracy” to fix the price of bread, and instead said any anticompetitive behaviour it participated in was at the direction and to the benefit of Maple Leaf Foods.

At the time, Maple Leaf Foods said allegations of improper pricing conduct at Canada Bread while under Maple Leaf’s control were “totally unfounded.”

Now, Canada Bread alleges Maple Leaf is liable for any damages it has sustained or will sustain from the Competition Bureau investigation and the lawsuits.

Maple Leaf did not immediately respond to a request for comment.

In its amended statement of defence and crossclaim filed Thursday, Canada Bread said Maple Leaf selected and appointed the members of Canada Bread’s board, installed one of its senior officers to run the company, and agreed to provide legal and compliance services. Therefore, Canada Bread argued that Maple Leaf knew or ought to have known of any anticompetitive conduct, making it “vicariously and contractually liable.”

In June 2023, Maple Leaf told The Canadian Press that it was not aware of any wrongdoing by Canada Bread or its senior leadership during the time it was a shareholder.

“We have acted ethically and lawfully at all times. We are not aware of and have never engaged in inappropriate or anticompetitive activity, and we will defend ourselves vigorously against any allegation to the contrary,” Maple Leaf said at the time.

In July, Loblaw Cos. Ltd. and George Weston Ltd. said they had agreed to pay $500 million to settle the two class-action lawsuits — in Ontario and Quebec — regarding the alleged bread price-fixing scheme.

The Ontario class action lawsuit is on behalf of all Canadian residents who bought bread after Nov. 1, 2001, except for Quebec residents. It was brought against a group of companies that includes Loblaw and George Weston, Metro, Walmart Canada, Giant Tiger and Sobeys and its owner Empire Co. Ltd.

Metro has denied being involved in bread price-fixing, accusing Loblaw and George Weston of conspiring to spread the blame across the industry, something Loblaw has denied.

Sobeys and Giant Tiger have also said they were falsely implicated. Walmart Canada has also denied participating in the alleged conspiracy.

The Competition Bureau began investigating alleged bread price-fixing in 2016 after Weston Foods and Loblaw, subsidiaries of George Weston at the time, admitted they participated in an “industry-wide price-fixing arrangement” and received immunity from prosecution in exchange for co-operation.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:MFI)

The Canadian Press. All rights reserved.

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Unifor says workers at Walmart warehouse in Mississauga, Ont., vote to join union

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TORONTO – Unifor says workers at a Walmart warehouse in Mississauga, Ont., have voted to join the union.

The union says it’s Walmart’s first warehouse to unionize in Canada.

Unifor national president Lana Payne says the employees stood up for their rights and the union is excited to get to work on their first collective agreement.

Unifor’s campaign at Walmart’s facility began in December 2023.

The vote was held from Sept. 10 to 12.

Unifor represents 315,000 workers across the country.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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Canada to donate up to 200,000 vaccine doses to combat mpox outbreaks in Africa

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The Canadian government says it will donate up to 200,000 vaccine doses to fight the mpox outbreak in Congo and other African countries.

It says the donated doses of Imvamune will come from Canada’s existing supply and will not affect the country’s preparedness for mpox cases in this country.

Minister of Health Mark Holland says the donation “will help to protect those in the most affected regions of Africa and will help prevent further spread of the virus.”

Dr. Madhukar Pai, Canada research chair in epidemiology and global health, says although the donation is welcome, it is a very small portion of the estimated 10 million vaccine doses needed to control the outbreak.

Vaccine donations from wealthier countries have only recently started arriving in Africa, almost a month after the World Health Organization declared the mpox outbreak a public health emergency of international concern.

A few days after the declaration in August, Global Affairs Canada announced a contribution of $1 million for mpox surveillance, diagnostic tools, research and community awareness in Africa.

On Thursday, the Africa Centres for Disease Control and Prevention said mpox is still on the rise and that testing rates are “insufficient” across the continent.

Jason Kindrachuk, Canada research chair in emerging viruses at the University of Manitoba, said donating vaccines, in addition to supporting surveillance and diagnostic tests, is “massively important.”

But Kindrachuk, who has worked on the ground in Congo during the epidemic, also said that the international response to the mpox outbreak is “better late than never (but) better never late.”

“It would have been fantastic for us globally to not be in this position by having provided doses a much, much longer time prior than when we are,” he said, noting that the outbreak of clade I mpox in Congo started in early 2023.

Clade II mpox, endemic in regions of West Africa, came to the world’s attention even earlier — in 2022 — as that strain of virus spread to other countries, including Canada.

Two doses are recommended for mpox vaccination, so the donation may only benefit 100,000 people, Pai said.

Pai questioned whether Canada is contributing enough, as the federal government hasn’t said what percentage of its mpox vaccine stockpile it is donating.

“Small donations are simply not going to help end this crisis. We need to show greater solidarity and support,” he said in an email.

“That is the biggest lesson from the COVID-19 pandemic — our collective safety is tied with that of other nations.”

This report by The Canadian Press was first published Sept. 13, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

The Canadian Press. All rights reserved.



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Man arrested in Quebec for alleged plot to kill Jews in NYC returns to court Dec. 6

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MONTREAL – A 20-year-old man arrested over an alleged Islamic State terror plot to kill Jews in New York City will return to court in December in Montreal.

Muhammad Shahzeb Khan, a Pakistani national living in Ontario, was arrested last week in Ormstown, Que., allegedly on his way across the border into New York state.

Khan has been charged in the United States with one count of attempting to provide material support and resources to a terrorist organization, and officials are seeking to have him extradited to stand trial.

He was not present for a hearing today in Quebec Superior Court, where lawyers said they are waiting for extradition documents and for authorization from Canadian officials before proceeding in the case, which will return before a judge on Dec. 6.

U.S. authorities allege that Khan, also known as Shahzeb Jadoon, intended to use “automatic and semi-automatic weapons” in a mass shooting at a Jewish centre in Brooklyn around Oct. 7, the one-year anniversary of the Hamas attack on Israel.

Authorities allege he began planning his attack in November 2023.

Earlier this week, federal Immigration Minister Marc Miller said Khan arrived in Canada in June 2023 on a student visa.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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