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Canada stalled as blockades shut down rail networks and the movement of goods and people

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EDMONTON AND TORONTO — As protests that have stalled railway traffic across parts of Canada drag towards a week, CN Rail announced it would be shutting down “significant” portions of its rail network, raising questions about the stability of Canada’s transport system and concerns about the enforcement of court orders putting an end to the protests.

In a Tuesday statement, the rail shipper, which operates some 30,000 kilometres of rail across Canada and the U.S., said a variety of shipments — food, construction materials, lumber, aluminum, coal and propane — have been affected by the rail blockades just east of Belleville, Ont., and in New Hazelton, B.C.

Near Belleville, members of the Tyendinaga Mohawk Territory have parked a large dump truck with a plough along the tracks. The protests have stopped Via Rail passenger trains as well as CN trains, cutting off routes between Toronto, Ottawa, Montreal and Kingston.

Protestors delayed the start of the spring session of the B.C. legislature by physically blocking access to the B.C. Legislature building in Victoria on Tuesday.

The protests, which began on Thursday, are in solidarity with the five hereditary chiefs of the Wet’suwet’en Nation who opposed a pipeline project that partially crosses their traditional territory in the B.C. interior.

In an emailed statement, CN warned that the blockades could have a spillover effect to ports in Halifax, Montreal and Prince Rupert, as blockades in Ontario and British Columbia have cut off main CN lines.


OPP Sgt. Diana Hampson of the liaison team, middle, speaks with members of the Mohawk Territory in Tyendinaga Mohawk Territory, near Belleville, Ont., on Tuesday, Feb. 11, 2020. The members have blocked the CN/VIA train tracks for six days in support of Wet’suwet’en’s blockade of natural gas pipeline in northern B.C.

Lars Hagberg /

THE CANADIAN PRESS

“The impact is also being felt beyond Canada’s borders and is harming the country’s reputation as a stable and viable supply chain partner,” the statement said.

But, in statements to the Post, neither the Montreal Port Authority nor the Halifax Port Authority seemed overly concerned at the moment.

“So far, we have had little major impact on the movement of goods, as we are served by two other major networks: CP and trucking,” said an emailed statement from Mélanie Nadeau, director of communications at the Montreal port.

Of course, that could change. Lane Ferguson, a spokesperson with the Halifax Port Authority, said it was “too early” to say what “the specific impact” of the protests could be. He suggested there could be problems if the storage yards in Halifax fill up or if products can’t be transported out by rail. If those things occur, international importers might avoid the port altogether.

“A partial or complete port shutdown would be devastating to the reputation of the Port of Halifax as an efficient and reliable international gateway,” Ferguson wrote in an email. “It would also impact confidence in the stability and reliability of the Canadian supply chain.”

Brad Cicero, a spokesperson for Porter Airlines, a short-haul carrier, said it has seen an uptick in passengers along its Toronto-Ottawa-Montreal corridor that’s more than would normally be expected this time of year.


Local residents Angela Lammes (left) and Annette McIntosh show their support for the First Nations anti-pipeline protestors at a rail crossing at Wyman Rd., south of Old Highway 2, east of Belleville, Ont. on Tuesday February 11, 2020.

Ernest Doroszuk/Toronto Sun/Postmedia

Key to the affair is whether or not police enforce court injunctions to clear out the protesters in Belleville, Ont. and New Hazelton, B.C. As yet, that has not happened, although police in other parts of the country — including those blocking Vancouver and Delta ports and the Wet’suwet’en protesters in interior B.C. — have made arrests.

The RCMP began moving into Wet’suwet’en territory and arresting land defenders last Thursday.

On Tuesday, Marc Garneau, the Liberal transport minister, called the blockades “illegal” but said the federal government would not do anything. It’s up to the provinces, Garneau said, to enforce the court orders.

“The government of Canada is seized of the issue. We’d like to resolve it as quickly as possible, but it’s a complex issue. Hopefully we’ll resolve it as quickly as possible,” Garneau told reporters.

Previous instances where Indigenous protesters have blocked rail lines have led to crises in the rule of law. In December, 2012, an Ontario judge issued a court order that First Nations protesters blocking a CN spur line in Sarnia, Ont., be cleared out.

Police did nothing until January 2013.

“We seem to be drifting into dangerous waters in the life of the public affairs of this province when courts cannot predict, with any practical degree of certainty, whether police agencies will assist in enforcing court injunctions against demonstrators,” wrote David Brown, who now sits on the Ontario Court of Appeal.


A large protest took over Dundas Street as it left Wellington on the way to the RCMP offices on Talbot Street in London, Ont. They were protesting in solidarity with the Wet’suwet’en Nation who are blockading the Coastal GasLink pipeline in BC Photograph taken on Tuesday February 11, 2020.

Mike Hensen/The London Free Press/Postmedia Network

On Tuesday, Bill Dickson, a spokesperson for the Ontario Provincial Police, said “the situation is unchanged” and that police were aware there was an injunction, and they’d read it to protesters. He declined to speculate on what else police might do.

“The hope for the resolution is that through dialogue and through discussion, the individuals will back away from the rail line and allow the trains to move again,” Dickson said.

Jason Kenney, the Premier of Alberta, expressed his concerns on Twitter: “It’s about time that our authorities demonstrated that Canada is a country that respects the rule of law. Allowing mob rule to override the express democratic wishes of First Nations is unacceptable, and it has to end,” he wrote on Tuesday

A November 2019 rail strike could provide some insight into what effect the rail stoppage could have on the economy, said Douglas Porter, chief economist at BMO. How long the delays go on, Porter explained, would determine just what the economic consequences might be.

“That strike lasted just over a week and was national, and clipped GDP by less than 0.1 percent that month,” Porter said in an email.

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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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.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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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.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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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.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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