Business
Closure of bus depots part of industry-wide struggle: CEO – BC News – Castanet.net


A member of the Ahousaht First Nation on the west coast of Vancouver Island says the decline in bus service in the province is wearing on her.
Maryanne Titian, 69, says she and her husband John both have diabetes, and he is also waiting on a kidney transplant while she has suffered mild heart attacks.
The couple uses buses to get to medical appointments at least once a month that are hours away.
Since the closure of several bus depots on Vancouver Island this year, they are often left waiting outside in poor weather conditions for hours.
“It’s hard,” Titian said. “My husband and I are both not feeling well, we get sick really easy.”
“This time of year, it’s windy, it’s raining, it’s snowing in some places,” she said.
The closure of bus depots on Vancouver Island is part of a wider decline in services across Canada that are leaving some vulnerable people at risk.
The largest shift came in 2018, when Greyhound Canada announced it was cancelling service in most of Western Canada, citing plunging demand.
The provincial government stepped in to fill some of the gaps in northern British Columbia, including along the so-called Highway of Tears between Prince George and Prince Rupert.
The service BC Bus North, operated by Pacific Western Transportation, now provides transportation along the route where at least 18 women have gone missing or have been murdered, several of whom were last seen hitchhiking. It also serves Valemount, Dawson Creek, Fort. St. John and Fort Nelson.
A hodgepodge of other companies also entered the void left by Greyhound in parts of Western Canada and northern Ontario but haven’t matched the service provided by Greyhound.
While Greyhound announced it was pulling out of the Island months before the rest of Western Canada, its disappearance still has ripple effects on the local bus businesses, the CEO of one company said.
John Wilson of Wilson Group, which operates much of Vancouver Island’s bus services through its companies Wilson’s Transportation and Tofino Bus, said Greyhound played a key role in bringing passengers and freight from across the country.
“That connectivity across the country has stopped,” Wilson said, adding that apart from internal freight services, the company now almost entirely relies on passenger revenue.
Wilson Group is partnering with companies like Ebus, which has taken up and added stops along Greyhound’s Kelowna-Kamloops route, to try to reconnect the Interior with Vancouver and Vancouver Island, but gaps still remain, he said.
Ride sharing services and the consumer’s own decisions to drive are also affecting the bottom line, he said.
To compensate for declining demand, Wilson closed five bus depots this year in Port Alberni, Courtenay, Tofino, Parksville and Port Hardy, he said.
“Unfortunately, we had to make some tough decisions around closing some stations,” Wilson said.
Passengers are now primarily picked up at the curbside, although Wilson said the company is in discussions with some local businesses to allow passengers to wait inside.
Bus companies across North America are facing similar challenges, he said, and eliminating bricks and mortar operations are one of the ways they can reduce overhead without cutting routes.
While online bookings may not be accessible to many seniors or individuals without credit cards, between 80 and 85 per cent of passengers now book online, reducing the need for ticketing agents, he said.
Wilson said the company’s call centre remains open and he encouraged passengers experiencing barriers to reach out directly, adding the company will do its best to accommodate them.
“We definitely think it’s a small minority,” he said. “At the same time, they need to be looked after and we want to look after them. We’re doing the best we can to maintain the service levels as far as our schedules are concerned by reducing our overhead.
But the other option is to reduce runs, which hurts people even more, I think.”
Back in the Interior, the province agreed to provide the BC Bus North service on an interim basis and federal funding covering half the costs expires at the end of March 2021. BC Transit led a competitive procurement process for service providers on the current routes and the request for proposals closed in August.
The Ministry of Transportation said in a statement that the contract is being finalized and additional information will be available in the coming weeks.
There will be no disruption to the current BC Bus North service, it said.
Business
Canada's economic growth misses forecasts, backing interest rate pause – Financial Post
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Business
Strikes at 2 more U.S. auto factories to start Friday as UAW ratchets up pressure
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The United Auto Workers union is expanding its strike against U.S. automakers to two new plants, as 7,000 workers at a Ford plant in Chicago and a General Motors assembly factory near Lansing, Mich., will walk off the job at midday on Friday.
Union president Shawn Fain told workers on a video appearance Friday that negotiations haven’t broken down but Ford and GM have refused to make meaningful progress.
“Despite our willingness to bargain, Ford and GM have refused to make meaningful progress,” Fain said. “That’s why at noon eastern we will expand our strike to these two companies.”
“Not a single wheel will turn without us,” Fain said, adding that the 7,000 soon-to-be picketers are the “next wave of reinforcements.”
Stellantis, the third major automaker targeted by the union, and the maker of brands like Chrysler, Jeep and Dodge, was spared further action, as Fain said the company’s management has made significant concessions on things like a cost-of-living allowance and a freeze on outsourcing.
The Ford plant in Chicago makes the Explorer and Police Interceptor, as well as the Lincoln Aviator SUV.
The GM plant in Michigan’s Delta Township near Lansing manufactures large crossover SUVs such as the Chevrolet Traverse.
The two new plants join 41 other factories and distribution centres already seeing job action.
So far, the impact on Canada’s auto industry has been muted, as none of the idled factories are major users of Canadian-made components.
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.’
Edward Moya, a strategist with foreign exchange firm Oanda, says that despite the expanded job action, the strike seems to be nearing an “endgame” as the two sides are clearly making slow but steady progress.
“Yesterday, the UAW said they are targeting a 30 per cent pay raise, which is down from the 46 per cent they were asking for in early September,” he said. “Automakers have raised their offer to 20 per cent but were not offering much on retirement benefits. The longer this drags, the more both sides lose, so a deal should be reached in the next week or two.”





Business
Airlines claim passenger safety at risk under new passenger rights rules
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Aviation companies are making the pitch to Ottawa that stricter rules designed to boost customer compensation and improve service could put passenger safety at risk — an argument consumer advocates reject as “ridiculous.”
The push, made in regulatory submissions and meetings on Parliament Hill, comes on the heels of sweeping reforms to the passenger rights charter announced in April and currently being hashed out by Canada’s transport regulator before going into effect next year.
The changes appear to scrap a loophole through which airlines have denied customers compensation for flight delays or cancellations when they were required for safety purposes. The sector wants that exemption restored, and says it doesn’t want pilots to feel pressured to choose between flying defective planes and costing their employer money.
“We want our pilots to be entirely free from any financial consideration when they take a safety-related decision,” WestJet CEO Alexis von Hoensbroech said in a video chat from Ottawa this week, where he was meeting with federal ministers on the reforms. The Air Line Pilots Association raised similar concerns in a submission to the Canadian Transportation Agency.
“Regulation should never be punitive for safety decisions,” he said.
In the European Union, however, where rules and precedents comparable to the impending passenger rights charter are in place, flight safety remains uncompromised, advocates say.
“Did it make it less safe to fly in Europe? I don’t think so,” said Sylvie De Bellefeuille, a lawyer with the advocacy group Option consommateurs.


The EU code came into force nearly two decades ago, shored up by court rulings that require compensation even for trip disruptions caused by safety concerns, such as mechanical issues. No major accidents involving EU-registered planes have occurred in commercial aviation since 2015.
“It lays pretty ill in the mouth of the industry to say that if you … take away that excuse then we will therefore fly unsafe planes,” said John Lawford, executive director of the Public Interest Advocacy Centre.
“I’m surprised that they would have the chutzpah to say that.”
Air Passenger Rights advocacy group president Gabor Lukacs called the claim “ridiculous,” and NDP transport critic Taylor Bachrach also slammed the argument.
“It’s quite alarming that the airlines would suggest that if the government holds them to a higher standard of customer care, there’s going to be a risk to passenger safety,” Bachrach said in a phone interview from northwestern B.C.
Loopholes and exemptions
Organizations from Nav Canada to the International Air Transport Association — as well as Canada’s main pilots union — maintain that safety will be jeopardized unless delays due to malfunctions or mechanical issues are exempted from what the Atlantic Canada Airports Association called “punitive measures.”
Proposed changes under the Air Passenger Protection Regulations would not exempt flight disruptions that are caused by “normal … technical problems” from cash penalties given to customers.
However, “airport operational issues” or “hidden manufacturing defects” would be considered beyond the airline’s responsibility under the would-be reforms, most of which are still months away from being finalized.
The first phase of the overhaul comes into effect on Saturday, kicking off a more streamlined complaints process that currently creaks under the weight of more than 57,000 complaints.
That backlog has continued to mount despite a slowdown in filings, which can take up to two years for the regulator to process. The new system will be managed by “complaint resolution officers” — 40 have been hired, with 60 more expected to be trained over the next year, according to the agency.
Among the provisions slated to kick in next year are fees imposed on airlines by the regulator to recover some or all of the cost of handling those complaints. If a passenger files one due to a flight disruption or denial of boarding, the reformed rules put the onus on the airline to prove the move was for reasons outside its control, such as bad weather.
Airlines make the case that regional routes would be pricier for customers — or simply cancelled outright — as slim profit margins would tip into red ink amid higher costs from complaints and fees.
“That could potentially have an impact on regional connectivity and accessibility for routes that might not be as profitable,” said Jeff Morrison, who heads the National Airlines Council, which represents airlines including Air Canada and WestJet. “There’s always a trade-off.”


The average profit for large carriers amounts to less than $10 per passenger, said WestJet’s CEO.
“If we have to compensate the passengers, it’s thousands,” von Hoensbroech said, noting that WestJet’s average one-way ticket price hovers around $200. “You need many, many flights to recover.”
Advocates Lawford and Gabor Lukacs said the airlines’ warnings around routes to smaller or far-flung communities are tantamount to “blackmail,” while Bachrach framed the notion of pitting sturdier customer rights against regional flights as a “false choice.”
“If you’re cutting regional routes, we’re going to open the whole country for more competition,” Lukacs said, framing the potential scale-back as an opportunity for other airlines.
He suggested subsidies to support regional trips, whose fares have shot up over the past four years, even as ticket prices on busier routes fell.
Von Hoensbroech also said accountability for flight disruptions, including the cost burden, must be shared across the industry, not borne by airlines alone — an argument some advocates are receptive to, given the highly integrated nature global air travel that hinges on players ranging from baggage handlers to security and border agents to air traffic controllers.
The Canadian Transportation Agency is currently working on a draft of the new Air Passenger Protection Regulations, expected to be published this year before the new charter is implemented in 2024.
“The ultimate goal of air passenger protection shouldn’t be to get compensation to passengers; it should be to incentivize airlines to treat passengers better,” Bachrach said.
Complaints against Canadian airlines are piled so high the backlog dates back more than a year. Now, some passengers are taking airlines to small claims courts to get compensation.





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