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Coronavirus: Trump signs executive order forcing U.S. meat processors to stay open – Global News

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U.S. President Donald Trump took executive action Tuesday to order meat processing plants to stay open amid concerns over growing coronavirus cases and the impact on the nation’s food supply.

The order uses the Defence Production Act to classify meat processing as critical infrastructure to try to prevent a shortage of chicken, pork and other meat on supermarket shelves. Unions fired back, saying the White House was jeopardizing lives and prioritizing cold cuts over workers’ health.

More than 20 meatpacking plants have closed temporarily under pressure from local authorities and their own workers because of the virus, including two of the nation’s largest, one in Iowa and one in South Dakota. Others have slowed production as workers have fallen ill or stayed home to avoid getting sick.

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READ MORE:
Canada’s meat-and-potato problem: Coronavirus pandemic hits the food supply chain

“Such closures threaten the continued functioning of the national meat and poultry supply chain, undermining critical infrastructure during the national emergency,” the order states.

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The United Food and Commercial Workers International Union, which represents 1.3 million food and retail workers, said Tuesday that 20 food-processing and meatpacking union workers in the U.S. have died of the virus. An estimated 6,500 are sick or have been exposed while working near someone who tested positive, the union says.

As a result, industry leaders have warned that consumers could see meat shortages in a matter of days. Tyson Foods Inc., one of the world’s largest food companies, ran a full-page advertisement in The New York Times and other newspapers Sunday warning, “The food supply chain is breaking.”

“As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain,” it read.






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Coronavirus outbreak: COVID-19 pandemic takes toll on U.S. meat producers


Coronavirus outbreak: COVID-19 pandemic takes toll on U.S. meat producers

Tyson suspended operations at its pork plant in Waterloo, Iowa after a slew of infections, and Smithfield Foods halted production at its plant in Sioux Falls, South Dakota, after an outbreak infected 853 workers there.

The 15 largest pork-packing plants account for 60 per cent of all pork processed in the U.S., and the country has already seen a 25 per cent reduction in pork slaughter capacity, according to UFCW.

A senior White House official said the administration was trying to prevent a situation in which a “vast majority” of the nation’s meat processing plants might have temporarily closed operations, reducing the availability of meat in supermarkets by as much as 80 per cent.

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COVID-19 pandemic: Canadian meat and potato industry in crisis


COVID-19 pandemic: Canadian meat and potato industry in crisis

The official, who spoke on condition of anonymity to discuss the order before its release, said the White House was also working with the Labor Department to provide enhanced safety guidance for meatpacking workers. That will include trying to minimize the risk to workers who may be prone to serious complications from the virus, including strongly recommending those over the age of 65 and with preexisting conditions stay home.

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The order, which was developed in consultation with industry leaders including Tyson and Smithfield, is designed, in part, to provide companies with additional liability protections in case workers get sick.

Trump on Tuesday said the order would address what he described as a “legal roadblock.” It will “solve any liability problems where they had certain liability problems and we’ll be in very good shape.”


READ MORE:
2 Alberta meat plants affected by COVID-19 make up 70% of Canada’s beef processing capabilities

But UFCW International President Marc Perrone said that more must be done to protect the safety of workers.

“Simply put, we cannot have a secure food supply without the safety of these workers,” he said in a statement, urging the administration “to immediately enact clear and enforceable safety standards” and compel companies to provide protective equipment, make daily testing available to workers, and enforce physical distancing, among other measures.

Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, said the administration should have acted earlier to put safety measures in place.

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“We only wish that this administration cared as much about the lives of working people as it does about meat, pork and poultry products,” he said.


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Meat plant workers in U.S, Canada worry about ‘elbow to elbow’ work, lack of PPE

And Kim Cordova, president of UFCW Local 7, which represents 3,000 workers at the JBS meat processing plant in Greeley, Colorado, said the order “will only ensure that more workers get sick, jeopardizing lives, family’s income, communities, and of course, the country’s food supply chain.”

The administration is working with companies to help them secure protective equipment, like face shields and masks, and ramp up testing, the official said. The Centers for Disease Control and Prevention and the Occupational Safety and Health Administration have issued extensive guidelines on steps companies and workers should take.

Protecting workers can be especially challenging at plants that typically employ thousands of people who often work side-by-side carving meat, making social distancing all but impossible. Some companies have been working to reduce infections by checking workers’ temperatures, staggering breaks and altering start times. Owners said they have also done more to clean plants and added plastic shields between workstations.






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Coronavirus: What closures and restrictions on Canada’s 2 largest meat packing plants means for the cattle industry


Coronavirus: What closures and restrictions on Canada’s 2 largest meat packing plants means for the cattle industry

When outbreaks have happened, local public health agencies have pushed in some cases for temporary closures so they can limit wider outbreaks in communities and conduct mass testing to determine who is carrying the virus. Some plants have also briefly closed for deep cleaning and to install new safety measures.

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Yet concerns about working conditions persist and have led some to walk off the job. In central Minnesota, some workers at the Pilgrim’s Pride poultry plant walked out Monday night to protest the company’s record on worker safety.

Mohamed Goni, an organizer with Greater Minnesota Worker Center, said workers have complained the company is not sharing information about sick colleagues, has not implemented social distancing on the line, and that workers who were sick returned after just two or three days, and some workers who developed symptoms were not allowed to leave when they asked to go home.






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Multiple Canadian meat processing facilities report COVID-19 outbreaks


Multiple Canadian meat processing facilities report COVID-19 outbreaks

“The company refused, saying there would be a shortage of workers,” Goni said, adding that 80 per cent to 85 per cent of the plant’s workers are Somali.

“They have other family members living with them — elderly, children, people with underlying conditions. So if one of them brings that to their homes, it’s going to be more worse and a more serious problem,” Goni said.

Cameron Bruett, head of corporate affairs for JBS USA and Pilgrim’s, said in an email that employees are never forced to work or punished for an absence due to health reasons.

“We will endeavour to keep our facilities open to help feed the nation, but we will not operate a facility if we do not believe it is safe. The health and safety of our team members remains our number one priority,” Bruett said.

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READ MORE:
Trump leaves trail of unmet promises as country grapples with coronavirus outbreak

In South Dakota, Gov. Kristi Noem has said she hopes to see a reopening plan for Smithfield this week, but sidestepped questions Tuesday about whether she agreed with Trump’s order, which might have prevented the Sioux Falls plant from shutting down if it had been in place earlier.

“We need to keep (plants) running, but we also need to protect people,” Noem said.

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Associated Press writers Ryan J. Foley in Iowa City, Iowa; Amy Forliti in Minneapolis; and Stephen Groves in Sioux Falls, South Dakota, contributed to this report.

© 2020 The Canadian Press

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Why the Bank of Canada decided to hold interest rates in April – Financial Post

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Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

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Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

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They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

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They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

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Meta shares sink after it reveals spending plans – BBC.com

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Woman looks at phone in front of Facebook image - stock shot.

Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

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Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

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Oil Firms Doubtful Trans Mountain Pipeline Will Start Full Service by May 1st

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Oil companies planning to ship crude on the expanded Trans Mountain pipeline in Canada are concerned that the project may not begin full service on May 1 but they would be nevertheless obligated to pay tolls from that date.

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In a letter to the Canada Energy Regulator (CER), Suncor Energy and other shippers including BP and Marathon Petroleum have expressed doubts that Trans Mountain will start full service on May 1, as previously communicated, Reuters reports.

Trans Mountain Corporation, the government-owned entity that completed the pipeline construction, told Reuters in an email that line fill on the expanded pipeline would be completed in early May.

After a series of delays, cost overruns, and legal challenges, the expanded Trans Mountain oil pipeline will open for business on May 1, the company said early this month.

“The Commencement Date for commercial operation of the expanded system will be May 1, 2024. Trans Mountain anticipates providing service for all contracted volumes in the month of May,” Trans Mountain Corporation said in early April.

The expanded pipeline will triple the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.  

The Federal Government of Canada bought the Trans Mountain Pipeline Expansion (TMX) from Kinder Morgan back in 2018, together with related pipeline and terminal assets. That cost the federal government $3.3 billion (C$4.5 billion) at the time. Since then, the costs for the expansion of the pipeline have quadrupled to nearly $23 billion (C$30.9 billion).

The expansion project has faced continuous delays over the years. In one of the latest roadblocks in December, the Canadian regulator denied a variance request from the project developer to move a small section of the pipeline due to challenging drilling conditions.

The company asked the regulator to reconsider its decision, and received on January 12 a conditional approval, avoiding what could have been another two-year delay to start-up.

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