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Labour unions in Canada could play big role in averting Biden’s ‘Buy American’ rules – Global News

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Canada’s largest private-sector unions could be among those with their hands on the helm next year when the time comes to navigate the shoals of Joe Biden‘s proposed Buy American rules.

The president-elect, a self-proclaimed “blue-collar Joe,” makes no secret of his affinity for organized labour, or of his plan to ensure U.S. workers and companies are first in line to reap the benefits of his economic recovery plan.

Read more:
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“I want you know I’m a union guy. Unions are going to have increased power,” Biden said he told corporate leaders during a meeting this week on his strategy for the economy.

“They just nodded. They understand. It’s not anti-business. It’s about economic growth, creating good-paying jobs.”

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That working-class solidarity could be good news for Canada, where prominent unions like the United Steelworkers and the United Food and Commercial Workers have members on both sides of the border.

“We’re going to be a voice, and rightfully so,” said Ken Neumann, the national director of the Canadian branch of the United Steelworkers, 225,000 of whose 850,000 North American members live and work north of the border.

“Our union has a long-standing relationship with president-elect Biden ? and he knows who the Steelworkers are, so we are going to work hard to say that Canada should not be excluded.”

UFCW International president Marc Perrone was among the U.S. labour leaders who took part in Tuesday’s economic panel with Biden. The union boasts 1.3 million members across North America, including more than 250,000 in Canada.


Click to play video 'Trudeau says he’s already had conversations with U.S. President-elect Biden’s team on Keystone XL'



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Trudeau says he’s already had conversations with U.S. President-elect Biden’s team on Keystone XL


Trudeau says he’s already had conversations with U.S. President-elect Biden’s team on Keystone XL

“We are currently monitoring the situation and working through our international office to ensure that the views and concerns of our members — on both sides of the border — are front and centre,” UFCW Canada president Paul Meinema said in a statement.

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Following that meeting, Biden was jarringly clear: no government contracts will be awarded to companies that don’t manufacture their products in the United States, reprising similar rules he oversaw as Barack Obama’s vice-president in 2009. The United States was struggling back from the financial crisis and deep recession that followed.

Canada successfully negotiated waivers to those rules 10 years ago. It’s also likely that Biden’s unequivocal rhetoric is meant primarily for U.S. ears, considering the extent of domestic tensions in America’s superheated postelection atmosphere.

But those tensions are real, and protectionism is now more of a force in the U.S. than it was in 2009, regardless of which party is in power, said Dan Ujczo, an Ohio lawyer who specializes in international trade.

“There’s almost a universal view that whatever needs to be done has to include some type of a Buy American provision,” said Ujczo, chairman of Dickinson Wright’s Canada-U.S. practice group.

Read more:
Biden says U.S. government contracts must ‘buy American’ to be approved

The narrow results of the Nov. 3 election suggest there are plenty of working-class Americans in battleground states like Pennsylvania, Michigan and Ohio who hold no strong allegiance to either party, he said.

“Those are the voters that are still up for grabs by either Democrats and Republicans, and Buy American resonates there. So to me, that is a significant difference — the tide has become even stronger for Buy American.”

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Jerry Dias, president of Unifor, formerly the Canadian Auto Workers and Canada’s largest private-sector union, said he’s confident Biden’s presidency will herald a new era in relations between the two countries.

“I think the United States is going to head in a much better direction as it relates to the safety of the people,” Dias said of the administration’s incoming efforts to address the COVID-19 pandemic.

“I think it’ll be a kinder, gentler nation within the confines of the United States, and frankly, I think the relationship with Canada will improve.”

Indeed, COVID-19 — which has laid bare the supply-chain dependency that exists between the two countries — may offer Canada its best chance to forge closer ties, Ujczo said.

Since getting the virus under control will be Biden’s top priority once he takes office, a shared approach to the production and distribution of personal protective equipment like face masks, gloves and gowns will make a lot of sense — to say nothing of the shared border, which has been closed to non-essential travel since March.


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Biden moves ahead with transition of power plans


Biden moves ahead with transition of power plans – Nov 9, 2020

“There’s the political space right now to come together and say, ‘Let’s look at how we create a Canada-U.S. market for PPE, for vaccination, et cetera,” Ujczo said.

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“If you start there, then you can say, ‘We don’t need Buy American for that,’ and then it’s an easier conversation that has to go to the next thing.”

Canada, of course, has its own protectionist sentiments.

Dias, Neumann and others say Canada should be taking a page from the U.S. playbook and doing more to ensure that their Canadian members reap the benefits when taxpayer dollars are spent on infrastructure in their own country.

“It’s sad to see that we have bridges in our country that are built with Chinese steel,” Neumann said. “I mean, what don’t we get?”

Don’t assume that the end of the Trump era will automatically usher in a new era in the U.S., even after Biden takes office, warned Michael Froman, who was U.S. trade representative during Obama’s second term.

Read more:
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“There is actually a high risk of miscalculation by our trading partners ? who sort of assume that everything is going to be sweetness and light going forward,” Froman told a panel discussion Wednesday.

“The issues that have been at issue between ourselves and our trading partners are very much likely to remain a focus in need of getting resolved, not swept under the carpet.”

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Latest worldwide spread of the coronavirus

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Russia has tightened curbs in major cities as authorities blame the new Delta variant for spiking cases and deaths, while neighbouring Ukraine has registered its first two cases of the more infectious virus type.

DEATHS AND INFECTIONS

* Eikon users, see COVID-19: MacroVitals https://apac1.apps.cp.thomsonreuters.com/cms/?navid=1592404098 for a case tracker and summary of news

EUROPE

* The European Centre for Disease Prevention and Control has said the more contagious Delta variant, first identified in India, will represent 90% of all SARS-CoV-2 viruses circulating in the European Union by the end of August.

* Spain has vaccinated half of its 47 million population with at least one dose and nearly 32%, or over 15 million people, have been fully inoculated.

* The share of infections caused by the Delta variant of the coronavirus has doubled in Germany in a week and is likely to gain more traction over other variants.

* Greece will end the mandatory wearing of face masks outdoors and ease other remaining restrictions.

ASIA-PACIFIC

* Japan is suspending approval for companies to inoculate staff amid concerns that an increase in such applications will hamper smooth delivery of vaccines.

* Alcohol, high-fives and talking loudly will be banned for the reduced numbers of Olympic ticket holders allowed into venues.

* Australia’s largest city of Sydney reintroduced “soft touch” curbs to contain a widening outbreak of the Delta variant.

AMERICAS

* A Brazilian Senate committee has formally approved a request to call representatives of Google, Facebook and Twitter to testify in an ongoing probe into the government’s handling of the pandemic.

* Canada will further relax border restrictions in the weeks to come as long as the science supports such a move, Prime Minister Justin Trudeau said.

* Federal authorities have seized at U.S. airports unauthorised versions of remdesivir destined for distribution in Mexico, the Wall Street Journal reported. [nL2N2O51U0]

MIDDLE EAST AND AFRICA

* South Africa’s health regulator said it had received documentation for China’s Sinopharm vaccine and will evaluate the data to assess the efficacy of the shot.

* Israel empowered health officials to quarantine anyone deemed to have been exposed to the especially infectious Delta variant.

* Bahrain will extend by three months a government support program for businesses hard hit by the pandemic.

MEDICAL DEVELOPMENTS

* Rare cases of heart inflammation in adolescents and young adults are likely linked to vaccination with the Pfizer/BioNTech and Moderna shots, a group of doctors advising the U.S. Centers for Disease Control and Prevention said.

* Vaccines made by AstraZeneca and the Pfizer-BioNTech alliance remain broadly effective against Delta and Kappa variants. [nL3N2O43IN]

* The University of Oxford said it was testing anti-parasitic drug ivermectin as a possible treatment for COVID-19.

ECONOMIC IMPACT

* Wall Street and global equity markets were broadly higher on Wednesday after reassurances from U.S. Federal Reserve Chair Jerome Powell that the central bank is not rushing to hike interest rates, while European stocks remained under pressure. [MKTS/GLOB]

* A period of high inflation in the United States may last longer than anticipated but should still ease over time as the economy settles back to normal, two U.S. Federal Reserve officials said.

* Euro zone business growth accelerated at its fastest pace in 15 years in June as the easing of lockdown measures unleashed pent-up demand and drove a boom in the dominant services sector but also led to soaring price pressures.

(Compiled by Ramakrishnan M. and Juliette Portala; Edited by Arun Koyyur)

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Canada’s M&A boom fuels hiring spree, higher pay

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Record-breaking dealmaking in Canada is encouraging investment banks to beef up staffing, but the increased demand for bankers is forcing some to pay up in unique ways to attract new hires.

Canadian mergers and acquisitions (M&A) year to date surged to a record $206.5 billion and IPOs hit an all-time high of $5.6 billion, according to Refinitiv, after the pandemic crushed dealmaking in the first three quarters of 2020.

HSBC, JPMorgan Chase & Co and National Bank of Canada are expanding their M&A teams.

“It continues to be an active market with lots of active discussions with clients going on as well, and so that has absolutely spurred on a need to fortify the ranks within the teams,” said Scott Lampard, head of global banking for HSBC Bank Canada.

HSBC plans to boost overall investment banking headcount by 20%-25%, mainly at the analyst level to support pitching and executing deals, Lampard said.

PENT-UP DEMAND

With the pace of transaction expected to continue at pace, banks are paying more to hire and retain existing teams, offering a range of new services, like sending in a consultant to create the ideal home office, recruiters say.

“We’ve been doing this for nearly 20 years and we’ve never seen a market like this,” said Bill Vlaad, CEO at recruitment firm Vlaad and Company. “Everybody is scrambling,”

“Many of the banks have increased base salaries quite dramatically, mostly in 2021,” he said, adding salaries had increased 20%-40% across M&A roles.

“Now if you want to attract, you have to put something else on the table.”

To poach talent, banks are adding signing bonuses, extra vacation days, healthcare increases, special programs for mental wellness and home office perks, all tailored to individual requests, Vlaad said.

TD Securities, Barclays, CIBC World Markets are the top M&A advisers year to date. All three declined to comment on hiring plans.

Of the top deals announced this year, Rogers Communications Inc’s C$20 billion ($16.2 billion) bid for Shaw Communications Inc and Canadian National’s bid $33.6 billion offer for Kansas City Southern are the two biggest.

Despite the pandemic, five of the top six Canadian banks paid an average of C$3.1 billion ($2.50 billion) in total bonuses last year, up from C$2.9 billion ($2.34 billion) in 2019, an analysis of filings by Reuters showed.

Headcount at National Bank Finance will be up by four or five people in M&A versus the same time last year, David Savard, head of M&A at the bank, told Reuters.

That put the team at 28 for the large-cap M&A team and 10 for the mid-market team, he said, adding both areas were “booming”.

“There seems to be some pent-up demand for entrepreneurial-led companies and private companies doing M&A coming out of COVID,” he said.

David Rawlings, CEO for JPMorgan Canada, agreed headcount would be likely higher in the near future.

“We think activity will continue to be strong and are currently looking to selectively hire with a particular focus on senior diverse candidates,” said Rawlings.

($1 = 1.2453 Canadian dollars)

(Reporting by Maiya Keidan; Editing by Denny Thomas and Lisa Shumaker)

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French court overturns ruling saying sale of cannabidiol is illegal

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France’s highest appeals court on Wednesday overturned a ruling that stores in the country can’t legally sell cannabidiol (CBD), a non-psychotic compound related to cannabis that is being researched for a variety of medical applications.

Based on the free trade of goods within the European Union, the Cour de cassation ruled that judges could not find the sale of CBD in France illegal if it had been legally produced in a member state of the bloc.

The Court of Justice of the EU ruled last year that no national law can prohibit the sale of CBD legally produced in a member state, the French court also said.

“Without considering whether the substances seized had not been legally produced in another member state of the European Union, the court failed to provide a basis for its decision,” it said, referring to a ruling of a lower appeals court.

The Cour de cassation did not rule whether selling CBD in France was legal or not, and ordered a lower court to rule again on a case involving the owner of a shop selling CBD.

“We are happy”, CBD shop owner Mathieu Bensa, who was not involved in the case, told Reuters after the ruling.

“We did not understand why France was the last country in the European Union that had not given access to the sale of hemp plants”, he said.

Derived mainly from the hemp plant, CBD is increasingly used as a relaxant.

Cannabis stocks have attracted growing interest on world stock markets, particularly on the Toronto stock exchange after Canada became one of the first major economies to legalise the recreational use of marijuana.

Cannabis use is outlawed in France but the country has one of Europe’s highest consumption rates.

(Reporting by Matthieu Protard, Benoit Van Overstraeten and Ardee Napolitano; Editing by Mark Potter)

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