Business

Port of Vancouver faces cargo bottleneck during strike by waterfront workers across B.C.

Published

1 year ago

July 4, 2023

Shipping cranes lie idle in Vancouver after 7,400 unionized waterfront employees went on strike on Saturday. More than 35 terminals across the province have been hit in the walkout.CHRIS HELGREN/Reuters

The Port of Vancouver is clogging up with cargo during a strike by waterfront workers across British Columbia as imported seafood has yet to be unloaded and potash exports are stuck onshore, adding to the growing bottlenecks at terminals and warehouses.

The strike by 7,400 unionized waterfront employees began on Saturday, disrupting Canada’s largest port and three smaller regions. More than 35 terminals across the province have been hit in the walkout by members of the International Longshore & Warehouse Union Canada.

About 6,000 of the ILWU’s members are in the Vancouver region, 1,000 in the Prince Rupert area in northern B.C. and the rest in the Vancouver Island communities of Nanaimo and Port Alberni. The union has listed three main concerns at the bargaining table: automation, contracting out and cost-of-living wage increases.

The BC Maritime Employers Association, which represents 49 private-sector companies such as shipowners and terminal operators, said late Monday that it had a pessimistic view on the state of negotiations. It described good wages at the union, citing a median annual income of $136,000 plus benefits and pension for longshore workers last year.

“ILWU Canada needs to decide if they are going to continue this strike with no hope of settlement, or significantly modify their position so a fair and balanced deal can be reached,” the BCMEA said in an e-mailed statement. The association said it has presented nine proposals on key issues in a bid to find common ground with the union.

The West Coast strike’s ripple effects on supply chains are already being felt in the just-in-time delivery system of North America’s automotive industry, which orders some parts and materials from Asia, said Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association.

“The industry is so tightly integrated between Canada, the U.S. and Mexico that even delays at Canadian ports can have implications for the broader North American production,” Mr. Kingston said in an interview Monday. “The Port of Vancouver in particular is important.”

ILWU president Rob Ashton said during a news conference late Sunday that union leaders want the federal government to steer clear of imposing a settlement.

“Labour peace in this industry comes from government staying out of the business between a union and their employers,” Mr. Ashton said.

While business groups are calling on the Liberal government to recall Parliament, Labour Minister Seamus O’Regan said the focus must be on finding a resolution at the bargaining table.

“All our energies must be directed at the table. Because that’s where the best deals are reached,” Mr. O’Regan tweeted on Sunday.

Earlier this year, Conservative Leader Pierre Poilievre accused the Liberal government of mishandling the port file, citing the Container Port Performance Index, compiled by the World Bank and S&P Global Market Intelligence. The Port of Vancouver has consistently placed near the bottom of the annual rankings.

“The last few years have reinforced the need to continue to invest in port infrastructure and technology to accommodate Canada’s growing trade and keep supply chains moving efficiently,” the Vancouver Fraser Port Authority said in a recent statement.

In April, the federal government approved the Vancouver Fraser Port Authority’s proposed $3.5-billion Roberts Bank Terminal 2 project, or RBT2, subject to 370 legally binding conditions. The ILWU and environmental groups oppose the plans to build the terminal, which would be semi-automated.

Before the strike began, B.C. Premier David Eby voiced his concerns about the potential for inflationary pressures.

“British Columbians have already seen rising costs on a whole array of different fronts on food, on essentials, driven by global inflation,” Mr. Eby said after the ILWU served 72-hour strike notice on June 28.

On Monday, Alberta Premier Danielle Smith echoed the concerns of business groups by saying the labour action will have a negative impact on the economy.

“This strike action has the potential to cause substantial economic harm on families and businesses across Canada, including here in Alberta,” Ms. Smith tweeted.

Canadian trade of various goods with China fell about 11 per cent last year at the Port of Vancouver, though Canada-China shipments remained the largest at 33.5 million tonnes.

South Korea, the United States, Taiwan and Vietnam followed China as the top five countries sending goods imported into Canada’s largest port last year. On the export side, the top five countries receiving Canadian goods originating from the Port of Vancouver were China, Japan, South Korea, India and the U.S.

Potash is among the key exports suspended at Neptune Bulk Terminals (Canada) Ltd. in North Vancouver and Pacific Coast Terminals Co. Ltd. in Port Moody.

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Business

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

Published

1 day ago

September 13, 2024

Anne Joseph

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)

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Business

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

Published

2 days ago

September 12, 2024

Anne Joseph

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.

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Business

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

Published

2 days ago

September 12, 2024

Anne Joseph

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)

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