The St. Lawrence Seaway has shut down as hundreds of workers walked off the job Sunday.
The halt is expected to affect cargo shipments immediately along the artery that runs between Montreal and Lake Erie.
In a release shortly after midnight on Sunday, the union said they were unable to reach an agreement with the employer by the strike deadline, despite negotiations “right up to the last moment.”
“We cannot allow workers’ rights to be compromised. We remain open to discussion and hope that the employer will reconsider its position for the good of all,” Daniel Cloutier, Unifor’s Quebec director, said in a release.
Seeking wage increases
The union said this week that it remained “1,000 nautical miles apart” from management on wages — the key wedge in discussions — and that it was up to the employer to avoid any transit disruption.
“These are jobs that require intense training, a high level of understanding of the health and safety risks, and that carry enormous responsibility for the well-being of seafarers and their cargo. They are irreplaceable,” Cloutier said in an earlier release.
In its own statement released after midnight, the St. Lawrence Seaway Management Corporation (SLSMC) said the parties are at an impasse as Unifor “continues to insist on wage increases inspired by automotive-type negotiations,” and the seaway will remain shut down until an agreement can be reached.
St. Lawrence Seaway workers are pictured on the picket line early Sunday morning after deciding to go on strike. (Unifor)
“The stakes are high, and we are fully dedicated to finding a resolution that serves the interests of the corporation and its employees,” SLSMC president and CEO Terence Bowles said in a statement.
“In these economically and geopolitically critical times, it is important that the seaway remains a reliable transportation route for the efficient movement of essential cargoes.”
Slow progress in talks
The SLSMC said on Friday that it remained committed to negotiating in good faith, but also said progress had been slow and the union’s wage demands could lead to higher tolls.
On Wednesday, it cited the potential impact on freight shipments as a major concern.
“Cargo movements through the seaway are an important part of the North American economy and supply chain,” said spokesperson Jean Aubry-Morin.
“In particular, this labour action would impact grain movements during a period when the world is in dire need of this essential commodity, even as supply has been affected by the situation in Ukraine and the greater frequency of extreme weather events being experienced around the world.”
The corporation said it is waiting for a response to its application to the Canada Industrial Relations Board, seeking an order to confirm the application of the Canada Labour Code related to the movement of grain during a strike.
It said a shutdown of the system took place during the 72-hour notice period allowing vessels to safely clear the Seaway system, and the SLSMC is in regular contact with the marine industry. There are currently no vessels waiting to exit the system, but there are over 100 outside the system that are impacted by the situation, the statement read.
Some 360 workers ranging from engineers to administrators comprise the five union locals who were in negotiations with the management authority until Saturday night.
Talks began in June with the help of a federal mediator, and continued after Unifor issued a 72-hour strike notice to the employer on Wednesday.
Last year, some $16.7 billion worth of cargo — nearly half of it grain and iron ore — traversed the system of locks, canals and channels.
Wages need to catch up, workers say
Marjolaine Brunet, who works as a maritime radio traffic controller and structure operator, said she’s striking because she wants a better salary.
“I think of my salary 19 years ago and what my purchasing power could actually purchase and what I can purchase now it has gone downhill,” Brunet said.
Jason Rodgers, president for his local Unifor chapter, said workers don’t want to strike but have been left little choice with stagnant wages.
“We feel that there’s a lot of catching up to do with the salaries. We’re less and less competitive with other industries, businesses around,” he said. Stagnant wages have led to employees leaving for positions elsewhere throughout the years, Rodgers added.
“We want to put a stop to that and negotiate something that’s going to be acceptable for employees and something that’s going to help with the job retention and help us with the future hires.”
Impact on economy, businesses
In a statement Sunday, the Montreal Port Authority said the Great Lakes and St. Lawrence River maritime ecosystem serves 75 per cent of the country’s manufacturing capacity and nearly two-thirds of the Canadian population.
“Any interruption or breakdown of services in the supply chains undermines the resilience of the economy, both regionally and nationally,” said spokesperson Renée Larouche in a statement.
The Montreal Port Authority is calling on all parties to find a rapid solution to “limit the negative impact, both on the companies that rely on these goods and on Canada’s reputation as a trading partner.”
The Canadian Federation of Independent Business (CFIB) expressed concern about the strike’s impact on small and medium-sized enterprises (SMEs), especially after they were severely affected by this summer’s lengthy strike at B.C. ports.
“SMEs and the Canadian economy as a whole don’t need another strike blocking an important trade route and hampering trade,” said Jasmin Guénette, vice-president of national affairs with the CFIB.
“SMEs are already facing inflation, labour shortages, high debts and falling demand. They can’t afford another strike that would have a negative impact on their operations.”
The CFIB is calling on the government to ensure that the St. Lawrence Seaway remains fully operational while negotiations continue. It’s also continuing its call for federally regulated workers essential to the supply chain to be recognized as essential workers to avoid similar strikes in the future.
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.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
