Union representatives began negotiations with the Canadian counterparts of the Detroit Big Three automakers with a “document exchange” on Wednesday morning, skipping the ceremonial handshake as a COVID-19 precaution.
The official negotiation of wages and benefits began today in Toronto, which eventual outcomes will affect employees for the next four years.
The impact of the COVID-19 pandemic on the employment landscape will be in focus as Unifor seeks to make a deal with Fiat Chrysler Automobiles FCA, Ford Motor Co. and General Motors Co.
The existing agreements — applicable to the some 20,000 Canadian workers at the three automakers which Unifor represents — expire on Sept. 21.
Auto sales plummeted this spring during the peak months of the pandemic, and production lines stalled as automakers shut down plants for months beginning in March. FCA, Ford and GM re-opened Canadian operations on May 19.
Despite the economic crisis caused by the pandemic, Unifor intends to take a hard line in these negotiations. National president Jerry Dias says he will not make concessions like workers did following the economic recession in 2008 to help manufacturers weather the financial crisis.
“We gave up jobs, we froze wages, we made changes on our benefit plan, there were a whole host of workplace issue changes, but frankly that’s not in the cards [this time],| Dias said to CBC News ahead of negotiations Wednesday.
“These are companies that have been printing money and we expect that they’ll be doing well fairly shortly, so this is about progress for working class people.”
Dias says auto workers made many sacrifices in their contract following the 2008 recession that the union won’t stand for in this round of talks. (Chris Young/The Canadian Press)
Dias says he won’t let COVID-19 be an “excuse” for manufacturers going forward as the union tries to secure new product commitments and job security for plants in Ontario cities Windsor, Oakville, Brampton and St. Catharines.
“We have a very impressive agenda in front of us but we’re up for the task,” he said.
But Jason Stein, publisher of Automotive News in Detroit, is less optimistic.
“There’s a lot of doubts about what the market will look like,” said Stein. “We’re dealing in an era of extreme uncertainty.”
Last year’s United Auto Workers contracts left Unifor little to work with, he said, adding that a presidential election may put more pressure on the Detroit Three not to invest outside the U.S. while unemployment remains high there.
There are some positives, said Stein, including a favourable exchange rate and Canada’s relative control over the spread of COVID-19.
But when it comes to much-needed new product to hit factory floors, Stein says the union shouldn’t be too hopeful.
“There is no indication that any kind of commitment is coming down the line,” he said.
“When you look at product there are no guarantees that will be on the table and that’s the biggest stumbling block that Unifor has going into these.”
Ontario factories facing tough times
Dias had stressed the need for those new products to hit manufacturing floors back in February, when FCA announced they’d be eliminating a third shift at the Windsor Assembly Plant affecting 1,500 jobs and hundreds more at feeder plants.
“It’s not just a question of Chrysler in Windsor, but we need to know what Chrysler is doing in Brampton and we have some real problems with their Etobicoke facility,” Dias said in February.
Employees inside the FCA Windsor Assembly Plant wearing protective face masks after they returned to work in May. Auto factories closed in mid-March due to the pandemic. (Submitted by FCA Canada)
He said the decision to close meant the union was “heading for a perfect storm with Fiat Chrysler in September.”
“Candidly, there’s not going to be an agreement with Fiat Chrysler until we find a solution for the Windsor Assembly Plant,” Dias told CBC News in February.
FCA has two assembly plants in Ontario — one in Windsor and the other in Brampton — as well as an aluminum casting plant in Etobicoke.
“FCA remains committed to Canada and we look forward to negotiating a fair agreement that will help us continue to invest in our future, while creating opportunities for our employees, their families and our communities,” said FCA Canada’s head of human resources, Jacqueline Oliva, in a press statement.
“We have the largest hourly workforce and, in 2019, FCA Canada produced the most vehicles of the domestic three automakers. As the automotive industry continues to rapidly change, our goal in this round of negotiations is to reach a labour agreement that will sustain the Company’s competitiveness.”
David Paterson, vice president of corporate affairs for GM Canada, says the company is looking for a more ‘flexible’ agreement with the union. (CBC News)
But FCA’s plants aren’t the only ones facing an uncertain future.
The plant employs 4,200 people, and Fiorani said there was no indication from the company another product was hitting the factory.
In an emailed statement to CBC News, a Ford Canada spokesperson says the Edge and Lincoln Nautilius also manufactured at the plant are part of the company’s “winning portfolio,” with sales on the rise, but does not confirm that new models will be built in the suburbs of Toronto after 2021.
“The global COVID-19 crisis is an unprecedented challenge for our organization, demanding creative, agile solutions and some tough decisions,” said said Rose Pao of Ford Canada.
Dias says the union will be looking to secure new products for Canadian factories. (Chris Young/The Canadian Press)
After strong demands from union members and political pressure, General Motors decided to keep part of its old assembly plant to produce spare parts.
Only 300 of the 2,600 workers the company employed in Oshawa were able to keep their jobs.
Existing agreements for some 20,000 Canadian autoworkers are set to expire on Sept. 21. (Chris Young/The Canadian Press)
“We want to work together with Unifor to arrive at a flexible and solid agreement for the next four years,” said David Paterson, vice president of corporate and environmental affairs for GM Canada.
“We have well-compensated employees and we want them to be so. At the same time with COVID-19 and the recovering, economy we need to be flexible.”
Despite the end of vehicle assembly in Oshawa, the company says it has no plans to leave Canada, noting that it has made significant investments in that facility and the one located in St. Catharines.
Negotiations will continue to be done in person with strict physical-distancing measures in place.
Unifor is expected to announce which automotive company’s deal will serve as the model for other collective agreements.
If no deal is reached, a strike authorization vote could be due in the coming weeks.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
