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Windsor police say they expect 1600 Koreans to work at EV battery plant

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Conservative Leader Pierre Poilievre speaks at a news conference in the Foyer of the House of Commons on Parliament Hill in Ottawa, on Nov. 20.Justin Tang/The Canadian Press

Police in Windsor, Ont., say they are expecting around 1,600 South Koreans to arrive to work on the town’s new electric-vehicle battery plant, which was heralded by the federal government as a major employer of Canadians.

On Monday, Conservative Leader Pierre Poilievre expressed dismay that scores of jobs at the heavily subsidized NextStar factory could go to temporary workers from Korea, stripping promised employment from Canadians.

He told reporters in Ottawa that he wanted “a full inquiry” and for the Prime Minister to make public the contract with global auto giant Stellantis NV and South Korean battery maker LG Energy Solution Ltd., to see what terms they had struck on jobs for Canadians.

“If Justin Trudeau has nothing to hide, he will make these terms public,” Mr. Poilievre said, adding that the level of subsidy meant that every Canadian would end up paying $1,000 toward the plant.

“They deserve to see what they’re paying for,” he said. “Make the contract public and prove that every single dollar will go to Canadian paycheques, not to temporary foreign workers.”

Unions have seized on a tweet by the Windsor Police Service last Thursday, the week when South Korean diplomatic staff, including an economic attaché from the Ottawa embassy, visited the city for discussions about the factory.

“With the new LG Energy Solutions battery plant being built, we expect approximately 1,600 South Koreans traveling to work and live in our community in 2024,” Windsor police posted on X.

The NextStar plant, being built with up to $15-billion in subsidies from the federal and Ontario governments, is the largest investment in the history of Canada’s auto sector.

It is expected to open next year and was touted to create 2,500 jobs in Windsor and the surrounding areas. But MPs, unions and construction trades groups are ringing alarm bells after a Korean company began recruiting in Windsor for jobs at the factory.

The federal employment department has already granted permission for a temporary foreign worker to fill an administrative role, on the grounds that a Canadian could not be found.

Sean Strickland, executive director of Canada’s Building Trades Unions, told The Globe and Mail on Monday that the unions wanted “an opportunity to sit down with the executives of the NextStar Energy EV Plant to understand their labour requirements” before the situation “becomes unrepairable.” He added that Canadian workers have technical skills, including at auto factories.

On Monday, Windsor NDP MP Brian Masse raised the issue in the House of Commons, saying the federal and Ontario governments had committed to jobs and training guarantees at the factory. He asked the federal Liberals to give assurances that jobs at the heavily subsidized plant be unionized and go to people from Windsor and the area, and that “not a single cent goes to temporary foreign workers.”

Ontario Labour Minister David Piccini told reporters at Queen’s Park on Monday that it was up to the federal government to explain how it is allowing the use of South Korean temporary foreign workers, as the borders come under federal jurisdiction.

“My message is simple, Ontario jobs first,” he said.

Mr. Piccini said he was unaware of the plans to bring in foreign workers when the deal to add billions in extra subsidies for the plant was reached in the spring.

Asked if it was not common practice to bring in specialized foreign workers to set up sophisticated proprietary equipment, Mr. Piccini insisted locals could do the jobs just as well.

“We’ve got world-class workers here who can do the job – do the drywalling, do the framing, do everything that we need,” he said.

Jeil, a Korean company known for precision machinery transportation with a long-term partnership with LG, has set up a corporation in Canada to carry out installation and assembly for NextStar.

Jeil is advertising for an operations manager-administrative services at the plant. To fill the role, the federal employment department has approved a Labour Market Impact Assessment (LMIA), which allows a company to bring in a foreign worker.

Samuelle Carbonneau, a spokesperson for Employment and Social Development Canada, said this is the only LMIA in place for the EV battery plant. She added that the department is currently looking into the situation at NextStar.

Irek Kusmierczyk, parliamentary secretary to Employment Minister Randy Boissonnault, said in the Commons that an LMIA is only allowed “when Canadians or permanent residents are unable or unavailable to do a job.”

Mr. Kusmierczyk, who is also a Windsor MP, said “2½-thousand full-time positions will be created at the Windsor battery plant and an additional 2,500 local tradespeople will be engaged.”

Danies Lee, chief executive of NextStar Energy, has told The Globe that installing the equipment at the plant requires staff from abroad with specialist skills.

He added that the company was “fully committed to hiring Canadians to fill more than 2,500 full-time positions at the Windsor battery facility and are engaging up to an additional 2,300 tradespeople locally and throughout the province.”

A spokeswoman for the Korean embassy confirmed that diplomatic staff had been in Windsor last week but declined to comment further.

With a report from Jeff Gray

 

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

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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)

The Canadian Press. All rights reserved.

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

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

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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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