Category: Economy

The Trudeau government is taking further steps to ensure that the Canadian and US steel and aluminum industries are not “unfairly” disrupted by foreign imports. This decision follows the Trump administration’s imposition of customs duties on imports of these two metals, for which Canada is exempt until May 1st.

According to a statement released Tuesday by the Prime Minister’s Office, the Canada Border Services Agency (CBSA) will be able to conduct “new anti-circumvention investigations” that will allow it to “identify and stop companies trying to avoid customs duties “in force in the country.

Foreign companies, it is argued, could, for example, seek to circumvent these rules by slightly modifying their products or having them assembled in Canada or in a third country.

In order to properly determine the applicable tariffs on steel and aluminum imports, the CBSA will also “find it easier to determine whether prices in the exporter’s domestic market, which are used for comparison purposes. , are reliable or distorted.

“We already have very strong measures in place, but we want to make sure of two things: that foreign steel is not unfairly dumped into the Canadian market, and that this steel does not find its way into the North American market. “summarized Public Safety Minister Ralph Goodale, who is responsible for the CBSA.

These measures are intended to ensure that there is no transshipment or diversion of low-priced steel from anywhere in the world to the Canadian market. We want to protect our industries from steel and aluminum and these measures are designed to ensure that there is no circumvention of Canadian laws and regulations.

Ralph Goodale, Minister of Public Safety

New committees with representatives of the federal government, provincial and territorial governments, and other interested parties will also be created to “ensure that imports do not harm jobs in Canada and North America,” says the firm. Prime Minister.

Unions will be granted the status to participate in trade remedy proceedings “to determine whether foreign exports are hurting producers” in the country, including hearings before the Canadian International Trade Tribunal.

“We have always assured the Americans that, compared to the diversion [misappropriation, Editor’s note] and these issues, we have always had good measures,” commented Prime Minister Justin Trudeau briefly in the corridors of Parliament. . “But it’s to show that we’re doing even more. This is a good thing. ”

According to the Prime Minister’s Office, no less than 71 trade remedy measures currently target imports of steel and aluminum, but it is important to improve them “even more” in order to “ensure uniformity of the rules of the game. “.

The regulatory changes will be further clarified in the Official Gazette and will be the subject of a 15-day consultation.

Intervention demanded by steel producers

In a letter to Prime Minister Trudeau dated March 13, Canadian Steel Producers Association President Joseph Galimberti urged the federal government to take action to counter the “significant” risk of steel “diversion” to Canada.

He pointed out that 90 countries had exported steel to the United States in 2017, and that the risk that tariffs imposed by the Trump administration would lead to such diversions could be “aggravated” if Mexico, the European Union or other countries were also adopting measures to protect their internal market.

“If only 15% of current US steel imports are diverted to Canada, prices will collapse and import market shares could double, which would provide nearly 50% of domestic demand, and would devastate Canadian steel producers, “wrote Mr. Galimberti.

Prime Minister Justin Trudeau himself launched attacks on China and its business practices during a Canadian tour of the sector’s businesses in mid-February. China is the largest steel producer in the world.

In Hamilton, on March 13, he said, for example, that China produces lower quality steel and sells it at a more attractive price to influence world prices.

“Their desire is to put in trouble facilities like this, that pay well to their employees and produce very good quality materials, but can not compete with a country that sells at a loss to control the market,” he said. launched.

Canada is, until further notice, exempt from customs duties of 25% on steel imports and 10% on aluminum imports imposed by the Trump administration until May 1st.

The slight improvement in cod stocks in recent years off Newfoundland and Labrador is already on a downward trend, according to the latest surveys by Fisheries and Oceans Canada.

Stocks have been showing encouraging signs since 2012, but according to the valuation released on Friday, 2017 has been a difficult year. Inventories would have decreased by 30% to 315,000 tonnes.

The biggest cause of this decline is the natural fish mortality rate, There is a high probability that the fall in stocks will continue this year, according to Fisheries and Oceans Canada.

“This kind of increase in natural fish mortality can happen and is very difficult to predict,” says Karen Dwyer, a scientist with Fisheries and Oceans Canada.

There are indications that capelin and shrimp, sources of food for cod, are not present enough either, she says.

Critical zone

When asked if the commercial cod fishery will be back soon, Ms. Dwyer says it is a game of patience.

“We are still in a critical area,” she says. We see improvements in some places, but to others, things are not going so well. ”

The department has no deadline for the reinstatement of the commercial cod fishery.

The fishing mortality rate has also been rising since 2015. This is a sign that the industry is still in a critical zone, according to Ms. Dwyer.

The preservation of quotas as low as possible is, for the moment, the recommendation of scientists.

The union representing fishers in Newfoundland and Labrador is cautious when it comes to assessing stocks.

“Although this is not the news the fishermen wanted to hear, there are still fluctuations in this type of assessment. That was to be expected, “says union president Keith Sullivan in a press release.

The World Wildlife Fund, for its part, described the situation as a “major setback”.

President Donald Trump’s intention to tax $60USD billion of Chinese imports could help Canadian retailers by cutting back on purchases made by Canadians in the United States. But a real trade war between the two superpowers would ultimately hurt the Canadian economy, experts say.

According to the Retail Council of Canada, US taxes would increase the price of Chinese goods sold in the United States, including electronics, which could lead to more Canadians shopping at home.

The United States purchases the equivalent of US $500 billion worth of goods from China each year, from toys to shoes to cell phones. The prices of these products could leap due to the imposition of taxes.

A list of products in two weeks

It is not clear for the moment what sectors will be affected; a list of products should be provided in two weeks. US officials have announced they will try to minimize the impact on US consumers by targeting corporate-owned goods, including computers, computer products, industrial machinery and aircraft parts.

But even if they do not impose taxes on consumer-bought Chinese products, companies could still pass the bill to customers, according to Council vice-president Karl Littler.

Falling demand for Chinese products may also help Canadian retailers get better prices from companies in China that will try to offset their losses.

In addition, to avoid tariffs, multinational retailers, including Costco, Best Buy and Walmart, could send their products directly to Canada rather than shipping them to the United States.

The president of the Canadian Association of Importers and Exporters, Joy Nott, also believes that Americans may be tempted to buy their products in Canada.

“It will not be in waves, but I think it will level cross-border activity,” she said in an interview.

Canadian products rather than Chinese

Canadian products that are similar to Chinese goods may also be preferred by US buyers.

A day after Donald Trump’s announcement, China announced that it could instead impose taxes on pork, apples and steel pipes.

Further retaliation by China could open the door for Canadian exporters to replace expensive US goods, particularly in agriculture.

This could help Canadian pork exporters. We could end up replacing the United States as China’s supplier if China imposes restrictions on US products.

CIBC Chief Economist Avery Shenfeld

Canada could suffer as well

However, a warming of tensions between the two countries could slow down the global economy, according to Shenfeld.

Given that Canada is a country that depends on commodity exports, a weaker Chinese economy would end up hurting its economy, as there would be fewer sales and lower raw material prices, the economist said. Chief Executive Officer of the Conference Board of Canada, Craig Alexander.

“Taxes as they are advertised are a bad thing, but what we are most concerned about is how it could get worse.”

If that happens, there is a risk that the entire global trading system will collapse, said Yves Tiberghien of the Asia Pacific Foundation of Canada.

“If the trading system really collapses, then we will suffer massively,” he said in an interview from Washington.

Mr. Tiberghien predicts that the Chinese will not let go. As a result, the US government will be distracted by China, which could benefit current negotiations on the North American Free Trade Agreement (NAFTA).

The United States has recently softened the tone for Canada, exempting it and Mexico from tariffs on steel and aluminum, and compromising on auto in the NAFTA talks.

“So the pitch is completely different from last week.”

Ottawa has decided to keep an eye on Canadian companies abroad. In January, the federal government created an ombudsman position to protect the human rights of communities that receive Canadian companies at home. Native Spaces went to Peru, where the Canadian company HudBay owns the Constancia Mine, a $ 2 billion investment in one of the poorest regions of the country.

José Luis Vasquez does not hide his anger when talking about the Canadian mining company HudBay. His voice trembles when he speaks and he punctuates his words by striking the table with the palm of his hand.

The company’s commitments have not materialized, he says. “As long as the company does not meet the highest standards in terms of social and environmental responsibility, we can not recognize that HudBay, a Canadian company, is assuming all its responsibilities. No! He adds.

José Luis Vasquez is a child of the country. After studying at the city, he returned to Chamaca, a Quechua community, a seven-hour drive from Cuzco, where he is now secretary of the Environment Commission. According to him, the Canadian company Hudbay treats the population by “begging”.

His colleague Jaime Asencion agrees. It’s late and the two men come out of a HudBay meeting. Asencion, who is deputy manager of environmental protection in Chamara, says the company has sown division in communities, in families, between authorities in the region. An irreparable situation, according to him.

HudBay does not have an understanding with everyone and every community is fighting hard for its share of the pie. Jaime Asencion thinks that the tactics of the company is a maneuver of attrition and that the population is finally too patient with it.

“Perhaps we are a little too passive or quiet and the mining company takes advantage of this humility and patience,” he says.

However, Chamaca has a framework agreement with the Canadian mining company since 2013. The company has committed to invest $ 1 million a year in the small municipality. But in 2017, Chamaca did not receive anything, says Asencion. And nothing in 2018, because funded projects must be negotiated each year piece by piece, he adds.

The report of Guy Bois will be presented on the show Désautels on Sunday at 10 am on Ici Première.

Jaime Asencion is particularly concerned about the water issue, especially because the company is located at the source of the Macaray River. “The water they use will seep at some point. At this moment, it is visible to the naked eye, without analysis equipment, that there are fish that have malformations, injuries, “he says.

The Maracay River has its source in the Chilloroya River, which runs right next to the HudBay mine. He then goes down to irrigate the lowlands used for beef, sheep, alpaca and llamas.

The analyzes carried out by the National Office of Water of Peru, however, do not show any abnormal contamination.

Indigenous leader Sabia Bota, secretary general of the peasant federation, does not believe the government agency. “We have never seen such a thing, trout with malformations. There must be something that affects our river. I think the National Water Board favors the business, “she says.

Sabia Bota also denounces the slow negotiations with HudBay. A strategy that allows the mining industry to quickly extract the wealth of the region, she says, while the needs are great, especially those of children.

“We ask that we be supported with vitamins for children who suffer from anemia, undernutrition. And in this way, we may be able to improve the quality of our children’s health. We may be able to improve education as well, “says the indigenous leader, who is holding her four-year-old daughter Libertad (” freedom “in Spanish).

A few steps from the municipal hall, the Front for the Advocacy of Chamaca, which claims to be civil society, is gathered. It is 22 hours, the rain falls druely on the tin roofs. We serve the very sweet coca mate with a piece of bread.

“They are coming out of the almost pure copper of this mine beyond their capacity. Around 70 trucks a day filled with concentrate. But the level of contribution in the communities remains small. As they say, we take the resources out and leave you nothing. What we leave is pollution, and the problems here “, denounces Mauro Timoteo Castenada. Almost 30 years old, he is looking for ways to find a scholarship to pursue his university studies in Cuzco.

The young man says he is open to private investment that respects “the peasant communities, his collective rights, his rights related to the territory, his rights related to the environment, the right to a dignified life”.

Protected by the Peruvian National Police

The HudBay mine has been affected by four conflicts with the population since November 2014. The most serious crisis occurred in January 2016. Farmers in Vellile, another area in the area affected by the mine, occupied the facilities of the community. HudBay for four days. The crisis has resolved without violence. Thirteen charges were brought against the leaders, including the mayor of Vellile.

The HudBay mine is located at 3900 meters above sea level, an open mine, gigantic, carved into the mountain.

It is a mine protected by the Peruvian National Police, the equivalent in Canada of the Royal Gendarmerie. In all legality, HudBay has a service contract with the Peruvian police. Contract from which we obtained a copy. It details, among other things, the daily salary of the officers (around $ 50), the non-commissioned officers, as well as the responsibilities of the mine and those of the police officers.

The region has also been in a state of emergency since January, allowing arrests without a warrant or preventive detentions.

The mine is also taking advantage of the increase in copper prices over the last year to buy more mining concessions in the region, which is creating resistance.

Luisa Colqué is Mayor of Anawichi, where HudBay decided to expand her mine. She believes that the mining is practically owner of the whole territory of the community. “We have our resources, and these resources, [the mining] takes them for nothing. And if we ask for support, the company supports us miserably, forgive me the word, “she says.

Human rights support

The communities affected by the HudBay mine are supported by Human Rights Without Borders. The Cuzco office organizes workshops on indigenous rights in the area, denounces rights violations and provides legal defense for activists.

“If a Canadian company signs a memorandum of understanding with a community or district and promises to give work, build roads, promise a school, promise investments, the least people expect is that company tries to fulfill these agreements. Because when you do not respect the agreements, you have a conflict, “says Jaime Borda, the director of the organization.

He believes that creating an ombudsman position in Canada to promote the rights of communities abroad is a good idea. It is still necessary that his work be specified.

“What will be the mechanism for filing a complaint? How will a member of an affected community be able to use this mechanism to make a complaint to such a remote body in Canada? To understand conflicts, impacts, you have to be in the field, “he says.

The HudBay headquarters building in Lima, Peru Photo: Radio-Canada / Guy Bois
The mine Conctancia, the jewel of mining

HudBay has its Peruvian headquarters in Lima. Its Constancia mine is the jewel of the company. It produces three times more copper than the other HudBay mine in Manitoba.

The main shareholders of HudBay are pension fund managers. In other words, many individual shareholders may not know that they own shares in this company. The company’s management only owns 1% of the company.

At the headquarters of HudBay, in Lima, it is said that it is impossible to receive us. Everyone is in a meeting, even if we announce ourselves the day before. The response to the request will come later from the Toronto head office. Impossible, it is said, to grant an interview. Questions can be submitted in writing. What was done. Hudbay’s answers:

• Relationships with communities are generally friendly and productive, but as in any employment relationship, disputes may arise between the parties.

• Regarding allegations of pollution of the Macaray River, Hud Bay replied that it is true that some people made such allegations, but these were based more on perceptions than on proven facts.

• And HudBay finally points out that companies in Peru are often required to enter into contracts with the police to cover the costs associated with surveillance. These agreements are governed by a specific legal framework and are therefore valid.

The double Canadian morality?

For José de Echave, Peru’s former deputy environment minister, Peruvian environmental protection policies are lax. He accuses the Canadian embassy of conducting vigorous mining diplomacy so that environmental standards favor companies.

He even believes that Canadian cooperation deemed independent of economic interests primarily serves the mining industry. He refers to Canada as a country that applies a “dual morality”: “To say and recognize that we operate according to the best standards in other countries, and [at the same time] to feel very comfortable about operate with minimum standards. Not only to feel comfortable with these minimum standards, but also to put permanent pressure to ensure that a country like Peru does not raise its social and environmental standards … ”

The Canadian Embassy in Peru has declined our request for an interview.

Back to Chamaca

A saleswoman of coca leaves at the market of Chamaca in Peru
A seller of coca leaves at the market of Chamaca in Peru Photo: Radio-Canada
Meanwhile in Chamaca, just a few miles from the HudBay Constancia mine, the aboriginal leader of the Farmers’ Federation has one last message for Canadians.

“We demand only that we respect our rights. It is only for this reason that we do this and not to inconvenience anyone, “she concludes.

Some WestJet flight attendants claim that the airline usually pays its crew less than the minimum wage, since agents are only paid for the hours they spend in the air and not for their actual work time.

The industry standard for flight attendant compensation is based on the time between flight and landing, although most airlines also offer compensation for the time spent by flight attendants in airports before and after flights.

WestJet does not do this, and it has become a sticking point with flight attendants because the minimum wage is increasing across the country. The airlines’ compensation for flight attendants could, in fact, violate federal labor rules, according to one union.

Billionaire365 spoke with two flight attendants who each have more than 10 years of experience with WestJet and whose identity has been protected for fear of reprisal.

WestJet does not pay for its flight attendants like other airlines, it’s frustrating.

A WestJet employee

Flight attendants say that the way WestJet calculates their wages puts them at a disadvantage.

For example, crew members on a one-hour flight between Calgary and Vancouver could end up with a four-hour shift between arriving at the Calgary airport and leaving Vancouver airport.

WestJet would pay its employees for the one hour flight. For example, the rate of $26 per hour spread over four hours is equivalent to $6.50 per hour. This is well below the minimum wage in Alberta, $13.60, and in British Columbia, $11.35.

Full-time flight attendants have a base salary of $25.29 per flight hour, and the maximum salary is $ 47.50 per hour. Based on the expectation of about 80 hours of theft per month, the annual base salary starts at about $ 24,500 and peaks at about $46,500.

“A high school student will see the hourly rate of $ 25 and think it’s fantastic, not understanding that it’s per flight hour, not hours of work,” said a flight attendant.

“Everyone is talking about minimum wage increases and is angry at Tim Hortons, whose employees deserve better. What about the person responsible for your safety aboard an airplane? “Yes, they serve you coffee most of the time, but it’s not really their job,” says the employee.

Compensation is “generous” says airline

The Calgary-based carrier’s flight attendants have been trying to organize for a number of years, and they would like that to happen, especially as a result of the unionization of pilots, who are currently negotiating their first contract.

WestJet denied interview requests and did not respond to requests for clarification of information.

In an email sent to CBC News, WestJet stated, “We are providing our cabin crew members with a salary and total compensation that offers [a] variety of unique features.”

WestJet offers full-time crew members benefits, an optional share purchase plan and profit sharing when the company is profitable.

“WestJet’s profit sharing is among the best in the airline industry,” the statement said. “We believe that the total compensation offered to our cabin crew is generous and compares favorably with carriers of similar size. ”

Federal rules

The way WestJet pays for its flight attendants could be a violation of federal labor rules, which provide that federally-regulated industries, such as aviation, must pay employees for all the work they do.

The Canadian Union of Public Employees (CUPE) said it was looking at whether federal labor rules were being broken. “It’s a possibility we’re exploring,” said David Fleming, a CUPE representative who has been working for about a year organizing WestJet flight attendants.

Mr. Fleming does not provide timelines for possible unionization, he only says “things are going well”.

He stated that the challenges facing unionization include turnover among flight attendants and the difficulty of communicating with crew members who, by the very nature of their jobs, are in transit most of the time.

Flight attendants who spoke to CBC News say they do not want to quit because they appreciate the flexibility of the position and they will lose their seniority by joining another airline .

Comparison of airline remuneration

The scenario of the flight attendant flying between Calgary and Vancouver would result in a salary increase if he worked for another airline. If the flight attendant worked for the Jazz carrier and was on the same shift, he would receive a minimum wage of 4.5 hours instead of the hour paid by WestJet.

The union representing Jazz’s flight attendants has ensured that there are daily minimums in its contracts.

“It is essential to ensure that employees do not come to work and potentially go into debt because of the expenses they incur to get to work and the wages they receive for the amount of work they do. when they show up, “said Trevor Beattie, president of the union representing the crew of the carrier Jazz.

The airline and the union bind the departure wages of flight attendants to twice the minimum wage in the province where the employee is based.

“That means the starting salary in Toronto for our flight attendants is $ 28 an hour,” said Beattie.

It also states that at Jazz, there is a standard for the minimum number of paid hours for flight attendants, whether they report to work or not.

In another example, if a flight attendant completes a 12-hour shift with four hours of flying, he will receive four hours of pay at WestJet, six hours at Jazz and eight hours at Air Canada. Jazz pays for flight time or half-pay for each hour of work, whichever is greater. Air Canada pays the total number of flying hours or total time at work less four hours, whichever is greater.