142046
137806
Ford is cutting about 7,000 white-collar jobs, which would make up 10% of its global workforce.

Ford cutting 7,000 jobs

Ford is cutting about 7,000 white-collar jobs, which would make up 10% of its global workforce.


Ford cutting 7,000 jobs

Ford is cutting about 7,000 white-collar jobs, which would make up 10% of its global workforce.

The company has said it was undertaking a major restructuring, and on Monday said that it will have trimmed thousands of jobs by August.

The company said that the plan will save about $600 million per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

In the U.S. about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 already have happened. About 500 workers will be let go this week.

In a memo to employees, Monday, CEO Jim Hackett said the fourth wave of the restructuring will start on Tuesday, with the majority of cuts being finished by May 24.

"To succeed in our competitive industry, and position Ford to win in a fast-charging future, we must reduce bureaucracy, empower managers, speed decision making and focus on the most valuable work, and cost cuts," Hackett's wrote.

In the U.S. about 1,500 white-collar employees left the company voluntarily since the restructuring began last year, some taking buyouts. About 300 have been laid off already, with another 500 layoffs starting this week.

Most of Ford's white-collar workers are in and around the company's Dearborn, Michigan, headquarters.

It's the second set of layoffs for Detroit-area automakers, even though the companies are making healthy profits. Sales in the U.S., where the automakers get most of their revenue, have fallen slightly but still are strong.

In November, General Motors announced it would shed up to 14,000 workers as it cut expenses to prepare for a shift to electric and autonomous vehicles. The layoffs included closure of five factories in the U.S. and Canada and cuts of another 8,000 white-collar workers worldwide. About 5,000 blue-collar positions were cut, but most of laid-off factory workers in the U.S. will be placed at other plants mainly that build trucks and SUVs.



140651


Look ahead in business

Five things to watch for in the Canadian business world in the coming week:

CIBC earnings

CIBC will releases its results for the quarter ended April 30 on Wednesday. The bank recently shuffled its leadership deck in a series of moves that included appointing Ed Dodig, CEO Victor Dodig's brother, to head retail investment firm CIBC Wood Gundy.

Economic data

Statistics Canada will release retail trade figures for March on Wednesday, followed by wholesale sales figures for March on Thursday.

CMHC report

Canada Mortgage and Housing Corporation will release its latest national mortgage and consumer credit trends report on Wednesday. Canadian home sales in April posted their first year-over-year increase since December 2017 as markets in Toronto and Montreal made gains.

Royal Bank results

Royal Bank of Canada will release its second-quarter results on Thursday. In February, the bank hiked its dividend and delivered a five per cent bump in quarterly profits despite "challenging market conditions" that weighed on some divisions and higher loan losses due to a "fallen angel'' in the U.S. utility sector.

Pot update

Statistics Canada will release its cannabis economic account for the first quarter on Thursday. Figures from the agency's recent national cannabis survey showed that 5.3 million or 18 per cent of Canadians aged 15 years and older said they used pot within the last three months, an increase of 14 per cent who reported using cannabis a year earlier, before legalization in October 2018.



'John Wick 3' tops box

The box office has a new king and his name is John Wick. The third installment of the hyper violent Keanu Reeves franchise has taken the top spot at the North American box office and ended the three-week reign of "Avengers: Endgame."

Studios on Sunday say "John Wick: Chapter 3 — Parabellum" has grossed an estimated $57 million in its opening weekend. Not only did it far exceed expectations, it's a franchise best that nearly doubled the opening of the second film, which itself doubled the opening of the first film from 2014.

The audience, in other words, is growing exponentially for this series about a talented assassin who never seems to get a break. This time, there's a $14 million price tag on his head.

Men made up the majority (63 of the "John Wick 3" opening weekend crowd. Overall audiences gave the film a rare A+ CinemaScore, indicating that word-of-mouth will be strong in subsequent weekends. According to Comscore's PostTrak audience survey, 70% said they would "definitely recommend" to their friends and 21% said they would see it again in theatres.

"This is the best reviewed film of the series so far," said Joe Drake, chairman of the Lionsgate Motion Picture Group, in a statement. "We believe word-of-mouth will continue to drive strong business for the film all over the world."

Internationally "John Wick 3" earned $35.2 million from 66 territories.

"Avengers: Endgame" slid to second place in its fourth weekend with $29.4 million. Domestically, where the film has grossed $711 million, it's now second only to "Star Wars: The Force Awakens" ($937 million) and globally, with $2.6 billion, it's still second to "Avatar" ($2.8 billion).

In its second weekend, "Pokémon Detective Pikachu" also continued to do well, placing third with $24.8 million. But with the high-performing trifecta of John Wick, the Avengers and Pikachu, there weren't very many moviegoers left over for the less flashy newcomers like "A Dog's Journey" and "The Sun Is Also a Star."

"The marketplace was so dominated by 'John Wick,'" said Paul Dergarabedian, the senior media analyst for Comscore. "It's tough when one movie over performs by this kind of magnitude."



134723


Air Canada's bid for Transat

Consumers will likely see little change in their travel choices or ticket prices if Air Canada buys Transat AT Inc., industry observers said Friday.

They added it's unlikely another bidder will upset the proposed merger, nor is it likely to be waylaid by required reviews by federal transport and competition regulators.

Shares in the parent company of airline Air Transat were little changed Friday after rising more than 13.4 per cent on Thursday to a closing price of $12.

That's a dollar less than the $13 per share or $520 million offer Air Canada announced Thursday, as it said it had entered into a 30-day exclusive arrangement with Transat to try to negotiate its purchase.

Air Canada shares, meanwhile, rose by 1.6 per cent by 3 p.m. EDT on Friday to a new all-time high of $41.04.

"We do not expect a higher bid," said analyst Kevin Chiang of CIBC World Markets in a report.

He said the offer represents a premium of 148 per cent over the 20-day average share price before Transat announced on April 30 that it was in discussions with unnamed parties for a potential sale.

Some observers said Thursday they fear a successful bid will result in fewer choices and higher ticket prices but AltaCorp Capital analyst Chris Murray said Friday there's more likely to be an expansion of routes.

"As to competition and pricing, I don't see the combination impacting competition as you still have a number of Canadian competitors including WestJet and the new ULCCs (ultra low-cost carriers), including Flair Airlines, as well as international carriers," he said in an email.

Transat offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands, with a primary focus on the transatlantic market during the summer and sun destinations through the winter.

The timing of Air Canada's announcement was probably linked to last Monday's news that Toronto-based Onex Corp. had struck a deal to buy Calgary-based WestJet Airlines Ltd. for about $3.5 billion, thus providing a funding source for growth, said independent airline analyst Rick Erickson.

But neither deal is expected to harm travellers.

"We're going to see very little change in terms of consumer benefit and I see little if anything at all on the cost front," he said.

He added he doesn't know of any domestic party that can afford to outbid Air Canada, and pointed out foreign ownership of any Canadian airline is limited to 49 per cent, which makes a bid from outside Canada unlikely.

Travel consumers shouldn't worry about a lack of competition if the two airline announcements go forward, said Wendy Paradis, president of the Association of Canadian Travel Agents.

"I think we certainly need to watch what happens, pay attention, but I think that, having two really strong carriers in Canada, there still will be lots of choice," she said.

She added Canada's other charter airlines such as Sunwing and Sunquest will continue to provide competition on Transat's holiday routes.

On transatlantic routes this summer, Air Canada has 42 per cent of total industry seat capacity and Transat has 18 per cent for a potential combined 60 per cent, wrote National Bank analyst Cameron Doerksen in a report.



Trump delays auto tariffs

U.S. President Donald Trump on Friday delayed any decision to impose tariffs on car and auto-part imports, deciding against ratcheting up trade disputes or impacting ongoing talks with European nations and Japan.

Trump has made it clear that any final decision on the matter hinges on trade negotiations between the United States and the European Union. In public hearings last year, the idea of imposing import taxes on cars drew almost no support, even from the U.S. auto industry.

White House press secretary Sarah Sanders said Trump's action follows an extensive Commerce Department review, which found that imports of automobiles and certain automobile parts threaten to impair U.S. national security. Trump issued a proclamation, directing U.S. Trade Representative Robert Lighthizer to continue to negotiate agreements to address the threat.

"United States defence and military superiority depend on the competitiveness of our automobile industry and the research and development that industry generates," Sanders said in a statement.

"If agreements are not reached within 180 days, the president will determine whether and what further action needs to be taken."

U.S. automakers ostensibly would benefit from a tax on their foreign competitors. But many U.S. automakers depend on imported parts that could be subject to Trump's tariffs and could become more expensive.

John Bozzella, president of Global Automakers, said if the president imposed new taxes on autos and auto parts, "American consumers will suffer a body blow." He said current tariffs have added cost, reduced the industry's global competitiveness and created uncertainty that has slowed investment and growth.



SNC cancels sale

SNC-Lavalin Group Inc. has cancelled the sale of part of its stake in 407 International Inc. to the OMERS pension plan but will sell the stake to one or both of the other owners of the Ontario toll highway.

The Montreal-based company said Friday the Canada Pension Plan Investment Board, which already owns a 40 per cent stake in 407 International Inc., has exercised its right of first refusal.

Cintra Global S.E., a Spanish company that owns a 43.23 per cent stake in the toll highway, has also sought to exercise its right of first refusal, but SNC disputes its ability to do so under the circumstances.

The dispute in headed to the Ontario Superior Court with a hearing set for June 21.

However, the companies have agreed that following the court's initial decision, SNC-Lavalin will be permitted to sell the stake to either CPPIB alone or both CPPIB and Cintra under similar terms it agreed to with OMERS.

OMERS had agreed to buy a 10.01 per cent stake in 407 International Inc. for $3 billion plus an additional $250 million over 10 years, conditional on certain financial targets.

SNC's position is that Cintra agreed in 2002 to waive its right of first refusal involving purchasers that do not have competing interests "in relation to construction, operations, asset management of, and investment in road or airport infrastructure projects other than solely as a financial investor such as a pension or superannuation fund."

However, Cintra claims that OMERS is a competitor and does not fall within the waiver's exception for financial investors.

"SNC-Lavalin remains confident in its position that Cintra's claims and arguments are entirely without merit and that Cintra does not have the right to disrupt or participate in either the original sale transaction between SNC-Lavalin and OMERS, or in the sale transaction between SNC-Lavalin and CPPIB," SNC said in a statement.



CAE profit, revenue up

Flight training company CAE Inc. topped expectations as it reported higher fourth-quarter profit and revenue compared with a year ago.

The Montreal-based company says it earned $122.3 million attributable to shareholders or 46 cents per share for the quarter ended March 31, compared with a profit of $82.3 million or 31 cents per share a year ago.

Revenue totalled $1.02 billion, up from $720.9 million.

The increase came as civil aviation training revenue totalled $593.4 million, up from $395.5 million a year ago, while defence and security revenue climbed to $387.9 million from $290.5 million. Health care revenue rose to $40.7 million from $35.1 million.

Excluding specific items, CAE says it earned $127.5 million or 48 cents per share for the quarter, up from $82.3 million or 31 cents per share in the same quarter last year.

Analysts on average had expected a profit of 43 cents per share and $945.2 million in revenue, according to Thomson Reuters Eikon.



Autopilot in Tesla crash

A Tesla Model 3 involved in a fatal crash with a semitrailer in Florida March 1 was operating on the company's semi-autonomous Autopilot system, federal investigators have determined.

The car drove beneath the trailer, killing the driver, in a crash that is strikingly similar to one that happened on the other side of Florida in 2016 that also involved use of Autopilot.

In both cases, neither the driver nor the Autopilot system stopped for the trailers, and the roofs of the cars were sheared off.

The Delray Beach crash, which remains under investigation by the National Transportation Safety Board and the National Highway Traffic Safety Administration, raises questions about the effectiveness of Autopilot, which uses cameras, long-range radar and computers to detect objects in front of the cars to avoid collisions. The system also can keep a car in its lane, change lanes and navigate freeway interchanges.

Tesla has maintained that the system is designed only to assist drivers, who must pay attention at all times and be ready to intervene.

In a preliminary report on the March 1 crash, the NTSB said that initial data and video from the Tesla show that the driver turned on Autopilot about 10 seconds before the crash on a divided highway with turn lanes in the median. From less than eight seconds until the time of the crash, the driver's hands were not detected on the steering wheel, the NTSB report stated.

Neither the data nor the videos indicated the driver or the Autopilot system braked or tried to avoid the trailer, the report stated.

The Model 3 was going 68 miles per hour when it hit the trailer on U.S. 441, and the speed limit was 55 mph, the report said. Jeremy Beren Banner, 50, was killed.

Tesla said in a statement Thursday that Banner did not use Autopilot at any other time during the drive before the crash. Vehicle logs show that he took his hands off the steering wheel immediately after activating Autopilot, the statement said.

Tesla also said it's saddened by the crash and that drivers have travelled more than 1 billion miles while using Autopilot.

"When used properly by an attentive driver who is prepared to take control at all times, drivers supported by Autopilot are safer than those operating without assistance," the company said.

The circumstances of the Delray Beach crash are much like one that occurred in May 2016 near Gainesville, Florida. Joshua Brown, 40, of Canton, Ohio, was travelling in a Tesla Model S on a divided highway and using the Autopilot system when he was killed.

Neither Brown nor the car braked for a tractor-trailer, which had turned left in front of the Tesla and was crossing its path. Brown's Tesla also went beneath the trailer and its roof was sheared off. After that crash Tesla CEO Elon Musk said the company made changes in its system so radar would play more of a role in detecting objects.

David Friedman, who was acting head of NHTSA in 2014 and is now vice-president of advocacy for Consumer Reports, said he was surprised the agency didn't declare Autopilot defective after the Gainesville crash and seek a recall. The Delray Beach crash, he said, reinforces that Autopilot is being allowed to operate in situations it cannot handle safely.

"Their system cannot literally see the broad side of an 18-wheeler on the highway," Friedman said.

Tesla's system was too slow to warn the driver to pay attention, unlike systems that Consumer Reports has tested from General Motors and other companies, Friedman said. GM's Super Cruise driver assist system only operates on divided highways with no median turn lanes, he said.

Tesla needs a better system to more quickly detect whether drivers are paying attention and warn them if they are not, Friedman said, adding that some owners tend to rely on the system too much.

"Tesla has for too long been using human drivers as guinea pigs. This is tragically what happens," he said.



Manufacturing sales up

Statistics Canada says manufacturing sales increased 2.1 per cent to $58.0 billion in March, boosted by the transportation equipment, petroleum and coal product, and primary metal industries.

Economists had expected a 1.1 per cent increase for the month, according to Thomson Reuters Eikon.

Sales were up in 12 of 21 industries, representing 56.4 per cent of the Canadian manufacturing sector.

Sales of transportation equipment increased 4.5 per cent to $11.1 billion in March, helped by a 6.5 per cent increase in motor vehicle sales.

The petroleum and coal product industry reported sales rose 8.2 per cent to $6.2 billion, while primary metal sales climbed 5.3 per cent to $4.4 billion.

Overall manufacturing sales rose 1.6 per cent in volume terms.



Air Canada swooping in

Transat AT Inc. is in exclusive talks with Air Canada, which is offering roughly $488 million to buy the travel company.

The Montreal-based company says it has agreed to a 30-day period of exclusive negotiations regarding a possible deal at a price of $13 per share.

Transat shares closed at $10.58 on the Toronto Stock Exchange on Wednesday.

The company offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands.

Transat says that after being solicited by several parties, its board has determined that it's in the interests of Transat and its stakeholders to finalize negotiations on an exclusive basis with Air Canada.

The company first disclosed that it had held preliminary talks regarding the possible sale of the company last month, but did not name the potential bidders at that time.



Chambers host Tourism Min.

North Okanagan tourism operators will have an opportunity to discuss the future of the industry with federal Tourism Minister Mélanie Joly.

On May 23, Joly will take part in a breakfast roundtable hosted by the Armstrong Spallumcheen and Greater Vernon chambers of commerce at Fairways Bistro in Armstrong. Joly will speak about the new federal tourism strategy and how it will create new opportunities and jobs for the middle class in the tourism sector across Canada.

"We are excited that Minister Joly is visiting the North Okanagan and is taking time to meet directly with tourism operators to learn about their success stories but also what challenges they face as businesses," said Patti Noonan, executive director of the Armstrong Spallumcheen Chamber of Commerce.

"The visit of Minister Joly is a great opportunity for our chamber to work with our counterparts in Armstrong Spallumcheen as the benefits of tourism know no boundaries," said Dione Chambers, general manager of the Greater Vernon Chamber of Commerce.

Registration for the roundtable event begins at 8:15 a.m. and Fairways Bistro is located at 2440 York Ave.

Tickets are $15, including a light breakfast, and are available through the Armstrong Spallumcheen Chamber of Commerce.



Summer jobs, girls paid less

Canadian girls and boys are about equally as likely to have summer jobs – but young females on average earn roughly 30 per cent less than their male counterparts, a recent survey suggests.

In line with the adult workforce, the poll for Girl Guides of Canada also finds girls clustered in lower-paid "pink ghetto" jobs — for example babysitting, compared with yard work.

The Ipsos survey asked 1,203 Canadians aged 12 to 18 via an online poll about their summer work in 2018. The results are published in a report by Girl Guides called "Girls on the job: Realities in Canada."

About 35 per cent of girls surveyed said they had a full- or part-time summer job — and almost as many worked in an informal setting for family, friends, or neighbours.

When it came to full-time summer gigs, such as working in a store or office, girls surveyed reported earning about $3 an hour less than boys. The difference more than doubled to $6.31 when it came to full-time work in informal settings such as working for family, friends or neighbours.

"It looks like the gender wage gap doesn't just affect adult women," the report states. "It affects girls as young as age 12."

Statistics Canada data indicate women aged 15 and older earn on average roughly 87 cents for every dollar men earn. The gap widens further for women of colour. The Ipsos survey suggests the wage gap is felt early.

"Girls and boys have different experiences on the job and how they're paid," the report states.

While about 11 per cent of boys surveyed reported experiencing some form of sexual harassment or assault during their 2018 summer work, females appeared to be worse off. About 13 per cent of girls polled said they experienced some form of sexual harassment or assault at work, rising to 19 per cent among older teens and 23 per cent for girls from lower-income families.

"This fact shows how important it is to consider that girls from marginalized communities are often more vulnerable to gender-based violence," the report states. "For older girls, while they may be seen as near-adults, they're still young and many are navigating the workforce and new social dynamics for the first time."

On the more positive side, about 45 per cent of girls surveyed said they were very satisfied with their pay, more than half said they gained skills to help in a future career, and 17 per cent said they met a mentor at work.

According to the polling industry's generally accepted standards, online surveys cannot be assigned a margin of error because they do not randomly sample the population.

Jill Zelmanovits, CEO of Girl Guides of Canada, said the survey was the first study of its kind in Canada. What's not clear is why the gender disparity exists at such a young age, she said Wednesday.

"What we do know is that it does mirror what we see in the workforce for women later," Zelmanovits said. "(It) does lead one to possibly consider that it is a conditioning that then carries through for girls into their careers as women."



More Business News

138100
136610
137176
Data from CryptoCompare
Recent Trending
137301
Soft 103.9
142145
Castanet Proud Member of RTNDA Canada
Press Room
137746
142255