Conductors, engineers on picket line as CP Rail, union can’t reach deal

OTTAWA — Canadians expect a swift end to a work stoppage at CP Rail, federal Labour Minister Seamus O’Regan said Sunday, hours after thousands of workers ended up on the picket line and trains came to a halt nationwide.

There is already pressure on O’Regan to end the labour dispute, but his spokeswoman said Sunday morning the government believes the best deal is reached at the bargaining table.

“There are always challenges in bargaining, but you push through them to get the agreement you need,” O’Regan said on Twitter. “CP and Teamsters Rail continue their work today. Canadians are counting on a quick resolution.”

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More than 3,000 CP Rail conductors, engineers, train and yard workers represented by Teamsters Canada Rail Conference are off the job after a midnight deadline set by the company to agree on a contract failed to secure a deal.

Dozens of industry groups asked the government to intervene last week and get a binding arbitration process in place before any strike or lockout.

On Sunday, Canadian Chamber of Commerce President Perrin Beatty said O’Regan must table back to work legislation immediately.

“This work stoppage will have a deep and adverse impact for all Canadian businesses — both big and small — who rely on rail for their supply chain,” Beatty said. “This severe damage to Canadian supply chains at a time of heightened global uncertainty will extend beyond our borders and harm our reputation as a reliable partner in international trade.”

The House of Commons resumes Monday following a two-week break so legislation could come Monday if the government wanted.

Fertilizer Canada also said Ottawa must take “immediate action.”

“A disruption to essential rail service during the crucial spring seeding season will have devastating effects on farmers, the economy, and domestic and international food security,” the group said.

The company and union both blamed the other for causing the work stoppage, though both also said they were still talking with federal mediators Sunday.

The union said in a statement that the company had locked the workers out, but later issued another statement saying that the workers were also on strike.

The original statement posted to the TCRC website late Saturday said the union wanted to continue bargaining but the company “chose to put the Canadian supply chain and tens of thousands of jobs at risk.”

“As Canadians grapple with a never-ending pandemic, exploding commodity prices and the war in Ukraine, the rail carrier is adding an unnecessary layer of insecurity, especially for those who depend on the rail network,” the statement said.

But CP Rail said it was the company that wanted to keep talking past the midnight deadline, and the union that pulled its employees off the job.

CP President Keith Creel said in a news release the union “failed to respond” to a new offer presented by mediators before the midnight deadline.

“Instead, the TCRC opted to withdraw their services before the deadline for a strike or lockout could legally take place,” he said. “The TCRC is well aware of the damage this reckless action will cause to the Canadian supply chain.”

The company said the union’s insistence that it was a lockout was a “failure” to bargain in good faith and it is taking steps to address “this egregious behaviour.”

CP Rail said it is “executing a safe and structured shutdown” of train operations nationwide.

The CP Rail dispute will impact supply chains that are already being hammered by ongoing effects of the COVID-19 pandemic, were hit by trucker convoy protests blocking border crossings in February, and now are dealing with the effects, particularly on global fuel supplies, of the Russian invasion in Ukraine.

All the disruptions pushed inflation to a three-decade high, with essentials such as food and fuel facing some of the sharpest price hikes.

CP and the union have been negotiating since September, with wages and pensions a sticking point. For the union, a clause on where employees take their federally mandated break periods is also an issue.

CP Rail says this is the fifth work stoppage since 1993 and the eighth time in nine trips to the bargaining table that contract talks resulted in a need for federal conciliation.

North Korea fires multiple-rocket launcher, South Korea says

North Korea appeared to have fired a short-range multiple rocket launcher on Sunday, South Korea’s military said, amid heightened military tensions on the peninsula after a spate of larger missile launches by the nuclear-armed North.

While they garner much less attention than the massive intercontinental ballistic missiles (ICBMs), North Korea has displayed several new types of multiple launch rocket systems in recent years, adding to an already large arsenal of artillery and rockets ideal for potentially striking targets in the South.

“This morning there was firing in North Korea which is assumed to be multiple rocket launcher shots, and our military was monitoring the related situation and maintaining a readiness posture,” South Korea’s Joint Chiefs of Staff said in a statement, without elaborating.

North Korea’s military fired four shots around 7:20 a.m. (2220 GMT on Saturday) for about an hour toward its west coast from an unidentified location in South Pyongan Province, Yonhap news agency reported.

South Korea’s National Security Council held an emergency vice-ministerial meeting over the launches.

Last year South Korea approved plans to pursue a $2.6-billion artillery interception system, similar to Israel’s “Iron Dome,” designed to protect against North Korea’s arsenal of long-range guns and rockets.

About half of South Korea’s 52 million people live in the capital Seoul and the surrounding areas, within range of the neighbor’s long-range guns and multiple rocket launchers.

Pyongyang has conducted an unusually high pace of missile launches this year. South Korea and the United States warn that the North could resume test-firing its largest ICBMs for the first time since 2017 amid stalled denuclearization talks.

North Korea also appears to be preparing to launch a spy satellite, and new construction has

Xi & Biden Phone Call

WASHINGTON — President Joe Biden held a nearly two-hour phone call on Friday morning with Chinese President Xi Jinping to discuss Russia’s invasion of Ukraine.

The call was seen as a critical test of whether Biden can convince China to stay on the sidelines of the conflict in Ukraine, and to turn down Russian requests for military or economic aid.

According to a readout of the call from the Chinese Ministry of Foreign Affairs, Xi told Biden that the United States and China each had an obligation to promote peace.

The White House has yet to issue a formal readout of the call, but said it began just after 9 a.m. and lasted just shy of two hours. That’s an unusually long time for a presidential call with the leader of a U.S. adversary.

It was unclear from the Chinese readout of Xi’s call with Biden on Friday whether the American president had shifted Xi’s thinking on Russia in any way.

“The world is neither peaceful nor tranquil,” Xi reportedly said to Biden, and “the Ukraine crisis is not something we want to see.”

Xi also reportedly expressed his belief that “conflict and confrontation are not in anyone’s interest, and peace and security are what the international community should treasure the most.”

The Chinese summary of the call said Xi told Biden that the U.S. and China, as permanent members of the UN Security Council and the world’s two largest economies, “must not only lead the development of China-US relations on the right track, but also shoulder our due international responsibilities and make efforts for world peace and tranquility.”

Pentagon officials said last week that Moscow has asked Beijing for military and economic assistance to wage its war against Ukraine, and that initial intelligence reports suggested China had agreed.

Spokesmen for both the Russian and Chinese governments publicly deny that Moscow has reached out to Beijing for help.

But the unprecedented economic sanctions imposed on Russia by NATO members and G-7 countries in response to the invasion have left Russia isolated and, some analysts say, desperate for financial assistance and military supplies.

Beijing has little interest in becoming embroiled in the economic battle between Moscow and the rest of the developed world.

“China is not a party to the crisis, nor does it want the sanctions to affect China,” foreign minister Wang Yi said during a phone call Monday with Spain’s foreign minister, Jose Manuel Albares. 

Covid pushed nearly 5 million more in Southeast Asia into extreme poverty, says Asian Development Bank

Southeast Asia is grappling with high poverty levels as recurring waves of Covid-19 have dealt a blow to the region’s labor market, said the Asian Development Bank.

Last year, the pandemic pushed 4.7 million more people in Southeast Asia into extreme poverty — which is defined as those living on less than $1.90 per day — and erased 9.3 million jobs in the region, the ADB said in a report published on Wednesday.

“The pandemic has led to widespread unemployment, worsening inequality, and rising poverty levels, especially among women, younger workers, and the elderly in Southeast Asia,” said ADB President Masatsugu Asakawa.

Many countries in Southeast Asia have lost their hard-won economic and development gains as they continue to struggle with the spread of the omicron Covid variant.

Though ADB expects growth of 5.1% in 2022 as higher vaccination rates prompt economies to reopen, it warned that the new variant could cut growth by as much as 0.8%.

The countries with the highest number of reported Covid-19 cases in the region since the pandemic began are Vietnam (6.55 million), Indonesia (5.91 million), and Malaysia (3.87 million) — all developing ones — online publication Our World In Data showed.

“The pandemic’s impact on poverty and unemployment will likely persist as inactive workers become de-skilled and poor people’s access to opportunities further deteriorates,” ADB said. “When this happens, the deterioration in inequality will transfer across generations.”

Signs of recovery in tourism

Despite the volatility the pandemic has created, ADB is optimistic that Southeast Asian economies are beginning to recover.

Southeast Asian countries have mostly been “taking care of their own house” since the Asian financial crisis, and that has put them in a better position to “weather the storm” of the pandemic, said ADB Vice President Ahmed Saeed.WATCH NOWVIDEO03:04Southeast Asia is ‘broadly in good economic health’ despite Covid, says ADB

The region, which relies heavily on its tourism industry for growth, expects to see the sector gradually pick up as travel borders begin to open, providing more opportunities for economic growth and jobs.

“Tourism tends to bounce back and to be more robust through the cycle than we expected,” Saeed told CNBC’s “Squawk Box Asia” on Wednesday.

“Would additional waves of the Covid virus and variants set that back? Yes. But I think … once the clouds clear … we will ultimately get back past our 2019 tourism numbers across the region and beyond those,” he added.

But Southeast Asia still has a long way to go.

Although overall international tourist arrivals increased by 58% in July to September 2021 compared with the same period in 2020, it remained 64% below 2019 levels, the report stated.

“At present, tourism related goods and services including transport, accommodation, recreation, and other personal services will likely remain weak while travel remains curtailed and social distancing is enforced,” ADB said.

Investing in health care

To expedite the region’s economic recovery, ADB urged Southeast Asian governments to invest more in their health-care systems.

While the virus could cause long-term damage to economies by causing severe disruptions to supply chains and labor markets, a lack of investment in health care is also worsening inequality, the bank said.

Allocating more resources would “help health systems deliver care, improve disease surveillance, and respond to future pandemics,” the bank said.

ADB said Southeast Asia’s economic growth could increase by 1.5% if health spending in the region reaches about 5% of gross domestic product, compared with 3% in 2021.

“Countries that had greater internal health care capacity, greater levels of wealth … managed to come through this process better than” middle- and low-income countries that lack health-care systems and infrastructure, Saeed said.

Oil adds to gains on lack of progress in Russia-Ukraine talks

It marks the third volatile week of trade as there was slim progress in peace talks between Russia and Ukraine.

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This volatility is raising concerns about a prolonged disruption to oil supply, according to Reuters.

FILE PHOTO: Pump Jacks are seen at sunrise near Bakersfield, California. ( REUTERS/Lucy Nicholson/File Photo / Reuters Photos)

U.S. West Texas Intermediate (WTI) crude futures climbed $2.96, or 2.9%, to $106.00 a barrel, adding to an 8% jump on Thursday.

Brent crude futures jumped $2.77, or 2.6%, to $109.41 a barrel, after surging nearly 9% on Thursday in the largest percentage gain since mid-2020.https://flo.uri.sh/visualisation/8927714/embed

Even with the rebound, both benchmark prices were set to end the week down about 4%. Prices have dropped from 14-year highs hit nearly two weeks ago.

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Prices have been on a rollercoaster ride due to the supply crunch from sanctions on Russia, stuttering nuclear talks with Iran, dwindling oil stockpiles and worries about a surge of COVID-19 cases in China, according to Reuters.

India has not imposed sanctions against buying oil from Russia

NEW DELHI — The state-run Indian Oil Corp. bought 3 million barrels of crude oil from Russia earlier this week to secure its energy needs, resisting Western pressure to avoid such purchases, an Indian government official said Friday.

The official said India has not imposed sanctions against buying oil and will be looking to purchase more from Russia despite calls not to from the U.S. and other countries.

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The official spoke on condition of anonymity as he was not authorized to talk to reporters.

A man fills his car at a gasoline station in Gauhati, India, Sunday, Sept. 22, 2019.  (AP Photo/Anupam Nath, File / AP Newsroom)

The United States, Britain and other western countries are urging India to avoid buying Russian oil and gas. Indian media reports said Russia was offering a discount on oil purchases of 20% below global benchmark prices.

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Such prices have surged in recent weeks, posing a huge burden for countries like India, which imports 85% of the oil it consumes. Its demand is projected to jump 8.2% this year to 5.15 million barrels per day as the economy recovers from the devastation caused by the pandemic.

FILE PHOTO: Pump Jacks are seen at sunrise near Bakersfield, California, October 14, 2014. ( REUTERS/Lucy Nicholson/File Photo / Reuters Photos)

White House press secretary Jennifer Psaki said earlier this week that Indian purchases of Russian oil wouldn’t violate U.S. sanctions, but urged India to “think about where you want to stand when history books are written.”

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Asked by reporters about India buying oil from Russia, the spokesman for the External Affairs Ministry, Arindam Bagchi, said many European countries import Russian oil and gas.

Russian President Vladimir Putin listens to a journalist’s question during a joint news conference with Hungary’s Prime Minister Viktor Orban following their talks in the Kremlin in Moscow, Russia, Tuesday, Feb. 1, 2022. (Yuri Kochetkov/Pool Photo vi (Yuri Kochetkov/Pool Photo via AP / AP Newsroom)

“India imports most of its oil requirements. We are exploring all possibilities in the global energy market. I don’t think Russia has been a major oil supplier to India,” Bagchi said.

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Iraq is India’s top supplier with a 27% share. Saudi Arabia is second at around 17%, followed by the United Arab Emirates with 13% and the U.S. at 9%, the Press Trust of India news agency reported.