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Canadians in 7 cities protest N.B. abortion clinic closure

Written By Unknown on Sabtu, 26 April 2014 | 21.48

Pro-choice protesters are rallying across Canada today in support of women in New Brunswick after the announcement earlier this month that the province's only private abortion clinic would be shut down.

Pro-choice rallies are being held today in Montreal, Toronto, Fredericton, Ottawa, Halifax, Charlottetown and St. John's.

The Morgentaler Clinic in Fredericton, N.B., is set to close at the end of July after a 20-year fight with the provincial government over funding.

hi-henry-morgentaler-3569958

Henry Morgentaler died before his lawsuit against the province of New Brunswick was decided on in court. His family later asked for the suit to be dropped.

The clinic, named after well-known Montreal abortionist Henry Morgentaler, is the only private abortion facility in New Brunswick and the only one east of Montreal.

It provided abortion services to more than 10,000 women over 20 years.

However, after Morgentaler's death in 2013, the clinic in Fredericton's funding was put in a precarious situation.

Morgentaler opened his first abortion clinic in Montreal in 1969, when attempting to induce an abortion was a crime punishable by life imprisonment and the woman faced imprisonment of two years.

Henry Morgentaler

ANALYSIS: How Henry Morgentaler changed Canada's laws (CP)

Anti-abortion activists targeted the clinics, and rallies, protests and many legal battles followed. On Jan. 28, 1988, the Supreme Court struck down Canada's abortion law as unconstitutional.

Morgentaler launched a lawsuit against the New Brunswick government in 2002, demanding the government pay for procedures at his clinic.

The lawsuit, which the clinic says cost him more than $1 million, had been in limbo since the death of the abortion rights activist last May. The family officially asked for it to be dropped earlier this month.

The province pays for abortions at two hospitals, but only if a woman gets approval from two doctors who certify the procedure is "medically necessary."


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The giant panda in the room on Obama's Asian tour

President Barack Obama's Asian tour got off to a good start last week with one enviable achievement beyond the reach of a lesser statesman — getting a seat at Sukiyabashi Jiro, the tiny restaurant run by Tokyo's legendary sushi chef Jiro Ono.

In terms of concrete results, that may be the high point of the trip.

In the three years since Obama announced the American "pivot" towards Asia — a strategic shift designed to address the region's growing importance — his administration's signature foreign policy has yet to take firm shape.

The pivot is supposed to be underpinned by a still secret, 12-country free trade agreement known as the Trans-Pacific Partnership (an arrangement Canada clambered to join).

But Obama had to admit his meetings in Japan ended in failure, because the Japanese government was afraid to sign on at this point and offend the powerful farm lobby.

The almost  eight-day tour takes Obama from Japan to, now, South Korea and on to Malaysia and the Philippines. In all four countries, the key item on the agenda is the country he's not going to: China.

Far from being ignored, the giant panda in the room is the main topic of conversation.

And Obama's challenge is to avoid giving offence to Beijing as he reassures America's Asian allies that they can count on U.S. support if their toes are trodden upon by their giant neighbour.

But is China miffed?

In Japan, Obama stepped further into the highly-charged dispute over a group of rocky islets called the Senkaku Islands by Japan, the Diaoyus by China.

He stated clearly for the first time that Washington considers those islands to be covered by the defence treaty between the U.S. and Japan.

It was a clear warning to Beijing that if the naval jousting in the South China Sea gets out of hand, it could be picking a fight not only with Japan, but also with the U.S.

The Chinese Foreign Ministry expressed its opposition to the application of the U.S.-Japan treaty to the islands.

But at the same time, China has not made a big issue of the fact that Obama is touring the neighbourhood even though he has not been to China since 2009.

The Global Times, the English language paper published by the Peoples Daily that often voices strong nationalist views in a curiously petulant tone, was dismissive: "Japan should know that China actually pays little attention to Obama's visit, and we are not jealous because Obama won't visit China this time."

In fact, despite their conflicting interests in Asia, and Chinese resentment over Washington's expanding role in the region, the U.S. and China are getting along reasonably well at the moment.

Michelle Obama and the presidential daughters took Chinese public opinion by storm when they visited in March. U.S. Defence Secretary Chuck Hagel also paid a visit to China, just before the president set off for Japan.

Aircraft carrier diplomacy

In fact, Hagel was invited aboard the Chinese navy's pride and joy, the country's only aircraft carrier, the Liaoning.

It was a telling demonstration of China's growing confidence as a player on the world stage, as well as of how far it is from parity with the U.S. navy.

The Liaoning, bought second-hand from the Ukraine, has been refitted and put to sea in several training voyages, but Chinese pilots have managed only a handful of experimental flights.

China has one non-operational carrier. The U.S. has 68, in full-fledged battle groups.

Inviting the U.S. defence secretary to see such a discrepancy for himself would have been considered unthinkably shameful only a few years ago.

This time, it seems, it was a chance for military-to-military discussions of the trickiness of naval flying, and whether the U.S. could help.

Then there's North Korea

For Hagel in China, as for Obama when he moved on from Tokyo to Seoul, North Korea was a key issue.

In advance of Obama's arrival, the South Korean government claimed its intelligence services detected preparations in the North for another nuclear test, perhaps even timed to coincide with the presidential visit.

Obama's new warning to North Korean Leader Kim Jong-un, that any provocation would bring even tougher sanctions, only served to show how helpless the international community is when it comes to changing Pyongyang's mind.

Unmoved by past sanctions, Kim is clearly willing to see millions of its citizens starve rather than give up the nuclear program it sees as vital for regime survival.

Once again, China is the giant panda in the room. It alone can ensure that sanctions are rigorously applied to its North Korean neighbour and ally.

And here, too, there are some signs that China may be willing to play a more responsible role in the efforts to reign Kim in.

South Korea's Yonhap News Agency, quoting figures obtained by South Korea from the Chinese customs authorities, reports that China exported no oil to North Korea for the first three months of the year.

In the past, China has cut off oil supplies from time to time to put pressure on North Korea. But, according to Yonhap, this is the first time that the oil taps have been shut for three whole months.

If China is indeed willing to apply such a squeeze to North Korea, then Obama, and all the countries he's visiting, not to mention the rest of the world, will have reason to be grateful.

Rising tensions between China and its neighbours are real, and China's increasing tendency to throw its weight about do raise fears that miscalculations could lead to conflict.

But, given events in the Ukraine, it seems the old rivalry with Russia gives more immediate cause for concern than any superpower struggle in Asia.

Even with the still incomplete "pivot," Washington's relationship with Beijing appears so much better managed by both sides than the one with Moscow.                            


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Corporate Canada pays low taxes but contributes in 'lots of other ways'

Corporate Canada is often derided for not paying its fair share in taxes, but one of its top advocates argues that the corporate income tax rate doesn't give a full picture of how Canadian businesses contribute.

Other features on The Sunday Edition on April 27

Michael's Essay: A new cold war? From Dr. Strangelove to U.S. Air Force General Philip Breedlove.

Chinese labour: Han Dongfang advocates for the legal rights of 700 million Chinese factory workers.

"Nothing personal, but you're a woman": Karin Wells profiles carpenter Kate Braid and others in the group Vancouver Women in Trades.

Tribute to Alistair MacLeod: Michael's on-stage interview with the novelist exactly one year ago.

Erin Shields: The playwright's latest work is about the seedy world of child sex tourism, but it also explores the tensions between men and women, rich and poor, young and old.

"Corporate Canada pays governments in lots of other ways. They pay different levels of governments, they pay property taxes and they pay a variety of fees and charges that in many cases actually exceeds what they pay in corporate income tax," said John Manley, head of the Canadian Council of Chief Executives, in a feature interview with Michael Enright on The Sunday Edition.

Canada's corporate tax rate has been repeatedly cut for more than a decade, and now sits at roughly 25 per cent when combined with provincial tax rates. Activists complain many of the country's largest firms don't pay anywhere near that rate.

The left-leaning advocacy group Canadians for Tax Fairness said they did an analysis of the top 60 companies listed on the Toronto Stock Exchange, and found only four companies paid the full corporate rate. More than half paid less than 10 per cent, and 13 firms paid less than five per cent.

PricewaterhouseCoopers did its own analysis — a survey of the Canadian Council of Chief Executives' roughly 150 members. It was voluntary and only 63 replied. But of those who did, the survey found their businesses paid a total of $19 billion in corporate taxes, plus another $5 billion in various other charges and fees to various levels of government.

"For that small a number of companies, that's about 17 per cent of total federal corporate income tax revenue, so it's a pretty big number," said Manley.

"When you look at the overall numbers ... the amount of corporate income tax coming in to government has, except for the recession years, remained pretty steady."

Trying not to discourage investment

In 2012, the share of federal revenues from corporate taxes was about 13 per cent, while the share from personal income taxes was 49 per cent.

Mr. Manley said striking the right balance is tricky, because relying on people for tax revenues is safer for governments than relying on corporations.

"That's a judgment that every jurisdiction has to make: What's the right level that doesn't discourage investment?" he said. "Investment is clearly more mobile than individuals are."

Corporate tax avoidance strategies have become more prevalent in Canada. In 2011, almost a quarter of Canadian investment abroad wasn't investment at all. Rather, it was money transferred out of Canada to tax havens.

For example, in 2011, Canadian businesses invested $53.3 billion in Barbados, third only to the United States and the United Kingdom. By some estimates, the Canadian government is losing $80 billion a year in tax revenue due to this kind of profit-shifting.

"It's not right," Mr. Manley said. "But figuring out how to fix it without unintended consequences requires really smart people, and the Organization for Economic Co-operation and Development has been working at this for a very long time."

Mr. Manley said the Canadian Council for Chief Executives supports the OECD's efforts, but until the Canadian tax code changes, businesses have every right to take advantage of what the code allows.

"There is no one in Canada who wouldn't avoid paying a tax if there is a legal way to do it," he said. "It doesn't mean it's wrong to minimize your tax. It just means that governments have to get rules in place and make sure everyone is playing by them."

The problem of 'transfer pricing'

Mr. Manley said he believes one of the government's priorities is investigating a corporate tax-avoidance strategy called transfer pricing. This is when a multinational company sells its goods or services to itself internally, between subsidiaries in different countries. It usually involves selling from a branch in a higher-tax country to a branch in a low- or no-tax country to lessen the company's tax payout.

"In my experience, it's one of the things the Canada Revenue Agency examines the most closely. And tax advisers generally tell companies that you have to be really careful about this, because you have to be able to justify what you charge. "

Mr. Manley said that tackling tax reform has always been a challenge for governments. He said when he was finance minister, business leaders would often complain about the corporate tax rate.

"One of the things I would say to them is, if you want really low taxes, try Nigeria. There's no security, there's no infrastructure, the telephone systems don't work, but the taxes are pretty low.

"There's an old saying: 'Don't tax you, don't tax me, tax the guy behind the tree.' Nobody likes to pay. Unfortunately, governments need the money."

Mr. Manley said he recognizes that corporate Canada may have a perception problem over paying its fair share of taxes, and the stakes are quite high.

He says that it shouldn't be perceived as a "general unfairness," because that could lead to "a breakdown in social cohesion."

"We've got a great country. None of us go around with bodyguards and people live pretty well together. But that reality can be fragile. We've seen it break down in other countries. So a sense that everyone is contributing is important to that."


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Ukraine: Russia to take 'all possible steps' to free international observers

Russia will work toward freeing detained European military observers in the eastern Ukrainian town of Slovyansk, Russian news agencies reported Saturday, citing Russia's envoy to the Vienna-based group, the Organization for Security and Co-operation (OSCE) in Europe.

Ukraine

A pro-Russian militant adjusts his mask in Slovyansk , eastern Ukraine, on Friday. The sign on the wall reading "Russ. Russian do not surrender." (Sergei Grits/Associated Press)

"We think that these people need to be freed as soon as possible," Andrei Kelin said in comments cited by Itar-Tass.
"Russia as a member of the OSCE will undertake all possible steps in this matter."

Armed pro-Russian separatists seized a bus carrying international observers from the Vienna-based OSCE on Friday as it approached Slovyansk, Ukraine's Interior Ministry said.

"They are with us in Slovyansk," the de facto mayor of the city, Vyacheslav Ponomaryov, told Reuters in front of the seized security service building where, according to the Ukrainian government, the observers are being held. Ukraine's

Ukraine's Security Service, the SBU, described conditions are "inhumane" in the holding area, the building's basement, as "inhumane," and added one of the detainees is in need of medical care.

Ponomaryov said he was informed there was a spy among the observers, and that separatists who seized the bus had found maps showing checkpoints.

On Saturday, a pro-Russian separatist representative in Slovyansk said the observers will remain in custody as an investigation into their activities continues.

Group member accused of spying

"A Bulgarian officer had a notebook on him with notes in Russian confirming his secret activities, meetings with secret agents, and conducting spy activities both against Ukraine and Russia," Yevgeny Gorbik said.

The group comprised three German soldiers, a German translator, and military observers from Czech Republic, Poland, Sweden and Denmark, a spokesman for the German foreign ministry in Berlin said.

Ukraine

Ukrainian government troops inspect a truck on a country road outside the town of Svyitohirsk near Slovyansk, eastern Ukraine on Saturday. (Sergei Grits/Associated Press)

When asked what the Germans are accused of, Gorbik said "nothing so far," but added they were with people "whose activities is a cause of suspicion."

The OSCE has dispatched a negotiating team to try to secure the release of the observers, a German
government source said on Saturday.

Ukrainian Prime Minister Arseny Yatseniuk cut short a visit to Italy on Saturday to return to Kyiv. He had planned to attend the canonization ceremonies on Sunday for former popes John Paul II and John XXIII.

Russia accused of violating Ukrainian airspace

Before leaving Rome, Yatseniuk levelled fresh accusations against Russia. He said Russian jets crossed into Ukraine seven times in the last 24 hours.

Swedish Foreign Minister Carl Bildt wrote on his Twitter account: "Extremely concerned with OSCE inspectors being abducted in a Eastern Ukraine. Including one Swede. They must be released immediately."

Slovyansk is the biggest flashpoint in an armed uprising in eastern Ukraine that has widened into the worst stand-off between Russia and the West since the end of the Cold War.

Russia 'starting a third world war'

The United States said on Friday it was prepared to impose further sanctions on Russia over its actions in Ukraine.

UKRAINE-CRISIS/

The self-styled mayor of Luhansk region Valery Bolotov (left, with microphone) speaks during a rally in front of the seized office of the SBU state security service in Luhansk on April 25. (Vasily Fedosenko/Reuters)

Moscow denies allegations it is directing the separatists, who have taken control of large parts of eastern Ukraine over the past three weeks.

But the White House said U.S. President Barack Obama and European allies all felt that Russia had escalated tension in the region, where the rebels have refused to leave official buildings they have occupied.

Britain and Germany agreed further sanctions were in order, building on targeted U.S. and European sanctions against Russian and Ukrainian individuals following Russia's annexation of Crimea. But none of the three countries gave any details of what the sanctions might be, or when they might be enacted.

The standoff has already led to heavy capital flight from Russia, prompting credit rating agency Standard & Poor's to cut the country's ratings on Friday. That forced the central bank to raise its key interest rate to reverse a drop in the rouble.

Earlier Friday, Russian Foreign Minister Sergey Lavrov declared Friday that the pro-Russia insurgents in eastern Ukraine will only lay down their arms if the Ukrainian government clears out the Maidan protest camp in Kyiv.

"The West wants — and this is how it all began — to seize control of Ukraine because of their own political ambitions, not in the interests of the Ukrainian people," Lavrov said.

He added the pro-Russia insurgents will disarm and vacate buildings "only if Kyiv authorities get down to implementing the Geneva accords, clear out that shameful Maidan and liberate the buildings that have been illegally seized."

Ukraine's reaction was swift.

"The world has not yet forgotten the Second World War, but Russia is already keen on starting a third world war," acting Prime Minister Arseniy Yatsenyuk retorted.

Geneva deal at issue

At issue is who is adhering to the Geneva deal and what is an illegal occupation. In Geneva, Russia and Ukraine agreed that all illegal groups in Ukraine should be disarmed and all illegally occupied public buildings and spaces should be vacated.

Pro-Russia militia have seized and been occupying government buildings in more than 10 cities in eastern Ukraine.

In the capital of Kyiv, pro-Ukrainian demonstrators continue to operate a tent camp on the city's main square, known as the Maidan, and occupy several buildings nearby, including city hall. Yulia Torhovets, spokeswoman for the Kyiv city government, said Ukrainian nationalists have promised to free city hall by the end of this week.

Ukraine authorities, however, say the Kyiv occupations are at least tacitly legal because authorities have allowed them.

"Without a doubt, they have all the rights to do this," Viktoriya Syumar, a deputy head of Ukraine's Security and Defence Council, told The Associated Press.

Elsewhere, there were scattered reports of violence Friday. Ukraine's Defence Ministry said a grenade fired from a launcher caused an explosion in a helicopter at an airfield outside the eastern city of Kramatorsk that injured a pilot.

In southern Ukraine, seven people were injured by a blast at a checkpoint set up by local authorities and pro-Ukraine activists outside the Black Sea port of Odesa. Police spokesman Volodymyr Shablienko said unknown men had thrown a grenade at the checkpoint.

Moscow in March took control of Ukraine's Black Sea peninsula of Crimea and annexed it weeks later with the blessing of residents, attracting condemnation of the West as well as sanctions targeting individuals.


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Faith-based university blasts law societies

Trinity Western University says law societies in Nova Scotia and Ontario sent a "chilling message" about religious freedom in Canada by restricting or rejecting accreditation for its proposed law school. 

"We are very disappointed," said president Bob Kuhn in a news release Friday. "These decisions impact all Canadians and people of faith everywhere. They send the chilling message that you cannot hold religious values and also participate fully in public society."

At issue was Trinity Western's requirement that its 3,600 students sign a community covenant forbidding intimacy outside heterosexual marriage, which has been criticized as discriminatory against gays and lesbians.

'We feel the Ontario and Nova Scotia decisions are legally incorrect.'- Bob Kuhn, Trinity Western University president

Nova Scotia's bar society voted Friday to conditionally approve the law school from the Christian liberal arts institution, which plans to open the law school in 2016. 

The conditional acceptance means the Nova Scotia's Barristers Society will only accept articling students from the school if it changes the covenant for law students or allows them to opt out.

The Law Society of Upper Canada has voted 28 to 21 against the accreditation of Trinity Western University's proposed new law school in B.C.

The vote means graduates from the B.C. university would not be able to practise in Ontario.

Kuhn said the criteria Nova Scotia and Ontario used to consider Trinity were unclear, and the university is considering legal action.

"These provincial law societies are not the final authority. We feel the Ontario and Nova Scotia decisions are legally incorrect and it may now be necessary to re-litigate an issue that has already been decided in our favour by an 8 to 1 decision of the Supreme Court of Canada in 2001," Kuhn said.

In that case, the British Columbia College of Teachers rejected Trinity's teaching degrees because students had to sign an agreement not to engage in homosexuality. The Supreme Court of Canada said the college was wrong to reject Trinity on the basis of discrimination. 

The university will press ahead with plans for Canada's only faith-based law school, he said. 

Trinity said its potential law graduates are cleared to article and practise in:

  • B.C.
  • Alberta.
  • Saskatchewan.
  • P.E.I.
  • Newfoundland and Labrador.
  • Nunavut.

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RCMP arrest 2 in death of homeless man found in burnt bus shelter

Written By Unknown on Jumat, 25 April 2014 | 21.48

RCMP have arrested two people as part of the investigation into the death of homeless man Harley Lawrence in Berwick, N.S., in October.

The 62-year-old's body was found in a burning bus shelter at about 2 a.m. last Oct. 23.

The two under arrest were being interviewed by police Friday morning. One was arrested around midnight in Berwick, the other in the Halifax region around 1:20 a.m.

Police have long considered the bus shelter fire and Lawrence's death to be suspicious. However, RCMP have been tight-lipped about the investigation.

Many people in the Annapolis Valley town believe it's a homicide.

Harley Lawrence

Harley Lawrence grew up in Nova Scotia, and his brother said the man, who was homeless when he died in a suspicious fire at a bus shelter in Berwick, became a drifter in his 20s. (Submitted)

Two overnight workers who deliver newspapers in the area discovered the fire at the bus shelter and called the fire department. Lawrence was found dead inside.

About 20 minutes earlier, the witnesses said they saw two people filling up a jug with gasoline at a nearby gas station. Police have not commented on whether this is significant.

The cause of death has not been released, and Nova Scotia's chief medical examiner told CBC News in February that determining an official cause of death in a fire can be complicated.

Lawrence grew up in Nova Scotia. His brother has said Lawrence began drifting away in his mid-20s, became paranoid and refused help from family.

Lawrence had been living in Berwick for a few months before his death and locals said he slept in the bus shelter each night.


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McDonald's Canada CEO calls foreign worker controversy 'bullshit'

The CEO of McDonald's Canada has branded recent criticism of its use of temporary foreign workers "bullshit" in a conference call to franchisees that was given to the CBC.

His remarks from earlier this week came before federal Employment Minister Jason Kenney announced an immediate moratorium on the food services sector's access to the Temporary Foreign Worker Program late on Thursday, as a result of CBC Go Public's inquiries.

Three McDonald's franchises in Victoria and a pizza restaurant in Weyburn, Sask., are at the centre of program abuse allegations involving Canadian employees alleging foreign workers were given priority work status or more hours. 

A federal investigation into McDonald's use of the temporary foreign worker program was launched recently, after a Go Public story about a Victoria McDonald's franchise.

Tuesday's conference call was scheduled to address franchisees' concerns that McDonald's Canada had decided to put its temporary foreign worker program on hold, while a third party conducts an audit on its use of the plan.

McDonald's initiated that independent audit in response to the government investigation.

In a recording of the call given to the CBC, McDonald's Canada CEO John Betts discusses recent CBC stories on the company's use of temporary foreign workers and his resulting meeting with federal Employment Minister Jason Kenney.​

"This has been an attack on our brand. This has been an attack on our system. This is an attack on our people. It's bullshit OK!  I used those words when I described my conversation with the minister last week. He gets it."

John Betts

The CBC has been given a recording of McDonald's Canada CEO John Betts calling stories about its temporary foreign worker policy 'bullshit'. (CBC)

Betts says he was "incredibly impressed" with the minister, adding, "He really knows his stuff. And I'll say he knows his stuff from a business person's perspective."

Responding sarcastically to how his company has been portrayed in the media, Betts said, "The fact of the matter is we are a big bad company, corporate, you know, bad company and these poor maligned employees are who they are."

"Yes, they are disenfranchised. Some of them don't work for us anymore. But in the scheme of things, it doesn't matter."

"This story has been brewing for a lot of years. And you know at the end of the day we just happen to be the business that got tapped into it and we weren't the first. Obviously, RBC was," said Betts, referring to a previous CBC Go Public story.

"The reality is that we have learned internally that we haven't done a very good job in a lot more places than we thought and that's just us on the phone talking."

Franchisees fear losing staff

One franchisee in Alberta expressed concern about employees — temporary foreign workers — who won't be able to get their work permits renewed.

"When that happens, every single foreign worker in Alberta is going to leave us. They are scared. The restaurants are going to fall apart. This is how it is on the ground," said the franchisee.

'We are a big, bad company...and these poor maligned employees are who they are'- McDonald's Canada CEO John Betts, responding sarcastically to how the company has been portrayed in the media

Another franchisee was worried about money he had just paid to Actyl, one of the international recruitment agencies McDonald's pays up to $2,000 for every worker they bring in.

"I paid Actyl Group probably $14,000. So am I out the $14,000 now and the whole nine yards?" asked the franchisee.

The restaurant chain's vice-president of human resources Len Jillard, also taking part in the conference call, is heard replying, "Believe me, we are doing everything we can to get everything back on the rails."

Later on, Betts comments "This is a big one for us and it is critical because of our brand image and because of your need to make profits and our systems need to take care of our people."

'Element of truth'

Betts spends much of the conference call railing against the CBC's coverage of the controversy — but admits there is truth to the stories.

"Here's the kicker. The kicker is there's an element of truth in each of these stories," Betts said.

McDonald's accused of favouring foreign workers

McDonald's Canada has agreed to a third-party investigation of all locations that use temporary foreign workers. (CBC)

"What we've got to do is fix what we have in the restaurants concerning the temporary foreign workers.

"But what we've also learned is that we have other opportunities in the people area that we also need to take care of. Violations of labour law. And those are the kind of things that suddenly become compounded because we have another issue over here, that's very emotional in Canada."

With regard to the company's decision to halt its Temporary Foreign Worker Program, Betts told concerned franchisees that, "In dealing with the government, the smartest move was to pre-empt their move in terms of suspending us."

"I think the relationship we build with the minister here is a politically astute one to be taking. Because they're feeling the heat big time before this story broke and now it's bigger and bigger," he went on.

"They need to see us as partners in this as a brand that can help them make some progress on this and at the same time give us an opportunity to clean ourselves up."

At no point during the recording does the CEO mention hiring Canadians instead of temporary foreign workers or go over the rules of the federal Temporary Foreign Worker Program.

Moratorium on food services industry

As a result of CBC Go Public's inquiries, federal Employment Minister Jason Kenney announced late Thursday an immediate moratorium on the food services sector's access to the Temporary Foreign Worker Program.

Jason Kenney

Employment Minister Jason Kenney has announced a moratorium on the food service sector's access to temporary foreign workers. (CBC)

"Our Government has been clear: Canadians must have the first chance at available jobs. We have repeatedly warned employers that the Temporary Foreign Worker Program must only be used as a last and limited resort when Canadians are not available," said the minister in a statement.

The minister said that despite an ongoing investigation into serious allegations of abuse of the program, the suspension of LMOs and the blacklisting of the employers in question, there remained serious concerns relating to the use of temporary foreign workers in the food services sector.

"As a result, I am announcing an immediate moratorium on the Food Services Sector's access to the Temporary Foreign Worker Program.

"Accordingly, ESDC [Employment and Skills Development Canada] will not process any new or pending LMO applications related to the Food Services Sector. In addition, any unfilled positions tied to a previously approved LMO will be suspended."

The moratorium will remain in effect until the completion of the on-going review of the Temporary Foreign Worker Program.

On mobile? Click here to hear McDonald's CEO on conference call

Read the minister's full statement below. On mobile? Click here to read the minister's full statement

Statement by Employment Minister Jason Kenney (PDF)
Statement by Employment Minister Jason Kenney (Text)


Federal government tip line

The federal government says it wants to hear from any other employee or job applicant from any McDonald's or other workplace nationwide who feels they have been negatively affected by the Temporary Foreign Worker Program.

Kenney's office provided the following phone number and email address for confidential tips:

Phone: 1-800-367-5693
Email: integrity@servicecanada.gc.ca


Submit your story ideas

Go Public is an investigative news segment on CBC-TV, radio and the web.

We tell your stories and hold the powers that be accountable.

We want to hear from people across the country with stories they want to make public.

Submit your story ideas to Kathy Tomlinson at Go Public

Follow @CBCGoPublic on Twitter


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Canada vs. U.S. middle class: What the New York Times missed

An analysis piece in the venerable New York Times declaring that Canada's middle class is now better off than the middle class in the U.S. has certainly generated headlines across this country. But not all analysts are convinced the report tells the whole story.

"It's one data set and it's an important data set but we should avoid drawing too many conclusions," said Mike Moffatt, assistant economics professor at Western University's Richard Ivey School of  Business. "There's a lot it doesn't look at."

The Times report was based on income data compiled for the Luxembourg Income Study Database, which found that median per capita income for the U.S. in 2010 was $18,700 US.

In Canada, the median per capita income was the same. But the Times pointed out that other income surveys, conducted by government agencies, suggest that since 2010, "pay in Canada has risen faster than pay in the United States and is [now] most likely higher."

So, Canada wins.  And why?  

According to the Times, the discrepancy can be linked to growing income inequality in the U.S. based on three major factors:  a substandard U.S primary education system churning out a lower skilled workforce, U.S companies not sharing the wealth with their employees and countries like Canada redistributing income more aggressively.

Analysis backs up statistics

The Times story was certainly welcome news to William Robson, president and CEO of the C.D. Howe Institute, who said the analysis just provided corroborating evidence for Canadian income statistics that have been floating out there for years.

"It's interesting how sometimes we don't pay attention to how well we're doing unless it's somebody outside our borders who reports it," Robson said.

"Statistics Canada has been publishing these data for a number of years and they have been telling a relatively positive story," he said. "But it's not gotten a lot of attention because of all the bad news, especially coming from the U.S."

The StatsCan statistics revealed that during the 2000s, there have been gains in all Canadian income demographics. The income of the poorest grew by 1.7 per cent per year from 2000 to 2010, the income of the middle class grew by 1.29 per cent per year and the income of the richest grew by 1.52 per cent per year.

But some say the Times analysis leaves out some key details. Moffatt said the Times piece takes Canada as a whole and ignores regional disparities in unemployment. Places like Alberta and Saskatchewan, with their booming economies, are boosting the national average, he said. 

The 2000 to 2010 time frame also takes into account a period in which the U.S was at the epicentre of a major global recession, "the worst times for the U.S. middle class", said David Macdonald, an economist with the Canadian Centre for Policy Alternatives.

As well, Canadian families are among the most indebted with a record high household debt of about 164 per cent of after-tax income, he added.

And while the Canadian middle class may have seen gains from 2000 to 2010, they had the lowest growth rate.

"If you wanted to tell a story: 'Is the middle class falling behind the rest of the population?'  you could do it," Robson said.

But he also added that "you couldn't tell a story of decline because there were gains right across." 

U.S. housing crisis a factor

Michael Tanner, a senior fellow at the Cato Institute, observed that Canadians, unlike Americans, are dinged by a value added tax (the GST), and that the study didn't take into consideration how that tax burden hits the Canadian middle class.

More significantly though, he said Canada avoided the U.S. housing crisis and housing is such a huge portion of the wealth of the middle class.

"The fact that we took such a hit on that I think made a huge difference."

But Brenda Lafleur, an economist and program director with the Conference Board of Canada, said the media tend to get caught up on how Canada is doing compared to the U.S. While that's an important factor, it can miss the bigger picture.

In this case, the analysis focused on the growing income inequality in the U.S. — the main reason America is struggling, according to Lafleur. While the disparity between rich and poor may be narrower in Canada, Canada has also become more unequal since the 1970s and 1980s, she said.

"So it depends on whether you say, 'We used to do a better job of redistributing wealth in Canada and we're not doing as good a job now,' or you could say, 'Well, relative to the U.S, we're not doing too badly.'"

"Let's just stop agonizing about the United States. We can learn from many other countries in what they're doing as well. If we're truly global, we have to stop just focusing with blinders on the U.S."

​


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Did Disney make a marketing blunder with Oscar film Frozen?

First there was Frozen, the movie. Then kids started dressing up as its main characters, Elsa and Anna, Disney's Frozen sold millions of DVDs and its song, Let it Go, won an Oscar.

Yet you'd be hard-pressed to find any Frozen-themed merchandise in toy stores. Parents trying to buy dresses, dolls and toys have been disappointed over the past month, as Disney and its licensees, like Jakks Pacific and Mattel, seem to have sold out of such items. 

Some consumers, meanwhile, have shelled out over $1,500 US each for an Elsa dress on eBay, while others have turned to handmade versions sold on Etsy.

Even Burbank, Calif.-based Disney itself has been surprised by the demand for Frozen products.

"Frozen is a global phenomenon that has truly exceeded expectations on every level," Disney spokeswoman Margita Thompson said in an email to CBC News.

She said Disney, which has been sold out of some products for a month, is racing to restock. Elsa's twinkling blue dress (anxious parents take note) could be back in stock by late April or May, Thompson said.

"Nobody predicted Frozen would be this hot," said Time To Play magazine's editor in chief, Jim Silver.

"It's not like the lights that you can just turn on … it takes three months to get toys to shelves," Silver told CBC.

It seems ludicrous, but even though the Frozen franchise including products has made over $1 billion US, Disney likely left money on the table.

Product shortage could drive sales, prof says

Steve Kates is an associate professor in the Beedie School of Business at B.C.'s Simon Fraser University whose research interests include brand management. He told CBC that he's surprised Disney — which he considers a "quintessential service marketer, right up there with Google and Apple" — made a mistake when it came to ordering enough of the Frozen-themed dresses from its overseas manufacturers.

But a shortage isn't all bad news for the entertainment behemoth, he said.

'Kids want everything ... on the other hand, kids get bored very quick.'- Steve Kates, Simon Fraser University marketing professor

"It causes some consumer frustration," Kates said, "but it could be good because it enhances the perception of value."

In other words, product shortages can drive demand. 

But would a company like Disney intentionally create a shortage?

Kates said it's unlikely a normally risk-averse company like Disney would risk a chance to cash in on the Frozen craze.

"Kids want everything," Kates said.

"On the other, kids get bored very quickly … If [Disney] let the toys trickle out, there'll be another blockbuster."

Frozen could still be popular at Christmas

In Canada, retailers are counting on a continuation of the Frozen boom.

Toys "R" Us spokeswoman Victoria Spada said the chain considers Frozen a "top-trend girls property," and has scaled up orders for merchandise into the fall to satisfy the demand.

"Frozen products will definitely continue to top wish lists, even through the holidays," Spada said in an email.

Frozen's popularity, Spada said, is driven by its characters — Elsa, Anna and the snowman sidekick Olaf (who is popular enough himself to warrant a snow-cone maker). Spada compared Frozen's characters to the animated stars of the Toy Story series that are still on store shelves.

Frozen dominates Amazon.ca bestsellers list:

  • No. 1 bestseller in nusic: Disney's Frozen CD: Music from the Motion Picture 
  • No. 1 bestseller in DVD: Frozen [Blu-ray + DVD + Digital Copy]
  • No. 3 bestseller in DVD alone: Frozen
  • No. 3 bestseller in children's books: A Day in the Sun [A Frozen spinoff]

"It really has to do with the entertainment … the entertainment is driving all the sales," Silver said.

Frozen, owing to its media dominance — it's on Amazon.ca's CD and DVD bestsellers list — has made it into homes and onto repeat. Kids can sing the songs, and aspire to be like the characters at the heart of the movie.

"Girls have fallen in love," Silver said, adding teens and parents are also falling for the film, which is good news for marketers.

"Disney is very good at producing marketer's dreams," Kates said.

While kids are an easy mark — remember fads like Cabbage Patch Kids, Tickle Me Elmo and Pogs? — Disney's latest batch of characters have instantly developed a following that may make them a media mainstay. Already, there are spinoffs including video games and books.

When it comes to buying these products, Kates advises holding out if you're looking for a good price — though explaining supply and demand to your child might be difficult.

"It's a good opportunity to teach kids about patience," he said.


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Senate abolition impossible unless all provinces agree

The Supreme Court of Canada has denied the federal government the power to enact nearly all of the changes it had proposed for the Senate.

In a unanimous decision released Friday, eight judges of the top court concluded that implementing fixed terms for senators or provincial elections for Senate candidates would require the consent of seven provinces representing half the population. The government had asked whether it could legislate these changes on its own.

'The desirability of these changes is not a question for  the Court; it is an issue for Canadians and their legislatures.'- Supreme Court of Canada opinion on proposed Senate changes

On the key question of how the Senate could be abolished, the court said the consent of all the provinces would be necessary.

The only reform the government can make unilaterally, according to the court, is to eliminate the archaic requirement that senators must own at least $4,000 worth of property in the province they represent.

The court made it clear in its ruling that it is merely providing a legal framework for implementing specific changes to the Senate and that is has no opinion as to the merit of the proposals.

"The desirability of these changes is not a question for  the Court; it is an issue for Canadians and their legislatures," the judges said in a 59-page decision.

The opinion marks the first time the highest court has taken a comprehensive look at the amending formula set out in the Constitution Act of 1982.

Last summer, Prime Minister Stephen Harper asked the Supreme Court to advise the government on four questions.

The first three questions inquired whether Parliament, on its own, can make changes to senators' terms, qualifications and method of selection:

  • Can senators be appointed for terms of 8, 9 or 10 years, or for the lives of a couple of Parliament sessions?
  • Can senators be chosen by consultations with the provinces in the form of provincial elections, as has happened in Alberta?
  • Can the archaic requirement of a senator owning at least $4,000 worth of property in his or her province be eliminated?

Finally, there is a question about the Senate's future: Can the Senate be abolished with the consent of seven provinces representing 50 per cent of the country's population, known as the 7/50 formula, or is the consent of all provinces mandatory?


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