More stories

  • in

    What Will It Take for Electric Vehicles to Create Jobs, Not Cut Them?

    A report by a liberal think tank tries to quantify the potential employment gains and losses, concluding that subsidies will be crucial.When President Biden announced his multitrillion-dollar jobs plan in March, it included nearly $175 billion in spending to encourage Americans to buy electric vehicles.The money would help ensure “that these vehicles are affordable for all families and manufactured by workers with good jobs,” the White House wrote at the time.Now, as Mr. Biden’s plan wends its way through Congress, a liberal think tank has tried to flesh out the number of jobs to be gained or lost in the transition away from internal-combustion vehicles.The report, released Wednesday by the Economic Policy Institute, concluded that it would take government subsidies focused on developing a domestic supply chain and increasing demand for U.S.-made vehicles to avoid job losses.It found that without additional government investment, the industry could lose about 75,000 jobs by 2030, the year by which Mr. Biden wants half the new vehicles sold in the country to be electric.By contrast, the report said, if government subsidies were targeted to increase the portion of electric vehicle components that are manufactured domestically, and to increase the market share of U.S.-made vehicles, the industry could add about 150,000 jobs by the end of the decade.“That’s the payoff — making the sector a center of good jobs again,” said Josh Bivens, an economist who is one of the report’s authors. “If we don’t try to react proactively with good policy we’ll see continued downward pressure on the number of good jobs.”Looming over the transition to electric vehicles is the fact that they have substantially fewer moving parts than gasoline-powered ones and require less labor to manufacture — about 30 percent less, according to figures from Ford Motor. The vehicle-manufacturing industry employs a little under one million people domestically, including suppliers.The cab of an all-electric Ford F-150 Lightning truck prototype. Ford and General Motors have said they are taking on a greater role in battery production.Rebecca Cook/ReutersThere are essentially two ways to offset the projected job losses: to increase the proportion of each vehicle’s parts that are made domestically — specifically in the powertrain, the key parts and systems that power a car — and to sell more vehicles assembled in the United States.Mr. Bivens and his co-author, James Barrett, an economic consultant, examine the effects of doing both. They note that roughly three-quarters of the parts in the powertrain for a U.S.-made gasoline vehicle are produced domestically, versus less than half of the parts in the powertrain of a U.S.-made electric vehicle.Raising the proportion of domestic content in electric vehicles so that it mirrors gas-powered ones could save tens of thousands of jobs a year, they estimate — potentially more than half the likely job losses that would arise without additional government action.But to transform likely job deficits into job gains, Mr. Barrett and Mr. Bivens find, it is necessary to increase the market share of vehicles made in the United States. According to the study, the percentage of vehicles sold in the United States that are made domestically has hovered around 50 percent over the past decade. If it were to rise to 60 percent, the authors conclude, the industry could gain over 100,000 jobs in 2030.If market share were instead to drop to 40 percent by the end of the decade and there were no increase in the domestic content of electric vehicle powertrains, the industry could lose more than 200,000 jobs, the report finds.Under the Democratic plan circulating in Congress, a current $7,500 tax credit for the purchase of a new electric vehicle would rise as high as $12,500. An extra $4,500 would apply to vehicles assembled at unionized factories in the United States. Consumers would receive the final $500 if their vehicle had a U.S.-made battery. The details could change in the face of opposition from automakers with nonunion U.S. plants.Democrats are also discussing subsidies to encourage manufacturers to set up new factories or upgrade old ones.Sam Abuelsamid, an auto industry analyst at Guidehouse Insights, said that domestic automakers had an opportunity to increase market share as the industry electrifies and that an expanded consumer tax credit would help.“They are targeting a lot of the market segments that are particularly strong-selling — crossovers, pickups,” Mr. Abuelsamid said. “There is definitely potential for them to claw back some market share from Asian brands.”Still, he warned, the window for seizing the opportunity could be relatively narrow as Asian automakers like Toyota and Honda, which have lagged somewhat in their electric vehicle planning, introduce more electric offerings.The question of whether manufacturers will locate production of electric vehicles and their components in the United States as demand grows, and the extent to which government subsidies can help ensure that this happens, has been a subject of debate in recent years.Dale Hall, a researcher at the International Council on Clean Transportation, a research organization, said in an interview that electric vehicles tend to be manufactured in the region where they are sold, both to save on transportation costs and to be more responsive to consumers’ needs. More

  • in

    Beyond Evergrande’s Troubles, a Slowing Chinese Economy

    Investors are watching whether the property developer defaults. But in the background, the world’s No. 2 economy is flashing numerous warning signs.BEIJING — Global markets have watched anxiously as a huge and deeply indebted Chinese property company flirts with default, fearing that any collapse could ripple through the international financial system.China Evergrande Group, the developer, on Wednesday said it reached a deal that might give it some breathing room in the face of a bond payment due the next day. But that murky arrangement doesn’t address the broader threat for Beijing’s top leaders and the global economic outlook: China’s growth is slowing, and the government may have to work harder to rekindle it.Retail sales were much more weak than expected last month in China, led by slow car sales. Industrial production has slackened, particularly for large freight trucks. And developers sharply reduced new housing projects over the summer, while rushing to finish the projects they had already started.Heavy government spending on new rail lines, highways and other projects is keeping the economy afloat right now, but may not be sustainable through next year.Markets have been riveted by the idea that Evergrande could be China’s “Lehman moment,” a reference to the collapse of the Lehman Brothers investment bank back in 2008 that kicked off the global financial crisis. While many economists in China are pouring cold water over the idea of potential financial contagion, they are pointing to the broad weakness in China’s property market, a mainstay of the economy, and other long-term threats.“This is not a Lehman moment. This is too sensational,” said Xu Sitao, an economist in the Beijing office of Deloitte. “The question is next year.”With Evergrande, it isn’t entirely clear what will happen on Thursday, when bond interest payments are due. On Wednesday, it said in a vaguely worded stock market filing that it had reached an arrangement with Chinese investors to make a payment due the following day, without offering details.It did not mention an $83.5 million payment due Thursday to foreign bondholders. Bloomberg News, citing bond documents, said the company has a 30-day grace period before a missed payment becomes a default. Evergrande did not respond to questions.Chinese policymakers could conceivably step in and rescue Evergrande. But that would run contrary to their efforts to get companies to borrow less and to take some of the steam out of the property market, where apartments for purchase are increasingly unaffordable for many Chinese families in a number of markets.The stock exchange in Hong Kong on Tuesday as the Hang Seng Index dropped over concerns about Evergrande.Jerome Favre/EPA, via ShutterstockPeople familiar with Chinese economic policymaking say that big companies often carry a lot of collateral on their books, so officials believe lenders won’t get fully burned by a collapse. They also cite the tools Beijing has to unwind debts gradually and limit financial disruptions, such as its control of the banking system.Letting Evergrande collapse quickly, on the other hand, risks a broad fall in apartment prices or other potentially unforeseeable shocks to the financial system.Chinese officials have taken short-term measures to shore up confidence. The central bank announced on Wednesday morning that it had temporarily injected about $18.6 billion in credit markets, part of a broader effort in recent days to make sure that ample cash is available.Real estate sales were slowing even before the latest difficulties, in part because of Beijing’s cool-down efforts, depriving Evergrande and other property developers of the cash they need to finish other projects. Sales dropped 7.1 percent by value in July from a year earlier and 18.7 percent in August from the same month last year.Overcapacity in many industrial sectors, coupled with a faltering construction sector, have prompted economists to predict slower growth. Bank of America lowered on Tuesday its forecast for China’s economic growth next year to 5.3 percent from a previous forecast of 6.2 percent.Growth over 5 percent is still strong by most standards. But it would represent a much weaker showing than this year, which many economists project will total 8 percent or higher. It would be considerably slower than the official growth rates China has posted in recent years.Other questions hovering right now over the Chinese economy can be seen in a handful of measures that might at first glance seem to have little to do with the real estate industry, bond prices or Evergrande’s 1.6 million unfinished apartments. The measures gauge the production and sale of heavy-duty freight trucks.Construction companies and manufacturers all over the world tend to stop buying large trucks when they see trouble ahead. Alan Greenspan, the former chairman of the Federal Reserve, used to cite the strength of the freight truck manufacturing industry as one of his favorite predictors of the future health of the American economy.The China Association of Automobile Manufacturers disclosed earlier this month that heavy truck production and heavy truck sales plummeted by nearly half in August compared to the same month last year. Excluding statistical quirks caused by the timing of the Lunar New Year holiday, it was the worst performance for both heavy truck indicators since the spring of 2015, when China was struggling to emerge from a botched currency devaluation.Trucks for export at a sea port in Yantai, China, in July. Truck production and sales plummeted by nearly half in August.CHINATOPIX, via Associated PressThe nosedive in freight truck production and sales is about much more than lost economic confidence, however. It also shows how China’s policies over the past few years temporarily inflated demand and produced severe overcapacity.Stringent new standards for air pollution took effect for freight trucks manufactured beginning July 1. Stricter safety standards are also being phased in, such as a requirement that onboard software and sensors warn drivers when they start to drift out of their traffic lanes.Domestic truck manufacturers expanded their factories last year to build as many trucks as they could before the tougher rules took effect.China’s freight truck manufacturing capacity has ballooned to 1.6 million trucks a year in a market where long-term sales estimates are far fewer than a million trucks a year. Truck dealerships across China are now clogged with rows of unsold trucks.Car sales were also weak last month, adding to uncertainty about whether consumer spending will stay strong in China even as Evergrande struggles. After construction and government spending, the auto industry is one of the biggest sectors of the Chinese economy, playing nearly three times as large a role as exports to the United States.An acute shortage of computer chips has separately affected the production and sale of cars in China, muddying the picture.“The market for car sales is generally in a downturn, partly because of the chip shortage,” said Cui Dongshu, the secretary general of the China Passenger Car Association, a Beijing-based industry trade group.While China faces broad overcapacity and other worries, many economists in China still express more confidence than economists elsewhere that the country can weather its troubles. Economists in China note that the Chinese government has more ability than most to set interest rates and control large movements of money in and out of the country.“China,” said Mr. Xu, of Deloitte, “still has a lot of tools.”Keith Bradsher More

  • in

    They Never Could Work From Home. These Are Their Stories.

    Day after day, they went to work.While white-collar America largely worked from the cocoons of their homes, these workers left for jobs elsewhere. Most had no choice.For many workers around the country, the Delta variant’s surge this summer upended long-awaited plans to return to the office this fall. But millions more — including nurses, cashiers, restaurant and grocery workers, delivery drivers, factory workers, janitors and housekeepers — never worked from home in the first place.“They’re the people who often are working around the public, often working in jobs that are requiring them to be at particular risk from the virus,” said Eliza Forsythe, an economist at the University of Illinois. “All of these types of jobs where you’re not sitting at a computer — that’s what’s really been the backbone for allowing the rest of the economy to go remote.”More than a year and a half after the pandemic disrupted nearly all aspects of everyday life, one of the starkest economic divides to emerge has been between workers who can work from home and those who cannot.We asked six never-remote workers about their experiences and they shared their stories below.Just 35 percent of Americans — fewer than 50 million people out of 137 million — worked from home at some point in May 2020 because of the pandemic, when remote work was at its peak, according to the Bureau of Labor Statistics.Those who could not work from home were employed in a wide array of industries, including health care, agriculture, leisure and hospitality, retail, transportation, construction and manufacturing. Many were considered part of the army of frontline and essential workers, with jobs that were considered so critical that they could not be put on hold even during a public health crisis. They were typically lower-wage, less educated and disproportionately people of color. During a time when millions of Americans lost their jobs, a portion of these workers — those who worked throughout the pandemic or who were only unable to work in the early days of the virus — could be considered relatively lucky. At the same time, many of these never-remote workers could not afford, or did not have the necessary skills, to find other jobs despite the fear of contagion. And a large share also lost their jobs completely, in part because they were unable to work remotely when their businesses temporarily or permanently closed during the pandemic. Many of these workers had jobs in the service industry. Perhaps most importantly, the pandemic has shed more light on how grueling and thankless many of these never-remote jobs are — a parallel universe of work in which millions of employees did not have the luxury of thinking about returning to the office at all.(The workers’ interviews have been edited for length and clarity.)Anjannette Reyes, 54, Orlando, Fla.Airport wheelchair attendantPhotography by Eve Edelheit for The New York TimesSo many didn’t come back to work. People are afraid to work at the airport. We push more than one wheelchair at the same time because we don’t have manpower. Sometimes for international flights, we have 17 wheelchairs and only two of us. We take them through security and run to get the others. People miss flights. People cry. We’re constantly apologizing.I was recently hurt from pushing too many wheelchairs. My whole arm felt like needles and pounding. The doctor said I had a tear. I was off for two weeks. I didn’t get paid for that.I earn $7.58 an hour plus tips. You don’t get sick pay. You don’t get vacation pay. There’s no retirement pay. There are other people who are injured and still pushing chairs. There’s people with back ulcers and shoulder pain. Co-workers are getting sick. I tell them, “Go home.” But they don’t. They rely on the tips to survive.Even though I’m going through this, I don’t feel safe getting another job out there. If there’s another breakout, we’ll feel safer at the airport. This is the only place that kept on going because they needed to move people around — people who were sick, doctors, lawyers. We needed to keep the airport open.Avelina Mendes, 63, Brockton, Mass.College custodianPhotography by Gretchen Ertl for The New York TimesAt first, I didn’t know how serious the virus was. I mean, I protected myself, but I didn’t pay that much attention to it until my sister got Covid. It was Dec. 27.She had the symptoms. She’s 75. She decided to go to the emergency room so she took a shower and then, all of a sudden, she collapsed. She hurt her back. She’s been paralyzed since.She’s in a nursing home now. I used to go and see her from the window and we would talk on the phone. She would tell me what she wants and I would bring it. She likes to eat Cape Verdean food.Every time I think about it, I cry. Then I wipe my tears, put my mask on and go to work.I clock in. I put all the trash outside. After I disinfect the bathroom, I vacuum the lobby. As long as it’s not that many cases on campus, I feel pretty good about it.But if it goes up, that’s when the fear comes. I panic. I lose sleep. When I think about my sister, that could be me. I am out all the time, doing the work.Kim Ducote, 42, St. George, UtahRestaurant server and homeless shelter case managerPhotography by Bridget Bennett for The New York TimesI was jobless from March 15 to August of 2020, and I had $200 left in my bank account. And some friends of mine opened a restaurant and they offered me a serving position there. I was the only server. And I thought ‘Oh my god, this was a godsend.’ Like, I had no idea what I was going to do. I’m down to $200 in my bank, no options. I didn’t really want to go back into the service industry but this was the only opportunity that presented itself.I went back, and things were starting to look up and go well. And I started making money again and people were loving this food and we were really quickly building a name for ourselves. And in October, all three of us got Covid so we had to shut down for I think it was just over six weeks.The husband-and-wife chef team — they got Covid really bad. Their symptoms were pretty severe. And for me, I just had a terrible headache, a very slight cough and severe exhaustion for about three days, and then I bounced right back. And they were unsure how long it was going to take them to reopen.So during that time, I decided ‘Well, I can’t be jobless again for an indefinite period of time. I have to look for something else.’ So I applied at a local homeless shelter and I got a job there.Juan Sanchez Bernal, 62, Harrison, N.J.Commuter rail custodianPhotography by Juan Arredondo for The New York TimesWhen the pandemic began, the number of people we saw in the offices, it almost dropped to half. It created panic. Many of us would have loved to work from home, but sadly, because we are cleaning people, how can we?One employee from our group got sick and died. I felt sad. We were a team, you know? We talked about baseball, basketball, about the countries we came from.This is the country that chose us. If in a moment of crisis, we got to choose between the things we like and the things we don’t like, what’s the contribution we are making? We have all done the essential work required — we have all contributed our grain of sand.We didn’t stop working. I arrive at 6 in the morning. We take out the trash. We are always disinfecting. We always use masks.My youngest daughter studied from home because her university was closed. She was watching over me. When I came back from work, she was all over me: Did you wash your hands? Take off your clothes! Take a shower right now! My other daughter called all the time.I would tell them, ‘Remember that everybody who was born has to die, so calm down.’ They laughed. If you get more stressed, you’ll die faster. So, you better laugh.Isabela Burrows, 19, Grand Blanc, Mich.Pet store workerPhotography by Brittany Greeson for The New York TimesI don’t want people to be treated the same way that I have been and to feel that loneliness and fear that I felt.I started working at a major pet store in late September last year. I made $10.50 an hour. For the first five months of my job, I was just a cashier. One day, a tall, bulky man leaned around my Plexiglas shield and purposely coughed. I think we were out of the dog food that he needed or something.My brother passed on May 22. He was my little buddy. He had a stroke that crushed his brain stem. He couldn’t keep going, so we decided it would be best if we took him off life support. My manager was not empathetic or compassionate. She even told me to just get over it, that my feelings from home didn’t transfer over to work. It was traumatic. I was not comfortable working in that store anymore. I transferred in mid-June.My new store is short staffed. We’re all being wrung dry. You’ll be trying to unload inventory from a truck shipment and then there will be someone needing fish or four different phone calls. Sometimes someone will forget to give the birds more millet.I’m worried about the weather getting cold again, if the cases will spike and whether my family and co-workers will be safe. I’ve already had one loss this year.April Fitch, 58, Newark, N.J.Airport security guardPhotography by Juan Arredondo for The New York TimesMore people would have preferred to stay home or work from home. If I had that opportunity, I would have, most definitely.I caught Covid at the end of March. I was not feeling well. My mom was in a nursing home. I called her on April 6 and told her that my birthday was soon. I told her, “I’m coming to break you out of the house.” She laughed. On April 8, the nursing home called me and told me she was taken to the hospital. A week later she passed away due to Covid.I ended up using two weeks of vacation days, all of my sick days and they gave me my three days for bereavement. There was no time to even deal with the fact that I lost my mom while I was dealing with Covid myself.The first day going back to work was scary. I’m still scared. It’s very crowded now. I try to stay six feet apart. If someone asks me a question, I try to keep them at a distance.Aidan Gardiner contributed reporting on the worker interviews. Eduardo Varas translated Juan Sanchez’s interview from Spanish. More

  • in

    What an Adult Tricycle Says About the World’s Bottleneck Problems

    The supply-chain problems rocking companies may get worse heading into the holidays, as delays continue to snarl global trade and shipping prices jump even higher.Catrike has 500 of its three-wheeled bikes sitting in its workshop in Orlando, Fla., nearly ready to be sent to expectant dealers. The recumbent trikes have been waiting for months for rear derailleurs, a small but crucial part that is built in Taiwan.“We’re sitting on $2 million in inventory for one $30 part,” said Mark Egeland, the company’s general manager.The company’s problems offer a window into how supply-chain disruptions are rocking companies in the United States and around the world, pushing inflation higher, delaying deliveries and exacerbating economic uncertainty.It is unclear when the snarls will clear up — and it’s possible they will get worse before they get better. The holiday season is right around the corner, American companies are running light on inventory, and coronavirus outbreaks continue to shut factories around the world. Demand for goods remains strong as households use money saved during months stuck at home to buy athletic equipment, couches and clothing.That could keep pressure on global goods producers and the transportation routes that serve them even as consumers begin to redirect their spending back toward dinners out and theater tickets — a shift that many analysts had hoped would help supply chains return to normal.The critical questions for economic policymakers are how long the problems will last and how much they will feed into consumer prices, which have jumped sharply this year, both because of data quirks and bottlenecks. Federal Reserve officials regularly say they expect the faster price gains to prove “transitory,” but they are careful to stress that supply chains are a major source of lingering uncertainty, making it unclear how quickly rapid gains will fade.“I’m less in that ‘transitory’ camp,” said Phil Levy, the chief economist at Flexport, which tracks ocean shipments and helps importers plan so that their parts can get in by desired dates. “And more in the ‘we have reason to be concerned’ camp.”Container costs have rocketed up. Earlier this month, container shipping rates from China and East Asia to the United States’ East Coast climbed above $20,000, compared with about $4,000 a year ago, according to data from the freight-tracking firm Freightos. Those attractive high prices are encouraging ships to abandon other routes, causing the problem to spread. And shipping issues have been exacerbated by related imbalances: Boats are backing up at ports, and as demand for goods booms in the United States, empty shipping containers haven’t been able to get back to China fast enough.Chris Miller assembling a wheel for a Catrike. The company thinks that sorting out its supply issues could take 12 to 18 months.Octavio Jones for The New York TimesSome suppliers are eating higher production and transport costs. Full Speed Ahead, which produces crank sets for Catrike, has seen expenses increase as the demand for raw aluminum has risen. Shipping costs are also four to five times what they were a year ago, said Mark Vandermolen, the company’s managing director.Full Speed Ahead has passed “very little, if any at all,” of those cost increases on to customers, he said, and he hopes to “maintain pricing for as long as possible until it is no longer sustainable.”But not all of Catrike’s suppliers have absorbed climbing costs, and whether higher prices for components make for more expensive consumer products — actual inflation, as it is conventionally measured — depends on how companies like Catrike and the dealers they work through decide to adjust.Catrike raised prices by $200 early this year, its first adjustment since 2010, to cover costs. But the company is at a “sweet spot” where it’s outperforming competitors by offering affordable products, so it would prefer to leave prices steady now, Mr. Egeland said.He’s also cautious: Catrike hasn’t printed prices in its newest catalog, in case rising expenses make another increase necessary.The Fed — which has primary responsibility for keeping inflation steady — has made clear that it is content to look past a recent pop in inflation. If companies lift prices once or twice amid reopening challenges, the central bank can tolerate that as a one-off change.Officials would worry more if price increases dragged on for months or years. If that happens, consumers and businesses alike could come to expect consistently higher prices. They might demand higher pay, and a cycle of inflationary increases could take off.It will take time to know whether the bottlenecks will lead to more permanent damage. Supply chains are still badly snarled. The time it takes for parts from one of Catrike’s suppliers to arrive by sea in North America from a factory in Indonesia has jumped to three months, and sometimes it takes four — double what it took before. Estimates from Flexport confirm the problem is widespread along that shipping route. More

  • in

    Canada Goose’s Image Is Challenged by Union Effort

    Production of the company’s parkas was once fully unionized, but labor organizers say the owners have taken a harder line in recent years.Canada Goose, the luxury jacket maker, has cultivated an image that is not only chic but also socially conscious. It has forged alliances with environmental advocates and talked of its commitment to high labor standards.These efforts have paid off as the company outgrew its roots as a family enterprise and built a worldwide following for its parkas, which can cost over $1,000 and have been worn by celebrities like Daniel Craig and Kate Upton. “We believe that the brand image we have developed has significantly contributed to the success of our business,” the company wrote in a Securities and Exchange Commission filing in March.But production employees of Canada Goose, who were all unionized as of 2010, have complained that the company has taken an increasingly hard line toward labor that is at odds with its stated values.Shoppers at a Canada Goose store in New York in 2019. Employees have accused the luxury jacket maker of being anti-union.Jeenah Moon for The New York TimesIn 2019, a company official was cited by a provincial labor board for unfair labor practices during a union election at a newer facility, and some employees complain that the company has retaliated against them in recent months for supporting a union.“People have fear,” said Alelie Sanvictores, a worker who has been active in union organizing. “Some people are scared to talk to me.”Canada Goose denies that it is anti-union and that it has retaliated against union supporters. “It is the employees who will decide their path forward, and Canada Goose will support their decision,” the company said in a statement. The company dismissed the official cited for unfair labor practices.On Wednesday, a few dozen labor activists picketed the Boston headquarters of Bain Capital, the private equity firm that owns and controls Canada Goose, hoping to pressure the jacket maker to endorse a union at three plants in Winnipeg.Pro-union demonstrators gathered Wednesday outside the Boston headquarters of Bain Capital, the private equity firm that controls Canada Goose.Philip Keith for The New York TimesThe tensions at Canada Goose appear to illustrate the challenges of seeking rapid growth while maintaining a high-minded reputation that helps sustain a luxury business.An immigrant named Sam Tick founded Canada Goose, then known as Metro Sportswear Ltd., in 1957. Its lone factory, in Toronto, unionized in the mid-1980s.After Mr. Tick’s grandson Dani Reiss took over as chief executive in 2001, he sought to increase worldwide sales of what had largely been a North American operation. Still, he committed to making its parkas in Canada even as much of the country’s apparel industry was moving offshore.“By keeping the majority of our production domestic, we contribute to local job growth and can more easily maintain our high manufacturing and labour standards,” the company wrote in its 2020 sustainability report.But Mr. Reiss has seemed more skeptical of unions than his predecessors at Canada Goose. After the company bought a production facility in Winnipeg in 2011, the union sought a voluntary recognition or a neutrality agreement that would allow workers there to unionize easily.“Dani Reiss said he wasn’t interested in doing that,” said Barry Fowlie, who for roughly a decade has directed the Canada Council of Workers United, the union that represents workers at the company.A company spokeswoman said the union had never asked for voluntary recognition “in any official context.”Bain Capital purchased a majority stake in Canada Goose in 2013 and listed it on the New York and Toronto stock exchanges in 2017.Under Bain’s ownership, the number of unionized workers increased to over 1,000 just before the pandemic, thanks to growth at the original Toronto plant and the addition of two more facilities there. A collective bargaining agreement that predated the new sites makes all Toronto-based production workers part of the union.But facilities in Winnipeg, where the company’s three factories had over 1,000 production workers before the pandemic, are not covered. The growth of the work force there has helped lower the company’s union membership among production workers to about one-third today, according to a filing with the Securities and Exchange Commission.Workers at the Winnipeg plants say many of them make the province’s minimum wage, which is about 12 Canadian dollars per hour (around $9.65), though workers can earn more if they exceed certain production targets. The company said nearly 70 percent of workers were making more than the minimum wage.Canada Goose committed to making its parkas in Canada, even as much of the country’s apparel industry was moving offshore. Mark Blinch/ReutersIn interviews, five workers complained that managers were often abusive toward the largely immigrant work force.One worker, Immanuelle Concepcion, said her supervisor flew into a rage over mistakes in some jackets she appeared to have worked on. “She told me, ‘How dare you allow this to happen? How dare you?’” Ms. Concepcion recalled. “I was shaking. I haven’t experienced humiliation that way.”The Canada Goose spokeswoman said that the company had gotten no reports of “frequent abuse” and that all reports of harassment were investigated.In June, the company disciplined two workers at one of its Winnipeg plants shortly after they had identified themselves as union supporters. One said he had routinely been wearing headphones while working, but was warned and then written up for it — on two consecutive days — only after he went to work wearing a union T-shirt.Until then, said the worker, Trevor Sinclair, “my supervisor never said anything about it.”Canada Goose said that “no employees face disciplinary action due to union organization” and that disciplinary action had been taken against Mr. Sinclair once management became aware of his violation.Nearly 30 percent of Canadian workers are union members, compared with about 11 percent of American workers. Mr. Sinclair said he felt that Canada Goose was essentially importing an American model of fighting unions.“The way they treat us is not how Canadians treat each other,” he said. “Management doesn’t really understand what Canada is about.”Philip Keith contributed reporting. More

  • in

    U.S. asks Mexico to review a second complaint about labor violations in its auto industry.

    The Biden administration is invoking provisions in a new trade agreement to ask Mexico to look into accusations of labor violations at an auto-parts plant near the U.S. border.The action, announced Wednesday by the Labor Department and the Office of the United States Trade Representative, follows a complaint by groups including the A.F.L.-C.I.O., the nation’s largest federation of unions, that workers were being denied the rights of free association and collective bargaining.The A.F.L.-C.I.O. said workers at the Tridonex plant in Matamoros, across the border from Brownsville, Texas, had been harassed and fired over their efforts to organize with an independent union in place of one controlled by the company. Tridonex is owned by Cardone Industries, an aftermarket auto-parts manufacturer based in Philadelphia.It is the second time that the United States has sought Mexican review of a labor rights matter under the United States-Mexico-Canada Agreement, which took effect last summer. The accord has a “rapid response” mechanism that provides for complaints to be brought against and for penalties to be applied to an individual factory.“This announcement demonstrates our commitment to using the tools in the agreement to stand up for workers at home and abroad,” Katherine Tai, the U.S. trade representative, said in a statement, noting that Mexico has 10 days to agree to conduct a review and, if it agrees, 45 days to remedy the situation.Last month the United States asked Mexico to review whether labor violations had occurred at a General Motors plant in the central state of Guanajuato in connection with a recent vote on a collective bargaining agreement. Mexico agreed to the request the same day. More