November 19, 2019

TORONTO – The union representing Canadian journalists and media workers is calling on the federal Parliament to act quickly to save local news in the wake of dramatic financial losses and over 120 layoffs at Torstar, Canada’s second largest news chain.

“This is a stunning number of layoffs,” said Unifor National President Jerry Dias. “The financial situation for local news is going from bad to worse. Less journalists means less news coverage.”

Today the publisher of the Toronto Star, Star Metro’s in Alberta, Vancouver, Toronto and Halifax, and several news outlets in southern Ontario laid off 121 staff, a majority of whom are journalists. The terminations followed Torstar’s dismal third quarter losses of $41 million and suspension of its shareholder dividends.

The news company will cease print publication of its nation-wide chain of Star Metro commuter dailies by December 20, resulting in 73 of the layoffs. Thirty of the 73 Star Media staff are journalists, but 11 of those 30 jobs will be recreated under the Toronto Star.

To avoid even further layoffs, the company indicated its desire to offer a voluntary resignation package to its newsrooms at the Ontario dailies.

“We are now at the point where the new federal labour tax credit for written journalism will not even cover one year of decline in advertising revenue,” said Dias.

Unifor says the federal government must respond by immediately legislating the “Google Tax” on large foreign digital companies.

“The Liberals campaigned on this and I think you will see widespread support for that in this minority Parliament,” Dias said. “They should earmark that revenue to save local news.”

Dias also called on Justin Trudeau’s minority Liberals to close the loophole in section 19 of the Income Tax Act to end corporate write-offs for buying digital advertising on foreign internet platforms like Google, Facebook and the New York Times.

“There’s no bigger shot in the arm for Canadian media than closing the loophole,” said Dias.

TORONTO– Unifor condemns CN’s layoff speculation at a time of high revenue.

“What we have here is a massively profitable corporation causing anxiety through public layoff announcements that, if realized, could seriously threaten working conditions and health and safety of rail workers,” said Jerry Dias, Unifor National President.

Members of Unifor Council 4000 and Local 100 have received layoff notices over the past two months that add up to the reduction of just over 200 jobs.

Unifor members at CN inspect, repair and maintain rail cars, as well as perform essential work operating equipment to load containers.

“Targeting safety-sensitive labour costs in order to squeeze out a slightly higher profit margin is the wrong move. Some cuts are not worth the risk,” said Renaud Gagne, Unifor Quebec Director.

In the company’s own third quarter report, CN announced C$3,830 million in revenue, an improved operating ratio, and an eight per cent increase in operating income, to C$1,613 million.

“CN has not fallen on hard times, but the company still chose to cast uncertainty into the homes of loyal employees in order to signal to wealthy investors that higher dividends are coming down the pipe,” continued Dias.

The union remains in communication with the company to advocate for all members, and to negate the damaging effects of these unnecessary cuts.

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future