Seventh B.C. company from Bridgemark Group case cited by commission – Business News

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Mark Nielsen / Prince George Citizen – Jan 3, 2023 / 6:49 pm | Story: 404411

Canfor Corporation said Tuesday it is extending production curtailments at “select” B.C. sawmills for a further two weeks.

The expected restart date for the company’s Prince George Sawmill and its Plateau sawmill in Vanderhoof is now January 30 and for its Chetwynd and Houston operations, January 23.

Four-week curtailments for Prince George Sawmill and Plateau sawmill in Vanderhoof had been invoked starting December 19 while the Polar operation at Bear Lake was subjected to a three-week curtailment.

A four-week curtailment at Canfor’s Intercontinental Pulp Mill was subsequently imposed due to the lack of available economic fibre as a result of sawmill curtailments.

In a statement, the company cited “ongoing weak market conditions and the lack of available economic fibre” for the most-recent move. 

As of the week ending December 9, the price of western spruce, pine and fir stood at $390 per thousand board feet, according to Madison’s Lumber Reporter. Analysts say $500 is the break even point.

Canfor’s sawmills in Alberta were not included in the extension. 

In December, analyst Russ Taylor noted that Canfor said it anticipates the majority of its B.C. sawmills will operate below full capacity in the new year, indicating its Alberta operations will be back to running at current levels by early 2023 while those in this province will not.

He said that’s a function of the difference in the way stumpage works in the two provinces. Whereas it’s adjusted on a monthly basis in Alberta, it’s updated annually and quarterly in B.C., creating a lag effect.

As a consequence, he said Canfor made “outrageous profit” when the price of lumber was high and stumpage low, only to then endure stumpage that is too high relative to the market. 

However, Taylor doubts the system used in B.C. will be changed anytime soon.

“It’s been this way since 2004 when the whole formula was devised around the U.S. softwood lumber deal,” he said. “This formula is tied to the Americans overseeing our forest policy and our stumpage formula so, no chance.”

The curtailment will reduce production by about 21 million board feet in addition to the 150 million board feet that was part of the previous curtailment.

Canfor “will continue to adjust operating rates to align with market conditions and the available supply of economically viable timber,” the company said in the statement.

is tied to his ownership of Tesla shares, which have lost more than half of their value since he took ownership of Twitter. He has sold nearly $23 billion worth of the electric vehicle company’s stock to fund the purchase since April, when he started building a position in Twitter. He’s even lost the top spot for the world’s wealthiest person, according to Forbes.

Musk defended his extreme cost cutting measures last month in a late night Twitter Spaces call.

“This company is like, basically, you’re in a plane that is headed towards the ground at high speed with the engines on fire and the controls don’t work,” Musk said on Dec. 21.

The company’s headquarters are located at another San Francisco address, 1355 Market St., where Twitter has also reportedly fallen behind on rent, according to The New York Times.

In addition to not paying rent and laying off workers, Musk’s Twitter is also auctioning off high-end office furniture, kitchen equipment and other relics the past, when Twitter had over 7,500 full-time workers around the world, and free lunch and other office perks were common. Some three-quarters of Twitter’s employee base are expected to have left the company, either because they were laid off, fired or quit.

Among the items Twitter is auctioning off are a pizza oven, 40-quart commercial kitchen floor mixer (retails for around $18,000; bidding starts at $25), high-end designer furniture such as Eames chairs from Herman Miller and Knoll Diamond chairs that retail in the thousands.

Even a Twitter bird statue (bidding starts at $25) and a neon Twitter bird light display (bidding starts at $50) are up for grabs in this fire sale-style auction reminiscent of the dot-com bust of the early 2000s when failed tech startups were selling off their decadent office wares.

its $68.7 billion acquisition of another big game company, Activision Blizzard.

Microsoft bought ZeniMax for $7.5 billion in 2021, giving the Xbox-maker control of ZeniMax’s well-known game publishing division Bethesda Softworks and popular game franchises such as The Elder Scrolls, Doom and Fallout.

Senior game tester Wayne Dayberry said in an interview with The Associated Press that the unionization campaign began before Microsoft took over and reflected workplace concerns that are common at video game companies.

“Throughout the industry, the quality assurance departments are treated poorly, paid very little, and treated as replaceable cogs,” said Dayberry, who has worked for five years at ZeniMax’s Rockville, Maryland headquarters on games such as Fallout, Prey and The Evil Within.

“There’s not a lot of dignity involved in it,” he said. “That’s something we’re hoping to show people in the industry who are in like situations, that if we can do it, they can do it as well.”

The unionization campaign accelerated thanks to Microsoft’s ongoing bid to buy California-based game giant Activision Blizzard. Microsoft, which is based in Redmond, Washington, made a June pact with the CWA union to stay neutral if Activision Blizzard workers sought to form a union.

The worker-friendly pledge sought to appeal to U.S. regulator concerns under President Joe Biden about the labor implications of massive business mergers, though it didn’t stop the Federal Trade Commission from suing last month to block Microsoft’s planned Activision Blizzard acquisition. The antitrust case had its first hearing Tuesday and could drag on for months.

Two small units of Activision Blizzard workers were the first to certify unions last year in Middleton, Wisconsin and Albany, New York. A third, Boston-based Activision Blizzard subsidiary Proletariat, filed a Dec. 27 petition with the National Labor Relations Board to unionize its 57 workers.

Microsoft’s legally binding neutrality agreement specifically applied to Activision Blizzard workers after the closing of the merger. But it also reflects Microsoft’s broader principles on handling unionization, which is still uncommon in the tech and gaming industries.

Dayberry said Microsoft’s neutrality promise gave workers confidence that there wouldn’t be any “retaliation or union-busting, which there has been none of.”

Microsoft’s green light allowed the ZeniMax union certification to go through a third-party arbitrator rather than the lengthier process typically overseen by the NLRB. A weekslong election period ended on Dec. 31 and was formally certified Tuesday. Microsoft said in a statement that it recognizes the union.

“They have definitely stood by their word all along,” said CWA spokesperson Beth Allen. “It’s pretty momentous. Microsoft is an outlier in the way tech companies have been behaving.”

The unionizing workers are based in Hunt Valley and Rockville, Maryland, as well as the Texas cities of Austin and Dallas.

diverting massive sums of customer money from FTX to make lavish real estate purchases, donate money to politicians and make risky trades at Alameda Research, his cryptocurrency hedge fund trading firm.

He is expected to plead not guilty before Judge Lewis A. Kaplan before the judge and lawyers discuss a schedule for proceeding toward a trial.

Carolyn Ellison, 28, who ran Alameda, and Gary Wang, 29, who co-founded FTX, have pleaded guilty to fraud charges and are cooperating with prosecutors in a bid for leniency. Both are free on bail.

Their pleas were kept secret until Bankman-Fried was in the air after his extradition from the Bahamas, where FTX is based, due to fears that he might flee.

Bankman-Fried, 30, was released from custody on a $250 million personal recognizance bond with electronic monitoring about two weeks ago on the condition that he await trial at his parents’ house in Palo Alto, California.

expanded beyond audio and video to include automotive, digital health, smart phones, wearables and other technologies.

Companies and startups will showcase innovations in virtual reality, robotics and consumer tech items to the media and others in the tech industry. The show is not open to the general public.

Organizers say their goal is to draw 100,000 attendees. That would be a marked contrast with the look and feel of the past two shows — the last of which saw a 70% drop in in-person attendance amid the spread of the Omicron variant. The one before that was held virtually, replacing in-person displays and meet and greets with video streams and chats.

Even if organizers reach their goal, it would still represent a 41% dip in attendance compared to the in-person show held in early 2020, before the pandemic consumed much of everyday life.

Kinsey Fabrizio, senior vice president at the trade group Consumer Technology Association, said roughly 3,000 companies have signed up to attend the event.

They include many startups and routine visitors like Amazon and Facebook parent Meta, both of which have recently cut jobs and implemented hiring freezes after beefing up their staff during the pandemic. Other tech companies have also been tightening their belts and laying off workers amid concerns about the economic environment.

The Associated Press spoke with Fabrizio about CES and what consumers should expect at the show. The conversation has been edited for clarity and length.

Q: The tech industry has been going through a rough time in the past few months. How do you expect that to impact the show?

A: Yeah, for the last two years, the tech industry was booming. We’re seeing a recalibration now and as part of the recalibration, there are layoffs. But in terms of CES, the companies are coming big. And they’re going to be showcasing some of these solutions that were critical during the pandemic, and a lot of the solutions that have continued to change the way consumers live and behave. The momentum and excitement we’re seeing for the show hasn’t been impacted.

Q: Are most of the exhibitors startups?

A: We have a lot of startups and new companies. Over 1,000 new exhibitors for CES this year, which is on par with prior years. There will be some repeat customers in Eureka Park, where our startups are primarily stationed. They can be there for up to two years. But we will also have a lot of companies who’ve been at CES for a while.

Q: The theme for the show is human security. How did you land on that?

A: We were approached by The World Academy of Art and Science, which has been working with the United Nations for a long time on human security. You can think of it as basic human rights — access to food, health care, etc. And they wanted CES to really use this theme because our exhibitors are showcasing how they’re solving some of these big global challenges with technology.

Q: Historically, CES has been more focused on convenience and personal tech. So this is going to be a shift.

A: This is the shift. We’ve talked about how tech solves challenges in the world. But we’ve never had a theme at CES before. It’s always been about innovation and great products for the consumer. But for this show, you will be able to see the theme on the show floor and other places. For example, John Deere is showcasing some of their agricultural technology that really contributes to sustainability and access to food. Another company created a secure voting technology on the blockchain, which aligns with the U.N. theme of political security.

Q: The metaverse is going to be another big topic. A lot of companies are investing in it. What can visitors expect to see at the show?

A: The metaverse is a key theme. We’ll have a dedicated part of the show floor for Web3 technology. There’s also going to be shared and immersive virtual experiences. Automaker Stellantis and Microsoft have a partnership to create a showroom in the metaverse. There’s a company called OVR that has created a solution where you can smell in the metaverse. People are talking about unique ways to reach their customers, and different experiences people can have there. So that will be a big theme among both big and small exhibitors.

the U.S.-made Switchblade 600 and the Polish Warmate, which both currently require a human to choose targets over a live video feed. AI finishes the job. The drones, technically known as “loitering munitions,” can hover for minutes over a target, awaiting a clean shot.

“The technology to achieve a fully autonomous mission with Switchblade pretty much exists today,” said Wahid Nawabi, CEO of AeroVironment, its maker. That will require a policy change — to remove the human from the decision-making loop — that he estimates is three years away.

Drones can already recognize targets such as armored vehicles using cataloged images. But there is disagreement over whether the technology is reliable enough to ensure that the machines don’t err and take the lives of noncombatants.

The AP asked the defense ministries of Ukraine and Russia if they have used autonomous weapons offensively – and whether they would agree not to use them if the other side similarly agreed. Neither responded.

If either side were to go on the attack with full AI, it might not even be a first.

An inconclusive U.N. report last year suggested that killer robots debuted in Libya’s internecine conflict in 2020, when Turkish-made Kargu-2 drones in full-automatic mode killed an unspecified number of combatants.

A spokesman for STM, the manufacturer, said the report was based on “speculative, unverified” information and “should not be taken seriously.” He told the AP the Kargu-2 cannot attack a target until the operator tells it to do so.

Honchar believes Russia, whose attacks on Ukrainian civilians have shown little regard for international law, would have used killer autonomous drones by now if the Kremlin had them.

“I don’t think they’d have any scruples,” agreed Adam Bartosiewicz, vice president of WB Group, which makes the Warmate.

AI is a priority for Russia. President Vladimir Putin said in 2017 that whoever dominates that technology will rule the world. In a Dec. 21 speech, he expressed confidence in the Russian arms industry’s ability to embed AI in war machines, stressing that “the most effective weapons systems are those that operate quickly and practically in an automatic mode.” Russian officials already claim their Lancet drone can operate with full autonomy.

An effort to lay international ground rules for military drones has so far been fruitless. Nine years of informal United Nations talks in Geneva made little headway, with major powers including the United States and Russia opposing a ban. The last session, in December, ended with no new round scheduled.

Toby Walsh, an Australian academic who campaigns against killer robots, hopes to achieve a consensus on some limits, including a ban on systems that use facial recognition and other data to identify or attack individuals or categories of people.

“If we are not careful, they are going to proliferate much more easily than nuclear weapons,” said Walsh, author of “Machines Behaving Badly.” “If you can get a robot to kill one person, you can get it to kill a thousand.”

The global public is concerned. An Ipsos survey done for Human Rights Watch in 2019 found that 61% of adults across 26 countries oppose the use of lethal autonomous weapons systems.

Multiple countries, and every branch of the U.S. military, are developing drones that can attack in deadly synchronized swarms, according to Zachary Kallenborn, a George Mason University weapons innovation analyst.

So will future wars become a fight to the last drone?

That’s what Putin predicted in a 2017 televised chat with engineering students: “When one party’s drones are destroyed by drones of another, it will have no other choice but to surrender.”

The Canadian Press – Jan 3, 2023 / 6:00 am | Story: 404273

Canada’s 100 highest-paid CEOs made an average of $14.3 million in 2021, smashing the previous record of $11.8 million set in 2018, according to the Canadian Centre for Policy Alternatives.

Report author and CCPA senior economist David Macdonald said that the 100 CEOS, who are mostly men, made 243 times the average Canadian worker in 2021, again beating 2018’s record of 227 times.

Most of the money these CEOs made was not from their salary, but from so-called variable compensation, which includes bonuses, stock options and shares. That ratio has been climbing over the years, with 83 per cent of CEOs’ total pay in 2021 made up of variable compensation compared with 69 per cent in 2008, according to the report.

“The last two years really exemplify everything that’s wrong with CEO pay,” said Macdonald, calling it a “pay-for-luck scheme.”

Variable compensation is intended to be tied to company performance, he said, but the pandemic showed that’s not always the case.

When companies fall on hard economic times, like during 2020, they often tweak compensation rules to ensure executive pay doesn’t suffer too much, he said; and when companies do well, like during high inflation, executives rake it in.

“In 2020, you have half of the CEOs on the list receiving government support, and/or changing their bonus formulas to exclude the negative impact of the pandemic on their pay,” he said. “And then the following year is record inflation, which drives record profits, which drives record CEO compensation.”

“They’re cushioned from the bad, but when things are good, then the sky’s the limit.”

The CEO pay trends of 2021 are likely to have continued into 2022 as they were driven by historically high profits and historically high inflation, said Macdonald, which of course continued over the past year despite the Bank of Canada’s efforts to quell inflation with — again, historic — interest rate hikes.

“It’s unlikely that we’ll go back to the level that we saw pre-pandemic, it’s likely they’ll continue at much higher pay levels in 2022,” he said.

“Inflation is bad for households. It’s bad for workers, generally. But it’s been great for the corporate sector, and it’s been great for CEO pay.”

The report offers four policy proposals for governments, with one being the introduction of a wealth tax and another being the implementation of higher top marginal tax brackets. There’s also a suggested limit on the corporate deductibility of compensation over $1 million, which Macdonald said could yield almost $200 million in federal corporate income tax revenue; and a proposal to raise the capital gains inclusion rate to 100 per cent, which would mean taxing capital gains like regular employment income, while currently only 50 per cent of capital gains are considered income for tax purposes.

Previous reports had recommended getting rid of the so-called stock option deduction, where people receiving stock options as compensation would only pay tax on 50 per cent of the value of the stock options. In July 2021, a new law came into effect capping that deduction at $200,000 worth of shares, though Macdonald said it could take a few years to see the impact of this change.

Macdonald said he thinks critical services like long-term care or health care could be better funded with more tax revenue from the highest earners in the country.

The highest-paid CEOs “boys’ club” continued in 2021, noted Macdonald, with more men named Mark on the top 100 list (four) than there were women (three).

The highest-paid CEO in 2021 was Nuvei chair and CEO Philip Fayer, who made almost $141 million in 2021 despite having an annual salary under a million dollars. The number-two spot was held by GFL Environmental Inc. president and CEO Patrick Dovigi, who made more than $43 million in 2021.

The list’s floor has been rising as average CEO pay gets higher, said Macdonald; this year the lowest-paid CEO on the list was Cameco Corp.’s Tim Gitzel, at $6.7 million.

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