Connect with us

Real Estate

Canada Post union pitches low-income bank, greener tech. But critics ask, who pays the bill?

Editor

Published

on

As arbitration grinds on at Canada Post following back-to-work legislation passed in November, the union has made a series of proposals beyond standard contract negotiations on wages and benefits: they want the Crown corporation to open a new bank for low-income people and turn the post office into a hub for green technology

With one of the country’s largest vehicle fleets that could be converted from gas to electric power, 6,000 distribution outlets where electric car-charging stations for consumers could be built, and old buildings ready to be retrofitted with solar panels, the post office is well positioned to help Canada transition to a greener economy, said the union’s president.

There’s one major problem with the ambitious proposal, according to critics: Who’s going to pay for it?

Debates over how institutions should reduce their carbon footprint — and how the changes should be financed —  are playing out across the public and private sectors as leading scientists warn the world has just 12 years to drastically reduce emissions to avoid catastrophic climate change. 

“Climate change is the biggest challenge facing humanity,” Mike Palecek, president of the Canadian Union of Postal Workers (CUPW) said in an interview. “We have to address it … Canada Post is the biggest piece of federal infrastructure, it has the largest vehicle fleet in the country, it would be a good place to start.”

He couldn’t say how much the proposals would cost.

Canada Post declined to comment on demands for a postal bank and the green retrofit. “With the arbitration process now underway, it would be inappropriate to comment on specific negotiations issues,” a spokesperson told CBC News by email. “We are committed to the process and are fully engaged with the union and the arbitrator.”    

A government-appointed arbitrator is expected to announce a deal for a new contract in March, after workers on rotating strikes were legislated back to work in late November amid long delays for packages amid the Christmas delivery rush.

Banking on change

The proposed postal bank is aimed at rural residents, including First Nations, who often don’t have easy access to a bank branch, said John Anderson, researcher with the Canadian Centre for Policy Alternatives, a think-tank whose advocacy areas include reducing income inequality. It would also benefit low-income Canadians, including pensioners and the working poor who often depend on payday lenders for loans, cheque cashing and other financial services.

Popular in France, the U.K., Italy and other countries, postal banking in Canada would almost certainly be profitable, he said, citing a 2016 survey that suggested three million Canadians and about one-third of businesses would use financial services from the post office.

Management at Canada Post — including president and CEO Jessica McDonald, at the podium, and CFO Wayne Cheeseman, left — has not been receptive to demands for a green retrofit or postal banking, the union says. (Sean Kilpatrick/Canadian Press)

The post office already handles financial transactions, and the federal government runs other successful banking organizations, such as the Export Bank of Canada and Farm Credit Canada, Anderson added.

Canada’s federal pension plan even invested in China’s postal bank, he said, indicating that such plans are financially viable. 

“The federal government — through its ownership of Canada Post —  is the only body that could bring modern financial services to every community in Canada,” Anderson said. “That would be great competition for the big banks, which are profitable partially because of the high service fees they charge compared to other banks worldwide.”

Taxpayer interests

Canada Post hasn’t been receptive to demands for the green retrofit or the postal bank, according to CUPW’s president.

That’s a good thing, said Alex Whalen, vice-president of the Atlantic Institute for Market Studies, a Halifax-based think-tank that supports reducing government spending.

“I don’t think taxpayer interests would be served by those proposals,” Whalen said. “The concern has to be that there are public dollars involved.”

As a Crown corporation, Canada Post is required to be financially self-sustaining. With more than 60,000 employees, the company made a pre-tax profit of $74 million in 2017, largely due to increased parcel delivery thanks to Amazon, according to its financial statements. Investing in projects outside of its core mandate of delivering mail could jeopordize its profitability, Whalen said.

“If there were good returns in this kind of business, the private sector would already be doing it,” Whalen said of the proposed postal bank. “If the union thinks this is a great idea, are they going to be an investor in the bank?”

Pension financing?

To finance the union’s proposals, there is one obvious source of funds outside of asking taxpayers or the company: workers’ pensions.

With about $25 billion under management, stocks in the big Canadian banks and oil companies — some of the very industries the union’s proposals are trying to tackle — make up some of the largest investments for postal workers’ pensions, according to 2017 financial statements

The workers, however, have no say over how their pensions are invested, Paleck said. “We have no decision-making power whatsoever.”

Canada Post workers seen here during the last hours on the picket line in Montreal on Nov. 27, 2018, before returning to work, ordered by the government to end their rotating strike. (Ryan Remiorz/Canadian Press )

That situation isn’t unusual for Canadian workers, said Tessa Hebb, a researcher at Carleton University’s Centre for Community Innovation who specializes in responsible investing.

“Some representation from employees would be really beneficial, both for the positive components for adjusting to a low-carbon economy and also for the basic protections for workers,” from bad decisions by pension fund managers, she said.

However, she cautions against the idea of using pension funds from CUPW to finance new initiatives at Canada Post like the postal bank or green retrofit.

“You don’t want the pension funds to be constrained in investing in their own business,” Hebb said. “The legal term for that is self-dealing.”

Such moves have often hurt workers when the companies themselves face financial trouble and look to their employees’ pension funds as a source of capital, she said, citing the examples of Sears and Nortel Networks.

In the U.S., pensions under union control — or funds jointly managed by workers and management — have made a series of profitable investments in green technologies or urban renewal projects like affordable housing, she said. And there’s no reason why similar successes couldn’t be replicated in Canada. 

“Ten years ago, if you were a pension fund in California and you were an early investor in Tesla, you certainly made your money back and then some,” Hebb said. “The shift to a low-carbon economy is going to bring forward some really interesting investment opportunities.”

Source link

قالب وردپرس

Real Estate

Window repair or replacement is the responsibility of the condo corporation

Editor

Published

on

By

If the windows in your condo are hazy, drafty, or have rotting frames, it’s an indicator that they need repairs or outright replacement.

However, under the Condominium Act, it is the responsibility of the condo’s board to carry out such changes as a replaced window is a common element.

“Under the Condominium Act, a declaration may alter the maintenance or repair obligations of unit owners and the corporation but cannot make unit owners responsible for repairs to the common elements,” said Gerry Hyman is a former president of the Canadian Condominium Institute and contributor for the Star.

“A declaration for a high-rise condominium invariably provides that the unit boundary is the interior surface of windows. That means that the entire window — whether it is a single pane or a double pane — is a common element. Necessary repairs or replacement of a broken pane is the obligation of the corporation.”

According to Consumer Reports, selecting an installing windows replacement can be very overwhelming for homeowners. Therefore, if you aren’t covered by your condo’s corporation, it would be necessary to hire professional hands.

Wood, vinyl and composite windows need to be tested on how they can withstand various natural elements. For wind resistance, a window can be very tight when it’s warm but get quite cold too—especially when it begins to leak a lot.

Whatever the case may be, the bottom line remains that replacement windows can save you heating and cooling costs, but it’s best not to expect drastic savings.

Additionally, while getting a new window might help you save on your electric and gas bills, due to their expensive cost, it may take a long time to offset their cost.

Mid-last-year, the government withdraw a $377 million Green Ontario program that provided subsidy on windows to installers and repairers. Window companies had to install energy-efficient windows in order to qualify for the government subsidy that pays for up to $500 of a $1,000 to $1,500 window.

Due to the largely generous subsidies from the government under the Green Ontario program, a lot of window dealers were fully booked for months—even after the program had ended.

“We’re fine with the program ending, we just need more time to satisfy consumers,” said Jason Neal, the executive director of the Siding and Window Dealer Association of Canada, the industry group representing window dealers in a report.

According to Neal, the Progressive Conservatives acted hastily, making massive changes with no prior notice.

“No notification was given to us by anyone,” he said, noting he learned about the change through one of his dealers.

“It’s created a ripple effect.If they had just given us notice we would have pushed that down the line from the manufacturer right into the dealer right down to the consumer.”

Neal noted that he wasn’t particularly sad to see the Green Ontario program end, as it was “the worst rebate program in the history of the window industry.”

“It’s been horrible,” he said. “$500 a window has created such hysteria.”

However, despite the program ending about a year ago, numerous homeowners have been contacting window dealers consistently with concerns that they might not be able to afford replacement windows without the government’s subsidy.

“I understand their concern,” said window dealer Chris George. “I would suggest they reach out to their local representative of the government in their riding and let them know about their concerns.”

Continue Reading

Real Estate

7 Vancouver Real Estate Buying Tips

Editor

Published

on

By

The real estate market in Vancouver is turning around for good for everyone looking to purchase a home.

Previously soaring prices are now beginning to ease up, making it a perfect time for buyers—with real estate agents already getting ready for a very busy spring and summer season.

However, before splashing cash on a new property, there are some very important tips you need to know to ensure you make the most of the buyer’s market.

Here are some few expert tips that would guide you when purchasing a home in the sometimes frustration Vancouver seller’s market.

  1. Get adequate financing

It is very important that before you make the move to purchase a property, you put into careful consideration your credit score.

Normally, home buyers with lower scores use the secondary mortgage market to finance their purchase, as they’re more likely to pay a higher interest rate.However, it is advisable to get loan approval long before purchasing the house. This way, you are fully aware of how much you are able to spend—but never be tempted to borrow the maximum amount of money available.

“What’s your mortgage payment that you’re comfortable with? And take into the fact the taxes you’re going to have to pay, if it’s a strata – what the maintenance fees are, if it’s a home what type of maintenance are you going to have to pay in the future?” said Phil Moore, president of the Real Estate Board of Greater Vancouver in a report.

Always be careful of the type of loan you secure and ensure that you can comfortably afford it over a long period of time.

  1. Get a real estate agent

Buying a property without professional help is a very risky move and can be likened to choosing to represent yourself in court without a lawyer. While you might trust your negotiation skills, only realtors are permitted to present offers directly.

Therefore, it is necessary to get a professional real estate agent in the area to represent you. So, screen a few agents and select the best one who has in-depth knowledge of the markets and has a great reputation.

“They’re there to protect you. They’re there to walk you through each step of the process,” Moore said.

  1. Sign up for automated alerts

Most—if not all—realtors have access to the Vancouver real estate board’s database which is updated approximately two days before the public MLS website.

Therefore, you can request from your realtor to sign you up for automatic real-time alerts of all new listings. Doing this gives you an edge as you’re among the very first to know about new properties.

  1. Do a thorough inspection

After receiving an alert for a new listing, it is necessary to push almost immediately for an inspection from your realtor. In this current market, buyers now have time to make an inspection.

Making a quick inspection eliminates any surprises—as there could be major maintenance or repair issues that could spring up. Therefore, you can now table your offer based on the outcome of the inspection, with clauses about claiming your damage deposit back if everything isn’t as was advertised.

Additionally, if you notice that renovations were done, you need to be sure that it was permitted work and carried out appropriately. Failing to do this would ultimately lead to further cost down the line and simultaneously affect the resale value.

  1. Have a back-up plan

There’s always the possibility that everything may not go as smoothly as you’d want. From the inspection being a failureto the property not living up to your expectations—or not being able to agree on the closing date that matches with your needs.

However, a professional real estate agent will definitely help you get past all of these things. If you plan on selling the property as you buy, you can table that and make it part of the deal.

“You’ve got an option, especially in a buyer’s market: you can put in an offer subject to selling your place. So maybe you want to have a place lined up,” Moore added.

Additionally, building contingencies into your buying plan is necessary. Things such as unexpected delays in closing the deal, closing cost and moving costs that could result in added living expenses if that’s your permanent home.

  1. Don’t fall for the buyer frenzy

The Vancouver market buying frenzy that caused a serious climb in the prices a couple of years ago has ended. Thus, it is important not to get caught up in bidding wars with properties that have been deliberately under-priced—with the hope of initiating multiple offers.

“Some of the sellers have been on the market for over a year and they’re eager to sell. So what I’m saying to consumers is: you have a lot of choices, you’re in the driver’s seat, let’s go out and take a look at what’s available,” said Moore.

  1. Never be wary of multiple offers

When purchasing a property, don’t be afraid of multiple offers as you have the same opportunity as anybody else.

Typically, there are just a few offers below the asking price: a couple priced fully, and two or three above the asking price—depending on how close the fair market value is from the asking price.

Continue Reading

Real Estate

Do you know what kind of condo you’re buying?

Editor

Published

on

By

(NC) Condominiums can come in all shapes and sizes. But it’s important to know that not all condos are created equal when it comes to warranty coverage.

Whether you’re buying a condominium townhouse, loft-style two-bedroom or a high-rise studio, they are all classified as condominiums if you own your unit while at the same time share access (and the associated fees) for facilities ranging from pools and parking garages to elevators and driveways, otherwise known as common elements.

The most common types of condos are standard condominiums and common elements condominiums. The determination of how a condominium project is designated happens during the planning stage when the builder proposes the project and the municipality approves it.

When you’re in the market to buy, you need to know how your chosen condo is classified because it affects the warranty coverage under the Ontario New Home Warranties Plan Act. Standard condominiums have warranty coverage for units and common elements, but common elements condominiums only have unit coverage.

How could this affect you as the owner? If your condo complex has underground parking and, for example, there are problems with leaks or a faulty door, the condo designation will determine whether there’s warranty coverage.

If your unit is a standard condominium development, then the common elements warranty may cover the repairs. If it’s a common element condominium development, then repairs might have to be covered by the condo corporation’s insurance, which could impact your condo fees or require a special assessment on all the owners.

To avoid surprises, you should have a real estate lawyer review the Declaration and Description attached to your purchase agreement to be sure that you know the designation and boundaries of the unit you’re looking to purchase. Find more information on the types of condos and their coverage at tarion.com.

Continue Reading

Chat

Trending