‘How are people surviving?’: Gas spike detrimental for rural mail carriers, residents
A mail carrier says her out-of-pocket costs for delivering packages along her rural route have doubled because of the steep hike in gas prices and cost of living being experienced by many Canadians.
“The stress is exhausting,” said Jennifer Henson, a Calgary mother of two boys and one of 11,000 rural and suburban mail carriers delivering letters for Canada Post across the country.
“It’s not just gas. The cost of living has skyrocketed,” Henson said. “I’m always wondering how to pay this bill and that bill and I’m no different than any working-class Canadian across the country.”
The 38-year-old said it used to cost her $60 to the fill the tank of her Ford Flex.
“Now it’s costing me $125 to fill my tank every two days, so it’s completely doubled.”
Canada Post’s rural and suburban mail carriers don’t get a red and white corporate truck and a gas card like their urban counterparts. So, along with being required to use a personal vehicle with a minimum cargo capacity of 1,415 litres, the rural carriers also cover the cost of gas, maintenance and insurance of their vehicle.
“I drive over 200 kilometres a day. We go through tires, oil change, a set of brakes a lot quicker than the average person,” Henson said,
She said the Crown corporation provides her with a $720 biweekly allowance with the help of the Canadian Revenue Agency to pay for those bills, but she said it hasn’t been enough.
“I don’t want to slam Canada Post, because if you talk to most carriers, whether they’re urban or rural, we do love our jobs. I love my route. The countryside is relaxing. I’ve met amazing people,” said Henson, who has been a carrier for 16 years.
“But Canada Post has also increased their fuel surcharge, so when you go to the post office to mail something, you’re paying more as a customer because of the fuel. That’s not trickling down to us at all.”
She also said the CRA raised carriers’ allowance by five cents a litre this year, but “a few cents isn’t doing a whole lot when a year ago gas was about $1 less.”
Statistics Canada said this week the annual inflation rate has skyrocketed to its highest level in nearly 40 years in May, fuelled by soaring gas prices.
The agency says its consumer price index in May rose 7.7 per cent compared to a year ago. It’s the largest increase since January 1983.
Food prices for nearly everything in a grocery cart also grew by 9.7 per cent compared to a year ago.
Henson said the bill at the grocery store has also been a strain on her finances.
“My oldest son is 14 years old and my youngest will be 12 years old next month. They’re growing and they eat more than most of my friends,” she said.
“When you go to the grocery store, it just blows my mind. How are people surviving?”
Anna Beale, president of the Calgary Local of the Canadian Union of Postal Workers, said Canada Post needs to increase the allowance for its rural workers.
“Canada Post is able to provide all kinds of things like Tim Hortons gift cards (to their workers),” said Beale. “Why not take that money instead and make it work somehow for rural drivers so that they can afford these gas prices?”
A spokesperson for Canada Post said in a email the mail carrier is adapting to increased costs across many of its operations.
“Fuel prices are in unprecedented territory and have impacted the entire industry,” said Phil Legault.
He said to address any additional or unforeseen expenses, rural and suburban mail carriers are entitled to a cost-of-living allowance.
“This is reviewed throughout the year and paid out as per the collective agreements,” Legault said.
“The Canadian Union of Postal Workers has requested that we discuss the matter, and we will continue to engage them on this issue.”
Along with the carriers, a vice president of the Canadian Federation of Agriculture said any spike in inflation, as well as the cost of gas and diesel, hits rural Canadians the hardest.
“We don’t have access to public transit so we certainly pay disproportionately more for fuel because we have to drive everywhere,” Keith Currie said.
This report by The Canadian Press was first published June 24, 2022.
This story was produced with the financial assistance of the Meta and Canadian Press News Fellowship.
Fakiha Baig, The Canadian Press
Canada has highest household debt level in G7: CMHC deputy chief economist
Falling Canadian loonies are pictured in Vancouver on September 22, 2011. Canada’s housing agency says the country has the highest level of household debt in the G7, making its economy vulnerable to a global economic crisis. THE CANADIAN PRESS/Jonathan Hayward
Canada’s housing agency says the country has the highest level of household debt in the G7, making its economy vulnerable to a global economic crisis.
Canada Mortgage and Housing Corporation deputy chief economist Aled ab Iorwerth says in a new analysis that the country’s household debt has been rising “inexorably.”
Household debt made up 80 per cent of the size of the economy during the 2008 recession, before it rose to 95 per cent in 2010 and exceeded its size in 2021.
Over the same period of time, household debt dropped in the U.S., U.K. and Germany and was nearly unchanged in Italy.
Ab Iorwerth says high levels of debt do most damage when a significantly negative economic event happens and leads to widespread job losses because it becomes difficult, if not impossible, for many mortgage holders to service their debt.
He says widespread job losses in an economy where debt levels are high will make any recession more severe.
This report by The Canadian Press was first published May 23, 2023.
Will Biden’s hard-hat environmentalism bridge the divide on clean energy future?
Central Maine Power utility lines are seen on Oct. 6, 2021, in Pownal, Maine. It’s one of President Joe Biden’s thorniest challenges as he pursues ambitious reductions in greenhouse gas emissions. If he can’t streamline the permitting process for power plants, transmission lines and other projects, the country is unlikely to have the infrastructure needed for a future powered by carbon-free electricity. (AP Photo/Robert F. Bukaty, File)
By Chris Megerian in Washington
WASHINGTON (AP) — When John Podesta left his job as an adviser to President Barack Obama nearly a decade ago, he was confident that hundreds of miles of new power transmission lines were coming to the Southwest, expanding the reach of clean energy throughout the region.
So Podesta was shocked to learn last year, as he reentered the federal government to work on climate issues for President Joe Biden, that the lines had never been built. They still hadn’t even received final regulatory approval.
“These things get stuck and they don’t get unstuck,” Podesta said in an interview with The Associated Press.
Podesta is now the point person for untangling one of Biden’s most vexing challenges as he pursues ambitious reductions in greenhouse gas emissions. If the president cannot streamline the permitting process for power plants, transmission lines and other projects, the country is unlikely to have the infrastructure needed for a future powered by carbon-free electricity.
The issue has become an unlikely feature of high-stakes budget talks underway between the White House and House Republicans as they try to avoid a first-ever default on the country’s debt by the end of the month.
Whether a deal on permitting can be reached in time is unclear, with Republicans looking for ways to boost oil drilling and Democrats focused on clean energy. But its mere presence on the negotiating table is a sign of how political battle lines are shifting. Although American industry and labor unions have long chafed at these kinds of regulations, some environmentalists have now grown exasperated by red tape as well.
That represents a stark change for a movement that has been more dedicated to slowing development than championing it, and it has caused unease among longtime allies even as it creates the potential for new partnerships. Still, this transformation is core to Biden’s vision of hard-hat environmentalism, which promises that shifting away from fossil fuels will generate blue-collar jobs.
“We have to start building things again in America,” Podesta said. “We got too good at stopping things, and not good enough at building things.”
What gets built, of course, is the question that’s the central hurdle for any agreement.
The issue of permitting emerged last year during negotiations with Sen. Joe Manchin, a West Virginia Democrat who was a key vote for the Inflation Reduction Act, far-reaching legislation that includes financial incentives for clean energy.
Manchin pushed a separate proposal that would make it easier to build infrastructure for renewable energy and fossil fuels. His focus has been the Mountain Valley Pipeline, which would carry natural gas through his home state.
Republicans called the legislation a “political payoff.” Liberal Democrats described it as a “dirty side deal.” Manchin’s idea stalled.
Nonetheless, Elizabeth Gore, senior vice president for political affairs at the Environmental Defense Fund, said the senator “gets a lot of credit for really elevating this.”
“It was his effort that really put this issue on the map,” she said.
Since then, the Capitol has been awash in proposals to alleviate permitting bottlenecks. House Republicans passed their own as part of budget legislation last month, aiming to increase production of oil, natural gas and coal. Sen. Tom Carper, D-Del., recently introduced another proposal geared toward clean energy.
“I think there is a path forward,” Gore said, describing all the ideas “as stepping stones.”
Neil Bradley, executive vice president of the U.S. Chamber of Commerce, was also optimistic.
“The hurdle isn’t whether people think it’s a good idea or not,” he said. “The hurdle is getting the details worked out.”
Despite broad interest in permitting changes, reaching a deal will likely involve trade-offs that are difficult for Democrats and environmentalists to stomach.
Republicans want to see more fossil fuels and, now that they control the House, no proposal will advance without their consent. But too many concessions to Republicans in the House could jeopardize support in the Democratic-controlled Senate.
Biden has frustrated environmentalists by approving Willow, an oil drilling project in an untouched swath of Alaskan wilderness. After Podesta finished a speech on permitting at a Washington think tank this month, activists rushed to block his vehicle with a white banner that said “end fossil fuels” in bold black letters.
Podesta argues that it’s impossible to immediately phase out oil and gas, and he said the status quo won’t suffice when it comes to building clean energy infrastructure. He points to federal data analyzed by the Brookings Institution that found permitting transmission lines can take seven years, while natural gas pipelines take less than half that time.
He was circumspect when asked about where the negotiations may lead.
“There is bipartisan interest in the topic,” Podesta said. “Where any of that ends, I can’t predict.”
A deal could bolster Biden’s political coalition by easing tension between between environmentalists and labor unions, which have often been frustrated by objections to projects that would lead to jobs.
“They’ve unnecessarily taken food off the table of my members,” said Sean McGarvey, president of the North America’s Building Trades Unions.
The relationship with environmentalists “could turn into an alliance depending on how this process ends,” he said, but “we’ve got to do some good business to see if we’re inviting each other for barbecues and crab picks.”
Other factions of the green movement have already expressed frustration.
Brett Hartl, government affairs director for the Center for Biological Diversity, said the administration made a mistake by allowing Manchin’s proposal to be a starting point. The White House, he said, “negotiated away the game at the beginning and put the football on the 2-yard line.”
He also criticized Podesta’s approach to permitting.
“He’s dogmatically saying that environmentalists are the problem here,” he said. “It’s easy to caricature environmental legislation as the boogeyman.”
Historians trace the American regulatory system to a backlash against massive infrastructure initiatives in the middle of the 20th century, such as the interstate highway system and a series of dams. The projects raised concerns about environmental impacts and left local communities feeling steamrolled. More fears about ecological damage were sparked by an oil spill off the coast of Santa Barbara, California, and fires on the polluted Cuyahoga River in Ohio.
The result was the National Environmental Policy Act, signed by President Richard Nixon in 1970 to require federal agencies to consider the environmental ramifications of their decisions. State-level laws, such as the California Environmental Quality Act, proliferated at the same time.
“We have a system that works for what it was designed to do,” said Christy Goldfuss, chief policy impact officer at the Natural Resource Defense Council. “What we’re looking at doing is optimizing that system for the future we need. And that’s a fundamentally different conversation than anything we’ve had before.”
“It’s an incredibly difficult shift to make for the environmental movement,” she added. “And I don’t think everybody is going to make it. Some organizations are going to continue to stand in the way of development.”
And what about that transmission lines in the Southwest that Podesta was counting on?
The goal is to span about 520 miles, carrying electricity from a series of turbines in New Mexico that’s being billed as the largest wind project in the hemisphere. The lines were rerouted to satisfy the Department of Defense, which tests weapons in the area, but local conservationists still say that natural habitats will be threatened by construction.
On Thursday, nearly two decades after the initial proposal, the federal government announced it had approved the project.
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